CONTENTS
About the Report01About GCL SI2023 Sustainability Performance07Sustainability Strategy andGovernance
Board Statement15
Appendix
United Nations Global Compact107Key Performance Table
GRI Standards IndexFeedback109
Technologies to DecarbonizationDigital Carbon Chain Management andIntelligent ManufacturingChanges to ChallengesAn Introduction to GCL SI's Manufacturing Basesof Cells and Modules
Annual Feature
N
ature
Nature
Responding to Climate Change
Water Stewardship
Energy Management andRenewable Energy Utilization39Emissions and Waste
Management
Environmental Compliance andEcological Protection
E
quity
Equity
X
cellence
E
Excellence
T
rust
Trust
Labor Rights Protection
Innovation-driven
Customer Service
Diversity, Equity and Inclusion
Employee Training andDevelopment
Industrial Cooperationand Exchange81Information Security and
Privacy Protection
Product Responsibility84
Corporate Governance
Business Ethics
Risk Management95Responsible Supply Chain102Anti-bribery and Corruption97
Occupational Health and Safety
Community Contribution71
0102
About the Report2023 Sustainability Report (hereinafter referred to as "the Report”) constitutes the third Sustainability/Environmental, Social,and Governance (ESG) report issued by GCL System Integration Technology Co., Ltd. (hereinafter referred to as "GCL SI”, "theCompany”, or "we”), aiming to disclose and showcase the Company's progress in sustainable development to our stakeholders.The Report is published on an annual basis, aligning with the fiscal year. The reporting period is from January 1, 2023, toDecember 31, 2023 (hereinafter referred to as the "Reporting Period”) and provides a detailed account of GCL SI's commitments,actions, and performance in economic and ESG domains during this timeframe. To reflect consistency, comparability andcompleteness, contents of the Report refer back to previous years or cover the year 2024 as appropriate.
Reporting Standards and Guidelines
The Report complies with the requirements of Shenzhen Stock Exchange Guidance on Standardized Operation of CompaniesListed in Shenzhen Stock Exchange. In addition, the Report refers to the latest Global Sustainability Standards CommitteeSustainable Development Reporting Standards (GRI Standards, hereinafter referred to as "GRI”) of Global SustainabilityStandards Board and the reporting disclosure requirements of Sustainable Development Goals (SDGs) Enterprise ActionGuidance.
Report Reliability AssuranceThe Company and the Board of Directors of GCL System Integration Technology Co., Ltd. jointly commit that there are no falserecords, misleading statements, or material omissions in the content of the Report. We are fully responsible for the authenticity,accuracy, and completeness of the information contained herein.
Format of Report ReleaseThe online version of the Report is accessible on the official website of GCL System Integration Technology Co., Ltd.(https://www.gclsi.com) and the CNINFO website(http://www.cninfo.com.cn).
Data SourcesThe data utilized in the Report originates from various sources, including raw operational data from the Company, internalstatistical reports, annual financial data, publicly available data from government agencies, third-party questionnaire surveys,or interviews. Financial data presented in the Report is denominated in RMB. In instances where discrepancies arise betweenfinancial data in the Report and that in our financial statements, the latter shall prevail.
Description Guidelines
For ease of reference and readability, the following table presents the full names and corresponding abbreviations of affiliatedcompanies in the Report:
Full Name of Affiliated CompanyAbbreviation
Hefei GCL System Integration New Energy Technology Co., Ltd.Hefei GCL SI
Funing GCL System Integration Technology Co., Ltd.Funing GCL SIWuhu GCL System Integration New Energy Technology Co., Ltd.Wuhu GCL SI
Xuzhou Xinyu PV Technology Co., Ltd.Xuzhou XinyuGCL Green Energy System Technology Co., Ltd.GCL Green EnergyGCL Energy Storage Technology (Suzhou) Co., Ltd.GCL Energy Storage
GCL Energy Engineering Co., Ltd.GCL Energy EngineeringScope of the ReportThe organizational scope of the Report encompasses the listed entity of GCL SI. In cases where the specific data scope deviatesfrom the reporting scope, such distinctions will be explicitly stated in the text.
2023 Sustainability ReportAbout the ReportAbout GCL SIBoard StatementSustainability Strategy and GovernanceAnnual FeatureNatureEquityTrust EXcellenceAppendix
0304
About GCL SI
Company Overview
GCL System Integration Technology Co., Ltd. (002506. SZ) strives to be the world's leading provider of one-stop smart opticalstorage services. Adhering to the concept of "bringing green power to life”, we fully integrate low-carbon development intobusiness operations in the renewable energy sector which we are devoted to. We are primarily engaged in the R&D, design,production, sales and one-stop services of high-efficiency photovoltaic (PV) cells and modules, Engineering ProcurementConstruction (EPC), integrated energy storage systems and related products.In 2023, GCL SI was committed to driving innovative corporate development with clean energy technologies and embarked on thejourney to sustainable development under the strategic guidance of technological, digital and green GSL SI.
Corporate Culture
Vision
Mission
Focus on green development and continuously improve theliving environment for human beingsBecome a respected global leader in newenergy and clean energy
Value
Value-led, Innovation-driven,Arduous,Collaborative
Culture
Concise, Efficient, Disciplined, Dynamic
Corporate Spirit
Entrepreneurship, Innovation, Competition,Transcendence
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0506
Company History
2015
? GCL Group joined hands with China Great Wall Asset ManagementCo., Ltd., to reorganize Shanghai Chaori Solar Energy Science &Technology Co., Ltd. (*ST Chaori) After the reorganization, *ST Chaoriwas renamed as "GCL System Integration Technology Co., Ltd."andresumed trading under the stock code of 002506.? Through significant asset restructuring, GCL SI acquired modulemanufacturers of Jiangsu Dongsheng and Zhangjiagang Integration.
2022
? GCL SI took an all-out effort to upgrade the capacity structure of large-sized modules. The firstphase of Hefei GCL SI Module Base - 15GW project achieved full production capacity.? Funing GCL SI was awarded the title of "National Green Factory”.? The strategy of GCL Energy Engineering was adjusted, transforming and upgrading to aoperation model of multi-format system integration services, including Source-Grid-Load-Storage integration and energy storage.
2020
? GCL SI optimized the capacity layout by
investing in the development of 60GW modulesand the construction of supporting industrialbases in Hefei. The Company satisfied bothmainstream and emerging market demandsfor large-sized PV modules with centralized,professional and automated operations on anultra large scale.
2021? GCL SI launched 182mm and 210mm series oflarge-sized modules, with product performanceenhanced.? GCL SI was actively engaged in the"PV+"business expansion, and launched thenew-type product of PV and thermal hybridmodules (PVT).
1990
? GCL Group was established.
2023
? GCL SI accelerated the layout of high-end production capacity. Wuhu GCL SI 20GW high-efficiency N-type
TOPCon (Tunnel Oxide Passivated Contact) cell project (the first phase of 10GW) and Funing GCL SI 12GWhigh-efficiency PV module project reached full capacity.? GCL SI joined the United Nations Global Compact (UNGC).? GCL SI was awarded the Certification of IEC61730: 2023 New Standard by T?V Rheinland.? GCL SI was rated at A Grade in Wind ESG Rating.
2016
? GCL SI actively explored the overseas market andaccelerated globalization efforts by establishing branchesin 5 countries and regions, including Japan, India, NorthAmerica and Australia, and representative offices in 7countries and regions, including Thailand, the Middle East,South Africa and North Africa.
2017
? GCL SI enhanced the production capacity of high-efficiency cells. Specifically, the wholly-ownedsubsidiary, Xuzhou Xinyu, achieved a productioncapacity of 2GW, providing strategic support forthe Company's differentiated products.
2018
? The going-global strategy facilitated our business presencein more than 40 countries and regions worldwide, showingremarkable success.? GCL SI partnered with Alibaba Cloud to build the first large-scale customized PV module workshop based on the bigdata platform "Cloud Intelligence"in the industry, integratinginformation technologies such as the Internet and the Internetof Things into the production process of PV cell modules.
2019? The EPC business of GCL EnergyEngineering gained strongmomentum, making a breakthroughin the growth of the overseas EPCbusiness.
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2023 Sustainability Performance
2023 Wind ESG Rating
2023 Outstanding ESG Practice Cases
The 17th (2023) Crystal Ball Awards
Dual-carbon Pioneer
of the Year
Most Socially Responsible(ESG) Listed Company
A Grade
Wind
2023 Listed Companies
ESG Pioneer Case
Securities Daily
NetEase Economic
Weekly on Stocks
Taihu Lake Green Excellence Award
Gold Award
Committee of the Chinese Renewable Energy
Conference & Exhibition
Economic
Basic earnings per share
RMB/share
0.027
Renewable energy-relatedrevenue as a percentage oftotal reveue
100%
Revenue
Increased by
91.15%
compared to 2022
Increased by
80.83%
compared to 2022
Increased by
142.24%
compared to 2022
Increased by
145.45%
compared to 2022
RMB
15,967.61
millionRMB
146.40
millionRMB
157.72
millionR&D expenses
Number of employees
Average training hoursper employeeTotal Recordable IncidentRateProportion of new suppliers obtainedthe ISO 14001 EnvironmentalManagement System CertificationProportion of new suppliers obtainedthe ISO 9001 Quality ManagementSystem CertificationHefei GCL SI, Funing GCL SI, and Xuzhou Xinyuall obtained theISO 45001OccupationalHealth and Safety Management SystemCertification.Funing GCL SI has been certified with the SocialAccountability 8000 International Standard
(SA8000)
hours
Number of minorityemployeesIncreased
2,736
compared to 2022
Increased
compared to 2022Increased
hourscompared to 2022
Net income attributable toshareholders
Environmental
Production-based electricityconsumption intensityProduction-based GHG emissionintensity (market-based)
Hefei GCL SI, Funing GCL SI, and XuzhouXinyu factories all obtained theISO 14001
Environmental Management System CertificationHefei GCL SI, Funing GCL SI factories obtainedthe
ISO 50001
Energy Management SystemCertification
Non-hazardouswaste recycling rate
Production-based waterconsumption intensity
MWh/MW
tCO
e/MW
tonnes/MW
25.38
13.4199.93%
88.35
Governance
33.33%
100%4
100%
Social
6,25688
0.14
92%95%
Proportion ofindependent directorsBusiness ethics trainingcoverage rate
Business ethics auditprojects completed projects
Anti-corruption trainingcoverage rate
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Sustainability Strategy and Governance
Sustainability StrategyGCL SI not only injects powerful impetus into the global energy transition but also attaches great importance to the clean energytransition of the Company's own manufacturing and operational processes, striving to minimize the environmental footprintacross the Company's operations and value chain. We utilize the power of digital technology to implement the guiding principleof "Carbon Emissions Reduction with Technologies”, leveraging innovation to drive deep decarbonization and reshape theharmonious coexistence between society, economy, and environment. Meanwhile, the PV industry evolves rapidly, necessitatingthat we cultivate an aptitude for "Responses to Changes,"agilely responding to shifting market demands and vigorouslypromoting high-quality upgrades in our production capacity structure to enhance the Company's core competitiveness.
In 2023, GCL SI developed the NEXT sustainable development strategy framework. With a vision of "Building a PV ecosystem withadhering to sustainability in both business development and social development”. We actively collaborate with all stakeholdersto build a harmonious solar ecosystem. Integrating our business development strategy, key national strategic plans, and theUnited Nations Sustainable Development Goals, we have established four strategic pillars: Nature, Equity, Excellence, andTrust—anticipating a low-carbon and sustainable future that we will collectively bring to fruition.
Actively respond to climate change, enhance water managementef?ciency and protect the ecosystem for green development
Response to Climate ChangeEnergy Efficiency and RenewableEnergy ManagementEnvironmental Compliance andEcological Protection
Water StewardshipEmissions and WasteManagement
Create a diversi?ed, inclusive, safe and healthy workplace, activelyful?ll social responsibilities, create and share sustainable value
Labor Rights ProtectionDiversity, Equity and InclusionEmployee Training andDevelopment
Occupational Health andSafetyCommunity Contribution
Adhere to technology-driven innovation, optimize product andservice quality to meet customers’ demands and enhance theirsatisfaction, and fuel global transition to greener energy
Innovation-drivenIndustrial Cooperation andExchangeProduct Responsibility
Customer ServiceInformation Security andPrivacy Protection
Uphold the concept of mutual trust, optimize corporate governance,adhere to business ethics, build a responsible supply chain, and createa foundation for honest, transparent and stable managementCorporate GovernanceRisk ManagementAnti-bribery and Corruption
Business EthicsResponsible Supply Chain
生态保护
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In August 2023, GCL SI joined the UNGC, committing to 10 principles including human rights, labor, environment and anti-corruption. From our initial commitment to joining the initiative, we will persistently advance the sustainability agenda,thereby strengthening our competitiveness in the global market. Simultaneously, we will make contributions to clean energydevelopment and the global transition to net-zero emissions.
GCL SI officially joined the UNGC
Sustainability Governance
Integrating sustainability concepts into corporate governance, GCL SI has established a three tiered governance structure-"governance - management - execution”. The Company included sustainable development into the responsibility scope of theStrategy Committee under the Board of Directors ("the Board”) and renamed it as the "Strategy and Sustainability Committee”,responsible for monitoring and framing the Company's overall sustainability and climate strategy, objectives and related majorissues. Under the Committee, the Company had also established the Sustainability Management Committee, the SustainabilityPromotion Office and the Sustainability Working Groups at the management level. The Company's business divisions andfunctional departments operate at the executive level, holding responsibility for the precise execution of ESG matters and theattainment of associated goal.
Board of Directors
Business Division and Functional Departments
Strategy and Sustainability CommitteeSupervise and manage the Company's overall sustainability-related affairsas the highest governing body for sustainable development of the Company? Define and oversee the Company's overall strategic approaches and significant
milestones in sustainable development? Conduct research and provide recommendations on the Company's majorinvestment and financing plans, significant capital operations and assetmanagement projects? Review and approve sustainable development strategies, targets and policies on
key issues? Review and make recommendations on the Sustainability Management
Committee's report on the Company's ESG risk management, performance and
progress towards achieving goals? Review and approve the Company's ESG materiality analysis results and Annual
Sustainability ReportSustainability Management Committee? Guide and review the formulation of sustainability-related visions, targets,
strategies and frameworks? Review the Company's annual management plans and targets for sustainable
development? Oversee the Company's ESG risk management and progress of sustainability
targets? Review the Company's ESG materiality analysis results, related policies and Annual
Sustainability ReportSustainability Promotion Office? Coordinate the Sustainability Working Groups to advance daily sustainability work? Identify and prioritize material ESG issues and review main trends, risks and
opportunities related to sustainable development; Advise on sustainability
strategies, annual management plans and targets to the Sustainability Management
Committee? Monitor and guarantee the efficiency and timeliness of the ESG-related risk
management systemSustainability Working Groups
? Organize and coordinate business divisions and functional departments to launch
sustainability activities? Track and monitor the implementation of sustainable targets and related initiatives
Board of Directors
Sustainability Management Committee
SustainabilityWorking Groups
Audit Committee
? In accordance with the Company's sustainable development strategy, each business
division, functional department, and working group is tasked with advancing andexecuting sustainable development initiatives.? Coordinate departmental resources to implement ESG tasks related to thedepartment; communicate and cooperate with other departmental representativeson ESG projects? Departmental representatives participate in regular cross-departmental ESG
meetings to understand departmental objectives and develop work plans? Regularly report work progress to the Sustainability Working Groups
Compensation Committee
GovernanceManagementExecutionNomination Committee
Climate ActionWorking GroupSustainable SupplyChain Working GroupSustainable DisclosureWorking Group
Strategy and Sustainability Committee
Sustainability
Promotion
Office
Business Divisions and Functional
Departments
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Stakeholder Communication
GCL SI maintains ongoing communication with stakeholders in order to stay updated with their expectations and regularlyexchange opinions on fulfilling such expectations. During the Reporting Period, we identified 11 types of stakeholdersconsidering the Company's characteristics and industry trends, including employees, shareholders, investors, suppliers,customers, partners, non-government organizations, governments and regulators, communities, media and financialinstitutions. Among them, employees, customers, suppliers, shareholders, investors, governments and regulators constitutedour key stakeholders.
Employees
Customers
Suppliers
Shareholdersand investors
Governmentsand regulators
? Anti-corruption and business ethics? Intellectual property rights protection? Employees' rights and interests andsatisfaction? Customer service and satisfaction? Occupational health and safety? Product quality management? Technology and product innovation? Customer service and satisfaction? Employee training and development? Compliant operations? Risk management? Technology and product innovation? Customer and service satisfaction? Compliant operations? Intellectual property rights protection? Product quality management? Technology and product innovation? Risk management? Compliant operations? Customer service and satisfaction
? Product quality management? Technology and product innovation? Climate risk management? Green supply chain
? Trade union/Workers' congress? Employee training? Employee activities? Contracts? Employee benefits? Daily operations and interactions? Hotline service? Customer satisfaction surveys? Quality complaint management? Information security and privacy
protection? Supplier empowerment? Supplier assessment? Green supply chain
? Shareholders' meeting? Information disclosure? Press releases and announcements? Reasonable profit distribution? Investor interaction channels? Intellectual property management system? Investor on-site interviews? Institutional review? Official correspondence? Policy implementation? Information disclosure? Compliance with laws and regulations
Engagement with Key Stakeholders and Our Responses
Key StakeholdersIssues of ConcernResponses and Actions
The Company believes that sustainable development lies in satisfying and transcending expectations and needs of all keystakeholders. Material issues exert a significant impact on the Company's ESG and financial performance. They may alsoinfluence the assessments and decisions of both internal and external stakeholders. In 2023, the Company took a comprehensivereview on material ESG issues and assessed their priority. The process of materiality assessment was as follows:
Stakeholder surveys and materiality assessment are conducted on a regular basis to align with current sustainability-related trends and corporate business development. In 2023, we assessed the importance of 22 issues and collected 178 validquestionnaires. Based on the survey results, we drew up the materiality matrix (as shown below) and identified 16 materialissues of high importance. All of the 16 material issues of high importance are addressed in the Report.
We listed material issues in an all-round manner considering internationalsustainability standards andframeworks (e.g., GRI and UN SDGs),stakeholder perspectives and insights,peer benchmark for sustainabilityperformance, and analysis of ESGtrends and industry developments.
The approved material issues of highimportance serve as an importantbasis for developing the Company'ssustainability strategies and targets,and disclosure routines in sustainabilityreporting and other sustainabilityrelated communication channels.
Stakeholders assessed each issuefrom two aspects of "the importance tothe Company's financial and businessdevelopment"and "the impact onthe environment and society”. Afterdiscussions by experts and internalmanagement staff on the assessmentresults, GCL SI formulated a materialitymatrix accordingly. Board membersand senior management approved thematrix after discussions and reviews.
IdentificationPrioritizationImplementation
2023 GCL SI Material Issues Matrix
Environmental and social impacts
Impact on the financial and business development of GCL SI
Issue of high importanceHigh
HighLow
Energy Efficiency andCarbon Management
Innovation-drivenProduct ResponsibilityOccupational Healthand Safety
Customer ServiceBusiness EthicsRisk ManagementCorporate GovernanceEmployee Training andDevelopmentInformation Security andPrivacy ProtectionPromoting the Industry
Waste ManagementCommunity ContributionClimate Risk Management
Labor Rights ProtectionDiversity, Equity andInclusion
ResponsibleSupply Chain
SocialEnvironmentGovernance
Product ResponsibilityCustomer ServiceEnergy Efficiency andCarbon ManagementCreating Green andLow Carbon Products
Water StewardshipEmployee Trainingand DevelopmentRisk ManagementBusiness Ethics
Anti-bribery andCorruption
Diversity, Equity andInclusionLabor Rights ProtectionGreen Supply Chain
Innovation-drivenResponsible SupplyChainOccupational Healthand Safety
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Creating Green and LowCarbon ProductsWater StewardshipGreen Supply Chain
Anti-bribery and Corruption
1516
Board Statement
The Board of GCL SI regards sustainable development as the cornerstone for operational and strategic decision-making. Welook forward to shaping a sustainability governance structure that is resilient to change and attentive to key external and internalstakeholders. In doing so, we demonstrate GCL SI's long-lasting commitment as a responsible enterprise.The Board is the highest governing body responsible for supervising ESG-related affairs. In 2024, we include ESG managementinto the responsibility scope of the Strategy Committee under the Board and renamed it as the "Strategy and SustainabilityCommittee”. The Committee reviews and approves ESG and sustainability-related strategies, policies and targets consideringindustry insights, corporate operational practices and stakeholders' expectations. The Board is also actively involved inESG training to enhance ESG governance and trend-setting capabilities, so as to undertake responsibilities for sustainabledevelopment more effectively.We continue to optimize our ESG governance and regularly review our ESG performance. Moreover, we monitor the progress ofESG targets and the implementation of initiatives in key areas such as climate change and carbon emissions management, watermanagement, human capital development, occupational health and safety, anti-corruption and business ethics, and sustainablesupply chain. We phase in the integration of key ESG performance indicators into remuneration assessment, thus motivating themanagement and employees to advance ESG efforts.
1515
Additionally, the Company has established the Sustainability Management Committee and the Sustainability Promotion Office.The Committee oversees the implementation of sustainability strategies, regularly reviews the progress of ESG-related events,and enhances the Company's performance on this front.The Board is committed to maintaining transparent, open, timely and efficient communication with stakeholders. Afteridentifying material ESG issues, the Company has conducted a materiality assessment based on stakeholder surveys andinterviews. The Board has also discussed and approved the result of issue prioritization and the materiality matrix in order toclarify ESG strategies and governance approaches.The Report is a detailed and honest disclosure of the progress and effectiveness of our ESG performance in 2023, and wasdeliberated and approved by the Board on 24 April 2024. Looking ahead, GCL SI will make every effort to promote ESGperformance, enhance the transparency of information disclosure, and push forward the progress of sustainable development.
1616
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As a key player in the global renewable energy industry, GCL SI upholds the objectives and principles of the United NationsFramework Convention on Climate Change (UNFCCC) and its Paris Agreement, as well as China's "dual carbon goals". Weactively promote emission reduction processes within our own operations and across our supply chain. In 2023, GCL SI, followingthe methodology of the Science Based Targets initiative (SBTi), sets targets for greenhouse gas (GHG) emission reduction basedon accurate accounting of our organizational GHG emissions and in line with our actual operating conditions. Additionally, GCL SIhas interconnected the whole production chain by building the "Green Intelligent Manufacturing 4.0"system. With the system, theCompany is able to enhance the competitiveness of differentiated products and prepare for product exports and globalization. Toachieve our carbon management targets, GCL SI emphasizes the utilization of carbon blockchain management. In this context,the Company has developed the "Carbon Chain Module" platform, facilitating connectivity across the entire green industry chain,from raw materials to finished products. By virtue of the "Green and Intelligent Manufacturing 4.0"system and the "Carbon ChainModule"platform, we strive to track the carbon footprint along the industry chain and strengthen both organizational-level andproduct-level carbon management.
In 2023, we had set and released our targets for carbon emissions reduction after considering the operational performance,referring to the SBTi methodology and modelling carbon emission trends under different scenarios.Our Targets for Carbon Emissions Reduction
GCL SI's Targets for CarbonEmissions ReductionScope 1 and 2
Scope 3
By 2030, reduce absolute scope 1 and 2 GHGemissions
42%
from the 2023 level
By 2030, reduce scope 3 GHG emissions fromproductive raw materials
51.6%
per MWof product produced from the 2023 level
GCL SI's Carbon Reduction Pathway
Scope 3
? Energy efficiency improvement: lighting optimization, air
conditioning optimization, device parameter optimization, heatinsulation technology reform, etc.
? Energy optimization: installing additional factory-owned PVpower plants.? Purchase of renewable-sourced electricity: actively purchase
and utilize renewable-sourced electricity.? Replacement of fluidized bed reactor (FBR) polysilicon: increasethe utilization rate of FBR polysilicon as a raw material.? Replacement of primary and secondary materials: continuouslyoptimize the procurement of raw materials, reduce the carbonemission per unit of purchased raw materials and reduce thequantity of raw materials purchased.? Supplier advocacy: set overall carbon reduction targets for
upstream suppliers and raise the entry standard; suggest
leading module suppliers to set up and practice SBTi targets.
Scope 1 and 2
Annual
Feature
Technologies to Decarbonization- Digital Carbon Chain Management andIntelligent Manufacturing
With the growing emphasis on enhancing the "carbon productivity" of energy products and promoting greener productionmethods, carbon chain management is receiving increasing attention from partners and stakeholders in the renewableenergy industry. To this end, GCL SI actively implements "zero-carbon"operations and adopts best practices in carbon chainmanagement for greener and low-carbon development. In collaboration with upstream and downstream enterprises, we havebuilt a product-centered end-to-end tracking and carbon management system. With a focus on product carbon footprint,supplier traceability and organizational carbon management, we have set up an emission factor library for the PV industry todrive the development of a low-carbon industrial supply chain.In 2023, GCL SI joined hands with Ant Digital to launch the Carbon Chain Management Project. We had co-built the "CarbonChain Module”, a whole-chain zero-carbon digital management platform based on advanced technologies such as blockchainand privacy computing. Having gained wide application throughout the value chain, this solution effectively enhances ourcapabilities such as accurate measurement and analysis of the product carbon footprint. As a powerful digital tool, the platformmakes carbon data traceable, verifiable and credible, thus facilitating the green and low-carbon development of the industry."Carbon Chain Module" employs a "one product, one code" traceability form. By scanning the QR code on the modules, users canquickly access product information, carbon footprint reports, production factories, and raw material traceability, etc., achievingreal-time, accurate, efficient, and in-depth supply chain traceability. This empowers the product throughout its entire lifecycle,from production, transportation, sales, to usage, by tracing and managing the "carbon emissions" at each stage. We makecarbon data transparent from the beginning to the end of the product lifecycle, thus fueling the transition to greener energy forclients worldwide by virtue of truly green and low-carbon products.
An End-to-end "Carbon Chain Module"for Zero-Carbon
In-depth Traceability Across Six Supply Chain TiersIndustrial Silicon Powder
Module
Silicon Granules
Solar Cell
Silicon Rod
Silicon Wafer
Carbon Chain Module Antchain TaaS Certificate
Regulated by the GCL SI's "Carbon ChainModule”, our combined carbon value isdynamically reduced by
20-35%
compared to the Ecoinvent3.9.1 defaultstandard value.
1920
The Company effectively monitors and manages carbon emissions throughout the lifecycle of cells and modules via the "CarbonChain Module"platform.
GCL SI strictly adheres to international high standards at every stage of product design, production, and sales to ensure productquality and safety. Each of our carbon chain module products has been certified by the German T?V Rheinland and the FrenchEvaluation Carbone Simplifiée. This not only represents our stringent requirements for product quality but also reflects ourcommitment to sustainable development and environmental protection. We are dedicated to providing consumers with safe,reliable, and environmentally friendly products to meet the growing market demand and fulfill our social responsibilities.
Product Carbon Footprint Management
Low-carbon design and raw material procurementProduct manufacturing
The Company comprehensively considers the impact onresources and the environment caused by the selection ofraw materials, production, transport, recycling and disposal,as well as corresponding potential carbon emissions. Byminimizing hazardous raw materials, we are active inprocuring green raw materials such as FBR polysilicon, fora green, low-carbon and circular product chain.
GCL SI phases in automation and intelligence projects toreduce product costs and raise efficiency, thus trimmingproduct carbon emissions.
Achievements in Low-carbon Development
Low Carbon CertificateProduct Certificate
Led by the approaches of "Industry 4.0 Intelligent Manufacturing + Green and Low Carbon Development”, GCL SI makes earnestefforts to strive for Green Intelligent Manufacturing 4.0. For this purpose, we will follow the principle of "phasing in the masterplan and reinforcing the foundation to add more value”.
Green Intelligent Manufacturing
Top-down Engagement
Unified ManagementRecyclable Process
ISA95Standard
Levels ofIntelligent Manufacturing
Level 4Company
Level 3
Manage
ment
Level 2
Operation
Level 1
Control
Level 0
Producti
on Site
Green IntelligentManufacturing 4.0 of GCL SIProduct R&D Management
Manufacturing Management
Green Lean Management
Corporate Operation
Management
Company
Cloud
Digitalized Product
Manufacturing(Process/FactoryPlanning)New ProductIntroduction(NPI)
Product Configuration/Closed-loop Validation ManagementTechniques/Files/Trials/Collaboration
Digitalized ProductValidation(1D/3DSimulation/Testing)
Sales/Procurement/WarehouseManagement/CRM/SRMFinance/Cost/Staff Management/SAP
Operation Management/SupplyManagement/Carbon Management
Data Management/Decision-making AnalysisDigitalized Productsand Services(Service
Engineering)Digitalized ProductDesign and R&D(PDM)
L1-L20L1-L20L1-L14
物物物 (IoT)
IntelligentCompany/BusinessDivisions
IntelligentManufact-
uringManage-mentLean/GreenManage-mentIntelligentFactoriesIntelligentProduction
LinesIntelligentEquipment
Manufacturing ExecutionSystem(MES)
Energy Management System(EMS)
Facility Management
(FM)
Environment, Health and Safety
Management(EHS)
Lean Production Management
(LPM)
Enterprise Manufacturing
Intelligence(EMI)
Quality Management
System(QMS)
Advanced Planning and
Scheduling(APS)
Warehousing/Transportation ManagementSystems(WMS/TMS)
Supervisory Control and DataAcquisition/ProgrammableLogic Control(SCADA/PLC)
Unified Framework for Manufacturing and Operation
Interconnectivity on the Production Site
Production Lines of CellsProduction Lines of Modules
2122
In terms of manufacturing, GCL SI has set up a big data platform for the whole production process based on the ManufacturingExecution System (MES). We leverage lean production to realize intelligent manufacturing.
IntelligentManufacturing
1 Basis2 Pillars1 Core
Based on Three
Guidelineson Lean
Production
Premised on Real-time
Interaction
Big Data Cloud Managementwith "Intelligence" at its CoreStreamlined ProductionAutomationIntelligent DesignStabilized ProductionInformatizationIntelligent ManufacturingStandardized ProductionIntelligent Sales
Lean Production
By driving the vigorous development of intelligent manufacturing technologies, we have significantly enhanced our industrialcompetitiveness with a remarkable improvement in key production indicators.
Disclosure ItemTraditional ManufacturingIntelligent ManufacturingIncrease in Overall Equipment Effectiveness70%95.6%Increase in Flexible Manufacturing0%86%Percentage of Digitalized Techniques80%100%Percentage of Process Automation75%95%Percentage of System Integration65%100%
Empowering multi-order product manufacturing with intelligent platform and flexible manufacturing toreduce cost and increase efficiency
The GCL SI Central Control Platform is equipped with various functions, including data acquisition from multiplesources, data storage and processing regarding human resources, machinery, materials, methods and environment,and rapid development and application. Besides, the platform can rapidly visualize data, analyze data from multipledimensions, and develop algorithms through machine learning. With these functions, the platform supports processinnovation, procedure optimization and intelligent manufacturing for digital management of the Company.
Industrial Dashboards
for Flexible andAutomated Production
Lines
AR Remote Assistancein Maintenance
Gear DistributionForecasts
AGV Logistics Scheduling
EL Man-less Review
Material MixRecommendations
Energy ConsumptionOptimization for Air
Compressors
Facial Recognition atKey Stations
Cell Supply Analysis
Intelligent ProductionScheduling
Packaging Robots
Production AnomalyPrediction
Factory-wide WorkSafety Management
Flexible Manufacturing: Simultaneous Productionof Multiple Order Product
Intelligent Manufacturing
MES
Big Data
FlexibleProductionAutomaticProductionMassProductionWorkshopProduction
FlexibleManufacturing
Technology
PathsAutomatedPromotion
Key IOT
System Operation,Maintenance andTestingIntelligentAutomationIntelligentProduction Lines
IntelligentWorkshops
Intelligent FactoriesIoTMES+
IntelligentLogistics
Case
Intelligence +Human-machineCollaborationIntelligence +Predictive AnalyticsIntelligence+ OperationalImprovement
2324
In recent years, the PV industry has witnessed profound changes in capacity structure and technology. In response to ever-changing market demands, GCL SI vigorously pushes forward the transformation of capacity structure towards higher efficiencyand premium quality. The Company has accelerated the layout of large-sized high-efficiency modules and cutting-edge N-typeTOPCon cells for higher production capacity. As the module manufacturing base, Hefei GCL SI, and the cell manufacturing base,Wuhu GCL SI, have been put into operation, the Company's overall performance has soared. As a result, we forge ahead againstthe complex and volatile market, presenting a strong momentum of development.The first phase construction (15GW) of the Hefei GCL SI 60GW large-sized module manufacturing base was launched inDecember 2020, with the designed capacity reached in 2022. In 2023, the first phase of the base achieved improvement in qualityand efficiency, with a production capacity of over 1.4GW per month and daily output of 42,000 pieces for the first time. The second
phase of the above base is in full swing and is projected to be the largest super AI factory with the lowest cost in the world.With excellent performance in intellectual property rights, transformation of scientific and technological achievements, R&Dinvestment, talent introduction and financial growth, Hefei GCL SI was certified as a "National High-tech Enterprise”.The first phase construction (10GW) of the Wuhu GCL SI 20GW high-efficiency TOPCon cell manufacturing base was launchedin February 2023 and put into operation in July, with the full capacity reached in October. The project is equipped with advancedprocesses and intelligent controls on production lines. The average cell efficiency was 26.2% with a yield of over 97.5% as of theend of April 2024.Wuhu GCL SI has enhanced the independent production capacity of TOPCon cells for GCL SI, mitigates supply
chain risks, and significantly improves the profitability and overall competitiveness of the Company.GCL SI thoroughly understands that sustainable development is not only reflected by the outstanding economic performanceof a Company, but also embodied in continuous practices in environmental and social responsibilities, as well as in proactivecontributions to industry development and social progress. Hefei GCL SI and Wuhu GCL SI play a key role in technologicalinnovation, green development, humanistic care and other sustainability-related efforts.
Outdoor scene of Hefei GCL SI
Outdoor scene of Wuhu GCL SI
Workshop of Hefei GCL SI
Workshop of Wuhu GCL SI
GCL SI adheres to technology-driven innovation. We aim to fuel the global energy transition by developing advanced greenand low-carbon products. Wuhu GCL SI and Hefei GCL SI align with market trend shifts, focus on a wide range of customerdemands, and are committed to advancing new technologies and offering differentiated products in the cell and module sectors.
Technological Innovation
New-Generationand High-efficiency Cell
Technology
Selective Emitter (SE)
Laser-enhanced Contact
Optimization (LECO)
Dense Grid Pattern
Cleaning Agent
reduces surface recombination, improves quantal response, andincreases cell conversion efficiency by about 0.2%.
initiates silver-silicon interdiffusion, reduces surface contactresistance, and increases cell conversion efficiency by about 0.35%.
reduces the average distance of electron transport, improves electroncollection rate, lowers the use of composite materials, and increasescell conversion efficiency by about 0.15%.reduces chemical consumption, lowers the cost of wastewatertreatment, reduces organic residues on the wafer surface, andincreases cell conversion efficiency by about 0.03%.
Annual
Feature
Changes to Challenges- An Introduction to GCL SI'sManufacturing Bases of Cells and Modules
2526
Differentiated Module Products
the module adopts a raised-edge design and a fully unobstructed front screen, effectivelyaddressing the industry's pain points of power generation loss and hot spot effect in PVmodules caused by dust accumulation. Under the same installation environment, moduletype, and system configuration, the Lotus module achieves a power generation gain of upto 12% and reduces the system's cost per kWh by 7%.
"Lotus"Module
"Lotus"Module
the module utilizes A-grade fireproof materials, complemented by an Australian-stylewide-span concealed clip which achieves superior fireproof and waterproof performance.Its mechanical fastening structure can withstand a snow load of 7,000Pa and a wind upliftpressure of 5,600Pa, capable of resisting winds of level 17 or higher. "Xinfuding"boastsa streamlined design and minimal maintenance requirements, offering an installationefficiency more than 1.5 times that of conventional BIPV modules."Xinfuding"BIPV Module
"Xinfuding"Building Integrated PV (BIPV) Module
after seawater immersion test for 10 times longer time than the IP68 standard, anti-typhoon wave dynamic load test under 1,440Pa for 5,000 times, 8-grade salt mistreliability test, DH2000 humidity and heat test, and PID test, the module demonstrateexcellent resistance to wave impact and salt spray.
Floating Solar Module
Floating Solar Module
While continuously strengthening our own research and development capabilities, we actively expand our external cooperationnetwork. Hefei GCL SI has established a close cooperation mechanism with upstream and downstream partners, researchinstitutes, and universities, pooling resources and advantages from all parties to jointly promote technological breakthroughsand product innovation.
Cooperation with SuppliersWe engage in technical exchanges with equipment and secondary material suppliers to jointlydevelop zero-busbar (0BB) modules. The 0BB technology removes the main busbar from cells whileusing welding tapes to facilitate current flow. This approach notably cuts costs, bolsters powergeneration, and enhances product yield.
Collaboration and Exchange with Research InstitutesWe collaborate with a number of universities and enterprises on the "Research and Developmentof Key Technologies and Core Components for Offshore Floating PV Power Generation & ProjectDemonstration”, a key project under the "Renewable Energy Technology" R&D program outlinedin the "14th Five-Year Plan". The successful outcomes of this project will establish independentintellectual property rights, core competencies, key technological advancements, and acomprehensive suite of equipment for offshore floating PV power generation. This project will alsosolidify China's position as a global leader in the development of offshore floating PV technology.
Cooperation with CustomersIn collaboration with OCEANSUN, we have developed the floating solar modules, and successfullycompleted a 0.5-MW pilot floating solar project integrated with wind turbines in Yantai, ShandongProvince, China. This pioneering effort contributes to the world's first deep sea and offshore"Wind and Solar Integration"project. During the Reporting Period, the project has completed thedevelopment and feasibility testing of the 182mm floating solar module. Currently, we are refining thecertification and evaluation testing of some materials (waterproof junction boxes, frame structuraladhesives), which will further enhance the power output of the floating solar modules.
2728
Green Development
BiodiversityStrategy 2030
Self-built PV power stations to increase the proportion of renewable energy use
GCL SI stands as one of the pioneers in the industry for developing the Biodiversity Strategy 2030and integrate it into the Company's development framework. We integrate biodiversity protectionthroughout the entire process of factory site selection, construction, and operation. We alsocontribute to the restoration of ecological diversity through the development of green energyproducts, ensuring that our production activities, product applications, and natural ecosystemscoexist harmoniously.
GCL SI is dedicated not only to the production of high-quality renewable energy products but also to the integration of greendevelopment principles into our manufacturing processes.
GCL SI advocates for clean electricity. We continuously increase the proportion of renewable energy use, aiming to
enhance the level of “green manufacturing”. We install solar PV power generation systems on factory rooftops and idle
spaces to reduce reliance on traditional external energy sources. During the Reporting Period, Hefei GCL SI PV power
station project fully went into operation, with a total installed capacity of 28.41 MW. The annual cumulative electricity
generation by this project reached 29.18 million kWh, which was mainly consumed internally at the base, accounting for
21.72% of the total electricity consumption of the entire factory. In the future, GCL SI will expand our green electricity
procurement and expects to enter into long-term power purchase agreements with clean energy suppliers. Concurrently,
we will explore the purchase of green certificates as an additional measure to guarantee that a significant portion of our
electricity consumption is derived from renewable sources, thereby upholding our commitment to both environmental
and social responsibility.
Talent is the cornerstone and the enduring engine of GCL SI's long-term growth and success. We maintain a human-centricphilosophy that places a comprehensive emphasis on talent cultivation and is dedicated to enhancing the well-being of ouremployees.Education and training are essential for bolstering the base's core competitiveness, driving technological advancements, andoptimizing management practices. With a well-established talent cultivation system, Hefei GCL SI continues to provide impetusfor the Company's development.
Humanistic Care
"Xinzhiyi"GCL New Joiner
Onboarding Diary
"Xinzhiying"New Employee
Training Camp
"Shifuzhang"Management
Training
Carry out the "Xinzhiyi"trainingprogram, which encompassesvital subjects such as regulations,administration, safety, andremuneration, and offer the GCLNew Joiner Onboarding Diary, acomprehensive work-life handbook,to help new hires to quickly integrateinto their team.
Organize the three-day"Xinzhiying"intensive trainingto enrich new employees'comprehension of the Company'sculture and business, and forge aspirit of teamwork.
Implement the"Shifuzhang"management training(frontline management training) andleadership advancement programsfor mid- to senior-level management,to enhance management capabilitiesat all levels.
As the Company grows, Hefei GCL SI actively enhances cooperation with the government and works together to foster thedevelopment of local talents.
Case
Hefei GCL SI cooperated with the government to establish a child education and support mechanism tosolve the worries of talentsIn 2023, Hefei GCL SI partnered with the governmentto launch a preferential housing purchase policy,effectively alleviating employees’ housing purchasepressures. We also partnered with the government tocreate an education support mechanism for employees’children, through which, Hefei GCL SI helped 4 childrenof relocated employees successfully enroll in schools,further enhancing job stability and sense of belongingfor relocated employees.
School Enrollment of Children of Hefei GCL SI Relocated Employees
Case
Hefei GCL SI Xinyu PV Power Station
2930
N ature
Hefei GCL SI, Funing GCL SI, and Xuzhou Xinyufactories all obtained the
ISO 14001
Environmental Management System CertificationDuring the Reporting Period, GCL SI did notinvolve in any incidents of being penalizeddue to environmental issues
Environmental protection investment
Consumption of electricity generated fromrenewable energy
Production-based GHG emission intensity(location-based)
Production-based water consumptionintensity
Non-hazardous wasterecycling rate
Production-based GHG emission intensity(market-based)
Production-based electricityconsumption intensityRMB
51.07
million
41,129
thousand kWh
13.53
tCO
e/MW
88.35
tonnes/MW
99.93%
13.41
tCO
e/MW
25.38
MWh/MW
Hefei GCL SI, Funing GCL SI factoriesobtained the
ISO 50001
EnergyManagement System Certification
GCL SI takes a forward-looking approach to green and sustainable development, anticipatinggreater potential for ecological protection. The Company, in alignment with the Paris Agreementand the disclosure framework of the Task Force on Climate-related Financial Disclosures (TCFD),actively assesses and addresses climate risks by formulating climate risk response strategies.We have implemented multiple measures in energy management, water resource management,biodiversity protection, circular economy, and waste management to mitigate the negative impactof our production and operations on the environment.
UNSDGs supported in this chapter:
3132
Responding toClimate Change
1.1
GCL SI views climate action as an essential support for the Company's sustainabledevelopment. With reference to the TCFD disclosure framework, we haveconstructed a climate change management system around four dimensions:
governance, strategy, risk management, and metrics and targets. In activelyresponding to international initiatives and domestic policies, GCL SI conducts GHG(GHG) emission audits, and sets emission reduction targets, aiming to demonstratethe Company's determination and commitment to emission reduction. We haveadopted various energy-saving measures to achieve our emission reduction targetson schedule. In addition, GCL SI actively promotes comprehensive energy lifecyclemanagement of products, and creates green and low-carbon products to minimizeresource consumption.GCL SI continuously improves the climate governance structure, with the Board ofDirectors serving as the central body responsible for climate issues, and regularlyreviewing and assessing climate-related risks and opportunities. In 2024, theCompany listed the sustainable development (including climate) function as aspecial committee under the Board of Directors, and renamed it as the "Strategyand Sustainability Committee”, which is responsible for overseeing and outliningthe Company's overall climate strategy, goals, and related major issues. Under thiscommittee, the Company has established a Sustainability Management Committeeand a Sustainability Promotion Office, which are responsible for managing specificclimate governance issues. There is a Climate Action Working Group within theSustainability Management Committee and te working group is responsible formanaging climate risks and opportunities.
Climate Governance
? Oversee and outline the overall sustainable development strategyand related major issues of the Company.? Study and propose recommendations for the Company's majorinvestment and financing plans, major capital operations, andasset management projects.? Review the Company's sustainable development (includingclimate) strategy, goals, issues and policies, and risk managementsituation.? Guide and develop climate strategy and structure? Formulate annual climate management plan and targets? Approve significant climate-related risk issues and correspondingpolicies? Identify and prioritize climate-related risks and opportunities ofthe Company? Review climate-related disclosure? Establish an appropriate and effective climate risk managementframework? Responsible to organize, implement, coordinate, execute, andvalidate the Company's climate projects? Manages climate-related matters and risks in the daily operationsof various departments and business units? Responsible for climate-related campaigns and externalengagement activities
GCL SI Climate Governance Structure
Sustainability ManagementCommitteeSustainability Promotion Office
The highest decisionmaker and governancebody for the Company'sclimate action
The decision-makingbody and managementof the Company'sclimate action
Strategy and SustainabilityCommittee
Climate Action Working Group
With reference to the TCFD risk analysis framework, and taking full considerationof domestic and international trends and the concerns of various stakeholders,CGL SI has identified transition risks and physical risks related to the Company'soperations, and has formulated corresponding measures for related risks andopportunities.GCL SI has incorporated climate risk into the corporate risk management process:
In accordance with domestic and internationalsustainability standards and trends, as well as ourbusiness development and factory layout, GCL SI identifiesand assesses climate-related risks and opportunities andmakes materiality assessments to form a list of climatechange risks for annual review by the Board of Directors.
GCL SI matches each climate-related risk and opportunitywith the respective functional departments and businessunits. At the same time, the Sustainability PromotionOffice coordinates the establishment of a resilient climaterisk management system.
Climate Strategy
Climate risk identification and
assessment mechanism
Climate risk response mechanism
2023 Sustainability ReportAbout the ReportAbout GCL SIBoard StatementSustainability Strategy and GovernanceAnnual FeatureNatureEquityTrust EXcellenceAppendix
The coordinating body ofthe Company’s climate
action
3334
Climate Risk ManagementClimate Risk Matrix
Risk TypeRisk Factor
Potential Financial
Impact
Description of Potential
Financial Impact
Solutions
Physical Risk
Climatedisasters(short-term)
Affect production,transportation,the value of fixedassets, and increaseoperating costs
Typhoons, floods, and othernatural disasters can leadto safety accidents, forcedproduction shutdowns, andincreased transportationcosts
? Optimize transportation modes? Formulate emergency plansfor extreme weather events,conduct emergency drillsand increase the reserve ofemergency supplies
Climatechange(long-term)
Impact productionand increaseoperating costs
Sustained high temperaturescause abnormal powersupply and increase hightemperature expenses;Sea level rise increasesthe likelihood of relocationor structural changes ofproduction bases located incoastal areas
? Increase local procurement? Improve energy efficiency in the
factories
Transition
Risk
Laws andregulations(short-term)
Increase operatingand financing costs
The increase in carbonmarket prices and theimplementation of carbontaxes lead to higheroperational and procurementcosts;Violating laws andregulations can bringpenalties
? Strictly comply with theregulations of the country wherewe operate and where productsare sold, and regularly monitorchanges in relevant policies andregulations? Establish a comprehensivecompliance system andsafeguard mechanismTechnological
changes
(medium-term)
Increase operatingcosts
Upgrade energy-savingequipment;Costs associated withoutdated technology
? Improve energy usage efficiencyand improve product productionefficiency? Pursue independent innovationand attract technical talentsMarket
changes
(medium-term)
Increase operatingcosts and affectthe Company'sreputation
Reduction in marketsubsidies leads to anincrease in direct costs;The Company may sufferfrom poor reputation andnegative performance due toinadequate climate actions
? Actively communicate withstakeholders, respond to marketand customer expectationsfor sustainability, and enhancecorporate performance in thisarea
For the identified climate risks, GCL SI has established targeted environmental and climate risk prevention and controlmeasures, as well as emergency management systems in order to enhance the ability to respond to climate change.We continue to monitor the potential impact of climate change on our business and the upstream and downstream of the
GCL SI has prioritized GHG inventory and management. In 2023, GCL SI engaged a third-party agency to conduct a GHGemissions inventory in accordance with the GHG Protocol, covering GHG emissions from both operations and the upstream anddownstream chains. This effort is designed to assist the Company in understanding and enhancing the carbon managementpractices through a scientific approach. By increasing the proportion of renewable energy use and upgrading equipment forenergy efficiency, we will continue to target our resources for emission reduction in key areas and strive to fully achieve our GHGemission reduction targets.
Based on the SBTi methodology, and our own strategy and operational planning, theCompany has set GHG emission reduction targets and established the GHG emissionreduction roadmap. For details, please refer to the annual topic "Carbon EmissionsReduction with Technologies - Digital Carbon Chain Management and IntelligentManufacturing”.GHG Management
GCL SI's Targets for Carbon Emissions ReductionBy 2030, reduce absolute scope 1 and 2 GHG emissions
42%
from the 2023 levelBy 2030, reduce scope 3 GHG emissions from productive raw materials
51.6%
per MW of product producedfrom the 2023 level
industrial chain. Based on this, we conduct training on climate change and emission reduction issues for suppliers to enhancethe climate resilience of the supply chain. In 2023, GCL SI launched a carbon chain management initiative to develop the CarbonChain Module system. The goal is to track the end-to-end lifecycle product "carbon footprint”, enabling the traceability andmanagement of "carbon emissions"throughout the entire supply chain, from production to transportation, sales, and use. Fordetails, please refer to the annual topic "Carbon Emissions Reduction with Technologies - Digital Carbon Chain Management andIntelligent Manufacturing"in the Report.
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GCL SI Scope 1 and 2 GHG Emission Performance in 2021-2023
Disclosure itemUnit202120222023
Scope 1 GHG emissionstCO
e235.68325.871,309.95Scope 2 GHG emissions (location-based)tCO
e65,579.3787,669.92250,992.40Scope 2 GHG emissions (market-based)tCO
e--248,867.51
Total Scope1 and Scope 2 GHG emissions (location-based)tCO
e65,815.0587,995.79252,302.35Total Scope1 and Scope 2 GHG emissions (market-based)tCO
e-250,177.45
Disclosure itemUnit2023
Revenue-based Scope 1 and Scope 2GHG emission intensity (location-based)
tCO
e/RMB 10,0000.16Revenue-based Scope 1 and Scope 2GHG emission intensity (market-based)
tCO
e/RMB 10,0000.16Production-based Scope 1 and Scope 2GHG emission intensity (location-based)
tCO
e/MW13.53Production-based Scope 1 and Scope 2GHG emission intensity (market-based)
tCO
e/MW13.41
In 2023, GCL SI conducted GHG emissions data accounting based on operational control; the scope of accounting included the Suzhou Management Center, the fourproduction bases of Hefei GCL SI, Wuhu GCL SI, Funing GCL SI, and Xuzhou Xinyu, GCL Energy Storage, GCL Green Energy, and the GCL SI offices in Beijing, Japan, andMunich.
Due to the significant increase in production capacity at GCL SI in 2023, the Company's GHG emissions also increased significantly. In the future, the Company willcontinue to explore and implement diversified emission reduction measures to fully achieve the emission reduction targets.
GCL SI began to disclose market-based Scope 2 GHG emissions from 2023 Sustainability Report.
GCL SI began to disclose Scope 3 GHG emissions from 2023 Sustainability Report.
Sourced from the inventory data, the Scope 3 emission categories related to GCL Integration include purchased goods andservices, capital goods, fuel and energy-related activities, upstream transportation and distribution, waste generated fromoperations, business travel, employee commuting, upstream leased assets, and disposal of sold products at the end of their life.During the Reporting Period, the Scope 3 emissions amounted to 14,408,778 tCO
e. Among them, emissions from purchasedgoods and services amounted to 13,789,146 tCO2e, accounting for 95.7% of the Scope 3 total.
The Company actively champions green and sustainable operations. We adopt various measures to reduce carbon emissions inproduction, including improving energy use efficiency, optimizing production processes, and adopting eco-friendly technologies.
GCL SI Scope 3 GHG Emission Performance in 2023
4Disclosure itemUnit2023Scope 3 GHG emissionstCO
e14,408,778GCL SI Proportion of Scope 3 GHG Emission Categories in 2023Purchased goods and services
Capital goodsFuel and energy related activitiesUpstream transportation & distributionWaste generated in operations
Business travelEmployee commutingUpstream leased assetsEnd-of-life treatment of sold products
95.70%
0.14%
0.06%
0.09%
0.01%
0.03%
0.01%
0.01%
3.96%
replace the original plate-type air filters of the factory'sair conditioning units with non-woven fabric filters toreduce equipment wear and tear and extend the servicelife.
r set up partitions in the workshop's testing area andinstall full electrical air conditioners to reduce theamount of gas boiler-generated hot water used by theoriginal air conditioning units.
procure and utilize green electricity to optimize theenergy structure.
he factory's storage tank is equipped with water-cooled technology. During off-peak electricity rates,ice machines are activated for cooling storage; duringpeak electricity rates, the ice machines are shut down.Cold water from the storage tank goes directly to the airconditioning system.
Major GHG Emission Reduction MeasuresOptimize equipment
Save resourcesUtilize clean energy
Optimize energy distribution
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Adhering to the principles of sustainable development, GCL SI fosters greenmanagement throughout the product lifecycle, proactively developing eco-friendlyproducts, minimizing resource use, and advancing the circular economy andsustainable practices.
Product LifecycleManagement
Introduce the ecological concept in product design, carry out self-evaluation of ecological designin accordance with GB/T 24256 "General Rules for Product Ecological Design"and GB/T 32161"General Principles for Eco-design Product Assessment”, and form audit reports.Green design
Select suppliers who have obtained product carbon footprint certification or whose productshave a lower carbon footprint, and require all procurement parties to sign the "Letter ofCommitment on Safety and Environmental Protection”.
Emphasize green lean production by organizing lean production improvement activity reviewmeetings, and awarding advanced and outstanding personnel to inspire full participation in leanmanagement and continuously create a lean production atmosphere.
Maximize the recycling and reuse of discarded modules and product packaging materials,promote the circular economy, and enhance the resource output rate and recycling utilizationrate.
Rationally plan the layout of the factory area, implement intermodal transportation, optimizetransport routes, and take other measures to continuously improve the resource utilizationefficiency of logistics links such as containerization, storage, and transportation, and acceleratethe construction of a digital and low-carbon logistics industry chain.
Greenprocurement
Greenproduction
Greenlogistics
Greenrecycling
Precise management, lean production - Hefei GCL SI conducts quarterly lean production improvementactivity review meetingGCL SI adheres to the philosophy of "precisemanagement, lean production”, committed to enhancingemployees' understanding of lean and digital tools,and continuously improving quality and efficiency. In2023, Hefei GCL SI organized a review meeting for leanproduction improvement every quarter to summarizethe implementation of Quality Improvement Team (QIT)projects, proposed improvement activities, and rationalsuggestions. The improvement projects cover variousaspects, including process optimization, personneloptimization, management process optimization,product quality enhancement, visualizationimprovement, and equipment transformation.
Review Meeting for Lean Production Improvement
Case
Our product component recycling project received EU Waste Electrical and Electronic Equipment (WEEE)certificate to empower the circular economyThe recycling and green disposal of scrapped PV modules, as the final process of the PVindustry, serves as the ultimate safeguard in constructing a closed-loop, green PV industrialchain. GCL SI enthusiastically advocates for a circular economy. To this end, the Companyactively explores reusable and high-value recycling methods for "retired"PV modules, andadvances projects aimed at reusing and recycling discarded components.GCL SI proactively undertakes PV module recycling initiatives, and rigorously follows the EUWEEE directives to ensure proper disposal of waste PV module equipment, and has obtainedthe certificate.
WEEE Certificate
Case
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EnergyManagement andRenewable EnergyUtilization
1.2
GCL SI adheres to the energy management policy of "low consumption and highefficiency, energy conservation and emission reduction, standardized operationand technological innovation”, and takes multiple measures to strengthen energymanagement. We have established a comprehensive energy management system,promoted energy-saving projects, and increased the use of renewable energy tosupport the green energy transition.
GCL SI strictly abides by laws and regulations such as theEnergy ConservationLaw of the People's Republic of Chinaand theEnergy Management Guidelines forIndustrial Enterprises, and systematically monitors, controls, and optimizes energyconsumption in production. The Company continues to advance energy managementsystem, and has developed and implemented the Energy Management Manual, theEnergy and Resources Management System, and the Energy Management SystemProcedures. These documents clearly outline the Company's principles and specificrequirements for the rational utilization of various energies and resources.
Energy ManagementSystem
By the end of the Reporting Period, both Hefei GCL SI andFuning GCL SI factories had obtained
ISO 50001
EnergyManagement System Certification.
GCL SI Energy Management Performance in 2021-2023
Disclosure itemUnit202120222023
Natural gas consumptionm?79,312150,729315,951Total electricity consumptionkWh126,600,000 150,893,426473,387,732
Self-generated renewable electricity
kWh--37,403,487Purchased municipal electricitykWh126,600,000 150,893,426432,258,316Purchased renewable electricitykWh--3,725,929Steam consumptionm?2,177 3,2386,640Gasoline consumptionkg101,698 -59,974
GCL SI Energy Management Performance Per Production Unit in 2023
Disclosure itemUnitData for 2023
Production-based natural gasconsumption intensity
m?/MW16.94Production-based electricityconsumption intensity
MWh/MW25.38
Hefei GCL SI and Funing GCL SI have initiated a number of energy conservation and efficiency improvement technicaltransformation projects to comprehensively enhance the energy efficiency of the production process and promote greendevelopment.
The R&D department has improved the design of the frame, and introduced liquidsilicone rubber and synthetic polyurethane material composite frames, which havelower energy consumption compared to the original aluminum alloy frames.We have insulated the walls of the workshop packaging area with 100mm thickflame retardant glass wool insulation (A grade) to enhance thermal preservation andinsulation, reduce the need for air conditioning, and consequently lower electricityconsumption.In winter, based on the outdoor temperature, the cooling tower and winter plate heatexchangers are utilized to supply the air conditioning and process water systems afterair/water heat exchange, thus reducing the operating time of the ice machine.after installing fluorocarbon cold air conditioner, the electric air conditioner can bedirectly turned on to regulate the temperature, reducing the frequency of use of icewater units or boilers.Heat from the lamination machine is collected and sent to the constant temperaturewarehouse in the raw material warehouse, reducing the electricity consumption of theair conditioner load in the raw material warehouse.
Optimized module design
Energy-saving walls
Energy saving of ice machineplate heat exchangersInstallation of fluorocarboncold air conditioner in thetesting areaEnergy saving in laminationmachine area
The scope of GCL SI's GCL SI's energy management performance in 2023 includes the Suzhou Management Center, the four production bases of Hefei GCL SI, WuhuGCL SI, Funing GCL SI, and Xuzhou Xinyu, GCL Energy Storage, GCL Green Energy, and the GCL SI offices in Beijing, Japan, and Munich.
GCL SI began to disclose self-generated and purchased renewable electricity from 2023 Sustainability Report.
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GCL SI continuously optimizes the energy structure, actively promotes the useof renewable electricity in manufacturing process, and continuously increasesinvestment in clean energy.During the Reporting Period, GCL SI's cell and module production bases generatedrenewable electricity by building rooftop PV power stations, thereby increasing theproportion of renewable energy in the overall energy usage of the production bases.
Utilization ofRenewable Energy
In 2023, GCL SI consumed 37,403.5 thousand kWh of renewable electricity generated by self-built PV power stations; Funing GCLSI purchased and consumed 3.726 million kWh of renewable electricity, with total renewable electricity consumption reaching41,129.4 thousand kWh.
GCL SI Renewable Energy Consumption in 2023
Disclosure itemUnit2023
Consumption of renewable electricitythousand kWh41,129Proportion of renewable electricity intotal electricity consumption
%8.69
GCL SI actively conducts risk assessments for potential environmental incidents andestablishes corresponding preventive measures. We regularly review our productionfacilities to ensure meet the latest environmental protection standards. We alsoprovide our employees with training on environmental awareness and emergencyresponse. In addition, we have developed comprehensive emergency plans toaddress any possible environmental emergencies, ensuring that we can handle anysudden situations swiftly and effectively. During the reporting period, GCL SI did notexperience any significant environmental incidents, and no major environmentaladministrative penalties or criminal liabilities were incurred.In 2023, GCL SI updated, reviewed and publicly disclosed theEnvironmentalManagement Policy, with core content including:
Mission and Commitmen
Scope of Environmental Management Policy
Implementation Guidelines
The Company is committed to improving the proportion of green and clean energy in the energystructure and reducing greenhouse gas emissions through green innovation and photovoltaic technologyupgrading.
The policy covers all business areas of the Company, including production operations, products andservices, distribution logistics, waste management, suppliers, and partners.
? Environmental Management System: Comply with relevant laws and regulations and establishan environmental and energy management system in accordance with ISO 14001 and ISO 50001standards.? Greenhouse Gas Emission Management: Set emission reduction targets and strategies, conductcarbon audits, and promote carbon reduction in internal operations and the supply chain.? Energy Management: Improve energy efficiency, explore green energy optimization, and respond toenergy-saving and carbon reduction initiatives.? Water Resource Management: Optimize water-saving technologies, implement recycling watersystems, and reduce the demand for new water sources.? Pollution and Waste Management: Manage solid and hazardous waste in compliance with regulationsand increase the comprehensive utilization rate of harmless waste.? Ecological Environment Management: Strictly adhere to laws and regulations for the protection ofthe ecological environment and engage in ecological protection actions.
EnvironmentalComplianceand EcologicalProtection
1.3
Environmental Compliance
Hefei GCL SI constructs the Xinyu PV power station to promote cleaner electricityTo build a green factory, GCL SI makes full use of the buildingroofs, available spaces, and other resources to develop andconstruct PV power generation facilities on a large scale. In2023, Hefei GCL SI successfully built "Xinyu"PV power stationwith a total installed capacity of 28.41 MW. In 2023, Hefei GCLSI's PV power generation reached 29,184.5 thousand kWh,with self-generated electricity consumption accounting forapproximately 21.72% of the plant's total annual electricityconsumption.Hefei GCL SI Xinyu PV Power Station
Case
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GCL SI attaches great importance to the protection of ecological resources andplace biodiversity at the core of our sustainable strategy. In 2023, the Company hasestablished a new Biodiversity Strategy to integrate biodiversity into the Company'sdevelopment framework. At the same time, we have established a strict wastemanagement system, implementing recycling, harmless and circular managementof waste, reducing the impact of production and operation on the environment,natural resources and biodiversity, and promoting harmonious coexistence betweensociety and nature.
Ecological Protection
Biodiversity is essential for the vitality of the Earth, and enterprises are essentialplayers in biodiversity. GCL SI considers biodiversity a core sustainability principle,and constantly innovates and strengthens biodiversity initiatives. In 2023, GCL SIdeveloped a biodiversity strategy that includes conservation initiatives in alignmentwith the principles outlined in the UN Convention on Biological Diversity and withreference to the EU's Biodiversity Strategy for 2030.
Biodiversity
GCL SI Biodiversity Strategy
Reduce the direct pressureson biodiversity and promotesustainable use
Improve the status of biodiversity bysafeguarding ecosystems, speciesand genetic diversity
GCL SI will contribute to raising awareness and mainstreaming biodiversity ineducational conversations through training, internal and external education,awards, publications, sponsorship, and internal and external communication ofthe impact of the organisations activities in this area.
GCL SI strives to promote sustainable use and end of life of products throughworking with consumers and the collecting and recycling industries, in additionto reducing our direct business pressures on biodiversity.
GCL SI will work with external partners to enhance biodiversity throughsustainable management of land, measures to promote genetic diversity andreduce fragmentation of ecosystems.
Strategic goalStrategic goal
Increase the awareness levelon the importance and value ofbiodiversity
To achieve our biodiversity strategy, GCL SI is committed to forging long termpartnerships with companies and institutions that have similar biodiversitytargets and communicating with local organizations to share our biodiversity-related policies and activities. Furthermore, the Company selects biodiversityresearch and conservation projects based on the biodiversity strategyframework and provides financial support for these projects. We also activelyshare the strategy and subsequent action plans with our employees, suppliersand other stakeholders to increase community awareness and understandingof our biodiversity strategy, and to promote a proactive approach to issuesrelated to natural resource utilization.The GCL SI Biodiversity Strategy has been developed as a dynamic framework,which will evolve with time as new projects become apparent and potentialcollaborations arise. The Company will disclose the progress of ourbiodiversity work in detail in our annual sustainability reports, as required bythe GRI and the Task Force on Nature-related Financial Disclosure (TNFD),to ensure transparency in the disclosure of our actions and impacts onbiodiversity.
Strict compliance with the "Ecological Red Line"at ourcell production base
GCL SI strictly follows theLaw of the People's Republic of Chinaon Environmental Impact Assessment, theRegulations on theAdministration of Construction Project Environmental Protectionandother relevant laws and regulations to strictly observe the "EcologicalRed Line”. The Company has commissioned a qualified third-partyorganization to conduct an environmental impact assessment of theWuhu GCL SI 20GW (Phase I 10GW) High-Efficiency Cell ManufacturingProject. During the Reporting Period, the environmental impactassessment report of the project has been completed and approved bythe project technical review meeting, and the Company has obtainedthe environmental impact assessment approval from the localecological and environmental authorities.During the construction and operation phases of the project, theCompany has formulated scientific and reasonable environmentalimpact control measures in accordance with the environmental impactassessment report, so as to protect the ecology of the region wherethe project is operated.
Case
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WaterStewardship
1.4
GCL SI strictly follows theWater Law of the People's Republic of China, the WaterPollution Prevention and Control Law of the People's Republic of Chinaand otherlaws and regulations. We continuously improve the water resources managementsystem, and enhance the efficiency of water resources management throughmultiple initiatives. Meanwhile, the Company has formulated and enforced theSelf Assessment Report on Water Use since 2021, and has established a waterconservation evaluation team to assess water conservation each year.Globally, 19% of Gross National Production is generated from watersheds with highor extremely high water risks. GCL SI is keenly aware of the importance of waterrisk to global sustainability and sound business operations. Each year, the Companyevaluates the water stress of all plants in continuous operation, adopting theAqueduct Water Risk Atlas of the World Resources Institute (WRI). The results of theevaluation are as follows:
Scaling up DiverseWater Sources
PlantWRI Water Risk Level
Hefei GCL SIHigh (3-4)Funing GCL SIHigh (3-4)Wuhu GCL SIMedium-High (2-3)Xuzhou XinyuExtremely high (4-5)
Retrofitting condensate piping to reduce fresh water consumptionIn October 2023, Xuzhou Xinyu Plant conducted a retrofit ofcondensate piping to channel condensate into the tap waterpool for utilization, which is expected to save 14,100 tonnes oftap water per year, with direct financial benefits amounting toRMB 54,285.
Retrofitted Condensate Piping
Case
GCL SI recognizes the importance of water as a precious natural resource. As such, we prioritize the exploration of localalternative water sources for our production and operations. At the end of 2023, the Company's sources of water includedmunicipal water supply, rainwater collection and condensate collection.
GCL SI regards water saving as a major concept of green production for the entireprocess of production and operation. During the Reporting Period, we strengthenedwater consumption analysis, upgraded the water saving facilities and optimizedthe wastewater treatment and recycling systems. We also set up water savingtargets and tracked the progress of target achievement on a regular basis, so as tocontinuously promote the refined management of water resources.
Practicing WaterSaving Measures
GCL SI Water Consumption Performance in 2023
Disclosure ItemUnit2023
Total water consumption
Tonnes1,647,653.09Reclaimed water recycledTonnes202,569.45Recycling rate of reclaimed water%8.89Water consumption intensityTonnes/MW88.35
Improving wastewater recycling rate by building a new concentrated water recycling systemXuzhou Xinyu Plant recycles concentrated water by building anew concentrated water recycling unit, which is expected torecycle more than 340 tonnes of water per day on average, witha direct economic benefit of RMB 1,300/day.
Xuzhou Xinyu Concentrated Water Recycling Unit
Case
Reasonable adjustment of the start-up volume of EDI equipment (an ultrapure water production equipment
named electrodeionization) to minimize water consumptionThe Wuhu GCL SI Plant reasonably adjusts the start-up volume of the EDI equipment according to the water consumptionof the production line. With a stable water supply, one of the six sets of EDI equipment is switched off every day. Thissaved 812.2 kWh of electricity per day and saves RMB 18,762 in 2023.
Case
The scope of GCL SI's water management performance in 2023 includes the four production bases of Hefei GCL SI, Wuhu GCL SI, Funing GCL SI and Xuzhou Xinyu.
The total water consumption of GCL SI in 2023 is the total water intake minus the total amount of wastewater discharge.
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The Company always complies with the requirements of national and local laws andregulations, and has established and executed theWastewater Discharge ControlManagement System. We develop and implement comprehensive wastewatercollection, treatment and discharge programs for various wastewater followingthe principle of wastewater diversion and treatment. In addition, according to theregulatory requirements, we install online monitors at the main outlets of productionwastewater to monitor the quality of wastewater in real time and ensure compliancewith the discharge standards.The cell manufacturing base Wuhu GCL SI strictly enforces theEmission Standardsof Pollutants for Cell Industry, theWastewater Quality Standards for Discharge toMunicipal Sewers, and theEnvironmental Quality Standards for Surface Waterfromthe industrial wastewater treatment plant of the Xinwu Economic DevelopmentZone in Anhui Province. Based on the standards, we monitor the discharge data ofchemical oxygen demand (COD), fluoride, total phosphorus (TP), total nitrogen (TN),and chloride. The wastewater treatment is based on a "primary physical and chemicalreaction tank + primary physical and chemical sedimentation tank + secondaryphysical and chemical reaction tank + secondary physical and chemical sedimentationtank and A/O biochemical tank + secondary sedimentation tank"process to ensurecompliant discharge.During the Reporting Period, GCL SI reported none of incidents of excessive discharge.
Wastewater Control
GCL SI Wastewater Discharge Performance in 2023
Disclosure ItemUnit2023Total wastewater dischargeTonnes2,085,281.91Suspended solids dischargeTonnes21.79COD dischargeTonnes76.54Ammonia dischargeTonnes11.71Phosphorus dischargeTonnes0.29Fluoride dischargeTonnes9.71
Excessive discharge
Excessive waste gas emissioncases
cases
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GCL SI firmly complies with theLaw of the People's Republic of China onEnvironmental Protection, theLaw of the People's Republic of China on thePrevention and Control of Atmospheric Pollutionand other related laws andregulations, and fulfills the social responsibility for environmental protection.We have formulated theWaste Gas Emission Control Management Systemforproduction bases to ensure that air pollutants are emitted after treatment to satisfythe requirements of theIntegrated Emission Standard of Air Pollutantsand theEmission Control Standard of Volatile Organic Compounds for Industrial Enterprises.GCL SI has formulated a detailed exhaust gas treatment process for moduleproduction bases to adsorb the harmful substances in the waste gas by means ofactivated carbon adsorption. We have also classified and treated the exhaust gasesgenerated by the main production processes of our cell production bases.During the Reporting Period, GCL SI reported none of incidents of excessive wastegas emission.
Emissions
and Waste
Management
1.5
Waste Gas Management
GCL SI Waste Gas Management Performance in 2023
Disclosure ItemUnit2023
Total waste gas emissionsm?5,839,417,312.00Nitrogen oxides (NOx) emissionsTonnes1.43Sulfur oxides (Sox) emissionsTonnes0.25Non-methane hydrocarbon (NMHC)emissions
Tonnes5.26Particulate Matter emissionsTonnes2.46
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In terms of waste management, GCL SI has established guidelines and managementtools such as theWaste Management Regulations, theSolid Waste ManagementSystem, theHazardous Chemical Safety Management System, theHazardous WasteManagement Registration Form, and theHazardous Waste Transfer Note. We strictlyregulate the collection and disposal process of hazardous and non-hazardouswastes, ensure that waste treatment and discharge comply with the relevantenvironmental standards, and minimize the harm to the environment and health. Fornon-hazardous waste such as used cells, waste packages and scraps, the Companypractices recycling and decontamination management, and adopts disposalmethods such as sale for comprehensive utilization and recycling by suppliers, soas to achieve resource conservation and contribute to the circular economy. Duringthe Reporting Period, the Company's non-hazardous waste recycling rate reached
99.93%. For hazardous waste, the Company performs standardized internal storage
and entrust a qualified third-party company for compliant disposal, so as to preventor reduce harm to the environment.In 2023, GCL SI reported none of significant violations of emissions or leaks.
Solid WasteManagement
GCL SI Solid Waste Management Performance in 2021-2023
Disclosure ItemUnit202120222023Total waste dischargeTonnes4,006.0013,325.2652,238.60
Total non-hazardous waste generatedTonnes2,400.3713,465.7452,218.69
Non-hazardous recycled
Tonnes--52,184.85Non-hazardous incineratedTonnes--33.84Total hazardous waste generatedTonnes8.0515.9019.91Hazardous waste disposed
Tonnes--17.82
Non-hazardous waste recycling rate
99.93%
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Due to the significant increase in production capacity at GCL SI in 2023, the Company’s waste discharge increased significantly. In the future, the Company will continueto optimize waste management to reduce the negative impacts on the environment.
GCL SI began to disclose non-hazardous waste recycled, non-hazardous waste incinerated and hazardous waste disposed from 2023 Sustainability Report.
The inconsistency between the total volume of hazardous waste generated by GCL SI in 2023 and the total volume of disposal is attributable to the fact that some of thehazardous wastes were processed in early 2024 under a single disposal.
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17.50%
46.7043,105 94.04
11.90%
E quity
Funing GCL SI has been certified with the Social Accountability 8000 InternationalStandard
(SA8000)
Hefei GCL SI, Funing GCL SI, and Xuzhou Xinyu obtained the
ISO 45001Occupational Health and Safety Management System Certification.Women in middlemanagement
Average training hoursper employee
Occupational health andsafety training
Average score of employeesatisfaction surveyshoursattendances
Women in seniormanagementincreased by
9.65%
compared to 2022
increased by
13.01%
compared to 2022
GCL SI proactively fulfills social responsibilities, envisioning a sustainable future where employees,the company, and society grow together. We prioritize talent development, regarding our employeesas valuable and reliable growth partners, and strive to create a vibrant and inclusive workplace forthem. We are committed to providing fair and reasonable compensation and benefits, establishingcommunication channels for employees, and fostering harmonious and stable labor relations.,so as to promote the mutual development of the Company and our employees. Furthermore, weactively engage in community contribution, achieving harmony between business value and socialbenefits.
UNSDGs supported in this chapter:
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Labor RightsProtection
2.1
Labor rights protection is crucial to GCL SI. For our value chain, respect for labourrights promotes harmonious cooperation among our partners to enhance thesustainable development capacity of the entire chain. We firmly believe that "people-oriented" management philosophy is the cornerstone of long-term stable growthand sustainable development.
GCL SI is determined to safeguard the rights and interests of our employees, strictlyabides by the Labor Law of the People's Republic of China, theLabor Contract Lawof the People's Republic of China, theProvisions on the Prohibition of Using ChildLabor, and other applicable laws and regulations at our operational locations.We support theUniversal Declaration of Human Rights, theInternational LaborOrganization's Declaration on Fundamental Principles and Rights at Work, and otherinternational norms related to human rights.The Company has developed and disclosed theGCL SI Code of Business Conduct
and theHuman Rights Principles, in which the Company clearly commits toprotecting the legitimate rights and interests of employees, respecting theirfreedom of association and collective bargaining rights, and firmly rejecting theuse of child labor and forced labor.The Company has formulated and implementedtheEmployment Contract Management Regulations, theLabor EmploymentManagement Standards, theProcedures for Prohibition of Forced Labor, andtheMeasures for the Management of Child Labor and Underage Workerstofurther regulate the management of labor and employment. In 2023, GCL SI hadno incidents of employing child labor, forced labor, employment discrimination,harassment or other labor human rights violations.Furthermore, the Company recognizes that the SA8000 is a global standard forsocial accountability in the workplace and is of great significance to corporate laborconditions, human rights protection and other aspects of social responsibility.Funing GCL SI has obtained the SA8000 certification; Hefei GCL SI has initiated theSA8000 certification process and is expected to be certified in the first half of 2024.
Compliant Employment
SA8000certification Funing GCL SI has obtained the
GCL SI is committed to attracting diverse talents to empower the Company'sdevelopment. The Company has formulated and implemented the RecruitmentManagement Standards, the Human Resources Planning Management Standardsand other systems, adhering to the employment principles of "fairness, impartialityand openness”, and providing equal opportunities to all employees and candidatesin accordance with the law. The Human Resources Department is responsible forsetting measurable objectives related to diversity, and discussing and agreeing onstrategies to enhance diversity among employees of the Company (including seniormanagement) on an annual basis.
Talent Attraction
In 2023, the Company employed 1,791 female employees, an increase of 57.52% from the previous reporting period, andemployed 88 ethnic minority employees, an increase of 58 persons from the previous reporting period.The Company has established a talent reserve database to gradually set up a systematic, scientific human resources and talentdevelopment system. With this, we regularly conduct human resources analysis and provide talents for each business line.Meanwhile, the Company attaches great importance to the cultivation of management trainees, selecting outstanding freshgraduates to groom as future leaders through a variety of training initiatives. In this way, the Company achieves the strategyof reserving and developing talents. In addition, the Company provides internal recruitment and transfer opportunities to helpemployees develop and utilize their talents in positions that better suit their strengths.
In 2023the Company employed1,791female employees
the Company employed
ethnic minority employees
an increase of
persons from the previousreporting periodan increase of
57.52%
from the previous reporting period
In 2023
"GCL Star Program"for global campus recruitmentSince the launch of the "GCL Star Program"for global campus recruitment, GCL SI has been attracting talents fromcolleges and universities through various recruitment methods such as live streaming career talks, offline campuspresentations, and Open Day interview events. In this way, a diversified talent recruitment and cultivation mechanismhas been established to build a strong talent reserve with fresh talents.During the Reporting Period, GCL SI received more than 7,000 resumes from graduates of renowned universitiesthrough global campus recruitment, organized 15 online and offline interviews, and employed more than 50 outstandinggraduates. 98% of the graduates hired have a master's degree or doctoral degree.
The Open Day interview events of the 2024 Global Campus Recruitment "GCL Star Program”
Case
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GCL SI focuses on building a fair, just and reasonable compensation managementsystem and a standardized welfare management system, so as to provide employeeswith competitive compensation and benefits and enhance employee cohesion.Besides, the Company holds all kinds of employee caring activities to enrich theirleisure time and enhance their sense of well-being and belonging.Based on theCompensation Management Standards, GCL SI aims to provideemployees with competitive compensation. Upholding the principle of equalpay for equal work, we strive to build a fair, just and reasonable compensationmanagement system. In 2023, the Company engaged third-party institutions toconduct a survey on compensation and benefits in the industry, and improved theCompany's compensation system based on the results of the survey. These effortsensured a fair and scientific compensation system and further enhanced our marketcompetitiveness. Employee compensation includes fixed compensation (i.e., basesalary) and variable remuneration (including monthly performance-based salaryand bonuses). Additionally, based on a comprehensive evaluation of factors such asthe achievement of corporate profit targets, work completion, team performance,departmental importance, and individual work performance, the company awardsproject construction incentives, monthly bonuses, and annual bonuses to itsemployees.During the Reporting Period, the Company conducted a comprehensive review andrevision of thePerformance Appraisal Management Standards,stipulating thatthe achievement of environmental, social and governance (ESG) goals would begradually incorporated into the annual responsibility targets of senior management.GCL SI has formulated welfare management policies such as theWelfareManagement Standardsand the Leave Management Standards, so as to standardizethe Company's welfare subjects and payment standards, further enhance the senseof belonging and cohesion among employees, and ensure the Company's advantagesin talent attraction and market competition. In addition to statutory welfare suchas social welfare and paid leave, the Company also provides employees with cashbenefits such as meal allowance, high-temperature and cold-weather subsidies,holiday benefits, communication and transportation subsidies, and non-cashbenefits such as medical examinations and team trips.During the Reporting Period, the social insurance coverage rate of the Company was100%.
Compensation andBenefits System
During the Reporting Period
the social insurance coveragerate of the Company was100%
Additional commercial insuranceMeal subsidyHoliday benefitSpecial allowance
Cold-weathersubsidyCommunication
subsidy
TransportationsubsidyHigh-temperature subsidy
Staff trainingTeam tripRegular medical examination
GCL SI Welfare structure
Non-cash benefitsCash benefits
Social welfareCorporate welfareStatutory welfare
To promote and improve our corporate culture and strengthen employee cohesionand harmonious staff relations, GCL SI has organized various employee caringactivities based on the principles of "united culture"and "harmonious win-winresults"to enrich the spare time of the employees.Employee Care
The Management Center of GCL SI organized the "Low-carbon Transportation - Cycling with GCL SI"team-building cyclingactivity at Yangcheng Lake on May 4, 2023, with the aim of encouraging the youth to protect our beautiful planet with practicallow-carbon actions.
GCL SI cycling activity at Yangcheng Lake
GCL SI collective birthday partyFuning GCL SI Lantern Festival celebration
Healthy life
In 2023, GCL SI held a collective birthday party for employeeswhose birthdays fall between April and May, with the themeof "When Aries meets Taurus”. The "birthday people"wereinvited to participate in celebrating activities, such as singingthe birthday song and enjoying delicious cakes together.
In February 2023, on the occasion of the Lantern Festival,Xuzhou Xinyu, Funing GCL SI and other factories organized aseries of festival activities such as guessing lantern riddles,making Tangyuan, turning fortune plates, and makingTanghulu.
Collective birthday partyFestivals together
Paid leave
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To establish a two-way communication channel between the Company andemployees and to create a harmonious, sincere and smooth communicationenvironment, the Company has developed internal policies such as the
Democratic Governance Communication Management Policy, theConsultation andCommunication Control Proceduresand theEmployee Relationship ManagementStandards, to continuously enrich the channels and methods of employeecommunication. The Company attaches great importance to the construction ofcommunication channels and the management of employee reporting systemand protection system, to make sure employees are able, willing and dare tocommunicate any difficulties they encounter.
EmployeeCommunication
Channel ConstructionNew employee on-boarding talkWe follow new employees for a period of three to six months, helping them become familiar with the environment, policies andculture of the Company. Besides, the Human Resources Department carries out regular interviews with these new employees tohelp them quickly integrate into the Company.
The Company has set up a "general manager's mailbox"in places with agood flow of people. The mailbox is managed by the person in charge ofemployee relations, who collects the letters once a day and deals withthe employee opinion letters in a timely manner. Employees who proposesuggestions that are beneficial for development of the Company will berewarded.
The General Manager's Mailbox of Hefei GCL SI
Staff Forum
General manager's mailbox
the Company organizes at least one Staff Forum per month,and carries out interviews with core employees from timeto time. The Staff Forums are organized by the HumanResources Department and attended by the labor union andemployee representatives. Staff Forums are also held forrepresentatives of various employee groups. The Companytakes into full consideration the proposals proposed byemployee representative and publicizes the excellentproposals actually adopted.
The Staff Forum Held by Xuzhou Xinyu with the Theme of"From Employee Voice to a Win-win Future”
The Company conducts an annual employeesatisfaction survey. The survey covers dimensionsof logistics support, basic training, departmentatmosphere, leadership and management, securityand welfare, and comprehensively reflects thechallenges that employees may encounter in theirdaily work and life. The Company prepares ananalysis report on the results of the satisfactionsurvey and an improvement plan for employeesatisfaction, and follows up on the implementationof the improvement measures.
Six dimensions
logistics support
basic training
leadership andmanagementsecurity
welfare
Employee Satisfaction Survey Score of Each Base in 2023
Hefei GCL SI
94.31
Funing GCL SI
92.98
Wuhu GCL SI
90.40
Xuzhou Xinyu
98.47
Reporting System
At GCL SI, every employee has the full right to freely raise questions, expressconcerns and complain about any treatment that is deemed unfair, unreasonable,unethical, harassing or discriminatory.We encourage all employees to take the initiative to report any violations of employeerights and interests. Employees can report through the labor union of GCL SI, theofficial complaint and reporting platform (http://www.gcl-power.com/en/contact/lzzx.html), or other channels. The Company will treat whistleblower informationin strict confidence and firmly protect employees from any form of retaliation forexercising such rights. The Company will take a zero-tolerance attitude towardsattempt to retaliate against whistleblowers through threats, intimidation, orpersonal attacks and will deal with it strictly.
Xuzhou Xinyu's Heart Posthouse
Employee satisfaction survey
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Diversity, Equityand Inclusion
2.2
Diverse talent matrix is the driving force for the Company's sustainable development.GCL SI advocates for a Company culture of diversity, equity and inclusion. Werespect individual differences, and support employees with different backgroundsand experiences to exert their talents and fulfill their self-worth at GCL SI.GCL SI has established and implemented systems such as theManagementStandards on the Rights and InterestsandLabor Protection of Female Employeesand the Management System on Prohibition of Discrimination and DisciplinaryMeasuresto ensure that employees are treated fairly and equally in the Company.During the Reporting Period, the Company reviewed, updated and disclosed theEquality and Diversity Policy,and committed to decisively eliminating any form ofdiscrimination and harassment due to factors such as gender, age, ethnicity, race,nationality, religious beliefs, disability and marital status.To enhance employees' awareness of anti-discrimination, anti-harassment anddiversity issues, the Company provides training and communication on these topicsto employees. It is worth mentioning that we emphasize the importance of diversityin our sustainability campaigns for senior executives. In addition, the Company hasestablished multiple reporting and complaint channels to encourage employees toreport misconduct. For details of the reporting and complaint channels, please referto section 2.1 "Labor Rights Protection”.During the Reporting Period, the Company did not receive any employee complaintsrelated to discrimination, harassment or human rights issues.GCL SI values the development of female talents and creates more careeropportunities for female employees. In 2023, the number of the Company's femaleemployees increased by 57.52%, with women accounting for 17.50% of middlemanagement, a year-on-year increase of 9.65%. The proportion of women in seniormanagement was 11.90%, a year-on-year increase of 13.01%, demonstrating ourstrong commitment to gender equality and diversity.
GCL SI Employment Performance in 2023
Disclosure ItemUnit2023
Total number of employeesPersons6,256Proportion of female employees%29The voluntary turnover rate of full-timeemployees retained for over 1 year
%15Total number of new employeesPersons4,266Proportion of new female employees%26
4,465
2,8852,480
1,79129%
1%
1%
1%40%
80%
20%
46%13%71%
99%
99%
19%
79%
2%
By genderBy age
Female
30 years old and below51 years old and aboveMale
31-40 years old41-50 years old
6,222
1,2545,002
By region
By education
Below bachelor degreeBachelor degree or aboveOverseasChinese MainlandHong Kong, Macao, and Taiwan
6,168
4,942
1,216
By ethnicityBy employment type
MinorityHan
Others (interns, rehired retirees)Full-time employeeContractor
Conducting various care activities for female employees to celebrate she-powerGCL SI respects and cares for female employees, and launched variousactivities on International Women's Day:
Case
? Organized baking workshops, inviting professional bakers to teach
the art of crafting cookies and cakes by hand, offering femaleemployees a sweet respite from their busy work schedules and away to alleviate stress.? Conducted DIY flower arrangement activities, inviting floriststo provide on-site coaching, so that female employees couldexperience the beauty of nature in the creation of their own hands,and enjoy a cozy time with the aroma of spring blossoms.? Held a series of themed activities, including flower giveaways,parent-child kite painting and strawberry picking, to create a warmand caring experience and a taste of holiday celebration for femaleemployees.
Baking Workshop
DIY Flower Arrangement
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EmployeeTraining andDevelopment
2.3
Adhering to the belief in talent development, GCL SI continuously improves thepromotion mechanism and performance appraisal standards to inspire the initiativeof employees. Meanwhile, supported by a multi-level and all-round training system,the Company provides employees with abundant learning resources, which helpsemployees grow with the Company.
GCL SI highly values the growth and career development of employees, and providesrich and diversified training opportunities for all full-time and part-time employees.During the Reporting Period, the Company further optimized theTrainingManagement StandardsandManagement Standards for Training Curriculum, andadded ESG training, aiming to comprehensively enhance employees' sustainabilityawareness and ability.The Company follows the concept of "three matrices"and designs the trainingcurriculum based on employees' abilities and career development paths. TheCompany has fine-tuned the talent training system and carried out trainingprograms aimed at capacity building for employees at different levels, and hasestablished seven training modules based on five major career routes. As evidenceof employee performance evaluation and promotion, employees at all levels arerequired to complete the corresponding courses. We provide all employees withsupport for training and certification of academic and vocational skills. We haveproactively collaborated with Shanghai Jiaotong University, Jinan University, TianjinUniversity of Technology, Hohai University and other colleges and universitiesto develop and provide joint training programs for our employees. The Companyalways encourages employees to acquire more skills and improve their personalqualifications.
Talent Training
The concept of "three matrices”
P
os
i
tion
Skills
MatrixTraining
Course
MatrixTrain
i
ng
Target
MatrixThe concept of“three matrices”
Training Target Matrix
Position Skills Matrix
Training Course Matrix
Establish a position system for employees based on theircareer development.Describe the core responsibilities and the work skillsrequired for the positions.Develop training courses corresponding to each positionbased on the requirements of the position skills.
Five career routes
0102030405
management route
GCL SILeadershipProgram
GCL SIDevelopmentProgram
GCL SITechnicalProgram
GL SIMarketingProgram
GCL SIOperatingProgram
and GCL SINew-hiresProgramGCL SI ValueProgram
professional routeR&D routeoperating routetechnical route
Seven training modules
Wuhu GCL SI develops customized training plans for various employeesIn 2023, Wuhu GCL SI planned 1,493 training sessions, with a total of 1,712 sessions completed during the ReportingPeriod and more than 62,000 attendances in total.Wuhu GCL SI provides diversified skill-based training for frontline employees. In July 2023, the Company filed relevantskills training with the local government, organized employees to take part in 30 sessions of skills training, obtainedgovernment skills training subsidies of RMB 220 thousand, and received 275 vocational skill certificates. In October 2023,the Company organized 99 employees to participate in the local government's "Heart-warming Community - Pioneer ofthe People"Vocational Skills Competition, receiving a government subsidy of RMB 29 thousand, of which 48 employeesreceived national certificates of primary and intermediate skills.Wuhu GCL SI is committed to further improving management performance through leadership training. In July 2023,the Company organized management-specific trainings such as "Communication Power”, "Stress and EmotionManagement”, "Time Management"and "Execution Power"for junior managers.
Case
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GCL SI Talent Training Performance in 2023
Disclosure ItemUnit2023
Total number of employees trainedPersons9,003Total training hoursHours292,162Average training hours peremployee
Hours/person46.70Average training hours per maleemployee
Hours/person50.76Average training hours per femaleemployee
Hours/person36.59Average training hours for seniormanagement level
Hours/person12.10Average training hours for middlemanagement level
Hours/person36.92Average training hours for junioremployees
Hours/person47.13
2023
Total investment in employeetraining
Completion rate of the annualtraining plan
RMB 10,000
550.11
100%
Pairing of Instructors and Trainees - Funing GCL SI Held the "Meet Your Instructor"Ceremonyfor New Employees
Hefei GCL SI conducts the Training of Trainers (TTT) to build a high-quality internal trainer team
Hefei GCL SI and Funing GCL SI jointly conduct training for middle and senior management to empowertalent developmentIn August 2023, Funing GCL SI held the signing ceremony of "Instructors for Trainees”, in which 10 instructors werepaired with 20 new employees, aiming to maximize the effectiveness of "experienced employees for new employees"tofully improve the skills of new hires.
In August 2023, Hefei GCL SI invited professional lecturers from GCL University to hold "TTT"training. Twenty-seveninternal trainers from Hefei GCL SI, Wuhu GCL SI and Funing GCL SI participated this training. The training covered threemajor topics, namely, course objective setting, course logic framework setting, and course instruction design, whichhelped the participants to fully understand the key steps of course design and development.
In September 2023, Hefei GCL SI held the third session of training for middle and senior management, aiming toenhance the perception and mindset of managers and cultivate top corporate talents. The training covered "GoalOriented Business and Financial Management”, "The 7 Habits of Highly Effective People”, "GCL Integrity Training"and"Reflections and Learning on Management Reform”. 47 middle and senior management members from Hefei GCL SIand Funing GCL SI participated in the training.
Case
Case
Case
Signing Ceremony of "Instructors for Trainees”
Specialized TTT Training at Hefei GCL SI
The Third Session of Training for Middle and Senior Management at Hefei GCL SI
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In order to establish and improve the GCL SI talent training mechanism and meetthe needs of management talents at different levels in the development process ofthe Company, GCL SI carried out the selection and nomination process for talentpipelines in 2023. Through the three steps of key position analysis, talent review andselection, and talent development, GCL SI has gradually established a systematicand scientific human resource reserve and development system.GCL SI has formulated internal management policies such as ManagementMeasures for Employee Career Development, Management Standards for Promotionand Demotion and Management Measures for Position Competition to facilitate thecareer development of talents. The Company is committed to building a fair, just andopen promotion mechanism, gradually improving the promotion path for employees,and building an innovative multi-channel path for employee promotion. We havedivided employee growth into five promotion paths, i.e., management, professional,sales, technology and operation, and set up promotion paths for position levelsand individual levels for each category. We believe that a reasonable and orderlypromotion system will fully motivate all employees.The Company has established the Management Standards for PerformanceEvaluation to clarify the performance evaluation and assessment mechanism. Theperformance assessment of all employees is based on both monthly and annualassessments. We prepare different assessment contents for employees of differentfunctions and levels to ensure the fairness and integrity of the performanceassessment system. The results of employee performance assessment areleveraged as the basis for merit recognition and commendation, job appointment,training and development, bonus allocation and salary adjustment. Dependingon the assessment cycle, the employees will receive at least one face-to-faceperformance feedback and coaching per quarter or month. Such feedback andcoaching help employees summarize shortfalls, clarify goals, enhance skills andimprove performance. In 2023, the coverage rate of employee performance appraisaland feedback was 100%.To optimize the human resources allocation and enhance the efficiency andprofessionalism of the performance management of the Company, GCL SI carriesout management inspections of all business divisions and functional departments atirregular intervals and requires them to make timely rectifications. The inspectionsinclude performance management policies, target decomposition and coverage,assessment and policy implementation, face-to-face interview feedback, and resultapplication, with the aim to ensure our performance management system is fair andsound.
Talent Development
2023
the coverage rate of employeeperformance appraisal andfeedback was
100%
GCL SI held promotion reviews and oral defences to ensure an open and transparent promotion path
Hefei GCL SI held vocational skill improvement exams to create a highly skilled talent pool
In October 2023, GCL SI held a total of 17 sessions of on-site reviewand oral defence for professional and technical skill level with 113employees participating in the review. The review was carried out inan orderly manner according to the established plan. A total of 40leaders from the financial supply chain sequence, risk control and legalsequence, digitalization sequence, cell division and module divisionwere invited to serve as judges, and employees from 8 sequencesincluding production technology, financial supply chain, engineeringtechnology and technological product R&D, participated in the reviewand oral defence. The judges focused on the practical experienceand innovation ability of the respondents to conduct a comprehensiveevaluation, with the aim of identifying the potential talents, andcultivating and expanding the internal talent pool.
The subsidized vocational skill improvement exams can reasonablyincrease the employees' income, and encourage the employees toconduct self-motivated learning and achieve self-breakthrough.Besides, the exams have far-reaching significance for the Companyin cultivating multi-skilled employees, creating a highly skilled talentpool, and building a learning organization. In October 2023, Hefei GCLSI carried out a subsidized vocational skill improvement exam forelectrician certificate, with a total of 261 participants from differentdepartments.
Case
Case
On-Site Promotion Review
On-Site Vocational Skill Improvement Exam
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Hefei GCL SI sets up a standardized working group to achieve standardized safety management
Adhering to the concept of "safety first, prevention foremost, andcomprehensive management”, Hefei GCL SI has set up a standardizationworking group for safety management. By adopting the "5831"SafetyHouse Model, Hefei GCL SI has realized standardized safetymanagement, enhanced the quality awareness of the employees in theworking group, and improved the level of on-site safety management.
Case
Photo of Hefei GCL SI's Standardized
Working Group
OccupationalHealth and Safety
2.4
GCL SI insists on the health and safety guideline of "comply with laws andregulations, actively assume social responsibility and build a harmoniousenvironment to ensure a green future for all”. We strictly adhere to the relevantlaws and regulations, including theWork Safety Law of the People's Republicof Chinaand theLaw of the People's Republic of China on the Preventionand
Control of Occupational Diseases. On this basis, we have formulated a series ofpolicies, including theOccupational Health Management System, theWork SafetyResponsibility Assessment System, theEducation and Training System for WorkSafety, and theResponsibility System for the Prevention and Control of OccupationalDiseases. Hefei GCL SI, Funing GCL SI, and Xuzhou Xinyu have all obtained the ISO45001 Occupational Health and Safety Management System Certificate.The Company has set up work safety committees at all factories and requiresemployees at all levels and in all positions to strictly implement the responsibilitysystem for safe production according to the "Three Musts"principle, i.e., industrydevelopment, business growth, and production and operations must be based onwork safety. We organize employees at all levels and in all positions to sign the 2023Environment, Health and Safety (EHS) Target Management Responsibility Statementto implement the responsibility for safe production. This move has effectively formeda responsibility system for safe production integrating territorial management andline management, and raised the level of independent management.The Company complies with the relevant provisions of the Law of the People'sRepublic of China on the Prevention and Control of Occupational Diseases and hasestablished regulations such as the Occupational Disease Emergency ResponsePlan and the Occupational Health Management System. Our measures to safeguardoccupational health are as follows:
Occupational Health
Measures to safeguard
occupational health
Inform each new joiner in writing ofthe occupational disease hazards,and post management guidelines,bulletin boards and warning signsat the entrance to the workplaceand related positions.
Engage third parties to conductannual inspections of workplacesthat may pose occupational diseaserisks, and publish the inspectionresults in time.
Organize regular occupationaldisease physical examinationfor employees, completeand update the declaration ofoccupational disease hazard
items on time.
Conduct monthly testing on
noise and other commonoccupational hazards, develop
and implement rectificationmeasures for those whose test
results exceed the limits.
"5831"Safety House Model
objective
zero "three violations”, zero work-related injuries, and zero occupational diseases
basics
roles andresponsibilities
supports
pillars
pre-work preparation
operation behavior
management
pre-shift meeting and
post-shift meetingoperation process
control
hazard identification
operation sitemanagement
risk detection and
managementstandardized
operation
6868
Hefei GCL SI, Funing GCL SI, andXuzhou Xinyu have all obtained theISO 45001
Occupational Health and SafetyManagement System Certificate
policies,procedures and
standards
education andtraining
safetymanagement
ledger
equipment and
facilities
safety management activitiesoccupational health
emergency response planand accident management
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GCL SI Occupational Health and Safety Performance in 2023
Disclosure itemUnit2023Number of individualswith work-relatedhealth problems
Full-time employeePersons0ContractorPersons0Number of individualswith work-relatedinjuries
Full-time employeePersons5
ContractorPersons0Number of work-relatedfatalities
Full-time employeePersons0
ContractorPersons0Number of majorwork-related injuries(excluding fatalities)
Full-time employeePersons0
ContractorPersons0Days of absence due towork-related injuries
Full-time employeeDays330
ContractorDays0Total recordable incident rate (TRIR)-0.14
The Company actively organizes publicity and education activities on safe production and popularizes occupational healthknowledge, in a bid to continuously improve employees' awareness of occupational health. We arrange company-level safetytrainings for all new employees. By the end of the Reporting Period, 2,433 new employees had completed Three-level SafetyEducation.In 2023, GCL SI conducted a total of 209 training sessions on occupational health and safety for employees, with a total of 564training hours and 43,105 participants.2023
GCL SI conducted
employee training sessions onoccupational health and safety
with a total of
training hours
GCL SI conducted
emergency drills in total
43,105participants
To standardize the Company's emergency management and improve factories'ability to cope with risks from hazards and prevent accidents, the Company has setup a special group to formulate the Emergency Programs for Production SafetyAccidents. Besides, we have organized an expert review committee to revise andimprove the emergency programs and have completed the filing and registrationwith local emergency management agencies.In 2023, GCL SI developed an annual emergency drill program based on thecomprehensive contingency plan and conducted 48 drills in total.
EmergencyManagement2023
4 people were injured in traffic accidents while commuting, and 1 was injured during work. In the future, GCL SI will take more optimal measures to guaranteeworkplace safety and build a solid foundation for employee health and safety.
Assuming primary responsibility and establishing safety awareness - Hefei GCL SI conducts specializedsafety training
Hefei GCL SI conducts emergency evacuation and fire drill
In August 2023, Hefei GCL SI invited external experts to provide aspecialized training on the primary duties and responsibilities of safeproduction for GCL SI's middle and senior management and safetypersonnel from various departments.From case alerts and reflection, interpretation of key articles of theLaw of the People's Republic of China on Work Safety, implementationof the primary responsibility for safe production, to legal liability, thetraining thoroughly expounded the top-down "safety first"concept andits significance. This Training has effectively improved the sense ofresponsibility and safety management capability of safety managers atall levels.
In June 2023, in response to the theme of Safety Month "Everyone Values Safety and Knows Emergency Response”,Hefei GCL SI staged batch fire evacuation drills throughout the factory. The goal of the exercise was to further examinehow well the Company's emergency rescue system could address emergencies, and whether the employees couldsuccessfully evacuate and escape from emergencies.The drill was conducted in the form of "script + simulation”. With hands-on experience, employees can enhance theirfire prevention and self-rescue skills, thereby laying a solid foundation for the Company's firefighting work.
Case
Case
Specialized Safety Training at Hefei GCL SI
Evacuation DrillFire Drill
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CommunityContribution
2.5
Committed to spreading positive energy in society, GCL SI actively engages in publicwelfare undertakings to contribute to the construction of a better community. Wegive back to society with practical actions to make more people feel the warmth andkindness of the Company.
GCL SI is concerned about youth education and understands the importance ofnurturing future talents. During the Reporting Period, we established "industry-academia-research"collaborative education bases and launched educationalprograms on new energy and environmental protection, so as to give young peoplegreater chances for learning and growth.
Nurturing on FutureTalent
At GCL SI, we are deeply invested in the development of the communities wherewe operate and are dedicated to fostering a culture of volunteerism. During theReporting Period, our volunteers took an active part in various activities, aimedat providing convenience to the public, spreading the green low-carbon concept,and helping the disadvantaged groups, making great efforts to promote socialharmonious development.
Volunteering Activities
"Industry-academia-research"collaborative education base to help nurture future talentsTo actively explore the talent training mode of school-enterprisecooperation and help students upgrade their comprehensive qualitiesto adapt to society's needs, Hefei GCL SI and Anhui Xinhua Universitystepped up their efforts on "industry-academia-research"cooperationand jointly established an off-campus internship base.In collaboration with the university's schools such as AutomationElectrical Engineering and Automation, Mechanical Design,Manufacturing and Automation, and Robotics Engineering, we haveestablished a long-term stable cooperation mechanism to jointlycultivate composite talents with innovative consciousness, strongpractical skills, and rich technical and managerial experience.
Case
Off-Campus Internship Base Established byHefei GCL SI and Anhui Xinhua University
Youth Civilization Unit in Hefei
Hefei GCL SI is dedicated to leading young employees to fulfill their duties and participate in social welfare todemonstrate youth vitality. During the Reporting Period, Hefei GCL SI assembled a team of young volunteers, whoactively carried out the "Learn from Lei Feng"theme activity and awareness raising campaigns, and advocated for agreen and low-carbon lifestyle within the community, encouraging practices such as water conservation, energy saving,and efficient resource use. These volunteer activities not only exemplified the dedication spirit of young employees butalso enhanced their sense of social responsibility.In addition, the labor union organized the "GCL One-Day Donation"activity, which raised a total of RMB 48,529.44.Through this activity, we have upheld the traditional Chinese virtues of aiding those in need and practicing acts ofcompassion. For the excellent performance of the exceptional youth team, Hefei GCL SI was granted the honorary title of"Youth Civilization Unit"of Feidong County, Hefei in 2023.
Case
Caring for left-behind children and lighting up technology dreams
Youth are among the most impacted by climate change, bearing thebrunt of its far-reaching consequences on their future prospectsand well-being. GCL SI is committed to helping more young peopleunderstand renewable energy and join the new energy industryin the future, so as to jointly contribute to green and low-carbondevelopment.In July 2023, Hefei GCL SI launched an activity "Pursue Dreams - EnterGCL to Explore the PV World”, aiming to popularize knowledge aboutnew energy. Led by the lecturers and volunteers, more than 20 YoungPioneers visited the Smart and Green Factory of Hefei GCL SI to getclose to new energy products and learn about new energy.
Case
Knowledge Sharing of Renewable Energy
Hefei GCL SI Received the Honorary Title of "Youth
Civilization"of Feidong County, Hefei City in 2023
"Learn from Lei Feng"Theme Activity
"GCL One-Day Donation"Activity
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GCL SI has actively responded to the national call for rural revitalization andcontinues the efforts to consolidate and expand the achievements of povertyalleviation. GCL Green Energy goes deep into villages and poverty-stricken areasin Henan, Anhui, Ningxia, Hunan and other provinces to provide professional andefficient intelligent operation and maintenance services for village-level povertyalleviation PV power stations. Such projects not only bring clean energy to the localareas, but also inject new vitality into rural revitalization.
Supporting RuralRevitalization
Poverty Alleviation PV Power Station in JianghuaYao Autonomous County, Hunan Province
GCL SI 40MW Agri-PV Power Station in Suzhou,
Anhui Province
Sending care and warmth to the elderlyOn the eve of the Chung Yeung Festival, Hefei GCL SI organized a "Filial Piety Delivering Warmth on Chung YeungFestival"activity and went to a nursing home to extend regards. 14 party members and staff representatives from HefeiGCL SI presented fruits, milk and other gifts to the elderly and spent time with them chatting and playing chess. Thevisit brought messages of care and well-wishes, bridging the gap between the enterprise and the elderly community,and fostering a supportive environment that honors and assists the senior population.
Case
Visit to Nursing Home
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E X cellence
With the mission of "focusing on green development and continuously improving the livingenvironment for humanity”, GCL SI is at the forefront of the innovation of green technologies. Bystrengthening our R&D capabilities and improving product quality and customer satisfaction, wepersist in providing robust momentum to the global energy transition.
GCL SI obtained
the new standard IEC61730:2023 Certification issuedby T?V Rheinland
, an internationalindependent third-party verification organization
Hefei GCL SI, Funing GCL SI, andXuzhou Xinyu factories all obtained the
ISO 9001Quality Management SystemCertificatesFuning GCL SI obtained theIEC 62941
QualityManagement System Certificatefor PV module manufacturing
Number of R&Dpersonnel
146.40
R&D Expense
RMB million
Cumulative Number ofpatents authorized
Number of new authorizedpatents of the year
Number of high-techenterprises achieved
Number of "NationalGreen Factory"
95.10
Average customersatisfaction score
UNSDGs supported in this chapter:
7778
Innovation-driven
3.1
Adhering to the concept of "technology leading and innovation-driven”, GCL SIoptimizes the R&D management, promotes product innovation, enhances industrialcooperation and communication, and leads technological breakthroughs in the fieldof clean energy, thus contributing to the development of the industry.
To ensure the efficiency and systematic approach of our R&D efforts, GCL SIhas established an R&D management standard system, and formulated andimplemented internal policies, including theManagement Standards for Scientificand Technological Work, theManagement Standards for Scientific ResearchProjects,theDesign and Development Control Proceduresand theManagementStandards for Scientific and Technological Achievements.These policies standardizethe management process of the Company, including technological strategymanagement, technological incentive management, R&D project management,technical standard management, intellectual property management, and scientificresearch workstation management. In addition, the Company stays attentive tothe latest developments and trends in technology management. We listen to theopinions and suggestions from front-line R&D personnel through technologysequence forums, aiming to constantly update and improve our R&D managementsystem.
R&D Management
With strong R&D capabilities, GCL SI is undertaking 11 national and 26 provincialand municipal-level key science and technology projects. By the end of the ReportingPeriod, the Company had a total of 240 R&D personnel, an increase of 63.34% overthe previous year; and our R&D expenses were 146.40 RMB million, an increaseof 80.83% over the previous year. GCL SI owns 5 high-tech enterprises, 1 nationalpostdoctoral workstation, 2 provincial and municipal-level engineering technologyresearch centers, 3 provincial and municipal-level enterprise technology centers,1 national green factory and 1 provincial-level intelligent factory, providing a solidfoundation for the Company’s technological innovation.
R&D Platform
To protect the Company's innovation capability, GCL SI strictly abides by laws andregulations such as theTrademark Law of the People's Republic of Chinaand thePatent Law of the People's Republic of China. Besides, the Company has formulatedand strictly follows internal policies such as theIntellectual Property ManagementStandard, thePatent Management Standard, theTrademark Management Standardand theCopyright Management Standardto comprehensively regulate the protectionof intellectual property rights. By the end of 2023, GCL SI had a total of 542 patents,an increase of 22% from the previous Reporting Period.During the Reporting Period, the Company reported none of infringement ofintellectual property rights.
Intellectual PropertyProtection
GCL SI R&D Expense Performance in 2023
Disclosure itemUnit202120222023
R&D expenses RMB 10,0006,507.58,095.9814,640.12R&D expenses as a percentage of total revenue%1.380.970.92Number of R&D personnelPersons96133240
Protecting our ownrights and interests
Respecting the rightsof others
GCL SI attaches great importance to the protection of intellectual property rights and activelyengages in registration, filing and application of intellectual property rights. Concerneddepartments are required to track the registration and authorization of trademarks, patents,trade names, and other intellectual property rights. The intellectual property managementdepartment will take proactive measures in case of any potential infringement of theCompany's intellectual property rights. The Company also conducts intellectual propertyawareness campaigns and training.To prevent the Company from infringing on the intellectual property rights, the Companyhas established an intellectual property retrieval system, covering various aspects suchas product and technology R&D, creation of the work, the use of trademark, imports andexports, participation in exhibitions, and advertising, which helps avoid intellectual propertydisputes. Moreover, the contract must include provisions regarding infringement of third-party intellectual property rights to protect both parties' intellectual property rights whencooperating with suppliers or other partners.
Harnessing the power of innovation to fuel corporate growthHefei GCL SI and Funing GCL SI jointly held a seminar on "Unleashingthe Strength of Scientific Researchers for the Long-term Developmentof Enterprises”, focusing on the development and implementation ofvaluable ideas, and encouraging the scientific research team to activelymake suggestions. The seminar proposed that for the R&D projects ofnew products, new technologies, new materials, and new equipment, theCompany should implement the responsibility system of project manager,and the members of the R&D, technology and process teams shouldcoordinate with each other to complete the projects with high quality.Additionally, we should establish a database for the evaluation of technicalskills of our employees in order to encourage the improvement of theirprofessional skills.
Case
The Seminar on "Unleashing the Strength of Scientific Researchers for
the Long-term Development of Enterprises”
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GCL SI Performance for Intellectual Property Protection in 2023
Disclosure itemUnit2023
Cumulative number of patentsauthorized
Items542Cumulative number of invention patentsItems5Cumulative number of trademarks andcopyrights held
Items14Cumulative number of softwarecopyrights held
Items17Number of new patent applications ofthe year
Items91Number of new authorized patents ofthe year
Items66
GCL SI actively participates in various industry activities, providing pioneering PVsolutions for global energy consumers, and sharing cutting-edge technologicalbreakthroughs and achievements with leading enterprises in the industry.Leading Innovation
With various energy storage product solutions, GCL SI participated in the 16th International Photovoltaic PowerGeneration and Smart Energy Conference & Exhibition (SNEC) and launched the "Lotus"module, which is proven tobe able to achieve a power generation gain of up to 12%.
The International Photovoltaic Power Generation and Smart Energy Conference & Exhibition
Participating in the International Photovoltaic Power Generation and Smart Energy Conference & Exhibition
At Intersolar Europe 2023, GCL SI launched theN-type TOPCon bifacial monocrystalline modulesfor the first time in Europe. The flagship products,including BIPV TOPCon module, the energy storageproducts of Evolution series and Honor series, werealso exhibited.
Intersolar Europe
Participating in Intersolar Europe in Munich, Germany
Under the theme of "Green Energy Storage,Intelligent Future”, the Company showcased a newgeneration of energy storage equipment and full-scene energy storage solutions at the SNEC ES+8th (2023) International Energy Storage Technology,Equipment and Application Conference & Exhibition.At the exhibition, GCL SI showcased the latestcutting-edge solutions and globally successfulapplication practices for the three major applicationscenarios: large-scale energy storage power stations,industrial and commercial use, and residential use.
The International Energy Storage Technology, Equipment
and Application Conference & Exhibition
Participating in the International Energy Storage Technology, Equipment and Application Conference & Exhibition
At the second World Solar Energy Forum, with afocus on the frontier progress and future trends ofthe PV industry, GCL SI presented the Company'stechnological breakthroughs and innovationachievements in response to industry changes andmarket challenges, as well as the leading solutionsto drive the advancement of renewable energyindustry.
The World Solar Energy Forum
Sharing industry insights at the World Solar Energy Forum
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IndustrialCooperation andExchange
3.2
In December 2023, GCL SI, together with government representatives, internationalorganizations, new energy enterprises, and industry experts from all over theworld, gathered at the 28th session of the Conference of the Parties (COP28) tothe UN Framework Convention on Climate Change (UNFCCC) to call for a jointglobal effort to accelerate the green transition. Along the way, we have givenfull play to our advantages and are actively engaged in various kinds of industrycooperation and exchanges. We collaborate with partners across the supply chainto jointly advance innovation and progress in the photovoltaic industry and globalenergy transformation, aiming to establish a new framework of mutual benefit andsustainable development.
ESG Global Leaders Conference
In September 2023, the ESG Global Leaders Conference themed "Sustainable Economic Growth, Social Development,and Environmental Protection"took place. As part of the keynote sessions, "China's Carbon Navigators Envision theFuture"brought together representatives from renowned new energy and investment companies to discuss the "dualcarbon goals"under sustainable development. Zhu Yufeng, Chairman of GCL SI, was invited to attend the conferenceand delivered a speech titled "ESG Innovation Actions Under the 'Dual Carbon Goals'”
Zhu Yufeng, Chairman of GCL SI, was invited to delivered a speech during ESG Global Leaders Conference
International Forum on Energy Transition
Strategic cooperation agreement with Guizhou Wujiang Hydropower
In September 2023, the 4th International Forum on Energy Transition was held. At the forum, GCL SI had extensiveexchanges and discussions with the energy administration departments of various countries, the InternationalRenewable Energy Agency (IRENA), and senior officials of outstanding enterprises and institutions in the energysector. The participants discussed topics including the global need for an energy transition, opportunities presentedby clean energy, energy security, and sustainable development. Through this forum, we aimed to foster consensusand cooperation, leveraging collective wisdom and strength to advance global energy transition efforts and combatclimate change.
In May 2023, GCL SI entered into a strategic cooperation framework agreement with Guizhou Wujiang HydropowerDevelopment Co., Ltd. Through complementary advantages, resource sharing, and common development, bothparties would establish a strategic partnership in PV module supply, technological innovation, PV power stationprojects development, and EPC services for the relevant projects.
International Forum on Energy Transition
Signing Ceremony of Strategic Cooperation between GCL SI and Guizhou Wujiang Hydropower
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GCL SI maintains close communication with mainstream industry associations, inan endeavor to jointly promote the high-quality development of the green energyindustry.
Industry Association
Name of the AssociationGCL SI's role
China Chamber of Commerce for Import and Export of
Machinery and Electronic Products, PV Branch
Vice Chairman UnitJiangsu Chamber of International CommerceVice Chairman Unit
Shanghai Solar Energy SocietyVice Chairman UnitChina New Energy Overseas Development AllianceChairman UnitGreen Energy Industry Development Promotion Association Vice Chairman UnitChina PV Industry Association Intellectual Property
Committee
Standing Committee Member
Signing Ceremony of Strategic Cooperation between GCL SI and SAEL
Cooperation with SAEL to forge new path in Indian MarketIn August 2023, GCL SI signed a cooperation agreement for the supply of 1.1 GW N-type high-efficiency modules withSAEL Industries Limited ("SAEL”), a leading PV project developer in India. This project represents one of the biggestPV module procurements in the Indian market in recent years. The two parties planned to install more than 2GW ofground-mounted PV projects in India each year, and would engage in in-depth business cooperation as key strategicpartners.
ProductResponsibility
3.3
GCL SI always adheres to the quality management policy of "Full Participation,Continuous Improvement, Value-added Services, and Customer Satisfaction"andsticks to the concept of "Quality Awareness in Heart, Product Quality on Hand”.Through the digital quality management system, quality training and otherinitiatives, the Company has created a corporate culture focused on "company-widequality”, intending to keep enhancing product quality and provide superior productsfor customers.GCL SI strictly abides by theProduct Quality Law of the People's Republic of China
and theStandardization Law of the People's Republic of China, and complieswith the internationally recognized standards for quality management systems.Hefei GCL SI, Funing GCL SI, and Xuzhou Xinyu all obtained the ISO 9001 QualityManagement System Certificate, while Funing GCL SI also obtained the IEC 62941Quality Management System for PV module manufacturing.The Company is actively working on the development of a quality managementsystem by establishing and enforcing a series of management regulations,includingtheQuality Management Manual,theIntegrated Management Manual, the ProductMonitoring and Measurement Control Procedureand theNon-Conforming ProductControl Procedure. With these policies, we have effectively prevented productquality risks, provided prominent products and services, and enhanced customersatisfaction.In addition, GCL SI has independently developed whole-process quality managementinformation systems, including the "GCL Smart Chain”, Warehouse ManagementSystem (WMS), and Manufacturing Execution System (MES). These digital systemsenable us to real-time collect and analyze data from the entire product productionprocess and achieve digital quality lifecycle management. This has significantlyimproved production efficiency and product quality, and will further enhance ourmarket competitiveness.
Quality ManagementSystem
Building Online Supply Chain Management and Control Platform, "GCL Smart Chain”, to empower qualitymanagement with digitization
GCL SI has independently developed an online supply chainmanagement and control platform, "GCL Smart Chain”,which integrates the entire procurement process, includingsupplier inquiry, bidding, expert grading, procurementapproval and qualification review, into the platform, enablingthe efficient flow of information and working process. Thisonline platform is conducive to optimizing the end-to-endprocurement process and driving digital transformation,while strengthening supplier quality management,standardizing the procurement process, and improving theoverall quality of the Company's products.
Case
Interface of "GCL Smart Chain”
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GCL SI continues the efforts to optimize quality management. We have introducedand implemented a number of quality management and traceability regulations,such as theIdentification and Traceability Control Procedures, theProduct RecallControl Procedures, and theControl Procedures for Corrective and PreventiveActions.To meet customer demand and maintain competitive advantage, the Companyadopts advanced digital technology to replace traditional manual inspection, whichgreatly improves the inspection efficiency and production quality level. We have alsobuilt an industry-leading fully automated assembly line with an automation rate of
79.5%. Our PV testing center has undergone reassessment of national accredited
laboratory by China National Accreditation Service for Conformity Assessment andannual audits by authoritative certification organizations such as T?V Rheinland andCanadian Standards Association (CSA), laying a solid foundation for product qualityassurance.In addition, the Company has set a unique certification QR code for each product.Once unqualified or unsafe products are found, we will recall them immediately.Then, the process and quality departments will examine the returned products andput forward a disposal plan. The process and quality departments will analyze thecauses of unsafe products, develop corrective actions, and conduct review analysisand effect verification.During the Reporting Period, the Company had not recalled any product.
Optimizing QualityProcess
To improve the quality awareness and quality capability of all staff, and to optimizethe quality control points and quality processes, the Company has carried out qualityand safety training many times during the Reporting Period. We conduct trainingsessions focused on process quality considerations, equipment and product quality,as well as quality awareness for team leaders. These efforts are aimed at enhancingthe quality consciousness and skills of all employees and ensuring effectivecommunication of the key challenges in our company's quality management systemsand practical operations.
Quality and SafetyTraining
GCL SI Quality and Safety Training Performance in 2023
Disclosure itemUnit2023Total number of training sessionsTimes568Total training hoursHours2,370Number of employees trainedPersons56,127
Replacing manual inspection with AI technology to improve production efficiency
Using AI technology to inspect products can optimize workforce allocation and reduce production costs with highefficiency and accuracy. GCL SI attaches great importance on the application of AI technology in production. The AI-Integrated Line Scan System possesses the capability to identify defects, with an estimated manpower savings of sixpersonnel per shift, based on an operation with eight lines as the standard. In the future, GCL SI will further facilitate theapplication of AI technology in production to improve production efficiency and accuracy
Case
AI-Integrated Line Scan System deployed in the production line
Conducting supplier quality training seminar to jointly improve product quality
GCL SI highly focuses on the communication and exchangewith suppliers and endeavors to build a solid cooperativerelationship. We carry out quality exchange activities withsuppliers on a regular basis. In August 2023, Hefei GCL SIheld quality training and exchange meetings with two cellsuppliers to discuss the abnormalities of the productionline, explore the causes of the problems in depth, aiming towork together to make improvements until the problemswere solved.
Case
Supplier Quality Training Seminar
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In 2023, GCL SI actively organized and launched series of quality-themed activities, focusing on quality and safety toenhance employees' awareness of quality and strengthen the Company's quality control capabilities.
In September 2023, Xuzhou Xinyusuccessfully held the Quality Monthactivity. By organizing skill competitionsand knowledge quiz competition, wenot only further increased employees'understanding of quality knowledge butalso enhanced corporate cohesion aswell as market competitiveness.
Quality Month at Xuzhou Xinyu - Offline Knowledge Quiz Competition
Xuzhou Xinyu
Opening Ceremony of "QualitySeason"Special Event at Funing
GCL SI
Cell Connection and ReplacementSkills Competition at Funing GCL SI
From April to July 2023, Hefei GCL SIand Funing GCL SI jointly held the first"Quality Season"special event with thetheme of "Quality Awareness in Heart”.Focusing on improving staff's qualityawareness and skills, Hefei GCL SIand Funing GCL SI held quality themedactivities, such as quality training, funquizzes, inspection skills competitions,cell replacement skills competitions,etc.
Hefei GCL SI and Funing GCL SI
98.00
90.33
98.68
93.42
Customer Service
3.4
A high-quality customer service system is crucial for photovoltaic enterprises.GCL SI enhances customer satisfaction by refining service processes and responsemechanisms. At the same time, the company practices responsible marketing,paying close attention to customer needs and rights. By establishing long-termcustomer relationships based on honesty and transparency, GCL SI promotes theCompany's stable growth.
GCL CL has established an advanced customer service system and formulatedinternal policies such as theControl Procedures for Customer RequirementsandtheManagement Regulations for Customer Complaints. These policies are designedto standardize the process of handling customer complaints and opinions to ensurethat customer feedbacks are resolved in a timely, reasonable, and effective manner.The Company values timely responses to customer feedback and has set up aregular-return-visit system in the After-sales Department. Within three months ofproduct delivery and implementation, the after-sales team conducts a follow-up visitto have thorough communication with the customer and assesses their satisfaction,while also inspecting the product's appearance and operational efficiency. Thecollected data will be analyzed and integrated to generate a detailed case report,which will be fed back to the Sales Department and Customer PurchasingDepartment to support the closed-loop management.
Annual average customersatisfaction score
Annual average customersatisfaction score
Annual average customersatisfaction score
Annual average customersatisfaction score
Target customersatisfaction score
Target customersatisfaction score
Target customersatisfaction score
Target customersatisfaction score
Customer ServiceSystem
Customer Satisfaction Score of Each Production Base in 2023
Hefei GCL SI
Wuhu GCL SI
Funing GCL SI
Xuzhou Xinyu
Launching "Quality Month"activity and focusing on quality and safetyCase
From May to December 2023, Wuhu GCLSI launched a series of quality activitieson the theme of "'Xin' Technology, 'Xin'Quality, 'Xin' Benchmark'”. The activitiesinclude quality basics Q&A, keynotespeech, team competition, and qualityexemplar selection, intending to form afavorable atmosphere where everyonevalues quality, thereby enhancing thequality control ability.
Wuhu GCL SI
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Wuhu GCL SI Quality Theme Activity
8990
The Company upholds the principles of honest operation and responsiblemarketing, strictly complies with theAdvertising Law of the People's Republicof Chinaand other laws and regulations. On such basis, we have established acompliance audit mechanism for products and services, and conduct regularcompliance awareness training for all staff. With these efforts, we seek to ensurethat the product promotional materials are truthful and accurate, well designedto provide all necessary information, and in conformity with laws and regulations,thus effectively safeguarding customers' right to know. During the ReportingPeriod, the Company reported none of product marketing violations.
Responsible Marketing
InformationSecurity andPrivacy Protection
3.5
GCL SI attaches great importance to information security and the protectionof personal information. The Company always strictly abides by applicablelaws and regulations such as theData Security Law of the People's Republicof China, thePersonal Information Protection Law of the People's Republic ofChinaand theAdministrative Measures for the Graded Protection of InformationSecurityto regulate data processing activities and protect customer privacy.GCL SI has formulated internal management systems, including the NetworkSystem Management Standards, the Database System Management Standards,the Information Data Security and Mobile Media Confidentiality ManagementStandards to ensure full coverage and compliance of information security.
GCL SI attaches great importance to data security management. We have taken multiple data protection measures for all-roundmanagement on the use of computers and related devices, virus protection of the computer information system, security in theuse of the Internet, security of the E-mail system, the security of the computer room, etc. Our purpose is to effectively protectconfidential information and data throughout the lifecycle from collection to storage, processing to transmission, and use todestruction in order to reduce the Company's information security risks.Meanwhile, the Company regularly conducts data security training activities such as special training on enhancing informationsecurity awareness, and strengthens the publicity and implementation of data security and private-sensitive data protectionpolicies. By doing so, we ensure that employees are capable of responding to information security challenges, safeguardinginformation security and privacy protection. During the Reporting Period, the Company held 5 training sessions on informationsecurity, covering a total of 100 people.In 2023, the Company reported none of violations against information security or data leakage incidents.
Information Department
Responsible for implementing and executinginformation and data security and confidentialitymanagement standards from superior departments.Based on this, the Department is also responsible forthe inspection, supervision, assessment, rewards andpunishments of information and data security andconfidentiality management work in the managementcenter, subsidiaries and project companies.
Other Functional DepartmentsResponsible for cooperating with the informationdepartment to implement relevant regulationson information data security and confidentialitymanagement standard.
Management Center and SubsidiariesResponsible for implementing and executing information and data security and confidentiality management standards,inspecting and supervising the security and confidentiality management work of the affiliated information system.
InformationDepartment
OtherFunctionalDepartmentsManagementCenter andSubsidiaries
Responsibilities for Information Data Security Management of GCL SI
Global Marketing Center conducts internal training on responsible marketingThe Company puts the concept of responsible marketing into practice and conducts responsible marketing campaigns.To raise sales teams' compliance awareness and enhance their risk prevention consciousness in responsible marketing,the Company provides trainings on responsible marketing for frontline sales teams. The training topics cover legalaffairs for marketing contracts, sales code of conduct, etc., which are designed to guarantee compliance and reliabilitywhen promoting and selling products.
Case
Global Marketing Center's Legal Training for Contracts Signing
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T rust
GCL SI adheres to the strategic pillar of mutual trust in business to build a high-standard corporategovernance system and better fulfill corporate social responsibility. We prioritize the independenceand diversity of our Board, ensuring transparent information disclosure and fostering closerelationships with our investors. The Company implements strict risk management, complianceand internal control, and strengthens business ethics audits, in order to uphold a fair and justbusiness environment with a transparent reporting mechanism.
100%
Shareholders' meetings
Anti-corruption training coverage rate
Number of suppliers obtainedthe ISO 14001 EnvironmentalManagement System CertificationNumber of suppliers obtained theISO 9001 Quality ManagementSystem Certification
accounting for
81%
of all suppliersaccounting for91%
of all suppliers
Investor presentations
Business ethics audit projects completed
projects
suppliers
suppliers
UNSDGs supported in this chapter:
9394
CorporateGovernance
4.1
In recent years, domestic and foreign regulators have consistently reinforced thecriteria for independent directors of companies to improve corporate governancestructures and enhance supervisory effectiveness. At GCL SI, we recognize thatbolstering the independence of the Board is essential for the Company to promotefair and transparent decision making and strengthening risk management, therebyenhancing the overall value and market credibility of the Company. Moreover, wecontinue to improve the transparency of our information disclosure, so that investorscan conduct decision-making analysis based on public information, and identifyinvestment opportunities and risks, contributing to the healthy development andefficient resource allocation of the capital market.The independent directors of GCL SI play an essential role in protecting the rightsand interests of minority shareholders, reviewing related-party transactions,and monitoring the financial authenticity. To effectively perform the duties ofindependent directors, GCL SI has continuously revised and improved the internalrules and regulations, such as the Articles of Association, the Rules of Procedure forShareholders' Meetings, the Rules of Procedure for the Board of Directors, the Rulesof Procedure for the Board of Supervisors and the Working Policy for IndependentDirectors, which stipulate the rights, obligations, nomination and electionprocedures, and mechanism for exercising special authorities of independentdirectors. These documents ensure that independent directors can autonomouslyexpress their opinions, propose extraordinary shareholders' meetings, conductindependent reviews of material issues, and genuinely uphold the interests of allshareholders, especially minority shareholders. By the end of the Reporting Period,the Board of Directors consisted of 9 directors, 3 of whom are independent directors.The diversity of the Board enriches decision-making by incorporating a wide rangeof perspectives and experiences, mitigating the risk of narrow-mindedness withinthe Company. It fosters innovation, enhances corporate governance, and booststhe overall competitiveness of the Company, thereby fostering long-term stabilityand value creation. By the end of the Reporting Period, one female director wasnominated in the Board of GCL SI.
Shareholders' meetings
Diversity andIndependence of theBoard
GCL SI Corporate Governance Performance in 2023
Board Meetings
Board of Supervisors Meetings
GCL SI recognizes that information disclosure is a key means for listed companiesto present their operating reality, financial position and material issues to the public,which is of central significance to both companies and investors. We strive fordetailed and timely disclosure of information to enhance market credibility.The Company has established and followed the Measures for the Administration ofInformation Disclosure, and issued 281 announcements during the Reporting Period,covering financing, periodic reports, related party transactions, equity incentives,meeting resolutions, legal compliance and other contents. Besides, we have issuedand implemented the Investor Relations Management Guideline and strengthenedbilateral communication with investors through a variety of means, includinginvestors' on-site visits, thematic investor presentations, regular performancebriefing, and real-time responses to market concerns through online platforms.This approach ensures information transparency, effective management of investorexpectations, and maintains a positive market image.
TransparentDisclosure andInvestor Relations
GCL SI Transparent Disclosure and Investor Relation Performance in 2023
Investors' on-site visitsIndependent Directors
Female Directors
Board of Directors
Performance briefing sessions
Investor presentations
Q&A on exchange interactive platforms
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RiskManagement
4.2
GCL SI has established an effective risk management system based on theCompany's strategies and operation objectives. Additionally, the Company hasformulated theComprehensive Risk Management Standardsto continuouslystrengthen risk control capabilities.The Company has established a risk management organizational systemcharacterized by corporate governance structure, responsible department forrisk management, and risk management responsibilities shared by all functionaldepartments. The Company has also built a "three lines of defense"system for riskmanagement, integrating the risk management requirements into the Company'smanagement and business processes to ensure effective risk prevention and control.
RiskManagementFramework
Risk Management Committee? Responsible for decision-making on overall risk management? Accountable to the Board for the effectiveness of comprehensive risk management? Determine the Company's overall annual risk preferences and risk managementstrategies
Functional departments andbusiness unitsResponsible department for riskmanagement
"Three Lines of Defense" for GCL SI's Risk Management
The Company's risk management is centered on the core concepts of "EarlyInvolvement, Indicator Tracking, and Risk Communication”. We are involved in keyproject reviews and process approvals in the early stage and proactively participatein core business activities to effectively prevent risks. We check quantitativerisk indicators to dynamically monitor risks in key business processes, and flagrisk timely. Furthermore, risk management trainings and promotion across allemployees is conducted to enhance risk management awareness and promoteenterprise-wide risk control.During the Reporting Period, the Company organized 10 onsite risk managementtraining sessions and delivered 16 promotional posters.
Functional departmentsand business units
Risk Management Committee andSenior management of the Company
Audit Committee andinternal audit departmentFirst Line of DefenseSecond Line of DefenseThird Line of Defense
During the Reporting Period
? The primary responsible person
for risk management? Participate in risk management,
formulate risk-related decisions,
and promote the execution? Jointly undertake risk
management functions and
accept the organization,
coordination, guidance, and
supervision by the responsible
department
? Responsible for the
construction of the Company'srisk control system? Lead and promote the dailywork of comprehensive riskmanagement? Accountable to the RiskManagement Committeefor the effectivenessof comprehensive riskmanagement
the Company organized
onsite riskmanagement training sessionsand delivered
promotional posters
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Anti-bribery andCorruption
4.3
GCL SI has established a robust risk management and internal control compliancesystem and adheres to integrity to resist any form of corruption. The Companyconducts professional trainings and multiple reporting mechanisms to improvethe risk awareness and compliance culture of all employees, establishing a robustfoundation for the steady development of the Company amidst a complex andchanging market environment.
GCL SI is committed to the principles of integrity and firmly opposes any form ofcorruption. We are dedicated to fostering a business environment characterizedby integrity, fairness, and transparency. During the Reporting Period, the Companydeveloped and released theAnti-Corruption Policy. We undertake to strictly complywith all applicable laws and regulations related to anti-corruption, and conductregular internal anti-corruption audits and inspections, and work with customers,partners, suppliers and other stakeholders to create a clean and healthy marketenvironment.In terms of internal management, the Company has formulated theAnti-Fraud andReporting Management Standardsto prevent and control fraud-related incidentsand clarify the management provisions on corruption, bribery, unfair competitionand conflict of interest. Meanwhile, the Company conducts regular anti-corruptiontrainings for directors and all empoyees to promote a culture of integrity.
Anti-Corruption
GCL SI has established a robust compliance management system and internalcontrol mechanisms. We have formulated and implemented thePrinciples andSystem of Internal Control Management, providing a solid guarantee for theCompany's compliant operational and sustainable development. During theReporting Period, the Company optimized and updated theGuidelines for InternalAudit Workto further standardize the internal audit workflow and reportingrequirements, ensuring efficient internal control. The five essential elements ofGCL SI's internal control - control environment, risk assessment, control activities,information and communication, and monitoring - are integrated into the entireprocess of enterprise management, including the business units and businessactivities.
Compliance andInternal Control
GCL SI Anti-corruption Training Performance in 2023Coverage rate of anti-corruption trainingfor directorsCoverage rate of anti-corruption trainingfor employees100%
100%
Anti-corruption training for directors
Anti-corruption training for employees
Minutes
Minutes
Anti-corruption training sessions fordirectorsAnti-corruption training sessions foremployees
Times
Times
In external cooperation, the Company is determined to eliminate corruption in the procurement process, and actively promotesthe integrity awareness among suppliers. The Company carries out anti-corruption trainings for suppliers during the biddingand tendering process, and signs theAnti-Commercial Bribery and Integrity Agreementwith suppliers during the execution ofcontracts for procurement projects.In addition, the Company holds regular integrity meetings to introduce suppliers to the Company's systems and policies relatedto integrity building, demonstrating the Company's strong commitment to integrity and honesty. Through these initiatives, we arededicated to jointly creating a clean and law-abiding business environment and provide a safe and reliable cooperation platformfor our partners.During the Reporting Period, GCL SI did not have any illegal cases resulting from corruption at the Company or employee level.
To protect the legitimate interests of the Company and ensure independent,objective, and fair investigation and handling of violations, we encourage employeesand other stakeholders to report any known or potential misconduct. The Companyhas established clear reporting and handling management processes, reportingchannels and reward standards.GCL SI has established a strict whistle-blower protection mechanism, requiringall departments to cooperate with each other in accordance with their respectiveresponsibilities and fully protect the legitimate rights and interests of whistle-blowers. The Company strictly prohibits disclosing the information and reportedcontents of the whistle-blower to the reported personnel and unit, and strictlyprevents the leakage of reporting information and loss of whistle-blowing materials.Any person who illegally divulges the information of the whistle-blower or retaliatesagainst the whistle-blower shall, once verified, be dismissed and never be employed.
Reporting Mechanism
Reporting Channels
Employees at all levels of the Company and related parties who come across or suspect anyunlawful activity must inform the Company via letters, emails (including but not limited to jubao@gcl-power.com), phone calls, face-to-face interviews, and other means.
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Business Ethics
4.4
GCL SI adheres to business ethics and abides by the business philosophy of integrityand fair competition. In addition, the Company continues to strengthen informationsecurity and privacy protection, effectively safeguards the rights and interests ofcustomers, and enhances social trust.GCL SI strictly abides by laws and regulations such as theCriminal Law of thePeople's Republic of China, and theAnti-Unfair Competition Law of the People'sRepublic of China, and adheres to the business philosophy of honesty and integrity.The Company has formulated policies and standards such as theAnti-commercialBribery and Integrity Agreementand theAnti-Fraud and Reporting ManagementStandards. In addition, GCL SI has zero tolerance towards acts that violate businessethics such as fraudulent practices, corruption and unfair competition. The Companystipulates that all employees must abide by the relevant provisions on integrity andself-discipline while performing tendering, bidding (or procurement, engineering)projects and contracts. No one shall ask for or offer bribes, kickbacks andcommissions, provide or accept any gifts, valuables or any other direct or indirectpersonal benefits, or divulge or actively inquire about commercial secrets related tothe procurement project.The Company actively organizes trainings on business ethics. From online posters,official accounts and offline special training, we strive to strengthen employees'awareness and understandings of business ethics, and guide them to establishcorrect business ethics values. In 2023, training on business ethics covered allemployees of the Company.The Company regularly conducts various internal audits including the businessethics audit according to the Guidelines for Internal Audit Work. In 2023, theCompany conducted a total of 16 internal audits, including 4 business ethics auditsand 5 anti-corruption audits; a total of 121 risk points had been identified. By theend of April 2024, the rectification rate reached 100%.In 2023, the Company did not have any illegal cases caused by fraudulent practicesor corruption.
To meet the needs of employees at different levels, the Company designs different training and promotion programs, andconducts business ethics training on a monthly basis.
Posters and Flyers
Teaching Sessions
Trainings cover interpretation of relevant regulationsand case sharing of listed companies, regulatoryupdates, required knowledge and skills, integrityeducation, etc., mainly through regular online postersand "Xinzhihai"training session
Trainings cover interpretation of business relatedlaws and regulations and case sharing, requiredknowledge and skills, risk management, andintegrity education, mainly through on-site teachingsupplemented by interesting Q&A.
Management
centre
GCL SI Conducts Targeted Training on Business Ethics to Improve Training EffectivenessCase
Subsidiarybases
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ResponsibleSupply Chain
4.5
GCL SI sees the supply chain as an essential part of operations and believes thateffective supply chain management is important for the sustainable developmentof enterprises. The Company has formulated and strictly implemented controlmeasures and procedures such as theBusiness Partner Code of Conduct, the
Procedures for Supplier Managementand theProcurement Process ControlProcedureto systematically manage the procurement process and ensure the steadyoperation and development of the supply chain.In 2023, GCL SI reviewed, updated and published theBusiness Partner Code ofConduct which includes the following key principles:
GCL SI makes it clear that suppliers who violate theBusiness Partner Code ofConductwill face sanctions including suspension or termination of a businessrelationship.
Strictly prohibit child labor and forced labor as defined by the InternationalLabor OrganizationEnsure the freedom of movement and freedom of association of employeesStrictly prohibit any form of discrimination, harassment, or retaliationEnsure that employees are entitled to healthy and safe working conditionsComply with local applicable laws on minimum wages, compensation,working hours and benefitsEnsure that all employee overtime must be voluntary, with compensationoffered in accordance with applicable lawsImplement a consistent environmental protection management program andcomply with environmental standards to continuously minimize resourceconsumption and environmental impactMake specific efforts on the reduction of air emissions (including GHG), wasteand water use reduction, implementation of sustainable resources, recoveryand management processesComply with local applicable laws on competition and anti-corruptionConduct responsible sourcing by truthfully and accurately disclosing themanufacturing, production, and sales information of suppliers throughoutsupply chain, in accordance with the reasonable requirement of GCL SI; andtake proper measures for due diligence against suppliersGuarantee absolute no use or trading of "Conflict Minerals"when conductingbusiness with GCL SI
Observe the Universal Declaration of Human Rights, the Conventions No. 1,No. 14, No. 132, and No. 138 of the International Labor Organization (ILO) andsimilar standards (unless superseded by local laws) to ensure that humanrights and personal dignity are respected at all times
Funing GCL SI Conducted Knowledge Training on Contract Law to Improve Employees' Legal AwarenessCaseIn July 2023, Funing GCL SI conducted knowledge training on the contract law, and a total of 40 people from multipledepartments participated in the training. The training aimed to improve the legal awareness of employees in functionaldepartments of the Company, standardize the signing, performance and management of contracts or agreements, andenhance employees' ability to avoid risks. The training mainly focused on three aspects, namely, detailed interpretationof contract law highlights in the Civil Code, detailed interpretation of sales contract highlights and interpretation ofrelevant legal precedents. The training helped employees understand the legal risks and precautions before and aftersigning the contract and in the midst of performing the contract, and analyze relevant legal risks in detail based onclassic cases.
Contract Law Knowledge Training
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GCL SI carries out daily supplier management according to theSupplierManagement Standardand theProcurement Process Control Procedure. Weensure scientific and fair management on suppliers through supplier classificationmanagement, supplier grading management, supplier performance evaluationby level and supplier review. During the Reporting Period, the Company furtherimproved theSupplier Management Control Procedureand increased the contentof supplier training management. Through these measures, we aim to deepen thesuppliers' comprehensive understandings of and mastery on the code of conduct forpartners, anti-corruption policy, human rights policy and conflict minerals policy ofthe Company, as well as social responsibilities.
Supplier Management
Supplier Management System
Suppliers are categorised into level I,level II and level III based on factorssuch as product quality, technologicaladvancement, importance, and supplycapacity
Suppliers are categorized as strategicsuppliers, preferred suppliers, generalsuppliers, and rectification suppliers.Particularly for rectification suppliers, ifthey still fail to meet the standards afterrectification, a supplier exit mechanismwill be initiated.
Supplier classification management
Supplier grading management
The evaluation is conducted by followingthe principle of "quality, cost, delivery andservice"and is required for all procurementoperations. Scores are jointly made bythe demand department and relevantdepartments regarding quality, technologyand supply chain. Suppliers will beclassified into level I, level II, level III andlevel IV according to the performanceevaluation result. The scope of ourperformance evaluation covers deliverytime, quality, service, price, etc.Suppliers having a score range of 90<X≤100will be classified into level I, 80<X≤90 intolevel II, 70≤X≤80 into level III and X<70 intolevel IV.
Supplier performance evaluation by level
GCL SI has classified the review intoon-site review and off-site review. Weirregularly conduct visits and reviews tostrategic suppliers and suppliers havingimportant business relationships withus to understand their operation andproduction status, quality assurancesystems, production costs and financialconditions. We also discuss with thesesuppliers on issues and suggestions inthe cooperation process..
Supplier review
As of the end of the Reporting Period, GCL SI had a total of 95 existing suppliers, including 82 level I suppliers. A total of 74existing suppliers have signed the anti-bribery/integrity agreements with us. During the Reporting Period, we terminatedcooperation with 5 suppliers. We introduced a total of 37 new suppliers, of which 26 are Level I suppliers. Besides, we havesigned the anti-bribery/integrity agreements with a total of 26 new suppliers.
A total of A total ofexisting suppliers have signed the antibribery/integrity agreements
new suppliers have signed the anti-bribery/integrity agreements
North China Region
Northeast China Region
South China Region
East China Region
Central China Region
Southwest China Region
(Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia)
(Liaoning, Jilin, Heilongjiang)
(Guangdong, Guangxi, Hainan)
(Shanghai, Jiangsu, Zhejiang, Shandong, Anhui,Jiangxi, Fujian)
(Hubei, Hunan, Henan)
(Sichuan, Chongqing, Guizhou,Yunnan, Tibet)
Northwest China Region(Shaanxi, Gansu, Xinjiang,Qinghai, Ningxia)
GCL SI Supplier Management Performance in 2023
Existing Suppliers
by Region
2023
7426
New Suppliers
by Region
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The Company deeply recognizes that the ESG impacts and risks in the supply chainmay be different from those associated with GCL SI' self-operation. Therefore, tobetter manage such risks, the Company has integrated ESG control measures intothe procurement process. In addition, we also implement theEHS AssessmentMethodtogether with theSupplier Management Control Procedureto ensure theorderly and efficient ESG management in the supply chain.
Supplier ESGmanagement
GCL SI Supplier ESG Management Performance in 2023
Disclosure Item2023
Existing Suppliers
Proportion to the Total ExistingSuppliers
Total number of suppliers95100%Number of suppliers having signed the safety andenvironmental protection agreement
5861%Number of suppliers obtained to the ISO 14001Environmental Management System Certification
7781%Number of suppliers obtained the ISO 9001 QualityManagement System Certification
8691%Number of suppliers obtained the ISO 45001/OHSAS18000 Occupational Health and Safety SystemCertification
7478%Number of product suppliers obtained the ProductCarbon Footprint Certification
1718%
The proportion of suppliers of Hefei GCL SI and Fuing GCL SI thathave signed the safety and environmental protection agreement is100%? We prioritize suppliers who have obtained the certification of the ISO 9001 Quality ManagementSystem, the ISO 14001 Environmental Management System and the ISO 45001 Occupational Health andSafety Management System under equal conditions? We prioritize collaboration with suppliers who have the product carbon footprint certification or whoseproducts have a relatively low carbon footprint? Suppliers that provide false documentation are subject to the one-ticket veto system
? We require suppliers to sign integrity agreements? We require suppliers to comply with laws and regulations and the Business Partner Code of Conduct? Companies that experience significant safety incidents are eliminated from our supplier list
SupplierSelection
SupplierCollaboration
Conflict minerals management is critical for PV manufacturing enterprises,especially solar cell and module manufacturers, as it relates to corporate socialresponsibility, brand image and supply chain stability. GCL SI has publicly releasedtheConflict Minerals Statement. In addition, we strictly implement control policieson conflict minerals to ensure that raw materials are purchased ethically. In thisway, we avoid the use of conflict minerals that may indirectly exacerbate regionalconflicts and human rights abuses. We believe that this will help us maintain thesupply chain transparency, abide by international regulatory requirements, andenhance our reputation and competitiveness in the global market. At the same time,it is also a key measure to promote the equitable transformation of the supply chainand to promote the achievement of the sustainable development goals.When using these materials (especially plating, tin, and copper) to manufacturePV modules, we require suppliers to trace the source of the minerals, sign theDeclaration on Conflict-free Mineralsand provide supporting materials on the tracedresults. We require that all suppliers comply with the GCL SI'sConflict MineralsStatement; and we are also committed to never using or trading "conflict minerals”.100% of the Company's suppliers involved in the risk of "conflict minerals"havesigned the Declaration on Conflict-free Minerals.
Conflict MineralsManagement
GCL SI Supplier ESG Management Performance in 2023
Disclosure Item2023
New Suppliers
Proportion to the Total NewSuppliersTotal number of new suppliers37100%Number of new suppliers passed to the ISO 14001Environmental Management System Certification
3492%Number of new suppliers passed the ISO 9001 QualityManagement System Certification
3595%Number of new suppliers passed the ISO 45001/OHSAS 18000 Occupational Health and Safety SystemCertification
3081%
GCL SI Conflict Minerals Management Performance in 2023
The number of suppliers involved in the risk
of "con?ict minerals"upon veri?cation
Of which the proportion of suppliers having signed the100%Declaration on Conflict-free Minerals
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Appendix
GCL SI joined the United Nations Global Compact in August 2023. We reaffirmour support for UN Global Contact and its ten principles. We conduct business inaccordance with ten principles and meet our social obligations. At the same time, weare committed to achieving the UNSDGs and becoming a reliable long-term partnerof the United Nations.United Nations GlobalCompact
AreaPrincipleResponse
HumanRights
Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; and
2.1 Labor Rights Protection
2.2 Diversity, Equity and Inclusion
4.5 Responsible Supply Chain
Principle 2: make sure that they are not complicit in human rightsabuses.
2.1 Labor Rights Protection
4.5 Responsible Supply Chain
Labour
Principle 3: Businesses should uphold the freedom of association andthe effective recognition of the right to collective bargaining;
2.1 Labor Rights Protection
Principle 4: the elimination of all forms of forced and compulsorylabour;
2.1 Labor Rights Protection
4.5 Responsible Supply Chain
Principle 5: the effective abolition of child labour; and
2.1 Labor Rights Protection
4.5 Responsible Supply Chain
Principle 6: the elimination of discrimination in respect of employmentand occupation.
2.1 Labor Rights Protection
2.2 Diversity, Equity and Inclusion
4.5 Responsible Supply Chain
Environment
Principle 7: Businesses should support a precautionary approach toenvironmental challenges;
Carbon Emissions Reduction withTechnologies- Digital Carbon ChainManagement and IntelligentManufacturing
1.1 Responding to Climate Change
1.2 Energy Management and
Renewable Energy Utilization
1.3 Environmental Compliance and
Ecological Protection
1.4 Water Stewardship
1.5 Emissions and Waste
Management
AreaPrincipleResponse
Environment
Principle 8: undertake initiatives to promote greater environmentalresponsibility; and
Carbon Emissions Reduction withTechnologies- Digital Carbon ChainManagement and IntelligentManufacturing
1.1 Responding to Climate Change
1.2 Energy Management and
Renewable Energy Utilization
1.3 Environmental Compliance and
Ecological Protection
1.4 Water Stewardship
1.5 Emissions and Waste
Management
Principle 9: encourage the development and diffusion ofenvironmentally friendly technologies.
Carbon Emissions Reduction withTechnologies- Digital Carbon ChainManagement and IntelligentManufacturing
1.1 Responding to Climate Change
4.5 Responsible Supply Chain
Anti-Corruption
Principle 10: Businesses should work against corruption in all itsforms, including extortion and bribery.
4.2 Risk Management
4.3 Anti-bribery and Corruption
4.4 Business Ethics
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Key Performance TableEconomic Performance
Environmental Performance
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Economic Indicator Performance
Disclosure itemUnit202120222023
RevenueRMB 10,000470,146.05835,360.921,596,761.03Total assetsRMB 10,000929,999.681,023,955.001,910,936.80Net income attributable to shareholdersRMB 10,000-198,2886,510.8315,771.95Basic earnings per shareRMB/share-0.3390.0110.027R&D investmentRMB 10,0006,507.708,095.9814,640.12R&D expenses as a percentage oftotal revenue
%1.380.970.92Number of R&D technical personnelPersons96133240Proportion of the number of R&Dtechnical personnel
%3.673.783.83
IndicatorsUnit202120222023
Environmental protection investmentRMB 10,000--5,107
Energy Consumption
IndicatorsUnit202120222023
Natural gasm?79,312150,729315,951Production-based natural gasconsumption intensity
m?/MW--16.94ElectricitykWh--473,387,732Including:Renewable energy for self-usekWh--37,403,487
Including: purchasing municipal
electricity
kWh126,600,000150,893,426432,258,316Including:Purchasing renewable
electricity
kWh--3,725,929Consumption of renewable electricitythousand kWh--41,129Proportion of renewable electricity intotal electricity consumption
%--8.69
Energy Consumption
IndicatorsUnit202120222023Production-based electricityconsumption intensity
MWh/MW--25.38Steamm?2,176.853,237.7476,640Gasolinekg101,698-59,974GHG Management
Scope 1 GHG emissionstCO
e235.68325.871,309.95Scope 2 GHG emissions (location-based)tCO
e65,579.3787,669.92250,992.40Scope 2 GHG emissions (market-based)tCO
e--248,867.51Total Scope1 and Scope 2 GHG emissions(location-based)
tCO
e65,815.0587,995.79252,302.35Total Scope1 and Scope 2 GHG emissions(market-based)
tCO
e--250,177.45Revenue-based Scope 1 and Scope 2GHG emission intensity (location-based)
tCO
e/RMB10,000
--0.16Revenue-based Scope 1 and Scope 2GHG emission intensity (market-based)
tCO
e/RMB10,000
--0.16Production-based Scope 1 and Scope 2GHG emission intensity (location-based)
tCO
e/MW--13.53Production-based Scope 1 and Scope 2GHG emission intensity (market-based)
tCO
e/MW--13.41Scope 3 GHG emissions tCO
e--14,408,778Water ConsumptionWater consumptionm?68,769267,2801,647,653Reclaimed water recycledTonnes--202,569.45Recycling rate of reclaimed water%--8.89Water consumption per unit ofproduction
Tonnes/MW--88.35
111112
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Total Wastewater Discharge
IndicatorsUnit202120222023
Total wastewater dischargeTonnes424,348238,9492,085,282Suspended solids dischargeTonnes--21.79COD dischargeTonnes--76.54Ammonia dischargeTonnes--11.71Phosphorus dischargeTonnes--0.29Fluoride dischargeTonnes--9.71
Solid Waste Discharge
Total solid waste dischargeTonnes4,006.0013,325.2652,238.60Total non-hazardous waste generatedTonnes2,400.3713,465.7452,218.69Non-hazardous waste recycling rate%--99.93Hazardous wasteTonnes8.0515.9019.91Total amount of disposed hazardouswaste 13
Tonnes--17.82Waste Gas DischargeTotal waste gas emissionsm?786,793,843.00307,476,003.735,839,417,312.00Nitrogen oxides (NOx) emissionsTonnes--1.43Sulfur oxides (Sox) emissionsTonnes--0.25Non-methane hydrocarbon (NMHC)emissions
Tonnes--5.26Particulate Matter emissionsTonnes--2.46
The inconsistency between the total volume of hazardous waste generated by GCL SI in 2023 and the total volume of disposal is attributable to the fact that some of thehazardous wastes were processed in early 2024 under a single disposal.
Social PerformanceEmployment Performance
IndicatorsUnit202120222023
Number of employeesPersons1,5683,5206,256By gender
MalePersons1,0882,3834,465FemalePersons4801,1371,791Proportion of femaleemployees
%30.6132.3028.63Byemploymentcategory
Full-time employeePersons1,5632,2764,942ContractorPersons01,2251,216Others (interns, rehiredretirees)
Persons51998By ethnicityEthic minority employeesPersons-3088By age
Over 50 years oldPersons57657541-50 years oldPersons24356681630-40 years oldPersons8311,7362,885Under 30 years oldPersons4371,1532,480
By region
Number of employeesworking in the Chinesemainland
Persons1,5453,5006,222Number of employeesworking in Hong Kong,Macau, Taiwan, and oversearegions
Persons232034By educationbackground
Bachelor degree or abovePersons-6691,254Below bachelor degreePersons-2,8515,002
By employeecategory
Middle managementemployees
Persons8994120Number of female employeesin middle management
Persons191521Proportion of femaleemployees in middlemanagement
%21.3515.9617.50Number of seniormanagementemployees
Persons353842Number of female employeesin senior management
Persons445Proportion of femaleemployees in seniormanagement
%11.4310.5311.90
113114
Employee Training Performance
IndicatorsUnit202120222023
Total investment in employee trainingRMB 10,000--550.11Number of employees trained
Persons29,46987,5789,003Total training hoursHours 2,5963,598292,162Average training hours per employeeHours293747
By gender
Total training hours for maleemployees
Hours1,8712,598226,623Average training hours permale employee
Hours--51Total training hours forfemale employees
Hours6831,00165,539Average training hours perfemale employee
Hours--37
Byemploymentcategory
Total training hours for non-management level
Hours2,1473,119287,224Average training hours forjunior employees
Hours--47Total training hours formiddle management level
Hours2782994,430Average training hours formiddle management level
Hours--37Total training hours forsenior management level
Hours171180508Average training hours forsenior management level
Hours--12
The statistical indicators for 2021 and 2022 are the total number of employees receiving training.
GCL SI has disclosed performance data on the number of training hours of employees by gender since 2023.
GCL SI has disclosed performance data on the number of training hours of employees by employment category since 2023.
Employee Rights and Interests Performance
Labor contract signing rate%100100100
Occupational Health and Safety
IndicatorsUnit202120222023
Number of work-related fatalities
Full-time employee--00Contractor--00Days of absencedue to work-related injuries
Full-time employee--330330Contractor--00
Occupational Health and SafetySafety production investmentRMB 10,000-335.81,470Total Recordable Incident Rate%--0.14Number ofindividuals withwork-relatedinjuries
Full-time employee--55Contractor--00
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Intellectual Property Management IndicatorCumulative number of patents authorizedItems438445542Cumulative number of software copyrightsheld
Items171717Cumulative number of invention patentsItems--5
Corporate Governance Performance
IndicatorsUnit202120222023Number of directorsPersons999Number of independent directorsPersons333Number of female directorsPersons111Anti-bribery and Corruption Performance
Coverage rate of anti-corruption trainingfor directors
%--100Coverage rate of anti-corruption trainingfor employees
%--100Number of anti-corruption trainingsessions for directors
--26Number of anti-corruption trainingsessions for employees
Times--26Total training hours of anti-corruptiontraining for directors
Minutes--780Total training hours of anti-corruptiontraining for employees
Minutes--780Number of anti-corruption auditTimes5Business Ethics Performance
Number of business ethics auditTimes--4
Corporate Governance Performance
115116
GRI Standards Index
DisclosureTitleChapter Index
2-1Organizational detailsAbout GCL SI2-2
Entities included in the organization'ssustainability reporting
About the Report2-3
Reporting period, frequency and contactpoint
About the Report2-4Restatements of informationAbout the ReportActivities and workers
2-6
Activities, value chain and other businessrelationships
About GCL SI2-7Employees
2.1 Labor Rights Protection
2.2 Diversity, Equity and Inclusion
2.3 Employee Training and Development
2.4 Occupational Health and Safety
Key Performance Table2-8Workers who are not employees
2.2 Diversity, Equity and Inclusion
Key Performance TableGovernance
2-9Governance structure and composition
Sustainability Strategy and Governance
4.1 Corporate Governance
2-10
Nomination and selection of the highestgovernance body
Sustainability Strategy and Governance
4.1 Corporate Governance
2-11Chair of the highest governance body
Sustainability Strategy and Governance
4.1 Corporate Governance
2-12
Role of the highest governance body inoverseeing the management of impacts
Sustainability Strategy and Governance
4.1 Corporate Governance
2-13
Delegation of responsibility for managingimpacts
Sustainability Strategy and Governance
4.1 Corporate Governance
2-14
Role of the highest governance body insustainability reporting
Sustainability Strategy and Governance2-15Conflicts of interest4.3 Anti-bribery and Corruption2-16Communication of critical concernsSustainability Strategy and Governance2-17
Collective knowledge of the highestgovernance body
Sustainability Strategy and Governance
DisclosureTitleChapter Index
2-18
Evaluation of the performance of the highestgovernance body
Sustainability Strategy and Governance2-19Remuneration policies2.1 Labor Rights Protection2-20Process to determine remuneration2.1 Labor Rights ProtectionStrategy, policies and practices
2-22
Statement on sustainable developmentstrategy
Sustainability Strategy and Governance2-23Policy commitmentsSustainability Strategy and Governance2-24Embedding policy commitmentsSustainability Strategy and Governance2-25Processes to remediate negative impactsSustainability Strategy and Governance2-26
Mechanisms for seeking advice and raisingconcerns
Sustainability Strategy and Governance2-27Compliance with laws and regulations4.3 Anti-bribery and Corruption2-28Membership associations
Sustainability Strategy and Governance
3.2 Industrial Cooperation and Exchange
Stakeholder engagement
2-29Approach to stakeholder engagementSustainability Strategy and Governance2-30Collective bargaining agreements
2.1 Labor Rights Protection
4.5 Responsible Supply Chain
3-1Process to determine material topicsSustainability Strategy and Governance3-2List of material topicsSustainability Strategy and Governance3-3Management of material topicsSustainability Strategy and GovernanceGRI 201 Economic Performance
3-3Management of material topics
2023 Sustainable Performance
Responses to Changes - An Introduction
to GCL SI's Manufacturing Bases of Cells
and Modules201-1
Direct economic value generated anddistributed
2023 Sustainable Performance
Key Performance Table201-2
Financial implications and other risks andopportunities due to climate change
1.1 Responding to Climate Change
201-3
Defined benefit plan obligations and otherretirement plans
2.1 Labor Rights Protection
201-4
Financial assistance received fromgovernment
2.3 Employee Training and Development
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DisclosureTitleChapter IndexGRI 204 Procurement Practices
3-3Management of material topics4.5 Responsible Supply Chain
GRI 205 Anti-corruption
3-3Management of material topics
4.3 Anti-bribery and Corruption
4.4 Business Ethics
205-1
Operations assessed for risks related tocorruption
4.4 Business Ethics
205-2
Communication and training about anti-corruption policies and procedures
4.3 Anti-bribery and Corruption
4.4 Business Ethics
205-3
Confirmed incidents of corruption andactions taken
4.3 Anti-bribery and Corruption
4.4 Business Ethics
GRI 302 Energy
3-3Management of material topics
1.2 Energy Management and Renewable
Energy Utilization302-1Energy consumption within the organization
1.2 Energy Management and Renewable
Energy Utilization302-2
Energy consumption outside of theorganization
1.2 Energy Management and Renewable
Energy Utilization302-3Energy intensity
1.2 Energy Management and Renewable
Energy Utilization302-4Reduction of energy consumption
1.2 Energy Management and Renewable
Energy Utilization302-5
Reductions in energy requirements ofproducts and services
1.2 Energy Management and Renewable
Energy UtilizationGRI 303 Water and Effluents
3-3Management of material topics1.4 Water Stewardship303-1Interactions with water as a shared resource1.4 Water Stewardship303-2
Management of water discharge-relatedimpacts
1.4 Water Stewardship
303-3Water withdrawal1.4 Water Stewardship303-4Water discharge1.4 Water Stewardship303-5Water consumption1.4 Water StewardshipGRI 304 Biodiversity
3-3Management of material topics
1.3 Environmental Compliance and
Ecological Protection
DisclosureTitleChapter Index
304-1
Operational sites owned, leased, managedin, or adjacent to, protected areas and areasof high biodiversity value outside protectedareas
N/A304-2
Significant impacts of activities, products,and services on biodiversity
1.3 Environmental Compliance and
Ecological Protection304-3Habitats protected or restoredN/A304-4
IUCN Red List species and nationalconservation list species with habitats inareas affected by operations
N/AGRI 305 Emissions
3-3Management of material topics
1.1 Responding to Climate Change
1.5 Emissions and Waste Management
305-1Direct (Scope 1) GHG emissions1.1 Responding to Climate Change305-2Energy indirect (Scope 2) GHG emissions1.1 Responding to Climate Change305-3Other indirect (Scope 3) GHG emissions1.1 Responding to Climate Change305-4GHG emissions intensity1.1 Responding to Climate Change305-5Reduction of GHG emissions1.1 Responding to Climate Change305-7
Nitrogen oxides (NOX), sulfur oxides (SOX),and other significant air emissions
1.5 Emissions and Waste Management
GRI 306 Waste
3-3Management of material topics1.5 Emissions and Waste Management306-1
Waste generation and significant waste-related impacts
1.5 Emissions and Waste Management
306-2
Management of significant waste-relatedimpacts
1.5 Emissions and Waste Management
306-3Waste generated1.5 Emissions and Waste Management306-4Waste diverted from disposal1.5 Emissions and Waste Management306-5Waste directed to disposal1.5 Emissions and Waste ManagementGRI 308 Supplier Environmental Assessment
3-3Management of material topics4.5 Responsible Supply Chain308-1
New suppliers that were screened usingenvironmental criteria
4.5 Responsible Supply Chain
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DisclosureTitleChapter Index
308-2
Negative environmental impacts in thesupply chain and actions taken
4.5 Responsible Supply Chain
GRI 401 Employment
3-3Management of material topics
2.1 Labor Rights Protection
2.2 Diversity, Equity and Inclusion
401-1New employee hires and employee turnover2.2 Diversity, Equity and Inclusion401-2
Benefits provided to full-time employeesthat are not provided to temporary or part-time employees
2.1 Labor Rights Protection
GRI 403 Occupational Health and Safety
3-3Management of material topics2.4 Occupational Health and Safety403-1
Occupational health and safety managementsystem
2.4 Occupational Health and Safety
403-2
Hazard identification, risk assessment, andincident investigation
2.4 Occupational Health and Safety
403-3Occupational health services2.4 Occupational Health and Safety403-4
Worker participation, consultation, andcommunication on occupational health andsafety
2.4 Occupational Health and Safety
403-5
Worker training on occupational health andsafety
2.4 Occupational Health and Safety
403-6Promotion of worker health2.4 Occupational Health and Safety403-7
Prevention and mitigation of occupationalhealth and safety impacts directly linked bybusiness relationships
2.4 Occupational Health and Safety
403-8
Workers covered by an occupational healthand safety management system
2.4 Occupational Health and Safety
403-9Work-related injuries2.4 Occupational Health and Safety403-10Work-related ill health2.4 Occupational Health and SafetyGRI 404 Training and Education
3-3Management of material topics2.3 Employee Training and Development404-1
Average hours of training per year peremployee
2.3 Employee Training and Development
DisclosureTitleChapter Index
404-2
Programs for upgrading employee skills andtransition assistance programs
2.3 Employee Training and Development
404-3
Percentage of employees receiving regularperformance and career developmentreviews
2.3 Employee Training and Development
GRI 405 Diversity and Equal Opportunity
3-3Management of material topics2.2 Diversity, Equity and Inclusion405-1
Diversity of governance bodies andemployees
2.2 Diversity, Equity and Inclusion
GRI 406 Non-discrimination
3-3Management of material topics2.2 Diversity, Equity and Inclusion406-1
Incidents of discrimination and correctiveactions taken
2.2 Diversity, Equity and Inclusion
GRI 407 Freedom of Association and Collective Bargaining
3-3Management of material topics
2.1 Labor Rights Protection
4.5 Responsible Supply Chain
407-1
Operations and suppliers in which the rightto freedom of association and collectivebargaining may be at risk
Not involved in operations and suppliersin which the right to freedom ofassociation and collective bargainingmay be at riskGRI 408 Child Labor
3-3Management of material topics
2.1 Labor Rights Protection
4.5 Responsible Supply Chain
408-1
Operations and suppliers at significant riskfor incidents of child labor
Not involved in operations and suppliersat significant risk for incidents of childlaborGRI 409 Forced or Compulsory Labor
3-3Management of material topics
2.1 Labor Rights Protection
4.5 Responsible Supply Chain
409-1
Operations and suppliers at significant riskfor incidents of forced or compulsory labor
Not involved in operations and suppliersat significant risk for incidents of forcedor compulsory laborGRI 413 Local Communities
3-3Management of material topics2.5 Community Contribution413-1
Operations with local communityengagement, impact assessments, anddevelopment programs
2.5 Community Contribution
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DisclosureTitleChapter Index413-2
Operations with significant actual andpotential negative impacts on localcommunities
Not involved in operations withsignificant actual and potential negativeimpacts on local communities
GRI 414 Supplier Social Assessment
3-3Management of material topics4.5 Responsible Supply Chain414-1
New suppliers that were screened usingsocial criteria
4.5 Responsible Supply Chain
414-2
Negative social impacts in the supply chainand actions taken
4.5 Responsible Supply Chain
GRI 416 Customer Health and Safety
3-3Management of material topics
3.3 Product Responsibility
3.4 Customer Service
416-1
Assessment of the health and safetyimpacts of product and service categories
3.3 Product Responsibility
3.4 Customer Service
416-2
Incidents of non-compliance concerning thehealth and safety impacts of products andservices
3.3 Product Responsibility
3.4 Customer Service
DisclosureTitleChapter Index
GRI 417 Marketing and Labeling
3-3Management of material topics3.4 Customer Service417-1
Requirements for product and serviceinformation and labeling
3.4 Customer Service
417-2
Incidents of non-compliance concerningproduct and service information andlabeling
No incidents of non-complianceconcerning product and serviceinformation and labelling occurred417-3
Incidents of non-compliance concerningmarketing communications
No marketing-related violations haveoccurredGRI 418 Customer Privacy
3-3Management of material topics
3.5 Information Security and Privacy
Protection418-1
Substantiated complaints concerningbreaches of customer privacy and losses ofcustomer data
3.5 Information Security and Privacy
Protection
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