OVERVIEW
StatementData
ReferencesExecutive Summary
Acquisition
ContactTime Period
Scope
This is the first Environmental, Social, and Governance (ESG) Report published by Gree ElectricAppliances Inc. of Zhuhai. The Report mainly discloses the Company's e?orts to actively respond tothe opportunities and challenges of sustainable development, integrate ESG management into theCompany's management and operations, and create comprehensive economic, social and environmentalvalue for its stakeholders.
The qualitative and quantitative information used in this report comes from publicly available information,internal documents, and relevant statistics of Gree Electric Appliances, Inc. of Zhuhai, and the disclosurescope is consistent with the scope of the consolidated nancial statements. Other contents that di?erfrom this scope will be explained in the Report. Unless otherwise stated, all amounts mentionedhereunder shall be denominated in CNY.
This report has been prepared with reference to the "GRI Standards" issued by the Global SustainabilityStandards Board (GSSB), the "Sustainable Development Goals (SDGs)" of the United Nations, the"Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies -Standard Operation of Companies Listed on the Main Board" and "Guidelines No. 1 of the ShenzhenStock Exchange for the Self-regulation of Listed Companies - Business Handling" issued by theShenzhen Stock Exchange.
For ease of expression, "Gree Electric Appliances, Inc. of Zhuhai" is referred to as "Gree Electric","Gree", "the Company", or "we" in this Report.
This electronic version of this Report can be accessed on the Company website (http://www.gree.com.cn), Shenzhen Stock Exchange website (http://www.szse.cn) and CNINFO (www.cninfo.com.cn).
If you have any questions, suggestions or comments on this Report, please contact:
Address: West Jinji Road, Qianshan, ZhuhaiTel: 0756-8669232
The Report covers the period from from January 1, 2023, to December 31, 2023. To enhance thecompleteness of the Report, some content may beyond the above time period.
Unless otherwise indicated, the scope of organization of this Report covers Gree Electric Appliances,Inc. of Zhuhai, its branches, subsidiaries and various production bases.
Chairman's MessageHello everyone, thank you for reading this report. On behalf of theBoard of Directors of Gree, I would like to express my gratitude foryour long-standing concern for Gree! In 2023, facing a complex andvariable global economic environment, all Gree employees fought hardand rose to the challenge, creating the best results since the Companywas founded 33 years ago. Our annual revenue reached CNY205.018billion, with net prots attributable to shareholders of listed companiesof CNY29.017 billion, and tax contributions of approximately CNY17.6billion.We understand that the success of a company is not only reected inits economic benefits but also in its contributions to the environmentand society. Environmental, Social, and Governance (ESG), asa concrete management tool for implementing the concept ofsustainable development at the corporate level, makes it an undeniableresponsibility for the company to carry out comprehensive and well-implemented ESG management and information disclosure. Hence,we have completed the compilation of our first ESG report, and wewelcome everyone to learn about the related actions Gree has taken inthe ESG area in recent years.In fact, before the publication of this ESG report, we had alreadyreleased social responsibility reports for seventeen consecutiveyears. Enterprises are builders of the nation, and every enterpriseshould become a healthy "cell" in society, actively taking on socialresponsibilities. The fate of enterprises is intertwined with that of thenation and humanity. Therefore, against the backdrop of global climatechange, as a responsible manufacturing company, we should contributeto the planet and the good life of people.In terms of the environment, we have always embraced the nationalsentiment of green development. As early as 2013, we proposed theslogan "For the Clearer Sky and Greener Earth", and integrated thisconcept into our innovation and production practices. Today, of Gree's44 internationally leading technologies, 41 are related to green energysaving. In the era of low carbon, Gree serves green development withour products, creating some of the most energy-e?cient products in the
global refrigeration industry. Gree's globally pioneering "Zero CarbonSource" PV energy-storage air-conditioning technology has won therst Chinese Patent Gold Award in the central air conditioning industryand received the highest award at the Global Refrigeration TechnologyInnovation Competition. This technology uses only one-fth the energyof traditional technologies, and can generate and supply power byitself, reducing carbon emissions by nearly 90%. From the perspectiveof saving on electricity costs, the investment cost can be recoupedwithin ve years. Currently, this technology serves 35 countries globally,saving an average of 14,300 kWh per project annually.
In terms of industrial upgrading, since 2016, we have been vigorouslypromoting industrial upgrading, advancing digital development,continuously improving the level of intelligence, and committingourselves to realizing the data operation and platform operation ofthe entire value chain. Particularly in the production chain, we havepromoted the design, development and implementation of digitalplatforms. In 2023, the rst high-density "automation, intelligence anddigitalization" integrated production line of our "Black Light Factory"in Gaolan Port was put into operation. It incorporates a number oftechnologies such as automatic assembly, fastening, welding, pastingand testing, greatly improving the production e?ciency, promoting thelow-carbon and environmental protection in the production process, andaccelerating the transformation of green development.Socially, we develop home appliances around the needs of the peoplefor a better life. The General Secretary proposed that the people'saspirations for a better life are our goal. Now we can say that Greedevelops and manufactures whatever people need for a better life. Our"Windless Air Conditioner" solves the long-standing issue of discomfortcaused by direct cold air blowing from air conditioners, and it can alsosave 15% energy; we have produced a flower-level fresh-keepingrefrigerator, powered by -5°C cell-level fresh-keeping technology and-38°C deep freeze fresh-keeping technology, which not only preventsmeat from spoiling but also keeps flowers fresh for 20 days withoutwilting or discoloration, allowing consumers to enjoy a better life; wehave integrated air conditioner compressor technology into traditional
washer-dryers, developing a heat pump washer-dryer that can achieve37°C low-temperature drying without damaging clothes, addressingthe shortcomings of traditional washing machines in wrinkle and careremoval, enabling dry cleaning at home.
In terms of corporate governance, we have always adhered to the
governance principles of transparency, accountability and efficiency,earnestly implemented the "Company Law of the People's Republic ofChina" and other laws and regulations, and followed international bestpractices to ensure the creation of sustainable value for shareholdersand society. To this end, we have rigorously selected and recruitedboard members who possess the necessary qualifications andexperience, meet the requirements of diverse backgrounds, and bringin multiple perspectives to enhance the breadth and depth of decision-making; we have strengthened our internal control managementsystem to ensure that all our business activities comply with the lawand a high level of business ethics, thereby preventing risks andprotecting the rights and interests of our stakeholders; we have alwaysemphasized the importance of shareholder returns, with particularemphasis on protecting the rights and interests of small and medium-sized shareholders, ensuring that they can fairly share the fruits ofthe Company's development. To date, we have distributed more thanCNY142 billion in dividends, demonstrating our long-term commitmentto our shareholders.Gree's remarkable achievements in 2023 are already engraved in therecords, and the journey of pursuing dreams in 2024 has also begun.National intelligent manufacturing, green development, low-carboninnovation, and a better life are the eternal missions of Gree. In the Yearof the Dragon, a lucky year for the Chinese nation, Gree will wave thebanner of "Made in China" with the vigor of a soaring dragon, vigorouslyadvancing on the path to becoming a powerful manufacturing nation.
2023 ESG Report
2023 ESG ReportAbout GreeCompany ProleGree Electric Appliances, Inc. of Zhuhai was established in 1991 and listed on the Shenzhen StockExchange in November 1996. The Company started by assembling and producing household airconditioners, and has now evolved into a diversified and technologically oriented global industrialmanufacturing group. Its industries span consumer goods and industrial equipment, with products sold inover 190 countries and regions.In terms of industrial layout, Gree has actively expanded in both domestic and foreign markets byestablishing 77 manufactures facility across provinces and cities such as Guangdong, Chongqing, andAnhui, as well as in countries including Brazil and Pakistan. The Company has also set up six recyclingfacility, covering the entire industrial chain from upstream production to downstream recycling, achievinga green, recycling, and sustainable development model.About innovation, Gree has set up 16 R&D center, covering multiple fields such as refrigerationtechnology and electromechanical technology. It hosts 152 research institutions, 1,411 laboratories,and an academician workstation. Gree sticks to the principle of "investing on demand without settinga ceiling" in scientific research investment, which brings remarkable achievements in technologicalinnovation to the Company. As of March 2024, Gree has applied for a total of 119,842 patents, owns44 "internationally leading" technologies, and has received multiple national scientic and technologicalawards.
Regarding quality management, Gree adheres to the principle of honest operation, customer-orientedapproach, and strict control over quality and system construction. This commitment to quality hasearned the Company a good reputation in the market, winning the third "China Quality Award" in2018. Additionally, Gree actively participates in the formulation of national standards, to promote theimprovement of industry quality levels.With respect to transformation and upgrading, Gree actively responds to supply-side structural reforms,optimizes its industrial layout, and advances intelligent manufacturing upgrades. The Company hasexpanded from specializing in air conditioning production to a diversied high-end technology industry,including intelligent equipment and communication equipment. Gree's intelligent equipment not onlysupports the Company's own automation transformation but also provides advanced equipment andservices for other industries.Gree always adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristicsfor a New Era, remains true to its original aspiration, keeps its mission firmly in mind, sticks to thereal economy, follows the path of self-reliance and innovation, and accelerates the informatization ofmanagement, automation of production, and intellectualization of products, to continue to lead theglobal HVAC industry's technological development. The Company keeps striving in elds like intelligentequipment, communication equipment, and molds, creating more leading technologies to fulll the globalconsumers' aspiration for a better life, and setting sail in the intelligent era to write a new chapter!
2023 ESG Report
2023 ESG ReportCorporate CultureGree's "real" culture
MissionSpirit
Real
The corporate culture of Gree iscentered around the core principlesof "realism, trustworthiness, integrity,innovation, and respect", forming aculture of external expansion andinternal restraint that emphasizespracticality and keeping pace with thetimes. This excellent traditional styleand strong spiritual force powerfullypromote the Company to always stick toits original aspirations, focus on industry,and relentlessly pursue rst-class,excellence, and perfection, contributingthe greatest value to society andcreating a better life for humanity!
Law-abidingand honest
Dedication towork, pioneeringand innovation
Loyalty,friendliness,diligence andambitionQuality rstand customersatisfactionHonestbusiness andmutual benetCreate a world-classenterprise, Achieve Gree tobe a century-old brand
Loyalty, friendliness, diligenceand ambition
Vision
Carry forward the industrialspirit, master coretechnology,Pursue perfect quality,provide rst-class service,Strive for "Made in China,Loved by the World"
Less talk, More action
Less talkMore action
T
ru
st
w
or
thiness
Inno
vation
In
tegrityResp
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t
2023 ESG ReportHistory
Core Products
1. 1991: Brand 1.0
Brand slogan:"Gree, Creates Much Sales Chance"Brand positioning: Turbo CoolingBrand development strategy: Initially establish ahigh-quality image of Gree air conditioners, andcreate core advantages of product
Brand slogan: "Gree, the Mastering of Core Technologies"Brand positioning: Leading in Science and TechnologyBrand development strategy: Transfer from "Made in
China" to "Created in China"
Brand slogan: "Made in China, Loved by the World"Brand positioning: Serve the WorldBrand development strategy: Reshape the image of"Made in China", to introduce Chinese independentbrands to the worldCategory slogan: Gree produces excellent electrical appliances(2022)Category positioning: Changing from single air conditioner to full-space health appliances in the consumer categoryCategory development strategy: Demonstrate Gree'stechnological innovation strength and diversied industrial layoutin the eld of household appliances
Brand slogan: "Making Better Air Conditioners"Brand positioning: Quality Takes PriorityBrand development strategy: "Excellent strategy"
of producing excellent products and creatingfamous brands
Brand slogan: "For the Clearer Sky and Greener Earth"Brand positioning: Undertake ResponsibilityBrand development strategy: Shoulder the responsibility
of environmental protection and green development
3. 2010: Brand 3.05. 2015: Brand 5.0
2. 1997: Brand 2.04. 2013: Brand 4.0
Economic performanceEnvironmental performance
Governance performance
The total operating revenuewas CNY
205.02
billion
The net prot attributable to shareholders oflisted company was CNY
29.02
billion
Held
General Meetingof Shareholders
A total of
national green factories,
provincial green factories and
municipal green factories wereauthorized
Carried out over
energy-saving and cost-reduction projects
saving about
61.37
million kWh of electricityThe installed capacityof PV constructionhas reached
MW
566,831
Tons of CO
equivalent of greenhouse gasemissions directly reduced byemission reduction initiatives
Accumulatively processed more than
56.64
million units/sets of variouswaste electrical and electronic products2,343
peopleparticipated at thegeneral meeting ofshareholders
representing a total of2,407,051,892
shares ofthe Company with voting rights
accounting for
42.88%
ofthe total number of shares of theCompany with voting rights
Adjusted net prot attributable to list companyshareholders was CNY
27.57
billionThe accumulated equity nancing amounted to CNY
5.27
billion, with total dividends exceeding CNY
billion.Among which, cash dividends totaled over CNY110 billion, and the amount spent on share repurchases totaledapproximately CNY30 billion, including about CNY3 billion in share repurchases in 2023.
Held
BoardMeetings
Held
SupervisoryMeetings
Over40%
of independentdirectors
22.22%
femaledirectors
Held
investorrelations communicatemeetings
Answered
questions on the interactiveplatform of the ShenzhenStock Exchange
Honors
Highlight 2023
Tax contribution wasCNY
17.58
billion
72,610
peoplewere employed
Employee physicalexamination rate reached100%
Completed
training projects
with a total of
25,000
person-times
and an average annualsatisfaction rate of98%
100%
of procurement sta?passed sustainable procurementtraining
More than
suppliersinvolved in the "conictminerals" survey
Customer satisfaction ranked rst in the air conditioningindustry for
consecutive years
A total of
21,148
domesticand foreign invention patentshave been authorized
As of March 2024, the Company hasapplied for
119,842
patents
including
64,539
invention patents
The Company has set up
researchinstitutes,
research institutions,1,411
laboratories, and
academicianworkstation (motor and control)
It has one national key laboratory,one national engineering technologyresearch center, one national industrialdesign center and
national enterprisetechnology centerIt has trained and recommended
national, provincial, municipal, district (county)technical experts and
craftsmen who received the relevant honors
Social performanceInnovation performance
As of January 2024, the Companyhas
"internationally leading"technologies
Innovation awards
First and Second Prizes ofInnovation Award of China EnergyConservation Association
Engineering Science and TechnologyTalent Contribution Award (Enterprise)of International Scientic ExchangeFoundation of ChinaFirst and Second Prizes of Science and
Technology Award of China National
Light Industry CouncilFirst and Second Prizes of GuangdongScience andTechnology Award for Tech
nological Invention
China Energy Conservation
Association
International Scienti?c ExchangeFoundation of ChinaPeople's Government of Guangdong
Province
China National Light Industry Council
Awards and Recognition (As of March 2024)
Several Geneva InternationalGold, Silver and Bronze Medals
for InventionsGeneva International Exhibition
of Inventions
20th Anniversary of Zhuhai Charity Federation - "2023 Outstanding
Contribution Compassionate Enterprise" Award
2022 "Charitable Loving
Enterprise" Award
China ESG Benchmark
Enterprise Award
2023 Corporate Climate Action
CaseGreen Design DemonstrationEnterprise of Industrial Products
Excellent Case of Green
Development in 2023
Zhuhai Charity FederationZhuhai Charity Federation
Haitou.cciiMedia Research
Ministry of Ecology andEnvironmentNational Ministry of Industry and
Information
National Business DailyBeijing News Zero Carbon
Research Institute
ESG/CSR awards
2023 Most InuentialEmployer
Reputation List of China Listed Companies for 2022 -Most Socially Responsible Listed Company
2023 Guangdong Enterprise Brandand Enterprise Culture Construction
Model Unit
"Give a Like for My FavoriteChina's Brands in 2022" byChina National Brand Network
2023 China EcologicalBrand Forum - Top 100Annual Brands ListBrand Value Leader
2022 Annual Model Enterprises
for Honest and Trustworthy
Business PracticesOutstanding Contribution
Brand Unit
Guangdong Research Committee ofCorporate, Guangdong Brand ResearchCommittee, and Guangdong Market
Economy Promotion Association
China National BrandNetwork
Sina FinanceChina Council for BrandDevelopment
China Enterprise Reform andDevelopment SocietyChina Council for BrandDevelopment
Brand and marketing awards
Governance awards/certications
Comprehensive awards
Product awards
A number of GermanRed Dot Awards in theproduct design category
Greater Bay Area NavigationAward – Award for OutstandingContribution (Enterprise)
German Design
Association
Hong Kong Ta Kung Wen Wei
The Guofeng cabinet air conditionerreceived the AWE2024 Gold Award
Gree Kinghome "Global Freshness"Refrigerator won the Health Star ofChinese Household AppliancesGree Kinghome "Global Freshness"Refrigerator won the Health Star ofChinese Household Appliances
Household AppliancesMagazine
PV energy-storage multi-connected unit won thegold medal at the 2023China Refrigeration Expo
Organizing Committee ofChina Refrigeration Expo
"Golden Wutong" Listed Company withthe Most Investment Value
Chinese Industrial Co-operatives, JianFinancial Information, and TMTPOST
2023 Zhuhai Excellent Private
Enterprise
Zhuhai Municipal Committee of theCommunist Party of China, ZhuhaiMunicipal People's Government
The GMV Enjoy series householdcentral air conditioning was approvedas an innovative consumer product of"Upgraded and Innovative ConsumerProduct (Light Industry, Tenth Batch)"China National LightIndustry Council
Credit List of Top 500 Listed
Companies in ChinaChina Enterprise Reform andDevelopment Society
"Wisdom Wind" air conditionerfor the elderly was selected forthe 2022 Promotion Catalog ofSmart Health and Elderly CareProducts and ServicesNational Ministry of Industryand Information
2022 Fortune's Most Inuential
IoT Innovation List
Fortune
Gree independently developed"high-efficiency heat pumptechnology based on floor heatstorage", which was examinedby the expert panel on-site anddeemed to be at the "internationalleading" level of overall technicalstandard.
The 12th General Assembly ofthe ISO/TC 86/SC 4 RefrigerationCompressors Subcommittee washeld in Zhuhai, and Ms. DongMingzhu, Chairman of ISO/TC 86/SC4, participated in and made a speechat the meeting.
Gree's "D-CTFP Quality Technical Innovation Cycle Method" was includedin the "Typical Cases of Quality Change and Innovation by Chief QualityOfficers in 2023" announced by the State Administration for MarketRegulation, and also included in "The Way of Quality Success – TypicalCases of Quality Change and Innovation by Chief Quality Officers inGuangdong Province" due to its advanced quality management concepts,methods, experience, and practice.
The achievement of Gree's "Independent Innovation andApplication of Key Technology for Intelligent Ventilation AirConditioning System of Maglev Direct Expansion MetroStation" was rated as "internationally leading", o?ering a newsolution for the construction of e?cient environmental controlsystems in China’s newly built subway stations.
The 28th United Nations Climate Change Conference was held in Dubai, UAE.Ms. Dong Mingzhu, Chairman of Gree, attended the "China Corner" meeting onDecember 3 and delivered a keynote speech, showcasing the achievementsof China's manufacturing industry in green and low-carbon development andsharing Gree's zero-carbon story in China's response to climate change.
Gree Electric Appliances, Inc. of Zhuhai received the rst conformitycerticate and declaration issued by Intertek in several elds. FivePV air conditioning models were awarded the first IEC TS 62910conformity certicate by Intertek, indicating that these models havefully integrated low-voltage ride-through requirements into theirdevelopment and design processes.
The "2023 Zhuhai · InternationalStandardization Conference", jointlyhosted by Gree, Hefei GeneralMachinery Research Institute,and China Refrigeration and Air-Conditioning Industry Association, washeld in Zhuhai.
To help China's lychee industry achieve high-qualitydevelopment, promote common prosperity, and driverural revitalization, Gree independently developedspecialized lychee preservation mobile equipmentin over 40 days and held the first unit's launchceremony at Zhuhai Gree Lvkong Technology Co.,Ltd.
Forbes released the 2023 "Global2000" list, where Gree ranked331st, up 25 places from theprevious year.
Gree and China Pingmei ShenmaGroup jointly developed the "KeyTechnology and Application of NewRefrigeration Complete Equipment forHeat Hazard Treatment in Deep Mine"project, which was assessed by expertsto have reached an internationallyleading technical level.
China National Light Industry Council announced the award-winningprojects for the Science and Technology Award of China National LightIndustry Council 2022, with Gree winning three awards. Among these,Gree's high-efficiency electrothermal dual-drive bacterium eliminationtechnology and its application in air purifiers, and the key technologyand industrialization of high-efficiency low-noise air conditioning motorsreceived the rst prize.
February
2023
February
2023
March2023
May2023
May2023
December2023
June2023June2023August2023
September2023
NovembertoDecember2023
2023 Key Events or Timeline
ESG Management
Stakeholder Communication
Gree actively carries out communication with various stakeholders, collects the requirements and expectations of stakeholders through various channels, and realizes common development with them.
Majorstakeholder
Government departmentand regulatory authorityShareholder and investorCustomerPartnerEmployeeSociety and the publicEnvironment
Key Issue
Law-abiding andcompliant operationTransparent disclosureImproving corporategovernanceAdherence to businessethics
Law-abiding and compliant operationIntellectual Property ProtectionTransparent disclosureRisk ManagementImproving corporate governanceAdherence to business ethicsTechnological innovation
Customer managementProduct quality and safetyAccessibility of productsand services
Adherence to businessethicsIndustry exchange anddevelopmentSupply Chain Management
Occupational health andsafetyCareer training anddevelopmentProtection of employee rightsand interestsEmployee communicationand democratic managementEmployee careDiversity and equalopportunity
Responding to nationalstrategiesPracticing socialresponsibility
Energy managementWater resourcemanagementWaste managementAddressing climate changeGreen O?ceDeveloping circulareconomy
Communicationand channel
Inspection by leaders andcompetent authoritiesCompliance patrols andinspectionsRegular meetingswith local governmentrepresentativesForums, conferences andseminarsDaily policyimplementation
General Meeting of ShareholdersInvestor exchange meetingsOnline performance briengShenzhen Stock Exchange EasyInteraction Q&AInvestor HotlineCompany researchTelephone consultationE-mailRegular reports and informationdisclosure on o?cial website
Customer satisfactionsurveyE-mail and daily phonecommunicationCustomer e-mailResponding to customercomplaintsCustomer visits
Selection assessmentProcurement processPerformance evaluationRegular communicationwith business partners (e.g.e-mails, meetings)
Training and inductiontrainingE-mail and suggestion boxRegular meetingEmployee performanceevaluationEmployee Activities
E-mailTelCompany announcementSocial network platformCompany websiteSocial mediaCharitable donations andvoluntary servicesCommunity activities
Carrying out carbonfootprint verication, energyconservation and emissionreductionDeveloping clean energyCarrying out product carbonfootprint accountingCultivation of low-carbonawareness of users
2023 ESG ReportMateriality matrix
In 2023, Gree conducted an ESG materiality assessment to effectively respond to the expectationsand demands of various stakeholders, continuously improving the level of ESG management. Duringthis reporting period, we orderly carried out the research on material issues based on the process of"stakeholder communication—issue identication—issue evaluation—materiality conrmation".
Importance to internal stakeholders
StakeholderCommunication
Issue
identication
Issueevaluation
Substantiveconrmation
Questionnaire
Interviewcommunication
We maintained regular communication with investors, customers,government agencies, and employees, among other stakeholders. Werecorded the issues and specic content of di?erent stakeholders' concernsand responded to their demands.Based on the "Guidelines for Self-regulatory Rules of Companies Listedon the Shenzhen Stock Exchange", the United Nations' 17 SustainableDevelopment Goals (SDGs), "GRI Standards", mainstream ESG ratings,national policies, industry benchmarking, and the results of stakeholdercommunications, we identied 28 issues highly relevant to the Company.
Based on the survey results from stakeholders, we created a material issueanalysis matrix.Combining the Company's development strategy, interview communications,external inquiries, and industry trends, we conrmed the material issues.
We sent out the "Survey Questionnaire on Material Issuesfor 2023 Gree ESG Report" to various stakeholders togather their rankings of issue importance and suggestionsfor improvement.In 2023, we conducted interviews with nearly 30 internaldepartments on environmental, social, and corporategovernance issues, listening extensively to their opinionsand feedback.
Importance to external stakeholders
Matrix of ESG Materiality Assessment Analysis for Gree 2023
Law-abiding andcompliant operation
Occupational health andsafety
Product quality andsafety
Energymanagement
Intellectual PropertyProtection
Career training anddevelopment
Accessibility ofproducts and services
Water resourcemanagement
Transparentdisclosure
Protection of employeerights and interests
Industry exchange anddevelopment
Wastemanagement4Risk Management11
Employee communicationand democraticmanagement
Technologicalinnovation
Addressing climatechange
Protecting investors'rights and interests
12Employee care19
Supply ChainManagement
26Green O?ce
Improving corporategovernance
Diversity and equalopportunity
Responding to nationalstrategies
Developing circulareconomy
Adherence tobusiness ethics
14Customer management21
Practicing socialresponsibility
28Green product
GovernanceSocialEnvironment
Improving Governanceand Compliant SoundOperationsGood corporate governance is an essential foundation for achievingexcellent operational performance and long-term sustainabledevelopment for the Company. Enhancing corporate governancenot only safeguards the interests of all stakeholders but also helpsmaximize company value. Gree follows its "Articles of Association",continuously improves its governance system, benchmarks againstexcellent international peer practices, and constantly improves itscorporate governance mechanism to drive the Company to createsustainable value.
Solidifying Corporate GovernanceImproving Compliance and Risk Control SystemStrengthening Investor Relations ManagementStandardizing Business Ethical BehaviorFocusing on Information Security Protection
SDGs benchmarking
Solidifying Corporate Governance
Shareholders and General Meeting ofShareholders
Gree is committed to establishing an efficient and transparent governance structure. Based on the"Company Law of the People's Republic of China", "Securities Law of the People's Republic of China","Code of Corporate Governance for Listed Companies", and other relevant laws, regulations, andnormative documents, the Company has formulated and implemented a series of internal governancesystems, such as the "Articles of Association" and "Procedural Rules for Shareholders' GeneralMeetings", and established a structure of General Meeting of Shareholders, Board of Directors, Boardof Supervisors, and management layer to solidify the foundation of corporate governance and promotee?cient and sustainable development of the Company.
The Company strictly adheres to laws, regulations, normative documents, and the provisionsof the "Articles of Association" and "Procedural Rules for Shareholders' General Meetings",and standardizes the convocation, holding, and voting procedures of the general meeting ofshareholders. It treats all shareholders equally, especially ensuring the legal rights of minorityshareholders, safeguarding shareholders' rights to information, participation, and voting onsignicant company matters, and facilitating shareholder attendance at meetings to fully exercisetheir legal rights. After the proposal for general meeting of shareholders is procedurally reviewed,the Meeting deliberates on the agenda items listed in the meeting notice.
During the reporting period, the Company held
general meeting of shareholdersand deliberated
proposals.
Board of Directors
Audit CommitteeRemuneration and Evaluation
CommitteeNomination Committee
Special Committee of the Board of
Directors
Corporate Governance Structure Diagram
Business Management
ElectElectReportReport
Report
Report
Formulate
Establish
Supervise and guideImplement
Supervise
Supervise
General Meeting of Shareholders
ReportAppoint, supervisor, guideFormulate internal management systems andmanagement methodsBoard of Supervisors
Directors and Board ofDirectors
The Board of Directors is accountable to the generalmeeting of shareholders and strictly follows nationallaws, regulations, and the provisions of the "Articles ofAssociation". Leveraging their extensive experience,the Board effectively oversees the Company's strategicdirection and key risks, provides guidance to management,considers and approves major decisions, supervisesbusiness, and evaluates company performance. TheCompany carries out the procedures for the selectionand appointment of directors and the management oftheir powers in compliance with the law, focuses on thediversity of the Board of Directors, and seeks to enrichthe representativeness of the members of the Board ofDirectors in terms of gender, experience, qualificationsand professional backgrounds, so as to provide morecomprehensive and professional decision-making for thedevelopment of the Company.
As of the end of 2023 the Company's Boardof Directors consisted of
directors,including ve directors, four independentdirectors and
female directors.During the reporting period, the Companyheld
board meetings and deliberated
proposals.
Dong Mingzhu
Chairman andPresident
Female692012.05Master DegreeIndustry expert
Zhang Wei
Secretary of theParty Committeeand Director
Male472019.01Bachelor DegreeIndustry expertGuo ShuzhanDirectorMale672019.01Associate DegreeIndustry expertZhang JunduDirectorMale632012.05Associate DegreeIndustry expertDeng Xiaobo
Director, VicePresident, andSecretary of theBoard
Male482020.12UndergraduateIndustry expert
Liu Shuwei
Independentdirector
Female712019.01Master DegreeFinancial expertWang Xiaohua
Independent
director
Male622019.01Master DegreeLegal expertXing Ziwen
Independentdirector
Male612019.01DoctorIndustry expertZhang Qiusheng
Independentdirector
Male562022.03DoctorFinancial expert
NamePosition HeldGenderAge
Date of InitialAppointment
EducationBackground
ProfessionalAbility
There are three specialized committees under theBoard of Directors, including the Remuneration andEvaluation Committee, the Nominating Committeeand the Audit Committee, with independent directorscomprising over 50% of each professional committee.
During the reporting period, the Company held
meetings of the Audit Committee, and
meetingof the Remuneration and Evaluation Committee.
Supervisors and Board ofSupervisorsThe Board of Supervisors supervises the legality of the Company's financialoperations and the performance of duties by directors and senior management,safeguards the legitimate rights and interests of the Company and itsshareholders, examines the Company's nancial situation, expresses opinionson relevant major matters, and is accountable to, and reports to, the GeneralMeeting of Shareholders in strict accordance with national laws, regulations,and the "Articles of Association". The members of the Board of Supervisors ofthe Company were elected in accordance with relevant laws and regulationsand the Company's internal regulations, conscientiously performed their dutiesby attending the general meetings of shareholders and attending the boardmeetings, and fulfilled the duties of the Board of Supervisors in good faith,diligently and conscientiously.
As of the end of the reporting period, the Board of Supervisors ofthe Company consisted of
supervisors, including
employeerepresentative supervisor.During the reporting period, the Company held
meetings ofBoard of Supervisors and deliberated
proposals.
Audit Committee
Nomination Committee
Remuneration and Evaluation Committee
Proposing the appointment or replacement of external audit rms;Overseeing the Company's internal audit system and its implementation;Managing communication between internal and external audits;Reviewing the Company's nancial information and its disclosure;Examining the Company's internal control system;
Advising the Board of Directors on its size and composition based on theCompany's business activities, asset size, and shareholding structure;Researching and suggesting criteria and procedures for selecting directors andsenior management;Select qualied candidates of directors and senior management;Reviewing candidates for directors and president and making recommendations;
Assessing the performance criteria for directors and senior management andproviding suggestions;Studying and reviewing the compensation policies and plans for directors andsenior management.
Improving Compliance and Risk Control System
Compliance ManagementRisk Control
Gree rmly believes that a mature internal control system can ensure the standardized operation and healthy development of the Company and safeguard the legitimate rights and interests of shareholders. TheCompany has established and continuously improves an e?ective internal control management system, regularly identies risks faced by the Company, and signicantly enhances compliance awareness and majorrisk control capabilities.
The Company establishes an effectively operating internalcontrol system in accordance with the "Company Law" and otherlaws, regulations and provisions, and continuously improves theinternal control system in accordance with the internal controlguidelines and the actual situation of the Company to ensurethe e?ectiveness of the internal control system. The Companyearnestly carries out internal control and compliance assessmentwork. The Board of Directors, Audit Committee, Board ofSupervisors and operational management clearly define theirroles and responsibilities, and connect the internal control workof each unit with the Company's business processes, so as toclosely link the internal control work with daily operations andrealize the closed-loop operation of risk management work.
In order to clarify the Company's management responsibility forthe prevention and control of various risks and opportunities,enhance the risk awareness of cadres and employees, andimprove the Company's risk control capability, Gree hasformulated the "Measures for the Administration of Risks andOpportunities", which identies, monitors, and evaluates internaland external environments related to the Company's purposeand strategic direction, and at the same time identifies andevaluates relevant parties' expectations or requirements relatedto the Company's management systems of quality, environment,occupational health and safety, hazardous substances process,energy, information security, etc.
Meanwhile, the Company engages a third-party professionalorganization to conduct self-assessment of the complianceand effectiveness of the Company's internal control systemevery year, and timely updates and improves the internalcontrol system in accordance with the provisions of the "BasicSpecifications for Internal Control of Enterprises" and itsaccompanying guidelines, taking into account the Company'sinternal and external environments, changes in its internalorganization and management requirements, etc., and disclosesthe nancial reports issued by the annual auditor in the relevantmedia to be reviewed and supervised by the relevant parties.
Strengthening Investor RelationsManagement
Information Disclosure
Shareholder Returns and Dividends
Protecting Investors' Rights and Interests
Gree values communication with investors, and always follows the principles of compliance, equality,initiative, honesty and trustworthiness. With reference to the "Guidelines No. 1 of the Shenzhen StockExchange for the Self-regulation of Listed Companies - Standard Operation of Companies Listed onthe Main Board", "Guidelines for Investor Relations Management of Listed Companies", and otherlaws, regulations and standardized documents, the Company has formulated the "Investor RelationsManagement System" and the "Measures for the Administration of Information Disclosure" to disclose therelevant information of the Company in a comprehensive and timely manner through announcements,so as to ensure that the investors are able to fully understand the Company's operation status anddevelopment prospects.
The Company strictly abides by the principlesof information disclosure, fulfills its informationdisclosure obligations truthfully, accurately,completely, timely and fairly, and continues todeepen the institutionalization and standardizationof its information disclosure work, strengthen thedisclosure of environmental, social and corporategovernance information, and continuouslyenhance the transparency of the Company.
While the Company continues to promote its own sound development, it has always placedan important position on rewarding its shareholders so that they can share the fruits of theCompany's development and promote the rational development of the capital market. Since itslisting in 1996, the Company has accumulated CNY5.269 billion of equity nancing and CNY142billion of dividends, including more than CNY110 billion of cash dividends and about CNY30billion of share repurchases. During the reporting period, the amount of repurchased companyshares was about CNY3 billion.
In order to better serve investors, the Company has equipped a professional team to dealwith investor relations related matters, and proactively communicates with investors throughvarious channels such as communication on the Easy Interaction platform, general meeting ofshareholders, performance briengs, telephone communication, and meeting communication,to enable investors to better understand the Company's development strategy and currentsituation.
Conduct diversied investorcommunication activitiesand facilitate investorcommunication channels
Conduct regular performancebriengs to answer investor
queries
Establish a regularinvestor communicationmechanism to ensure thelong-term smooth ow ofcommunication channelsChina SecuritiesJournalShanghai SecuritiesNewsSecurities Times
Periodic reports: including annual, interim and quarterly reports.Interim reports: announcements of major events, etc.Other information required to be disclosed by laws andadministrative regulations.
Information disclosure channelInformation disclosure content
Gree investor communication methods and activities
During the reporting period,the Company released
announcements to the public.including
periodic reports and
interim reports.
Securities DailyCNINFO
2023 ESG Report
2023 ESG ReportDuring the reporting period, the Company:
held
annual performance briengconducted
performance roadshowsheld
investor open dayheld
investor relations exchange meetings
answered about
calls from investorsanswered
questions on the interactiveplatform of the Shenzhen Stock Exchange
The Company attaches importance to the needs of small and medium-sized investors who wish to enhance their understanding of theCompany and communicate with the Company, and actively participates in the activities carried out by investor protection organizations tosafeguard the legitimate rights and interests of investors.
At the same time, the Company has established a comprehensive independent director system to e?ectively protect the rights and interests ofsmall and medium-sized investors, playing the role of "participation in decision-making, checks and balances, and professional consultation".It carefully considers the motions and expresses independent opinions on the relevant motions, and provides advice and suggestions for thepromotion of the Company's long-term and stable development.
In June 2023, the Company held a general meeting of shareholders, where the Company actively pursued online voting by providing aclear and easy-to-use online voting platform and ensuring that all shareholders were free to access and use the platform. The Companyalso invited a third-party law rm to monitor the voting to ensure its fairness and transparency. This facilitates the participation of smalland medium-sized investors in major corporate decisions and enhances the transparency and fairness of corporate governance.According to statistics, a total of 2,340 small and medium-sized shareholders and shareholders' proxies participated in the on-sitemeeting and online voting at the general meeting of shareholders, representing a total of 1,069,862,628 shares of the Companywith voting rights, accounting for 19.0576% of the total number of shares of the Company with voting rights. Among them, 2,277shareholders voted through the Internet, representing a total of 716,283,439 shares of the Company with voting rights, accounting for
12.7592% of the total number of shares of the Company with voting rights. The implementation of online registration and online voting
facilitates investors' participation in corporate decision-making, enhances the interaction between investors and the Company, andprovides a strong guarantee for the improvement of corporate governance.
In August, the Company participated in the series of activities of "Understanding My Listed Company - Entering the Blue Chips", ledthe Shareholder Observation Mission, which included individual investors, to visit the headquarters of Gree Electric, and had in-depthexchanges with the Chairman, the Secretary of the Board of Directors, and the relevant technical personnel of Gree. The Chairmanof the Company took the initiative to answer questions on diversied development strategies and other issues of concern to investors,and interacted with the on-site audience, strongly deepening communication with small and medium-sized investors and safeguardingthe rights and interests of small and medium-sized investors.
Actively promoting the participation of small and medium-sized shareholders in general meetingsof shareholders
Carrying out the small and medium-sized investors' communication campaign of "UnderstandingMy Listed Company - Entering the Blue Chips"
Case
Case
2023 ESG ReportStandardizing BusinessEthical BehaviorIn order to strengthen the control of business ethics issues andprevent and reduce the Company's risks, Gree strictly followsthe relevant laws and regulations such as the "Company Law","Anti-monopoly Law", "Anti-Money Laundering Law", "Anti-UnfairCompetition Law", "Oversight Law" and the provisions of the"Articles of Association", and has formulated the "Measures forAdministration of Discipline Inspection and Supervision" and othersystems, to prevent unethical business conduct such as bribery,bribe-taking, fraud, money laundering, unfair competition, andconflicts of interest, promoting a clean and ethical working styleand adherence to business ethics.The Company has set up the Discipline Inspection and SupervisionOffice, which is specifically responsible for carrying out theCompany's discipline inspection and supervision managementwork, conducting integrity education, preventing corruption risks,and implementing the investigation and handling of suspectedviolations of the law. The Company reviews and updates this seriesof business ethics practices from time to time.
Anti-corruptionGree has formulated the "Ten Provisions on Integrity in Practice" inaccordance with the "Measures for Administration of Discipline Inspectionand Supervision" and other systems, clarified the Company's stance onconict of interest issues in business, provided a clear denition of specicrelated persons, regulated the activities of specic related persons in terms oftheir hiring, holding o?ce as well as the Company's business dealings, andclaried the relevant management policies, to e?ectively prevent the risk ofcorruption of personnel and create a working environment of clean practice.The Company regularly carries out integrity education, including publishingthe "Integrity Brieng" and carrying out discipline education and study monthwork, covering all employees, so as to comprehensively improve employees'awareness of business ethics, establish the concept of integrity and preventbusiness ethics risks. At the same time, all suppliers are required to complywith the Company's business ethics and anti-corruption related systems inorder to achieve long-term sustainable and collaborative development of thesupply chain.
At the beginning of 2023, Gree carried out its annual integrity self-inspection. Senior management, middle-level managers, and keypersonnel from various departments and branches lled out integrityself-inspection forms, self-inspecting and reporting on issues likeacceptance of gifts, information disclosure, and misuse of companyassets. Through the annual self-inspection, Gree e?ectively guides allemployees to enhance the ideology of integrity, practice the Company'sdevelopment philosophy, and protect the healthy development of theCompany.
Actively carrying out the annual self-inspection of clean employmentCase
Complaints and Reporting
In order to maintain the principles of "three opennesses and three stresses" of theenterprise, Gree adheres to the principles of fairness and impartiality, opennessand transparency, and clear distinction between public and private interests tocarry out production and operation, to ensure the smooth implementation ofreporting work, standardize the duties and content of information acceptance,investigation and processing, le management, protection, reward and punishmentof reporting work, and develop the "Reporting Management Measures" combinedwith the actual situation of the Company. The Measures clearly stipulate theinvestigation and handling of reported incidents, whistleblower rewards andpunishments, investigator recusal and whistleblower protection mechanism, toensure the e?ectiveness of the reporting work throughout the whole process, andsafeguard the rights and interests of employees.
President's mailbox: The Company has established over 30 president's mailboxes in variousdepartments, canteens, gates, and factories to facilitate real-time complaints and reports byemployees.E-mail and hotline: The Company has designated the Enterprise Management Departmentand the Discipline Inspection and Supervision O?ce to be responsible for complaints aboutwork quality and integrity, providing public reporting e-mail and hotlines.
Investigators with a potential conict of interest in their specic investigative responsibilitiesmust explain to their supervising leaders and, upon approval, recuse themselves.
The Company mandates strict protection of the personal rights and other legal rights of thewhistleblowers; no one may retaliate against whistleblower or employees cooperating withthe investigation.The department handling reported incidents and its investigators shall not:
1. Violate condentiality requirements or disclose reporting information;
2. Privately store, detain, alter, forge, replace, conceal, lose, or destroy reporting materials;
3. Exceed their authority, handle reporting materials without authorization, or illicitly give
them to the reported individuals;
4. Conceal, falsely report, or fail to report significant reporting information within the
prescribed timeframe, causing severe consequences;
5. Use reporting materials for personal gain or provide convenience for retaliation against
the whistleblower;
6. Engage in other illegal or disciplinary violations.
Gree complaints and reporting management
Three principles ofequity
Three principles
Stress the truth to dopractical things
Stress principles to dogood deeds
Stress dedication to makegreat achievements
Reportingchannel
Fairness andimpartiality
openness andtransparency
clear distinctionbetween public andprivate interests
Investigatorrecusal
Whistleblower
protection
.com.com.com
Focusing on InformationSecurity ProtectionIn order to safeguard the condentiality, integrity and availability of the Company'sinformation assets, Gree has formulated the "Measures for Administration ofInformation Security" and other systems to standardize the flow managementfor the exchange of various types of information internally and externally andthe requirements for the use and storage of such information in accordance withrelevant national laws and regulations, so as to comprehensively and e?ectivelyimplement the information and data security. As of the end of 2023, the Companyhas obtained the ISO27001 Information Security Management System Certicate.The Company actively carries out information security education, species the rstresponsible person and security administrator of each subsidiary and department,coordinates and manages all kinds of information security management work, andindependently evaluates the Company's information security management methodsand information security control objectives, control measures, strategies, etc. atleast once a year to ensure that the system is perfect and reasonable. When majorchanges occur, it is necessary to immediately organize the relevant units to carryout the review work, record the review situation, follow up and rectify the problemsfound in the review.
As of the end of 2023, the Company
has obtainedthe ISO27001 Information SecurityManagement System Certicate
.
Green developmentfor the guardianshipof EarthGree adheres to the concept of "For the Clearer Sky and GreenerEarth", and always follows the principles of green and energy-saving for innovative research, development and manufacturing.The Company adheres to the energy policy of "rational use ofenergy, and improvement of energy e?ciency", innovatively putsforward the cyclic development model of "green design - greenmanufacturing - green recycling", and vigorously invests in green,energy-saving and emission reduction technological reform projectsto contribute to the sustainable development of the industry andthe world.Deepening the Implementation ofEnvironmental ManagementPromoting Green DevelopmentThroughout the Life CycleActively Implementing Green Actions
SDGs benchmarking
Deepening the Implementation ofEnvironmental ManagementThe Company conscientiously implements the national environmental protection guidelines, policiesand laws and regulations. Based on the requirements of national environmental protection laws andregulations, and considering the actual environmental situation of the Company, it has developedthe "Measures for Administration of Environmental Protection", which clarifies the division ofenvironmental responsibilities among di?erent units, comprehensively implements the environmentalprotection responsibility system, and prevents environmental pollution incidents. Additionally, inresponse to changes and requirements in national policies, the Company timely enhances theenvironmental management standards and strictly enforces the latest environmental protectionrequirements to continuously deepen the implementation of environmental management.
The Chairman is the primaryresponsible person for theCompany's environmentalprotection work, taking overallresponsibility for it.Establish and improve theenvironmental protectionresponsibility system, organizethe formulation of environmentalprotection regulations, andemergency rescue plans for majorenvironmental accidents, andensure the necessary investmentin environmental protection funds.Set up the Company'senvironmental protectionmanagement institutions, equipenvironmental managementpersonnel, and approvethe planning and plans forenvironmental protection work.The Chairman is responsiblefor coordinating the Company'senvironmental pollution preventionand control work.
Carry out the national guidelines, policies, laws and regulationson environmental protection, take direct responsibility for theorganization and management of the Company's environmentalprotection work, and be responsible for the Company'senvironmental accidents.Improve the Company's environmental protection managementorganization, enrich the full-time environmental professionalmanagement personnel, and supervise them to carry outenvironmental protection management.Approve the project funds for environmental protection measuresand environmental emergency rescue funds, and ensure that thefunds for environmental protection and environmental emergencyrescue funds are earmarked for specic purposes.Organize the development, revision and review of the Company'sinternal environmental protection management rules andregulations, and organize the implementation.Conscientiously implement environmental protectionadministrative licensing and "three simultaneities" system for newconstruction, alteration and expansion projects.Regularly organize inspections and supervise the implementationof environmental work in the departments under his/her charge.Organize the investigation and handling of environmentalaccidents.
Moreover, the Company has claried the environmental protection responsibilities of administrativeleaders at all levels and various functional departments, and implemented environmental objectivesand management measures by the persons and departments in charge, to comprehensivelysupervise, manage, inspect, and resolve the Company's environmental protection issues.
Environmental Protection Management Structure of Gree
Head of Each DepartmentHead of Each Sub-factoryHead of Each Subsidiary
Environmental Management System
Environmental protection responsibilities (partial)
The Company adheres to the scientic development concept of "comprehensive, coordinated, andsustainable development", and has formulated various environmental management methods includingthe "Measures for Administration of Corporate Environmental Protection Responsibility System","Measures for Administration of 'Three Simultaneities' for Construction Projects", and "HazardSource and Environmental Factor Management Method". Each year, it signs an "EHS ResponsibilityAgreement" with various units to reinforce environmental responsibilities and ensure the effectiveoperation of the environmental protection system. The Company has obtained the ISO14001Environmental Management System Certicate.
Chairman of theCompany
Chairman of the
Company
Vice Presidentof the Company(manufacturing)
2023 ESG Report
Vice President of theCompany (manufacturing)
2023 ESG ReportEnvironmental Emergency Protection
Resource Utilization
The Company has formulated the "Emergency Response Plan for EnvironmentalEmergencies" in accordance with relevant national laws and regulations, and regularlyorganizes emergency response drills for environmental emergencies, such as fireand explosion, chemical leakage, excessive discharge of wastewater, excessivedischarge of waste gas and leakage of hazardous waste, to enhance the Company'senvironmental protection emergency response capability and to ensure thatenvironmental emergencies are properly handled and dealt with in a proper manner.
Gree highly focuses on energy and resource conservation, and is committed to promoting scientic and technologicalinnovation and green energy-saving technology. Through the establishment and operation of the resource and energymanagement system, vigorously promoting the improvement of energy-saving and water-saving technology, andcontinuously carrying out green energy-saving product design and R&D, Gree has created a low-carbon and energy-saving enterprise with sustainable development.
In 2023, according to the environmental protection emergency drill plan,the Company and its subsidiaries has carried out emergency drills themedon "fire and explosion", "excessive discharge of waste gas", "excessivedischarge of wastewater", "chemical leakage", "leakage of hazardouswaste", etc. Through the activities of emergency drills and exercises,the Company continuously strengthens the employees' awareness ofenvironmental safety risk prevention and control and their ability to dealwith them, improves the Company's overall environmental safety riskmanagement level, and safeguards the environment and safety of itsemployees and local communities.In 2023, various units of the Company's headquarters conducted a total of27 environmental emergency drills.
Special emergency drill for excessive wastewater discharge incident at Gree
Gree actively carried out environmentalemergency drills
Promoting Green Development Throughoutthe Life Cycle
Adhering to the concept of "For the Clearer Sky and Greener Earth", Gree is committed to the green managementof the whole life cycle of the environment, covering the utilization of resources, green processes, green products,green factories, waste management and emission management. The Company actively promotes green production,continuously optimizes resource utilization and process flow, and is committed to creating environmentally friendlygreen products, building green factories and implementing strict waste treatment and emissions management to ensurethat the entire production process complies with environmental protection standards and contributes to sustainabledevelopment and environmental protection.
2023 ESG Report
Case
Energy managementThe Company actively implements the national dual-carbon strategy, formulatesthe "Measures for Administration of Energy Resource Conservation" and othersystems in accordance with relevant laws and regulations, and builds a perfectand sound energy management system with reference to the ISO50001:2018energy management system standard to vigorously promote the Company'sprocess of energy conservation, consumption reduction and greendevelopment. As of the end of 2023, the Company has obtained the ISO50001Energy Management System Certicate.The Company practices the energy management concept of "a drop of water,a piece of paper". In order to reduce the consumption of fossil fuels and carbondioxide emissions, it carries out a two-pronged carbon reduction program,vigorously develops PV power generation projects, and actively promotesenergy-saving technological reforms to achieve the goal of comprehensivereduction of energy consumption. In 2023, the Company's overall energyconsumption of CNY10,000 output value decreased by 3.32% compared withthat of 2022.Improve the e?ciency of energy utilization. In 2023, the Company carried out335 energy-saving technological reform projects, saving 75.806 million kWh ofelectricity and 836,000 cubic meters of natural gas, and reducing carbon dioxide(equivalent) by 45,042 tons.Increase the proportion of clean energy. In 2023, the Company utilized 572million kWh of nuclear power and 28.06 million kWh of PV power generation,reducing carbon dioxide emissions by 16,003 tons, an increase of 9.8%compared with 2022. Combined with Gree's self-developed titanate energystorage cabinets for peak cut, 160MWh of energy storage was put in, with acumulative peak shifting of 72 million kWh of electricity.
In 2023, the Company built a new 6.8MWp distributed PV power generation project at Zhuhai Gree Lvkong Technology Co., Ltd.,with an annual power generation capacity of about 6.8 million kWh, and an annual emission reduction of 3,878 tons of carbondioxide.
Distributed PV power generation project at Zhuhai Gree Lvkong Technology Co., Ltd.
Gree actively utilizing clean energy with continuous construction of PV projects
Energy use of GreeIndexUnit2023
Total energy consumptionTons of standard coal256,892
Natural gas10,000m
3,341Liqueed petroleum gasTon7,012Purchased electricity10,000 kilowatt-hour160,278.47
IndexUnit202120222023
Clean energyconsumption
PV powergeneration
10,000 kilowatt-hour2,3602,5552,806Nuclear powerconsumption
10,000 kilowatt-hour0057,212.7
The Company has continued to build PV power generationprojects over the years. As of the end of 2023, theinstalled capacity of the Company's PV projects hasreached
MW, and the capacity of PV projects underconstruction is
MW.
Case
Water resource management
Gree strictly abides by the requirements of national and locallaws and regulations, actively carries out water conservationmeasures, minimizes water intensity, and effectively reduceswater consumption through water recycling.
Water-saving enterprise certication
In March 2023, the new base construction of Gree was designed according to the urban sponge engineering design specications,fully utilizing the geographical advantage of abundant rainfall in the project area. The overall landscaping of the plant incorporates therainwater storage function, enhancing the factory's resilience to environmental changes and natural rain disasters, while also promotingthe recycling of water resources.
In August 2023, the sheet metal spraying sub-factory constructed a concentrated water recycling system in the spraying workshop,which achieves 0 discharge of concentrated water and 100% water recycling in the spraying workshop through multi-layer recycling ofwater resources, and saves 29,000 tons of tap water annually after the implementation of the project, reecting the Company's conceptof assuming social responsibility and realizing the sustainable development of water resources.
Sponge City Initiative: New Base
Three-tier water recyclingWater resource consumption of Gree in 2021-2023
Purchased municipal water (Unit:m
)
Sponge City Initiative: New Base
10,324,508202120222023
9,374,763
10,191,754
Case
Case
2023 ESG ReportGreen TechnologyThe Company actively practices green economy and promotesresource conservation. In the air conditioning production process,it adopts green and environmentally friendly processes to replacetraditional production methods. For instance, it changed the heatingmethod for pipeline welding from traditional fossil fuel combustionto green energy heating and ultrasonic vibration welding, reducingthe use of fossil fuels and lowering carbon dioxide emissions.The new processes also contribute to improving product quality,enhancing the production workshop environment, and maintaininga leading position in the industry.
During the reporting period, Gree implemented acomprehensive energy efficiency improvement solutionfor the air conditioning machine room at its Zhuhaiheadquarters. This included seven technical improvementmeasures such as equipment replacement and optimizationof layout design, resulting in overall energy savings. Throughthese improvements, the energy efficiency of the machineroom increased from 3.5 to over 5.0, saving approximately
1.57 million kilowatt-hours annually and reducing carbon
dioxide emissions by about 895 tons.
In January 2023, the Company changed the sealing processof process tubes in the air conditioning production processfrom the traditional ame brazing process to the ultrasonicsealing process, and changed fossil fuels to environmentallyfriendly green electricity, reducing the use of liquefiedpetroleum gas (LPG) and natural gas, and decreasingcarbon dioxide emissions.During the reporting period, the Zhuhai and Wuhu bases ofthe Company collectively reduced carbon dioxide emissionsby approximately 400 tons and reduced copper pipematerials by about 363.18 tons.
Gree independently developed a constant pressure controlsystem for the air compression station, which uses anautomatic adjustment and operation mode to achieveconstant pressure control, energy savings, and reducedconsumption. It also introduced high-efficiency energy-saving equipment to significantly improve the energyefficiency of the air compression station and reduceelectricity consumption. This technical improvement projectsaves 6.77 million kilowatt-hours of electricity annually andreducing carbon dioxide emissions by about 3,860 tons.
Improving energy e?ciency in the airconditioning machine room of Zhuhaiheadquarters
The ultrasonic sealingtechnology for air conditioners
Improving energy e?ciency in theair compression station of Zhuhaiheadquarters
Improving energy e?ciency in the air conditioning machine room of
Zhuhai headquarters
Improving energy e?ciency in the air compression station of Zhuhai
headquarters
Ultrasonic sealing green technology of Gree
CaseCase
Case
In April 2023, as the core backbone platform of the production management of the assemblysub-factory, the RFID information system of the assembly sub-factory, through the use of RFIDtechnology, congures the corresponding hardware in the key positions of the production line,and e?ectively integrates with enterprise's MES and BOM systems to provide various informationservices for assembly production, eliminate the manual data scanning and collection operation,and realize the automation, digitization, and informatization of the smart factory, enablingcomprehensive product lifecycle control.
The Company has developed bidirectional control frequency technology for power feedingload and frequency converter based on the simulation test of large power frequency convertertemperature adjustment. Compared with the traditional motor towing + resistance load mode,this technology has changed the pure energy-based power consumption.
Creating a smart factory with RFID information technology
Development of e?cient energy-saving technology
RFID information system
High-e?ciency and energy-saving bidirectional frequency control technology of Gree
The assembly sub-factory achieved paperless management in the productionprocess, saving a signicant amount of paper and ink consumables, with the entiregroup saving approximately CNY
million in consumables annually.
Currently, this technology is being used normally at the Company'sheadquarters in Zhuhai, saving
315,560
KW·H of electricity annually,equivalent to reducing carbon emissions by
179.96
tons per year.
The "High-e?ciency PM synchronous frequencyconversion centrifugal ice storage dual-modeunit" has been selected for inclusion in theNational Catalog of Advanced Green and Low-
carbon Technology Achievement
Various technologies including permanentmagnet-assisted reluctance motors technology,air conditioning AI energy-saving technology, andhigh-e?ciency evaporative cooling chillers wereselected for the 2023 Energy-saving Technologyand Equipment Catalogue of Guangdong Province
Master Control
Center
Online Test
SystemRunning
TestReader Writes Data
First FillingSecondary FillingProcess Board
RF Scanning EquipmentElectronic Label
Real-time bi-directional frequency control, full-load operation at the optimal operating point,
with feedback e?ciency of up to 92%
Power grid
High power frequency converterEnergy-fed load
Case
Case
2023 ESG ReportGreen ProductAs a globally renowned air conditioning brand, Gree undertakesthe responsibility of addressing high energy consumption andhigh emissions in air conditioning. The Company continues todevelop high-efficiency and energy-saving products throughresearch and development to reduce fossil fuel emissions andachieve resource conservation and environmental protection.Gree Electric Appliances vigorously develops green energy-related technologies and products. As of the end of January2024, Gree has 44 international leading technologies, of which41 are related to green energy. These technologies will continueto provide technical support for promoting comprehensivedevelopment of the green economy and achieving the "dual-carbon" goal.Moreover, to further accelerate the achievement of the "dual-carbon" goal, Gree made a long-term depth layout of newenergy industry, and added new business areas such aslithium-ion batteries, new energy commercial vehicles, andspecial vehicles, thus establishing an integrated new energyindustry chain. The combination of core technologies such asGree Titanium's batteries and Gree's multi-dimensional low-carbon technologies such as "zero carbon source" of Greesubsidiaries helps to increase the speed of green transformationin production and lifestyle, fully leveraging overall resourceadvantages.
As of the end of 2023, the company has conducted carbon footprint certication for multiple productsand obtained carbon footprint certicates.
In response to the lack of a method for evaluating the dynamic operating e?ciencyof air conditioners and the uneven actual energy-saving effects, Gree hasdeveloped the "Key Technology for Low-Carbon Dynamic Operation of InverterAir Conditioner". This includes the invention of a dynamic e?ciency optimizationcontrol technology of air conditioners based on AI algorithms, achieving optimaldynamic operation of air conditioners; the invention of a room load adaptivetechnology based on neural network self-learning, realizing rapid temperaturecontrol for comfort and energy saving; and the development of an AI chiphighly applicable to dynamic energy saving of air conditioners, establishing adynamic energy-saving hardware platform to meet the computational needs ofair conditioners. According to third-party testing, air conditioners equipped with'Key Technology for Low-Carbon Dynamic Operation of Variable Frequency AirConditioners' have achieved a dynamic energy efficiency improvement of over
15.8% annually, and a reduction in annual electricity consumption by more than
13.6%. The project results have reached an "internationally advanced" level.
Research and application of key technology for low-carbon dynamic operation of inverter airconditioner
High-e?ciency and low-carboninverter air conditioning product
Carbon Footprint Certication
Examples of certicates
Gree-Cosmos won the "Green LowCarbon Award" in the Grand Final of the4th Smart Appliance Application Scenario
Development Competition
Case
Shenzhen Metro Line 12 adopted Gree's all-working-condition high-e?ciencyfrequency conversion equipment. Through BIM technology, deepened designwas conducted for equipment selection, equipment room layout, systempipelines, and energy-saving control, achieving prefabrication of pipelinefactories and on-site assembly construction at installation sites, reducingpipeline resistance, achieving zero material consumption, and zero loss.According to the data, the average comprehensive refrigeration e?ciency ofthe refrigeration room is above 5.0 per year, and the average comprehensiverefrigeration e?ciency of the air conditioning system is above 3.0 per year. It isestimated that it can save 17.36 million kWh of electricity for Shenzhen MetroLine 12 per year, reducing carbon emissions by 13,636 tons.
The existing heat pump floor heating systems in the marketexhibit significant thermal inertia, leading to the heat pumps'inability to respond timely to changes in building heat load,resulting in mismatches between supply and demand of floorheating and signicant energy wastage. Additionally, there areindustry challenges such as low actual operating e?ciency of air-source heat pumps and signicant e?ciency degradation duringfrosting periods. Gree has optimized the operation time andheating capacity of the heat pump units based on the thermalstorage capacity of building oors and future outdoor conditions,planning both system energy and efficiency simultaneously,achieving an overall optimization of energy supply-demandmatch and efficiency. Tested by national authoritativeinstitutions, the new generation of heat pump floor heatingunits equipped with this technology have signicantly reducedenergy consumption during continuous 24-hour operation,saving more than 32% electricity compared to traditional floorheating; indoor temperature fluctuations are reduced by morethan 40% compared to traditional floor heating; under severefrosting conditions, the operating e?ciency is improved by 12%compared to traditional heat pump units. The project resultshave reached an "internationally leading" level.With abundant sunlight and high demand for air conditioners,Gree's "Zero Carbon Source" PV energy-storage airconditioning system can fully utilize sunlight resources to meetcooling needs. At the Saudi Marsha factory, over 100 PV multi-unit systems were installed, with a PV installed capacity of 850kWp. The system integrates clean PV power generation, safeenergy storage regulation, e?cient air conditioning electricityusage, and intelligent system power management, achievingintegrated complementary functions and multi-dimensionalenergy saving and emission reduction.
Central air conditioning assisting Shenzhen Metro Line 12 in energy saving and emissionreduction
E?cient heat pump technologybased on oor heat storage
Saudi PV energy-storage air conditioning application project
Saudi model project
Air conditioning unit in Shenzhen Metro
E?cient heat pump technology based on oor heat storage
Reducing carbon emissions by
13,636
tons
Case
Case
Case
Local energy-savingcomputation based onreal-time data
Cloud energy-savingmanagement based onhistorical dataAI chipPolicy upgrade packageCloud serverPolicy update
Policy optimizationData packetData acquisitionHeat pump unitData feedbackCloud serverBase stationMeteorologicaldataLocalCloud
Green Factory
Gree actively engages in green initiatives related to environmentalprotection, energy conservation, low carbon, and emission reduction,leading in the eld of green development. Starting from the Company'senvironmental actions, Gree adheres to a strategy of balancingenvironmental protection with production, continuously optimizes cleanproduction, selects green raw materials, enhances product energye?ciency, uses green packaging, and optimizes production processes,to establish a green supply chain management system.All subsidiaries of the Company actively pursue green factorycertifications. As of the end of 2023, the Company has obtained atotal of 16 green factory certications, including 9 national-level greenfactory certications, 4 provincial-level green factory certications and 3municipal-level green factory certications.
List of green factories of GreeGree (Luoyang) ElectricAppliances Co., Ltd.
National Level2023Provincial Level2023Gree TOSOT (Suqian) HomeAppliances Co., Ltd.
Provincial Level2023Gree (Nanjing) ElectricAppliances Co., Ltd.
Provincial Level2023Gree (Chongqing) ElectricAppliances Co., Ltd.
National Level2022Gree (Hangzhou) ElectricAppliances Co., Ltd.
Municipal Level2022Zhuhai Landa Compressor Co.,Ltd.
National Level2020Tianjin Green ResourcesRecycling Co., Ltd
Municipal Level2020
Gree (Wuhu) Electric AppliancesCo., Ltd.
Provincial Level2020Municipal Level2019Shijiazhuang Green ResourcesRecycling Co., Ltd.
National Level2019Gree Changsha HVAC EquipmentCo., Ltd.
National Level2018Zhuhai Kaibang MotorManufacture Co., Ltd.
National Level2021Gree (Zhengzhou) ElectricAppliances Co., Ltd.
National Level2019Gree (Shijiazhuang) ElectricAppliances Co., Ltd.
National Level2022
Provincial Level2020Gree Altairnano New Energy Inc.National Level2019
Company NameAward LevelAward DateCompany NameAward LevelAward Date
As of the end of 2023, the Company hasobtained a total of
green factorycertications, including
national-level greenfactory certications,
provincial-level greenfactory certications and
municipal-levelgreen factory certications
2023 ESG Report
Waste Recycling
In electronic waste management, Gree actively responds to national calls, implementsresponsibilities for recycling old appliances, integrates social recycling resources for reuse, andcontributes to green and low-carbon development. The Company has independently proposed acircular development model of "green design—green manufacturing—green recycling" to ensurethe entire industry chain is green and efficient. Since 2010, Gree has established six recyclingresource bases in Changsha, Zhengzhou, Shijiazhuang, Wuhu, Tianjin, and Zhuhai, mainlyengaged in the recycling and processing of waste electronic products, scrap cars, waste printedcircuit boards, and deep processing of waste plastics.
Note*: The amount of electronic waste recycled is the electronic waste generated by the Company itself.
All products and brands are eligible for collection and recycling(including those not manufactured by the company)
Consumers can make an appointment through the website, submit therelevant information to obtain the price of recycling, and the sta? willprovide door-to-door service
Set up recycling points, mail recycling, door-to-door recycling,and large-scale sorting and recycling centers
Changsha, Zhengzhou, Shijiazhuang, Wuhu, Tianjin and Zhuhai,all of which are the Company's main operating locations
Most of the Company's recycling is done by its own facilities, and therest of the waste is recycled by designated suppliers, on which theCompany carries out regular reviews and validations to ensure theire?ectiveness, with the supplier review rate reaching 100%.
Electronic waste recycling management of Gree
Electronic waste recycling achievements of Gree
As of the end of 2023, Green Renewable Resources Recycling Co., Ltd. had cumulativelyprocessed over
56.64
million units/sets of various waste electrical and electronicproducts, saving an estimated
2.402
billion kilowatt-hours of energy,
3.8219
million cubic meters of water, reducing carbon dioxide emissions by
876,100
tons (446 million cubic meters), and e?ectively avoiding environmental harm caused bydiscarded appliances.
Total amount of electronic waste recycled*
(Unit:Kg)
Conversion of recycled copper, iron, aluminum, and plastics (Unit:10,000 tons)
Disposal of waste electrical and electronicproducts(Unit:10,000 units/sets)
4,903.32
8.93
6492021
2021
20212022
2022
20222023
2023
2023
2,744.42
8.3
8,226.06
15.34
Type ofrecycledproduct
Recycling
locationConsumerrecyclingcost
Recyclingfacilities/suppliers
Recycling
method
Emission ManagementGree strictly complies with environmental protection laws and regulations and adheres to the ISO14001 Environmental Management System standards. It has established an internal system for themanagement of emissions and waste pollutants, and conducted systematic environmental protectionmanagement to ensure that all pollutant emissions from the Company meet environmental protectionstandards.
Greenhouse gas emissions
Gree actively responds to the national "dual carbon" strategy. As a leader in domestic "PV energy-storage" and "zero carbon source" air-conditioning technologies, with the vision of "For the Clearer Skyand Greener Earth", Gree consistently practices the development philosophy that "lucid waters and lushmountains are invaluable assets", and is committed to promoting clean and low-carbon energy use inproduction and operations, creating a healthy and green life for consumers and society. Gree vigorouslypromotes the Company's green development from the multiple aspects, actively addressing climatechange.
Gree has established a long-lasting green recycling mechanism,creating the reverse logistics recycling platform for used householdappliances named 'Mingzhu Green Loop Recycling.' Utilizing an'Internet + Recycling' approach, the platform offers consumersprofessional and convenient services for appliance trade-ins andrecycling. Bookings can be easily made with one-click throughthe WeChat Mini Program, where users can submit relevantinformation to receive a recycling quote, followed by doorstepservice from sta?. Through vigorous online and o?ine promotion,the platform has enhanced the accessibility of appliance recyclingfor consumers, significantly advancing the management andrecycling process of electronic waste, and notably driving thedevelopment of electronic waste management in the homeappliance industry.
Gree waste household appliancesrecycling platform
Cash for Old Appliances Program by Gree Electric Appliances
In recent years, Gree has continuously carried out company-level greenhouse gas emission inventoriesand implemented carbon reduction measures, including actively developing PV power generation,continuously investing in energy-saving technological renovations, and deepening the cyclic treatment ofregenerated resources, e?ectively reducing the total carbon emissions of the Company.
Carbon reduction approach and corresponding carbon reduction amount of Gree in
2021-2023
Note: 1. The carbon dioxide emissions factor of power is the 2022 annual national grid average carbon emission factorof 0.5703 tCO
/ MWh released by MEE (Ministry of Ecology and Environment). 2. The data accounting scope includesthe Company headquarters and all its branches and subsidiaries.
Greenhouse gas emissions of Gree in 2021-2023IndexUnit202120222023
Direct (scope 1) greenhouse gas
emission
Ton of CO
equivalent 836,414 709,422 726,654Indirect (scope 2) greenhouse gas
emission
Ton of CO
equivalent 830,758 740,658 587,784Emission intensity
Ton of CO
equivalent/CNY10,000 revenue
0.088741 0.076729 0.064113
Energy saving and carbon
reduction method
Unit
Carbon reduction202120222023
Total amount(2021-2023)PV
Ton of CO
equivalent
13,459 14,571 16,003 44,033Nuclear power
Ton of CO
equivalent
- - 326,284 326,284Green technology (energy-saving
technical transformation)
Ton of CO
equivalent
39,164 4,520 45,042 88,726Resource recycling (electronicwaste treatment)
Ton 100,971 93,997 179,502 374,470
Case
From November 30 to December 12, 2023, the28th Conference of the Parties to the "UnitedNations Framework Convention on ClimateChange" was o?cially held in Dubai, UAE. Duringthe Conference, the Chinese delegation heldthe "China Corner" series of events in Expo City,Dubai. Dong Mingzhu, Chairman and Presidentof Gree, attended the meeting as a representativeof enterprises from Guangdong on December3rd and delivered a keynote speech, showcasingthe achievements of China's manufacturingindustry in green and low-carbon developmentand sharing Gree's zero-carbon story in China'sresponse to climate change.
While vigorously promoting the development of green products, Greeplaces great emphasis on energy-saving and carbon reduction duringtransportation, creates a green logistics system and comprehensivelyinitiates the electrification upgrade of vehicles. By the end of thereporting period, there were 881 electric forklifts and 272 diesel forklifts,totaling 1,153 units, with electric forklifts accounting for 76.4%, as well as34 diesel buses and 482 electric buses, totaling 516 units, with electricbuses accounting for 93.4%.
Gree continuously updates its environmental controlequipment and adopts efficient management technologiessuch as regenerative combustion and catalytic combustionfor standard enhancement modifications. For example,regenerative combustion technology is used to manage thecondenser/evaporator drying waste gas, further enhancingmanagement e?ciency and reducing emissions of pollutants.
The 28th United Nations Climate Change Conference Held | Dong Mingzhu narrated Gree'szero-carbon story
Gree implemented a green logistics system
Gree upgraded and transformedthe waste gas treatment equipment
Waste gas treatment equipment
Waste gas emission
The main air pollutants from Gree include particulate matter,nitrogen oxides, sulfur dioxide, VOCs, etc. The Company managesand controls these emissions from the source collection, processcontrol, and nal treatment, and congures facilities including paintspraying waste gas treatment system, condenser/evaporator dryingwaste gas treatment system, and spraying waste gas treatmentsystem, to ensure that the waste gas emissions meet standards.The Company strictly follows the requirements of the pollutantdischarge permit, develops testing plans, and entrusts professionalthird parties to monitor these pollutants, with all results complyingwith emission standards.
Case
Case
Case
Gree is proactive in reducing solid waste, such as the sludgereduction project at the wastewater station, which usesefficient heat pump technology for low-temperature dryingequipment. This has reduced the moisture content of thesludge from 70% before drying to 12% after drying, e?ectivelyreducing the amount of waste sludge disposed of.
In order to reduce the overall generation of solid waste, theCompany improved the precision of the molds used in theproduction of injection molded parts at the design stage,so that the surface burrs of the final molded parts can bereduced, thus reducing the solid waste generated fromdisposal.
Wastewater treatment equipment
Injection molding parts after upgrading
Gree actively carrying out solid wastereduction work
Gree reduced solid wastes from thesourceWaste types and treatment methods of Gree
Wastewater dischargeSolid waste
The main pollutants in the Company's production wastewater includechemical oxygen demand, ammonia nitrogen, and total nitrogen.The Company has a dedicated wastewater treatment station toprocess production wastewater, which is discharged after meetingthe standards. Gree entrusts qualified third-party units to monitorthe wastewater pollutants, and all monitoring results comply with theemission standards. Additionally, the Company actively improvesspray production processes by upgrading from phosphating toceramic processes, thus eliminating the generation of phosphatesfrom the source.
The solid waste at Gree is mainly categorized into general industrial solid waste, hazardous waste, and household garbage. TheCompany has formulated relevant management methods in accordance with national laws and regulations, carried out targetedtreatment methods according to different types of waste, disposed of waste legally and in compliance with regulations, andmaximized the recycling rate of waste. Additionally, the Company actively researched and promoted the reduction, harmlessnessand resourcefulness of hazardous wastes, and carried out projects such as sludge reduction, container reuse and centralized oilsupply to reduce the generation of hazardous waste from the source.
Collect, store and transport in accordance withnational laws and regulations, and entrust unitsqualified in hazardous waste treatment to carryout legal disposal
After sorting in the plant, it is handed over toresource recycling manufacturers for recyclingand disposal
Transfer to designated sanitation recycling pointsfor disposal by the sanitation department
Hazardous waste
General waste
Domestic waste
2023 ESG Report
Case
Case
Green Finance
Environmental Protection Training
To advance the development of the green economy, during the reporting period, Gree issued its rsttranche of green ultra-short-term nancing bonds. These green bonds, amounting to CNY900 million,were allocated 100% to the manufacture of energy-efficient air conditioners with top-level energye?ciency.
CNY900 millionThe project has now been completed and o?cially put into operation,and a total of 6 lines, 3 domestically and 3 internationally, have beenconstructed according to the project plan.All environmental facilities involved in the project are fully equipped andfunctioning properly.The amount issued for this period's ultra-short-term financing bondsis CNY900 million. As of October 2023, it has been fully utilized in theproduction of high-e?ciency and energy-saving household appliances,specically for energy-e?cient air conditioners.
March 27, 2023
The Company actively carries out environmental protection training, empowers employees withthe concept of green development, and enhances their knowledge of environmental protection andrisk resistance. The Company provides basic environmental protection knowledge training for newemployees upon their entry; while for current employees, the Company adopts a multi-tiered trainingmodel, which rst provides special training for the person in charge of environmental protection ofeach subsidiary or factory, who then train the employees of their respective subsidiaries or factoryareas. The training content primarily focuses on environmental laws and regulations as well as typicalsocietal cases.
Gree carried out diversied environmental protection training
First tranche of green ultra-short-term nancing bonds of Gree in 2023
During the reporting period, the Company conducted
environmental protectiontrainings for di?erent employee groups, covering
4,786
employees.
Bond amountProject operation
Environmentalprotection measures
of the projectUse of funds raised
Issuance date
Actively Implementing Green ActionsTo further promote the Company's green and sustainable development, Gree has progressivelyadvanced green financial projects on the foundation of whole lifecycle green management. Thisapproach aims to secure more funding to support sustainable development projects focused onenvironmental protection and energy conservation, continuously driving the Company towards atransformation in green and sustainable development. Meanwhile, for many years, the Companyhas actively conducted environmental training, to enhance employees' awareness and professionalcapabilities through diverse environmental cultural education and construction, create a greencorporate atmosphere, and achieve a virtuous cycle between economic growth and ecologicalbalance.
Intelligent Manufacturingand PersistentTechnological InnovationGree consistently upholds the philosophy that "innovation is theprimary productive force", and is committed to independently nurturingtalent, deeply cultivating core technologies, and steadfastly pursuing apath of independent innovative development. In elds such as productinnovation, consumer upgrading, and intelligent manufacturing, theCompany continually contributes value to consumers, society, and thenation.
Improving the Innovative R&D SystemLeading the Path to Digital and IntelligentTransformationCreating A Better Life with Technology
SDGs benchmarking
2023 ESG ReportImproving the Innovative R&D System
Gree believes that outstanding product innovation is driven by a robust R&D system. By creating a self-transcendent innovation culture,building a high-level and highly integrated R&D platform, and implementing innovation incentives and IP protection, the Company is able tocontinuously lead and compete at the product and technological level, and maintain sustainable competitiveness.
R&D Concept and Achievements
Gree insists on "independent R&D of core technologies" and adheres to the principle of "investing on demand without setting a ceiling".The Company has established a multi-level and high-standard R&D platform system based on national-level scientic research platforms,and formed a technology innovation system that is enterprise-led, market-oriented, and integrates industry, academy and research. Theinnovation chain drives the value chain, and the value chain supports the innovation chain.As of the end of the reporting period, Gree has developed 16 research institutes, 152 research institutions, 1,411 laboratories, and oneacademician workstation (motor and control) around the new energy environment, intelligent equipment, refrigeration, freezing, washingand other technologies, and owns a national key laboratory, a national engineering technology research center, a national industrial designcenter, and a nationally recognized enterprise technology center. Furthermore, the Company has become a research and commentbase for refrigeration equipment of the National Notication & Enquiry Center and a national standard verication point (energy saving ofrefrigeration equipment).
The Company possesses
"internationally leading" technologies,and has cumulatively won
National Science and Technology ProgressAwards,
National Technological Invention Awards,
China PatentGold Awards,
China Appearance Design Gold Awards,
GenevaInvention Exhibition Gold Awards, and
Nuremberg InventionExhibition Gold Awards.
All air conditioning environmental control systems in Luoyangsubway adopt Gree's independently developed maglev direct-expansion intelligent ventilation air conditioning system. Thelarge and small systems feature independent cooling sourcesand single-sided air delivery for each unit. Taking the Citizen'sHome Station as an example, during the cooling season (July 25- September 20), the total refrigeration capacity of the system is143,550 kWh, the total power consumption is 23,800 kWh, theenergy e?ciency of cooling station in the machine room is 7.25,and the e?ciency of the environmental control system reaches
6.03. This project is the rst in the country where the installed
cooling station capacity is less than 500RT, and the energyefficiency ratio of the cooling machine room exceeds 7.0. Theproject outcomes have reached an "internationally leading" level.
Gree maglev direct-expansion intelligent ventilation air conditioning
system for subway stations
Maglev direct-expansion intelligentventilation air conditioning system forsubway stationsCase
Heat pump is the best way to convert electricity into heat efficiently, and it also meets theneeds of the development of end-use energy electrication. The Company has independentlydeveloped three major innovative technologies: a 120°C+ high-speed direct-drive high-temperature and heat-pump centrifugal compressor, a 60K+ temperature rise dual-compressorseries connection, and a multi-stage compression air-supplementing e?cient industrial heatpump unit. It has also developed a low-carbon refrigerant R1233zd(E) based 120°C+ industriallarge capacity high-e?ciency and high-temperature centrifugal heat pump, characterized byhigh temperature, high e?ciency, low carbon emission, large capacity, and high temperaturerise. Compared to traditional industrial boilers, it signicantly enhances energy conservationand carbon reduction, meeting the demands in food, pharmaceuticals, distillation, dyeing, andother industries, supporting low-carbon energy development. This heat pump unit was testedby the third party, with a heating capacity of 9114 kW at a 60K temperature rise and a 120°Ccondensing temperature, achieving a heating COP of 4.36 W/W. At a 65K temperature rise, thecondensing temperature can reach up to 130°C, with a maximum capacity of 10 MW, reachingan "internationally leading" level.
The Company broke through the technical bottleneck of the chiller in the small and medium coolingcapacity segment, and pioneered a dual-stage PM inverter water-cooled screw chiller with an energye?ciency level exceeding 7.0. This was the rst unit that applies the dual-stage screw compressortechnology to the water-cooled chiller. It features interstage air supplementation to enhance systemenergy e?ciency and is equipped with a new high-e?ciency rotor prole with small pressure ratio,isomeric tooth and constant volume and a position-free identication and accurate adaptive controlsystem of two-stage pressure ratio to signicantly enhance full-operational e?ciency. The unit, witha single compressor head of 180RT, achieves a nominal cooling performance coefficient (COP)of 7.22, an integrated part-load performance coe?cient (IPLV) of 10.1 according to GB standards,and IPLV of 12.01 according to ARI standards, surpassing the national Level 1 energy e?ciencystandard by 34.7%, the highest level in the industry for maglev system by 14.5%, and the highestlevel in the industry for inverter screw system by 11.6%. The energy-saving e?ects are signicant,making it widely applicable in various elds such as public buildings, rail transportation, and energyrenovation. The project outcomes have reached an "internationally leading" level.
120°C+ industrial large-capacity high-e?ciency and high-temperature centrifugal heat pumpCOP7.0+ Dual-stage PM inverter screw chiller
120°C+ industrial large-capacity high-e?ciency and high-temperature centrifugal heat pump
COP7.0+ Dual-stage PM inverter screw chillerCaseCase
Addressing the challenges of preserving fruits and vegetables,Gree started research from improving the average humidity andreducing humidity uctuations, and developed a fruit and vegetablepreservation technology based on a self-balancing high-permeabilitymembrane and air-source humidication. This technology e?ectivelysolves the technical challenges of consistently establishing andmaintaining high humidity in complex storage scenarios. Themeasured humidity reaches 95% with stable control. Data showsthat the measured supercooling degree reaches 4.2°C, signicantlyreducing the juice loss and drying rate of meat. Moreover, theCompany has developed a super-freezing storage technology formeat based on a wide-frequency fully-enclosed piston compressor,addressing the rapid decay of volumetric efficiency and reliability
In May 2023, at one of the top three international invention exhibitions, theGeneva International Exhibition of Inventions, Gree successfully won twogold awards, one silver award, and one bronze award. As a "permanentguest" of the exhibition, the Company has won 14 gold invention awards.One of the gold awards was granted for the continuous heating high-e?ciency thermal gas defrosting technology of the air source heat pump,which significantly improved the defrosting efficiency, shortened thedefrosting time, broke through the traditional bottleneck of indoor heatabsorption during air conditioner defrosting, and achieved simultaneousoutdoor defrosting and indoor heating, keeping the indoors warm andcomfortable.Another gold award was granted to the high-efficiency ambienttemperature catalytic de-formaldehyde air purier, equipped with a newgeneration of formaldehyde decomposition technology. By building anactive oxygen catalytic composite de-formaldehyde network, it completelyoxidizes formaldehyde into carbon dioxide and water, with a cumulativepurication volume of up to 10,000mg, and paired with an "ultraltration"composite filter, achieving sustained high-efficiency formaldehyderemoval.
Research and application of keytechnology for fruit, vegetable and meatpreservation in household refrigerator
Gree clinched two gold awards at the GenevaInternational Exhibition of Inventions
Research IncentiveMechanism
Scientic Research Communicationand Cooperatio
To fully leverage the enthusiasm and creativity ofthe extensive scientic and management personnel,and to promote continuous breakthroughs in coretechnological areas, Gree, based on the nationalguidance for scientific and technological awardsand considering the actual circumstances of theCompany, has formulated the "Measures forAdministration of Scientific and TechnologicalProgress Award". Each year, high-level incentivesare awarded to units and individuals who achieveoutstanding results in the field of technologicalinnovation. During this reporting period, 210 award-winning projects were selected, covering 48 unitsand over 2,300 individuals, including two topawards.
Through multi-level and multi-dimensional collaborations with over tendomestic and international universities and research institutions suchas Tsinghua University, Xi'an Jiaotong University, and the InternationalEnergy Agency, Gree actively explores new mechanisms for integrateddevelopment in directions such as system energy saving and high-efficiency heat exchange. This continuously enhances the project'scollaborative innovation capacity and accelerates the pace of resultstransformation.
During this reporting period,
award-winning projects were selected
2023 ESG Report
issues under ultra-high frequency conditions ofexisting refrigerator compressors. The R600afully-enclosed piston compressor can operateat a maximum frequency of 120Hz, allowingthe refrigerator to run stably at -38°C for a longterm. The project outcomes have reached an"internationally leading" level.
Case
Case
2023 ESG ReportIP ProtectionGree has formulated an IP strategy aligned with the Company's development vision,planning IP work from the height of the Company's business strategy, making fulluse of IP information resources, and combining creation, application, protection, andmanagement of IP to promote corporate technology and management innovation. Thishas enabled the Company to achieve and maintain a competitive advantage in themarket, leading industry technology trends.The Company always adheres to a quality-first patent application strategy, ensuringpatent quality through pre-application patent search quality checks, in-applicationdocument quality checks, and post-application review response quality checks. Thisstrict quality control ensures the market value of the company's patents.
After years of practice, Gree has established an IP management system covering the entire product lifecycle,embedding IP management in all stages from material procurement, product R&D, to sales. This ensures the legalmonopoly of self-innovated technologies and stringent risk control.
The Company has established an industry-leading full-process IP management system platform, which integratesa patent value assessment system, enterprise product patent navigation, and patent operation processes, andeffectively interfaces with project management platforms, PDM management platforms, and patent agencyplatforms. This aids in shortening the patent application cycle and enhancing the e?ciency of patent work.In addition, Gree places high importance on the construction of a high-quality IP personnel team. The Companyhas a dedicated IP department with over 800 IP sta?, including more than 80 full-time patent administrators withpatent agent or legal professional qualications. The quantity and overall quality of personnel lead among Chineseenterprises. The Company continually enhances the theoretical knowledge and practical skills of the patent talentteam through internal training, expert training, external commissioned training, and mock courts, among othermulti-channel and multi-form training mechanisms.Gree is committed to promoting the tangible benefits of IP intangible assets. It conducted IP custodianshipand assistance for upstream enterprises to improve patent quality and reduce infringement risks. For peerand downstream enterprises, the Company led industry technology development and enhanced consumerexperiences through patent licensing and transfers. Additionally, the Company initiated the establishment of theIntellectual Property Alliance of China Air Conditioning Industry and served as the rst chairman unit, standardizedthe IP competition environment in the air conditioning industry and promoted patent operations in the industry,demonstrating the responsibility of an industry leader.
Lifecycle IP management system of GreeBusinessactivitiesIPmanagementrisksIP controlmeasuresAs of March 2024, Greehas applied for a total of
119,842
patents domestically and internationally,including
64,539
invention patents and
21,148
granted inventionpatents.The Company has won
Chinese Patent Awards, including three gold awards forinventions and three gold awards for designs.It has ranked among thetop tenin invention grant volume nationwide foreightconsecutive years, consistently leading the household appliance industry.Seven subsidiaries have been selected as national IP demonstration enterprises, and
companies have been selected as national IP advantage enterprises.
Pre-researchRepeatedR&D
Materialinfringement
Equipmentinfringement
Quality risksInfringement ofinadequatelyprotectedproductProject search
and patent
analysis
Patent layout
avoidance
design
Materialinfringement risk
verication
Equipmentinfringement riskverication
Solving qualityproblemsComplianceReview
Improper useof promotionalmaterialsDesignProcurementProductionSalesAfter-sales
Leading the Path to Digital and Intelligent Transformation
The transformation towards digitalization and intelligence is a crucial direction for enhancing the core competitiveness of the manufacturing industry and an important path towards high-end manufacturing. Since 2016,Gree has vigorously promoted digital development, continuously improved the level of intelligence, and is committed to realizing the data operation and platform operation of the whole value chain, promoting e?ciencyimprovement, value creation and improvement of business objectives, and creating a new situation of "industrial Internet enterprise". In 2023, the Company accelerated the digital and intelligent transformation acrossvarious segments including production, management, sales, logistics, and supply chain.
The Company carried out supply chain upgrading and restructuring informatization projects focusing on the ve objectives of "centralized procurement","efficient supply chain collaboration", "supplier digital management", "smart settlement" and "automated pricing verification", realized supply chainvisualization monitoring and comprehensive performance analysis, integrated the technologies of big data, knowledge mapping and remote management,and applied them in the hidden danger identication, positioning, early warning and e?cient disposal of supply chain risks, so as to accelerate the supplychain digitalization transformation of the entire lifecycle.Gree took "unied production system" as its goal, fully applied new information technologies such as industrial Internet, cloud platform, articial intelligence,big data, blockchain and 5G, and promoted the design, development and implementation of digital platforms around the management of core modules suchas planning control, material preparation, equipment energy management, and process quality control, to promote the improvement of production e?ciency.During the reporting period, the Company's rst high-density "automated, intelligent, and digital" integrated production line was put into operation. This lineintegrates technologies like automatic assembly, fastening, welding, sticking, testing, hardware integration, and digital integration, featuring capabilities inidentication, measurement, positioning, and testing. Additionally, the Company independently developed its production line management system, achievingreal-time online management of production orders and quality chains.Gree's o?ine sales use a "self-built mainline logistics + branch/intercity third-party outsourcing" model, while online sales leverage e-commerce platformlogistics, fully utilizing social resources to e?ectively reduce logistics losses and enhance response speed. The Company's independently developed AMRmobile robots, equipped with a self-developed multi-platform integrated scheduling system, are now widely used in production lines and workshop logisticsacross multiple bases, signicantly enhancing logistics e?ciency.The Company vigorously builds a single logistics/multi-nance integrated system to promote the integration of business and nance. During the reportingperiod, under the single logistics/multi-nance architecture of the air-conditioning industry segment, the ERP system was upgraded. Through process anddata restructuring, it meets the needs of nancial group control, multi-party trade, and automated accounting.
In theprocurementprocess
In theproductionprocess
In the salesprocess
In themanagementprocess
Changsha Gree HVAC Equipment Co., Ltd., a subsidiary of Gree, the second-largest comprehensivebase following the Zhuhai headquarters, was established in 2014 with a focus on high-standardintelligent manufacturing. It employs a large number of leading international and independentlydeveloped intelligent equipment and has developed corresponding management software. Builtand put into operation in 2016, it was recognized the following year by the Ministry of Industry andInformation Technology as a "Pilot Demonstration Enterprise for Intelligent Manufacturing" and "PilotDemonstration Enterprise for Industrial Internet Applications". Today, this base fully integrates industrialrobots, CNC machines, 5G, and other advanced equipment and technologies into its production,management, and logistics scenarios, setting a benchmark for automation and the latest intelligenttechnologies in the national appliance manufacturing industry.
"Dark Factory" Illuminated "Made in China"
Awards received by the Company in the eld of digitization in 20232023 Smart Manufacturing Pilot
Demonstration Initiative
A demonstration "digital pilot"enterprise integrating thedevelopment of new generationinformation technology and
manufacturing
Zhuhai Gree Intelligent ManufacturingCo., Ltd. was approved as an intelligentmanufacturing demonstration factory
Gree All-eld Digital Management andControl Demonstration ProjectNational Ministry of Industry and
Information
National Ministry of Industry and
Information
Main content
Competentdepartment
Case
2023 ESG ReportCreating A Better Life with Technology
Gree has always adhered to user-oriented principles, driven by technological innovation. With a commitment to excellence and outstanding control over details, the Company continuously enriches the depth andbreadth of its product line. It uses technology to create clean, safe, intelligent, and e?cient living and working environments. During the reporting period, the Company launched the following high-performance andhigh-quality new products:
Newly upgraded cooling and heating distribution technology,signicantly improving cooling and heating e?ciencyEquipped with a newly upgraded internationally leadingdistributed air supply technology, it achieves full upper air supplyfor cooling and full lower air supply for heating. The cold airdoes not blow on people, but warm air warms the whole body.This eliminates direct cold air blowing, hot head and cold feetsituations, and upgrades temperature balancing e?ects, creatinga zero temperature difference balanced space with a verticaltemperature di?erence in the human activity area of <0.1°CWhole-house climate ecological management: It integrates air
conditioning, fresh air fan, humidier, dehumidier, and purierfunctions into one unit, achieves multidimensional climateregulation optimization and creates a comfortable living climatefor the whole houseWhole-house IoT ecological management: Serving as thesmart central hub of the home, it can connect with all Greesmart household appliances, providing real-time monitoring ofappliance operation status
Coolness upgrade and comfort upgrade: Equipped with the second-generation Gree coldexternal unit, it challenges the 65°C high-temperature refrigeration zone and 360° sportslarge air deflector, and realizes anti-direct blowing in the whole area and a variety of airsupply anglesEquipped with Gree's dynamic power compressor: It has strong performance, and is capableof realizing high-frequency, high-pressure, and efficient operation, fearless against high-temperature challenges, and full of powerThree-ring heat exchange control technology: Through three major technologies, it upgrades
the air-conditioning air duct system, heat conduction system, and temperature controlsystem, and achieves e?cient heat exchange, fearless of "heat" tests
Household consumer goods sector Supreme air conditioner High-temperature air conditioner - Silent King+
Freezing and fresh 2.0 technology: Realize no freezing at-5°C, and maintain freshness for two weeks, easy to cutwith a single knife
38°C super-freezing freshness locking technology:
Realize rapid freezing, minimize cell damage, andpreserve precious nutrientsPhotosynthetic water moisturizing freshening technology:
Reduce nutrient loss such as fruit and vegetable moistureand vitamins, and delay fruit and vegetable spoilage
HCP full-time antibacterial and deodorizing technology:
Equipped with visual dynamic sterilization module, thesterilization rate is up to 99%, and the taste is puried in15 minutes
Provide a safe, healthy and long-lasting storageenvironment for all kinds of fresh ingredients
Kinghome "Global Freshness" refrigerator 516L
International leading Hi-fresh formaldehyde decompositiontechnology: Continuously decompose formaldehyde
harmlessly into water and carbon dioxide, with adecomposition rate of 99.9%
Professional-grade purication: Realize digital display of
formaldehyde and PM2.5 concentrations, and accuratelydetect formaldehyde concentration up to 0.001 mg/m
Inhibiting bacteria and viruses: Realize double-sided six-
layer purification, whole-house 3D purification, H1N1flu removal rate ≥99.99%, staphylococcus removal rate>99.99%, and allergen removal rate ≥99%.
Formaldehyde hunter air purier
Self-developed heat pump washing and care technology:
Achieve gentle drying at 37°C without damaging clothesWash, dry, and wear immediately: Integrate washing,drying, and care, equipped with GRS rapid drying system,taking only 1 hour for washing and drying
Global super-ne steam washing 2.0: Enjoy free clothing
care at home, soften fibers, and remove wrinkles andu?ness
Ruxin heat pump washing machine
2023 ESG ReportIndustrial equipment sector
Integrated ecology: Using air conditioning as theenergy and information center, it integrates clean PVpower generation, safe energy storage and poweradjustment, efficient air conditioning power saving,and smart IEMS power management, creating adirect current ecological system of "source, storage,network, and load".Low-carbon and efficient: Through on-demandconfiguration, it provides high-quality energy,assisting in achieving the national "dual carbon" goal
Substantial energy consumption reduction: The
new generation of heat pump floor heating unitsaves over 32% energy consumption compared totraditional oor heating during continuous 24-houroperationOutstanding innovation advantage: Optimizeheat supply and demand matching, cloud-edgecollaborative control of heat pump floor heating,achieve e?cient energy saving, and adapt to high-quality energy needs
Efficient cooling and dehumidification: Solve problems such as poor cooling anddehumidification effects, and high resource consumption, significantly improving theunderground working environment
Enhanced mine safety: Reduce failure rates, improve reliability, enhance mine safety levels, andcreate a good working environment for mine workers
High rigidity and temperature: The bridge-typegantry structure is made of high-quality castbeam, enjoying high rigidity and stabilityHigh speed and high precision: The high-speed direct drive system adopts closed-loopcontrol, with X and Y axes driven by high-thrustlinear motors, with maximum speed up to 80m/min; the high-speed and high-rigidity electricspindle has a maximum speed of 20,000rpm,achieving high-speed cutting
PV energy-storage exible air-conditioning system
Air-source heat pump oor heating systemHigh-speed bridge-type (ve-axis) gantry CNC machine tool
Deep mine refrigeration equipment
Gree 2024 Global Dream Summit themed "Embrace the Present,
Shape the Future"
Upon understanding the harsh working conditions indomestic mines, which severely affect miners' health andhinder efficient and safe production, Gree leveraged over30 years of experience in large central air conditioning toovercome challenges in local mine cooling equipment suchas poor refrigeration and dehumidication, high consumptionof fresh air and water resources, ine?ective heat exchangein stagnant air, and narrow operating range of compressors.The Company successfully innovated a new set ofrefrigeration equipment suitable for deep mine heat control,significantly improving the working environment for deepmine workers, reducing labor intensity, and minimizing workstoppages due to high temperatures and humidity duringthe summer. The project outcome "Key technology andapplication of new refrigeration equipment for heat damagecontrol in deep mines" has reached an "internationallyleading" level.
Gree developed the world's rstmine air conditioner
E?cient compressor design: It is designed for the thermalload characteristics of data centers, achieving "smallpressure ratio" high-efficiency aerodynamic design in alloperating conditions, ensuring compressor operation in thee?cient zoneSignificant energy-saving advantages: It adopts high-power permanent magnet synchronous variable frequencymotors, with a maximum e?ciency of 98.2%, all-load motorefficiency of above 95%, and the circulation efficiency ofdual-stage compression and air replenishment structureimproved by 5-6%
High-efficiency centrifugal compressor: It adopts a large-power high-speed direct drive rotor structure, eliminatesspeed-increasing gears, and reduces mechanical losses by70%, with compressor weight and volume reduced by 60%and noise reduced by 8dB(A)Comprehensive carbon-neutrality solution for all scenarios:
The water outlet temperature can reach 120-140°C, themicro-pressure steam can be directly ashed, fully meetingthe heat needs of non-process industries, and the annualsingle unit operation can reduce carbon dioxide emissionsby 15,000 tons
10kV HV direct-drive permanent magnet synchronous variable frequency centrifugal chiller
Industrial centrifugal heat pump with large capacity and high e?ciency
Case
Upholding People-oriented for A Better Life
Gree has always prioritized talent development, attracting talent withstrong capabilities, nurturing talent through independent innovation,and providing generous benefits to serve talent. The Companyconsiders talent development as its most important responsibility,places high importance on protecting employee rights, and enhancesemployees' enthusiasm and sense of belonging. Moreover, theCompany actively fulfills social responsibilities, emphasizescommunication and exchange with multiple stakeholders, encouragesemployees to participate in voluntary activities, and engages in publicwelfare charity activities such as rural revitalization and communityco-creation, striving to contribute to society.Safeguarding the Legitimate Rights and Interestsof EmployeesEmpowering Employees' Career GrowthSafeguarding the Health and Safety ofEmployeesEnhancing Diversi?ed Wellbeing of EmployeesBravely Assuming Corporate Social Responsibility
SDGs benchmarking
2023 ESG ReportSafeguarding the Legitimate Rights and Interestsof Employees
Gree strictly adheres to relevant laws and regulations such as the "Labor Law of the People's Republic of China" and the "Labor Contract Lawof the People's Republic of China", revises and implements regulations such as the "Measures for Administration of Employee Recruitment","Measures for Administration of Attendance", "Measures for Administration of Salary", "Measures for Administration of Performance", and"Measures for Administration of Labor Protection of Female and Underage Workers", effectively safeguarding the legitimate rights andinterests of employees.
The Company upholds the principles of "open recruitment, fair competition, and merit-based employment", adheres to equal employment andequal pay for equal work, and resolutely eliminates child labor and forced labor. It avoids any discrimination based on employees' ethnicity,gender, age, disability, marital and parental status, respects employees' rights to freedom of assembly and association under the law. In 2023,Gree did not experience any incidents of employment discrimination, harassment, child labor, or forced labor violating human rights in labor,with a 100% employee social security coverage rate.Additionally, the Company ensures that labor contracts are based on principles of equality and voluntariness, and strictly follows legalregulations and contractual agreements in the execution, renewal, termination, and ending of labor contracts, regulating employment practicesstrictly. In 2023, the labor contract signing rate was 100%.
Gree constantly continues to improve the skills and level ofcollective bargaining, strengthens the collective bargainingtalent team, promotes collective bargaining, and makes positivecontributions to safeguard the legitimate rights and interestsof employees, realize win-win situation for both enterprisesand employees, and construct harmonious labor relations. TheCompany has been recognized as a model for enterprise labor andcapital communication and negotiation in Guangdong Province in2023, a typical enterprise for collective bargaining in Zhuhai City in2022, and has won the rst prize for excellent cases in collectivebargaining. Furthermore, a collective contract was ratied by theWorkers' Congress, with a signing rate of 100%.
Gree has been honored as the most inuential employer byHaitou.cc in 2023 and was listed on Forbes' The World's Best
Employers 2023
Gree was listed on the "2022 Typical List of Collective Negotiation in Zhuhai"and the "2022 Award List of Collective Bargaining Excellent Case in Zhuhai"
Equal Employment
Collective Bargaining
In 2023, Gree did not experience any incidents of employmentdiscrimination, harassment, child labor, or forced laborviolating human rights in labor, with a
100%
employeesocial security coverage rate
A collective contract was ratied by the Workers'Congress, with a signing rate of
100%
In 2023, the labor contract signing rate was
100%
Gree always adheres to the "people-oriented"principle, and vigorously promotes laborand capital communication and negotiation.By establishing a sound labor-managementcommunication mechanism, broadening thechannels of employees' demands, listeningto employees' voices through the labor unionand grass-roots branch unions, intelligentlabor unions, democratic life meetings,employee satisfaction surveys, etc., theCompany promotes mutual understandingand support between the enterprise and itsemployees, and lays a solid foundation forthe stable development of the enterprise.In 2023, the Company was honored as a"Typical Enterprise for Labor and CapitalCommunication and Negotiation in GuangdongProvince".
The Company strictly enforces the "Law on the Protectionof Women's Rights and Interests" and "Provisions onthe Scope of Prohibited Work for Female Employees".It legally provides maternity check-up leave, maternityleave, special breastfeeding time, dedicated bus lines forloving mothers, and exible working benets, and reducesworkloads for breastfeeding female workers.
Employees are entitled to statutory holidays, paid annual leave, personal leave,compensatory leave, sick leave, injury leave, marriage leave, bereavement leave,maternity leave (including obstetric leave), incentive leave, family planning surgeryleave, paternity leave, child-care leave, nursing leave, prenatal check-up leave, andbreastfeeding leave. The Company advocates completing tasks within normal workinghours and, considering the characteristics of production and operations, continuouslypromotes work-hour management through enhanced shift management and othermeasures, safeguarding employees' rights to rest and leave.
Employee CommunicationWomen's Rights
Leave System
Typical Enterprise for Labor and
Capital Communication andNegotiation in Guangdong Province
in 2023
The Company held a grassroots democratic life meeting to listen to employees' opinions
InteractiveCommunication Platformof Intelligent Trade Union
The Company provides Loving Mother Huts for pregnant and breastfeeding women
The Company's LovingMother Huts was awardedthe honor of "Loving MotherHut in Guangdong Province"
Empowering Employees' Career Growth
Gree has always held the belief that "talent is the rst resource", recognizing that genuine self-innovation can only be achieved by valuing anddeveloping talent. This philosophy has been integral to Gree's development, infusing vitality and energy into the enterprise.
In the face of macroeconomic uncertainties and complexities, the Company pays close attention to and safeguards employees' interests,optimizes and adjusts salary schemes to allow all types of talent to excel. For technical management sta?, career development pathwaysin "professional, managerial, and comprehensive development" are designed, and for frontline sta?, a skill level evaluation mechanism isestablished.The Company constructs career development pathways for employees, and continuously improves a performance-oriented salary mechanismbased on job positions. Focusing on improving work e?ciency, enhancing team quality, optimizing personnel structure, boosting employeevitality, and retaining core talent, the Company implements a job-based and performance-oriented salary development system, conductsprofessional level evaluations, and develops a reasonable, exible, and e?ective compensation system to foster talent development andgrowth.
Employee career development pathways
Vertical development
Horizontal development
Building Employee Career Development Pathways
Administrativefunctions
Business
sales
Technology
R&D
Processquality
ProductionoperationsManagement directionProfessional direction
Newemployee
Company executiveExpert designer
Senior designerAdvanced designerJunior designerDesignerDivision supervisor
Team leader
SpecialistMiddle-level management
2023 ESG Report
Gree aims to provide a comprehensive growth platform for the Company's employees, establisha culture of utilizing talents e?ectively, and adhere to the concept of independent talent training.Tailored to the Company's strategy, each unit's business development, and talent training needs,a company-wide learning (four levels) development plan is devised, organized, and implemented.The annual needs survey begins with organizational strategy, business development, sta? skills,and cultural literacy, employing a "dual-track linkage" approach at both company and unit levels.This process involves a top-down review of strategic goals to identify related training needs anda bottom-up renement to distill the training needs related to sta? business skills. This resultsin the formation of a complementary four-level training plan: company-wide, departmental,o?ce, and individual levels. Each level's plans are subdivided and complementary, focusing onintegrating strategy with performance in learning and development goals.
LevelTraining planTraining focus
The 2023 annual company-level training plan takes thefour dimensions of strategic landing support, key groupcultivation, key business development, and cultural literacyenhancement as the framework. It encompasses 59specialized training projects, jointly implemented by thetraining center and various units. The training e?ectivenessis closely monitored, with each project driven by dedicatedpersonnel to ensure a PDCA (Plan-Do-Check-Act) closed-loop management, enhancing training outcomes. By theend of 2023, all 59 training projects were successfullycompleted, involving 25,000 participants, with an averageannual satisfaction rate of 98%.
By the end of 2023, all
trainingprojects were successfully completed,involving
25,000
participants,with an average annual satisfaction rateof98%
Improving the Talent Development System
Four-level development plan
The 2023 fresh graduate training camp focuses on the core goal of "strengthening corporateculture imprint, solidifying professional ethics, and successfully transitioning into Greeprofessionals". It aims to nurture a team of growing, responsible, efficient, adventurous, andteam-spirited "Great New Forces". Nearly 800 headquarters-based new graduates underwentspecialized, customized, and distinctive training at the "New Forces" camp, preliminarilytransitioning from campus life to becoming part of Gree, and embarking on the grand journey of"devoting to the Gree dream, falling in love with Made in China".
The Company carried out "Great New Forces" 2023 new graduateonboarding training
"New Forces" growth path and the training camp's "3-6-1" learning and development model
Four-level training plan system for all employees
Strategic supportimplementation
Businessinnovation anddevelopmentWork performanceimprovement
Career developmentchallenges
Knowledge and skillreserves
Teamdevelopment and
construction
Management
experienceinheritance
TechniqueexperienceinheritanceProject-based operation ofkey businesses
Cultivation of relevant groupsat a deeper level
Key businessdevelopment
Cultural literacyenhancementKey groupcultivation
Case
Strategic level
Performance
level
Individual-level plan
Business
level
Company-levelplanDepartment-levelplanDivision-levelplan
"Voyage Plan" (2023) team leader development stems fromthe "Vanguard" training camp (supervisors + team leaders),evolving into a regular initiative targeting supervisorsand team leaders among the grassroots management. Itregularly introduces valuable learning materials and ensurescontinuous learning for the participants; offline intensivetraining employs innovative teaching methods like "flippedclassroom, management games, and sandbox simulation",stimulating proactive thinking and invigorating team dynamics.Post-camp evaluations show high comprehensive ratings,with course satisfaction averaging 98.8 points and overalltraining camp satisfaction reaching 99.6 points.
"Voyage Plan" team leader trainingcamp
"Voyage Plan" improvement training camp
Moreover, the Company places particular emphasis on the independent development of skilled talents, helping ordinary workers becomehigh-end industrial talents with skills, knowledge, and aspirations. A self-developed skilled talent system is established, creating a "frontlineemployee—skilled worker—craftsman" growth pathway. Additionally, aligning with national professional skill standards, the Companyinnovatively designs a career development system and incentive application system for the entire group's skilled talents, incorporating askilled occupation certication mechanism, skill level re-evaluation system, and a comprehensive incentive system, facilitating the selection,cultivation, application, and retention of skilled talents and promoting a "top-down, bottom-up" mechanism to drive high-quality development ofhuman resources.
Focusing on technical positions, the Company vigorously advances a professional technical level evaluation mechanism, establishes askill development pathway for capable and high-performing "skill-based" and "technical" personnel to become frontline skilled workers, andsuccessfully completes the full-process system construction of qualication standards, training systems, evaluation systems, and incentivesystems. The regular evaluation of skill levels and tiered management of skill allowances reflect the "skill-level-oriented" differentiatedincentive principle, fostering the formation of skilled talent echelons and enhancing skill levels. The cultivation of skilled talent promotesthe spirit of model workers, labor, and craftsmanship, motivating more workers to pursue a path of skill-based success and strengtheningenterprises through skills.
ResultsApplication
ProcessOperation
EquipmentOperation
Product Testing
QualityInspection
Logistics andTransportationMaintenanceEquipmentCommissioning
Advancing the Skill Level Evaluation Mechanism
Structure chart of company-level skilled workers assessment team
Company-levelSkilled WorkerEvaluation Team
HR DepartmentTest Center
ProcessDepartment
Equipment PowerDepartment
Quality ControlDepartment
Motor VehicleFleet
Case
After years of development, Gree has clearly dened the types of skill occupations. The review of skilloccupations adheres to the principles of "fairness, impartiality, and openness", plays a leading rolein the company-level skill evaluation group, organizes and carries out the certification work for skilloccupations. The specic process is as shown in the following diagram:
Skilled Worker Evaluation Process
The overall number of skilled talents in the group has achieved continuous growth. Since a small-scale pilot at the Zhuhai headquarters in 2013, through gradual promotion across various branches andsubsidiaries and continuous exploration of new occupations, the number of occupations and skilledworkers has been increasing year by year. As of the end of 2023, skilled talents cover 78 units at Greeheadquarters and subsidiaries in other regions, with 117 skill occupations and about 14,000 skilledworkers, representing an 8-10-fold increase compared to 2013.
Occupational Skill Certication Mechanism
Implementation E?ect of the Skill DevelopmentSystem
Skill type review process
By the end of 2023, the Company has trained and recommended
national, provincial,municipal, and district (county) technical experts and
craftsmen for enterprises andsociety.
In December 2023, the Fourth Zhuhai Vocational SkillsCompetition and the Second "Top of All Trades" Competitionconcluded. The Competition lasted 14 days, featuring 32events including CNC lathe work, electrician skills, andsoftware technology, with over 1,300 high-quality volunteertalents competing on this grand stage, showcasing theirabilities.After intense competition, Wang Peng from Gree's XiangzhouBranch ranked first in the electrician competition, earningthe title of "Zhuhai City Technical Expert"; Wu Lisen and QinShujian secured the second and third places respectively;Wan Jinming received the "Excellent Judge" honor; Gree wasawarded the titles "Advanced Unit" and "Champion ParticipantUnit" at the Fourth Zhuhai Vocational Skills Competition andthe Second "Top of All Trades" Competition.
Gree won multiple honors at the Fourth Zhuhai Vocational SkillsCompetition
The "Top of All Trades"Competition
Company-level SkilledWorker Evaluation TeamInitiate the identication
of work typesCall for skilled work
types
Submission of skilledwork typesDetermine the list of newwork types by comprehensiveranking of new work types
Material review, on-site research and work
video evaluationConduct a company-levelevaluation meeting for skilled
work typesApprove bycompany leaders
Position (Work Type)
Competent Unit
Employing Unit
Release
NG
Case
While focusing on the professional development of employees, Gree insists on "fostering virtue andcultivating people", guided by political ideology, actively practices socialist core values, and promotesadvanced corporate culture, serving the overall development of the Company, and educating employeesto enrich their sense of national identity, strengthen professional ethics, and solidify their ideals andconvictions.In 2023, the Company organized various activities such as "Learn from Pioneers, Strive for the Forefront,Create Outstanding Achievements, Establish New Merits" themed education, special training classesfor party members and key leaders, "Learn from Lei Feng, Be the Successor of Lei Feng" themededucation, "Keep the Market during Peak Season" special education, and National Defense EducationMonth, carrying out ideological and political education activities in a targeted manner through mass,thematic, and accessible approaches, enabling employees to enhance their ideological quality and valuepursuit subtly, and striving to cultivate virtuous and talented new-era industrial workers.
Coordinate and guide at thecompany levelImplement at the unit level
Educational systempattern
High Emphasis on Employee Ideological andPolitical Education
Ideological and political education and training system of the Company
In 2023, marking the 60th anniversary of senior revolutionaries like Mao Zedong endorsing LeiFeng, the Company specially organized the "Learn from Lei Feng, Be the Successor of Lei Feng"themed activities, which are divided into four phases: "Learn, Think, Comprehend, Act". Throughwidespread and deep mobilization, over 60 units actively participated in the activities, creating aprominent direction and value pursuit where "Lei Feng's spirit can be learned by everyone, andacts of kindness can be done everywhere".
The Company organized "Learn from Lei Feng, Be the Successorof Lei Feng" themed activities
The Company organized "Learn from Lei Feng, Be the Successor of Lei Feng" themed activitiesEstablishing virtueand empowering peopleLead by political thoughtCultivate new-age industrial workers whoare both virtuous and talentedActively practicesocialist core valuesPromote the advancedculture of the enterpriseServe the overallsituation of enterprisedevelopmentStrengthening family andnational sentimentEstablish professionalethicsMaintain rm ideals andprinciples
Determine the theme of ideological and political education every yearAdopt mass, thematic, and accessible education methodOrganize and carry out various ideological and political education
activities in a targeted manner
Case
2023 ESG ReportSafeguarding the Healthand Safety of Employees
Gree strictly adheres to laws and regulations including the "Work Safety Law of the People'sRepublic of China", "Law of the People's Republic of China on Prevention and Controlof Occupational Diseases" and "Fire Control Law of the People's Republic of China",and formulates systems such as the "Measures for Administration of Safety ProductionResponsibility System", "Measures for Administration of Work Injury", "Measures forPrevention and Control of Occupational Diseases", "Measures for Administration of SpecialEquipment Safety", "Measures for Administration of 'Three Simultaneities' for ConstructionProjects", "Measures for Administration and Assessment of Fire Safety", "Measures forAdministration of Personnel, Vehicle, and Tra?c Safety", "Measures for Administration of Fireand Explosion Safety", etc. Gree consistently upholds the safety production managementphilosophy of "equally emphasizing safety and production", focusing on filling gaps andstrengthening weaknesses in safety responsibilities, standards, technology, and quality. TheCompany actively promotes the systematization and standardization of safety productionwork, striving to cultivate a real culture of safety. It has obtained the Occupational Health andSafety Management System Certicate.
Gree has established a corporate culture of "People-Oriented, Safe Production, HealthAssurance, and Life Care". It has set up a Safety Production Committee, which is chaired bythe Chairman and responsible for coordinating, guiding, and supervising safety productionwork; and established a comprehensive safety production system. Each year, it signs the "EHSResponsibility Agreement" with units at all levels, further consolidating the responsibility forsafety production. Gree invests as needed without setting limits in improving safety productionand occupational health. In addition to the standard investment in necessary labor protectionsupplies and safety facilities, the Company actively promotes technological upgrades and theautomation of manual operations to improve the working environment for employees.In 2023, Gree organized multiple safety production-related activities, such as fire-fightingskills competitions, safety production knowledge contests, training sessions to enhance themanagement capabilities of key responsible persons and safety o?cers, Safety ProductionMonth series activities, new employee re theory training, and comprehensive safety training,which have enhanced the safety awareness of employees and their emergency responsecapabilities in dealing with sudden incidents.
Construction of Safety Cultures
In October 2023, the Fourth Gree Group Fire Safety SkillsCompetition was grandly held. The Competition focusedon assessing operational skills to enhance job-specificskills on the premise of daily training and job-specificdrills, ensuring that all participants met the requirementsof "preventing re routinely and rescuing in case of re". Atotal of 76 participants from 19 re brigades across Greeheadquarters and its branches competed fiercely, withHefei Gree winning the first prize, Changsha Gree thesecond, and Hangzhou Gree the third.
In December 2023, the Company held the final round of "Gree Safety Cup" Safety Production KnowledgeCompetition. Since the launch of the knowledge competition, all units of the Group have respondedenthusiastically, and leading cadres have personally organized and deployed. Over the course of 78 days,43 units signed up to participate, attracting more than 50,000 employees to actively engage in learning aboutproduction safety. After rigorous selection through internal competitions within each unit and preliminaryrounds at the headquarters, eight teams excelled and advanced to this nal competition. Through four roundsof competition, Gree Changsha HVAC Equipment Co., Ltd. won the rst prize, Gree (Shijiazhuang) ElectricAppliances Co., Ltd., and the Sheet Metal Spraying Plant (headquarters) won the second prize, and thePrototype Center (headquarters), Hefei Kinghome Electrical Co., Ltd., and the Western Region HouseholdAssembly Factory (headquarters) won the third prize, with the Quality Control Department (headquarters) andZhuhai Kaibang Motor Manufacture Co., Ltd. receiving the Excellent Organization Award.
This "Gree Safety Cup" Safety Production Knowledge Competition, with its innovative approach to safety knowledgeeducation and training, enhanced the interest in learning safety knowledge, increased the enthusiasm of employeesfor learning about safety, and sparked a wave of safety knowledge learning across the Group. Through thisCompetition, not only were the safety awareness and skills of the Company's employees enhanced, but the safetyproduction "real" culture was also deeply embedded in the hearts of the people.
Gree conducted a Group Fire Safety Skills Competition
Promoting learning and enhancing skills through competition, and promotingapplication and empowering employees through learning
The Fourth Gree Group Fire Safety Skills Competition site
Gree conducted the "Gree Safety Cup" 2023 Safety Production Knowledge Competition
Case
Case
The Company places a high emphasis on the prevention andmanagement of occupational diseases and has established the"Measures for Prevention and Control of Occupational Diseases".Appropriate labor protection supplies are provided to employees inpositions with occupational hazards, such as safety shoes, earplugs,protective masks, AED debrillators, and medical kits. The Companyorganizes regular occupational health examinations and inspectionsof hazardous job positions annually, effectively preventing variousoccupational risks and injuries, thereby maximally ensuring thehealth and safety of employees In 2023, the company achieved a100% employee physical examination rate.
In active response to the spirit of the "Implementation Planof Guangdong Federation of Trade Unions to PromotePsychological Health Services for Workers throughout theProvince", the Company is piloting the construction of theGree Psychological Services System, explores modelsand mechanisms for psychological services for employeesat Gree, improves the mental health service systemfor employees, safeguards and protects the physicaland mental health of employees, and cultivates a goodpsychological quality of the employees. The Gree TradeUnion, in collaboration with Qianshan Street, meticulouslyestablishes the "Employee Soul Station" at the KanglePark Phase I Employee Activity Center.The Company regularly invites professional psychologists from the Soul Home Psychological Counseling Center in Nanshan District,Shenzhen, to provide rich psychological health services, including psychological assessments and interpretation of assessmentreports, every week.
Safety and Health MonitoringEmployee Psychological Care
AEDinstallation
site
Medicine box photo
Unveiling ceremony of Gree's Psychological Service Station
Gree Employee Soul Station
The Company organizes the Employee Lecture Hall, specially inviting professionalteachers from the School of Psychology of South China Normal University toprovide training and psychological counseling lectures, helping alleviate thestress of work and life, managing emotions, and enhancing the Company’soverall attention to employee psychological issues, enabling timely prevention,identication, and resolution of these issues.
The Company invited teachers from South ChinaNormal University to conduct psychological lectures foremployees
The "Sunshine Fund" was established by Gree in the second half of 2009 to ensure the health of Greeemployees, creating a comprehensive system for major medical assistance for employees. The Fund, whichhas a history of 15 years, involves the trade union auditing Sunshine Mutual Aid Fund materials monthly. Itprovides secondary reimbursement after social security claims for outpatient and inpatient treatments neededby employees, their spouses, and children under 18.
Sunshine Fund Subsidy
Enhancing Diversied Wellbeing ofEmployeesGree adheres to the concept of creating a "comprehensive incentive system", covering all employees with aperformance incentive system. Moreover, the Company is dedicated to building a "safe haven" for employees'happiness, allowing them to focus on career development without worries. Gree has set the goal of "creatinga comprehensive welfare system for employees". Substantial investments have been made to constructcomfortable living areas with complete facilities for employees—Kangle Park Phases I and II projects.
Case
Teachers from South China Normal University conducting psychological lectures at Gree
Sta? living area of Gree Kangle Park Phase I
2023 ESG ReportIn terms of daily employee life, the Company's internal canteens cater to both northern and southern tastes, providing threemeals a day for over 30,000 headquarters sta?; in terms of accommodation, Gree provides fully furnished employee dormitoriesthat are move-in ready upon employment; regarding transportation, there are free shuttle buses covering major areas of Zhuhaifor commuting; additionally, the Company offers customized work uniforms, communication packages for all employees, andcomprehensive health check-ups, thereby creating a system of welfare measures that ensures the happiness of Gree employees.
Huge Gree shuttle systemSta? canteen covering north and south avors
The Company has established a long-term and e?ective incentivemechanism, launched employee stock ownership plans toattract and retain talented individuals, realized the incentive andstable retention of middle and senior management and core andbackbone employees, formed a community of interests betweenemployees and the Company, and enhanced employees' senseof belonging and responsibility. Since 2021, the Company hasintroduced two phases of stock incentive plans. As of Dec.31,2023, the rst phase of employee stock ownership plan covered4,513 employees, and the second phase covered 3,170employees.
Employee Stock Ownership Plan
As of December 31, 2023, the rst phaseof employee stock ownership plan covered
4,513
employees, and the second phasecovered
3,170
employees
Gree consistently implements the care system of "visiting all who are injured, comforting all who are seriously ill, and caring for allwho are hospitalized", making support and warmth a normal, frequent, and everyday occurrence. The Company actively explorese?ective ways and measures to assist employees in need, ensuring precise and dynamic management, enhancing employees' senseof achievement, happiness, and satisfaction, and truly making the employees in need feel the warmth of their "family".
Gree advocates for healthy work and happy living, strives to createa relaxed and active work atmosphere, and enhances employees'job satisfaction. The Company, in line with its own circumstances,has hosted various unique cultural and sports activities.
Support for Employees in NeedEnriching Employee Activities
At the end of September 2023, the Company's Trade Union, department leaders, and branch unions visited employeeswith documented di?culties and serious illnesses before the festival. They went together to the homes of these employees,engaging in face-to-face conversations with the employees and their families, listening to their concerns and practical needsin life, and delivering festive blessings and sympathy gifts.
In early November 2023, Gree's Party Committee and theTrade Union initiated a Singing Competition, which wasresponded to by various factories, departments, subsidiaries,and domestic and overseas dealers, sparking a wave ofenthusiasm for singing. Since the Competition began, thesong "Made in China, Loved by the World" has becomethe exclusive BGM for Gree employees striving at the frontlines, fostering innovation and making the dream of "Made inChina" shine in every corner. After several rounds, 12 teamsfrom 16 units stood out and entered to the nals."We take mission on our shoulders and keep originalaspirations in mind", the singing voiced the passionateachievements of Gree over the past ve years. As expressedin the lyrics of "Made in China, Loved by the World", Greehas always adhered to independent innovation, usingwisdom and strength to forge national pride.
Gree organized Mid-Autumn and National Day Sympathy Visits for employees in need
The Company organized the "Madein China, Loved by the World"Singing Competition
Caring for employees in need
"Made in China, Loved by the World" Singing Competition site
Case
Case
In November 2023, the ninth "Gree Cup" Fun SportsMeeting heatedly commenced. The event attractedover 800 employees from 40 departments of theCompany, who competed in six events, demonstratingthe enterprising spirit of Gree people through concertede?orts.
In June 2023, the "Lingnan Cheongsam ? BeautifulEmbrace" Gree Cheongsam and PhysicalTraining Class celebrated its completion day. Theinstructors led the Gree participants to the ZhuhaiYuanming New Garden for the closing ceremony,which included an outdoor catwalk and photoshoots. Xiao Xiaolong, Party Group Secretary andExecutive Vice President of Xiangzhou DistrictFederation of Trade Unions, attended the closingceremony.
The Ninth "Gree Cup" Fun Sports Meeting held successfully
Gree Cheongsam Class o?cially concluded: Beauty never fades with time
The Ninth "Gree Cup" Fun Sports Meeting site
Gree Cheongsam Class o?cially concluded
Other diverse cultural and recreational activities organized by the Company,such as theater performances, table tennis matches, basketball matches,
and esports competitions, etc.
In November 2023, the "Full Art Camp"visited the employee living area of GreeElectric Appliances, Inc., where 60 Greeemployees embarked on a relaxed andjoyful journey of art. This event wasguided by the Zhuhai Municipal Bureauof Culture, Radio, Television, Tourism,and Sports, hosted by the Zhuhai CityCultural Center, and co-organized bythe Trade Union Committee of GreeElectric Appliances, Inc. of Zhuhai. Withthe "cocoon" in hand as the storyline,the activity extended from the classroomto the outdoors, experiencing holdingpaintbrushes and coffee handles, andenjoying the ease and happiness broughtby public welfare culture and art.
Zhuhai Cultural Center's "Full Art Camp" entered Gree
"Full Art Camp" employee activity site
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Bravely AssumingCorporate SocialResponsibility
Behind the success of a business, there must be acontribution to society, only realized through practicecan the true value of a business be shown. Gree hasalways upheld the philosophy of "taking from societyand giving back to society", actively participating invarious public welfare activities, and investing signicantresources in charitable causes. Whether providingassistance during natural disasters or supportingeducation, medical care, and sports public welfareprojects, Gree has demonstrated the social responsibilityexpected of a large corporation. In 2023, the Companycontributed approximately CNY17.6 billion in taxes,making a signicant contribution to the national economicdevelopment.
Gree firmly implements policies and measures forstabilizing and protecting employment, continuouslysecures and expands jobs, and has insisted on no layo?sduring the pandemic, ensuring normal distribution of year-end bonuses, and continuously recruiting outstandingtalent from universities. Over the past ve years, nearly18,000 college graduates have been recruited. In 2019,Gree established the "Veterans Base", incorporating 560veterans into Gree's workforce. In 2023, it was selectedas one of the first "National Socialized Military SupportEnterprise" honors.
To consolidate the achievements in poverty alleviation and strengthen the foundationof specialized industries, technology is the indisputable primary driver. As a nationalenterprise committed to "mastering core technologies", Gree has repeatedly setexamples in leveraging innovative technology to boost rural revitalization.
Stabilizing andProtecting Employment
Technology Empowering AgricultureIn December 2023, Gree held the induction ceremony forthe 2023 college graduates. The Chairman and PresidentDong Mingzhu, Party Secretary Zhang Wei, and 1,067new graduates attended the ceremony. Chairman DongMingzhu delivered a speech, mentioning that duringthe General Secretary's inspection of Gree in 2018, hedescribed Gree as "genuinely learning, understanding,believing, and applying", which not only affirms Gree'spast achievements but also serves as motivation for Greeemployees. She expressed hope that generation aftergeneration of young people would carry forward Gree'scause and make it a world-class brand.
In June 2023, the rst unit of lychee-specic mobile preservation equipment,independently developed by Gree, was successfully launched. This unit hasan e?ective internal volume of 20 cubic meters, capable of storing 5 tons oflychees. The equipment uses a full-domain permeation air delivery design,which keeps the dehydration rate of lychees as low as 0.51%, maintaininga healthy fruit rate of 99.8% even after 20 days of storage. The integratedanti-vibration structure design enhances convenience in installation,transportation, and construction, extending the supply period for beautifulrural areas with lychees as their primary industry, facilitating staggeredsales, increasing farmers' income, and adding value to the industry, therebyinjecting relentless energy into advancing industry development and ruralrevitalization.
Gree's 2023 College GraduateInduction Ceremony held in Zhuhai
The rst unit of Gree's independently developedlychee-specic mobile preservation equipmentsuccessfully rolled o? the production line
Gree's 2023 College Graduate Induction
Ceremony site
Launch ceremony of the rst unit of Gree's independently developed lychee-specic
preservation equipment
Case
Case
Gree is not just a company but also a citizen with social responsibilities. The Company hasrepeatedly demonstrated its commitment to social responsibility by radiating positive energythrough its actions.
Gree Electric is committed to contributing to the sustainable development of the global economy,implementing the national "Belt and Road" initiative, respecting the culture and customs of the projectsites, vigorously absorbing local employment, caring for local employees, and focusing on the positiveimpact on the local community and the environment. It actively integrates its development into localeconomic and social development, actively creates economic and social values, and promotes theprosperous development of the local economy together with the host government, business partners andlocal residents.
Social Welfare DonationsFullling Overseas Responsibilities
On the winter solstice of 2023, an emergencyvehicle loaded with a thousand sets of Greeelectric heaters departed from Xi'an to theearthquake-stricken Jishishan area in Gansu,and then quickly distributed to the severelya?ected town of Dahejia. The heaters not onlybrought warmth to the people in the disasterarea but also brought them condence in life.
In 2023, to enhance the quality of services across the entire supply chain, Gree Brazil activelyconducted training for local air-conditioning professionals, covering installers and repairtechnicians. The training sessions were held across Brazil's five major regions (Northeast,Southeast, North, South, Central-West), totaling 128 sessions with 7,195 participants. By co-hosting training sessions with customers and using real cases and technical explanations, Greesignicantly improved the technical skills in air-conditioning maintenance and installation amongparticipants, strengthened Gree's competitiveness in the Brazilian market, enhanced employmentcapabilities, and positively contributed to Brazilian vocational education.
Gree donated a thousand sets of electric heaters to aid theearthquake-stricken area of Jishishan, Gansu
Training for local air-conditioning professionals by Gree in Brazil
Gree's northwest branch aided the earthquake-stricken area of Jishishan, GansuTraining for local air-conditioning professionals by Gree in Brazil
CaseCase
Since its establishment in 2011 by the FSC Fund— a fund supporting outstanding constructionstudents — the CSC Award has been aimedat encouraging and creating conditions for thecomprehensive development of students, meetingthe demands and challenges of Vietnam's nationalintegration process. For three consecutive years,Gree Vietnam has been a gold sponsor of theCSC Award, supporting outstanding students inVietnam's construction industry and contributing tothe development of local talents.
Gree Vietnam sponsored the local CSC Award
Gree Vietnam sponsored the local CSC Award
Gree Qatar sponsored Qatar National Sports Festival
Gree Brazil sponsored racing sports
2023 ESG Report
Case
Striving for Excellenceand Creating SharedValue
For over thirty years, Gree has consistently pursuedperfect product quality and customer satisfaction. TheCompany tirelessly works to build a responsible andsustainable supply chain. By continuously promotingindustry collaboration and upgrades, Gree progressesalongside consumers, partners, and peers, sharing thevalues of high-quality development.
Building A Sustainable Supply ChainCreating Extraordinary Products withCraftsmanshipImproving User ExperiencePromoting the Healthy Development of theIndustry
SDGs benchmarking
Building A Sustainable Supply ChainGree is committed to the organic integration of ESG concepts and supply chain management. While executing honest, righteous,professional and e?cient procurement, Gree strengthens value chain risk control and leads sustainable value creation in the industrychain through a perfect supplier management mechanism and leading supplier empowerment programs.Supplier Management
As of 2023, a total of five subsidiaries of Gree have been selected as green supply chain management enterprises in the GreenManufacturing List of the Ministry of Industry and Information Technology: Gree (Shijiazhuang) Electric Appliances Co., Ltd., GreeChangsha HVAC Equipment Co., Ltd., Gree (Zhongshan) Small Home Appliances Co., Ltd., Gree (Chongqing) Electric Appliances Co.,Ltd., and Gree Altairnano New Energy Inc.
For new supplier admissionFor suppliers that have been put into storage
To fully guarantee the Company's production and tirelessly pursue perfect quality to meet customer demands, Gree places greatemphasis on the quality of procurement. The Company has established a perfect supplier development and management system, andthrough in-depth communication and interaction with suppliers, to achieve mutual benet and win-win situation with partners and commondevelopment.
Gree implements a stringent review process. Aftermeeting the quality or technical level, potential suppliersmust also meet the Company's layout of the industry andsupply chain, etc., and be evaluated and screened bythe Company's evaluation team, which consists of thepurchasing, external management and quality departments.If the supplier submits more than the specified numberof samples for sample review and small batch trial or thesamples are unqualied, its candidacy as a new supplierwill be cancelled. Moreover, all new suppliers are requiredto commit to adhering to the code of conduct of "BusinessSocial Compliance Initiative" (BSCI).
Gree implements a strict regular audit and elimination mechanism.The Company's supplier audit plan annually selects a proportion ofsuppliers for documentation review and on-site evaluation, focusingprimarily on rst and second-tier suppliers. The review covers variousaspects including changes in the supplier entity (shareholders,managers, etc.), changes in production sites, expiration of productionqualifications (production licenses, pollution discharge permits, etc.),changes in raw materials (brands, processes, etc.), implementationof production process quality control requirements, compliance withsafety protections for production staff, timely calibration of inspectionequipment, inspection capabilities meeting Gree's testing requirements,and compliance of nished goods warehousing.
No employment of children under the age of 16No forced labor, physical punishment, abuse, or verbalinsult of employeesNo discrimination based on age or gender in hiring orpromotion processesEmployees enjoy freedom of association and the right tocollective bargaining on remunerationProvide a safe and healthy work environment, includingfire safety and facilities, regular maintenance andreporting for special equipment, personal protectiveequipment, and timely medical check-ups for employeesin hazardous positions, with prompt feedback on healthanomaliesComply with legal or industry standards for maximumallowable working hours within a week, pay overtime atthe premium rate and ensure that employees take time o?Provide social security for employees and arrange leaveas per national legal requirements
Gree's supplier audit includes the following socialresponsibility aspects:
2023 ESG Report
Products do not contain toxic and hazardous substancesrestricted under the "Directive on Restriction ofHazardous Substances (RoHS)" and the "EU Regulationon Registration, Evaluation, Authorization, and Restrictionof Chemicals (REACH)", with relevant testing reportsprovided
Identify and segregate toxic and non-toxic materials inwarehousing, material handling, and production lines, withrisk identication for potential pollution in the productionprocessEstablish green supplier certification procedures andgreen supplier lists, sign agreements related to hazardoussubstance control with such suppliers, or require suppliersto provide relevant commitments, with suppliers havingvalid testing reports from authoritative third-party testinginstitutions on the content of hazardous substances
Possess hazardous substance testing equipment
Gree also highly values supplier empowerment. For suppliers identifiedas non-compliant or potentially risky during regular reviews, proactiveassistance is provided for timely rectification. Additionally, the Companyregularly holds supplier training and exchange events to continuouslyimprove suppliers' awareness and levels of quality control and sustainabledevelopment.
Motor supplier training
In recent years, inverter air conditioners have increasingly dominated the household air conditioner market. Whileinverter DC motors o?er advantages such as quiet operation, energy e?ciency, and precise control, there has alsobeen a notable increase in motor failure rates. Through analysis of post-sales reviews of inverter air conditioners,Gree has identied reducing the failure rate of DC motor control boards as a pressing issue.In October 2023, the Company invited control experts from the ROHM Semiconductor Group to provide in-depthtraining on clean electricity and overvoltage management. Along with internal technical personnel, general managers,technical directors, and quality directors from various DC motor suppliers participated in the training, collectivelypromoting the improvement of DC motor product quality.
Gree consistently strives to create an open, fair, and cleancompetitive environment in the supply chain. The Companyhas opened a self-recommendation platform for suppliers,with all suppliers and procurement and external managementpersonnel signing integrity agreements, and regularly conductsanti-corruption and anti-bribery education and training forprocurement and external management personnel, solidifying afoundation of business ethics.
Motor supplier trainingGree's supplier audit includes the following environmentalprotection aspects:
During the reporting period,
100%
ofGree's procurement personnel completedtraining on sustainable procurement.
Case
Contractor Management
Conict Mineral ManagementTo ensure that the new construction, expansion and alteration projects are completed on schedule and with quality and quantity, Greealways adheres to a high standard of contractor management, and executes the whole process of control from planning, budgeting,bidding to construction and acceptance.For potential engineering contractors, departments such as the Company's Infrastructure O?ce conduct on-site audits to systematicallyassess construction quality and operational safety. Only those who pass the audit are included in the contractor database. Constructioncontracts signed with contractors include an integrity agreement and clauses related to the contractor's environmental and socialresponsibilities, such as not using equipment that pollutes the environment, managing dust emissions, and requiring construction personnelto be certied. During the construction process, the Infrastructure O?ce conducts weekly site inspections and mandates timely recticationof any issues found. Moreover, the Company regularly organizes contractor training, conducts quarterly evaluations of contractors, andpromptly disengages those not meeting standards to strictly ensure project quality and safety.
Gree strictly does not tolerate any involvement in, or incitement
of, human rights abuses or environmental degradation due to
armed conicts. To this end, the Company has formulated a strict
conict minerals policy and management system in compliance
with domestic and international laws, regulations and standards,
such as the "Dodd–Frank Wall Street Reform and Consumer
Protection Act" and "EU Conict Minerals Regulation" of the US
Securities and Exchange Commission, as well as the "OECD
Due Diligence Guidance for Responsible Mineral Supply Chains
from Conict-A?ected and High Risk Areas" and "Chinese Due
Diligence Guidelines for Minerals Supply Chains".
Gree commits to not purchasing or using minerals and raw
materials directly or indirectly sourced from regions a?ected by
armed conicts, including but not limited to metals such as tin,
tantalum, tungsten, and gold. The Company requires suppliers
to adhere to this commitment, conrming via written statements
that their products supplied to the Company do not contain the
aforementioned conict minerals. A traceability mechanism for
raw materials is established, and Gree's conict mineral policy is
actively communicated to its suppliers.
During the reporting period, the Company conducted extensive
research on suppliers whose products might contain conflict
minerals. Out of more than 500 suppliers surveyed, 45 were
confirmed to use metals such as tin, tantalum, tungsten, and
gold, and some suppliers have already declared in writing that
there are no risks of conict minerals in their upstream supply
chains. Currently, the Company is exploring the use of tools
provided by the Responsible Minerals Initiative (RMI), such as
the CMRT/CRT survey forms, to regularly conduct due diligence
on suppliers for conflict minerals and to gradually introduce
requirements for conict minerals compliance certication.
In November 2023, the Company held the kicko? meeting for the "Fourth Quarter Zero Safety Accident in Infrastructure Project"initiative, issuing the corresponding action plan. Department leaders, project engineering teams, engineering technology teams,internal control teams, project managers, regional managers, and infrastructure base managers participated both online ando?ine.During the initiative, the Company focused on eliminating safety hazards and enhancing the safety assurance for frontlineproduction sta?. It required all units to actively conduct hazard identication and special management, reinforce the implementationof the safety accountability system at all levels of the project, advance the establishment of a safety culture, prevent industrialsafety accidents rigorously, and ensure that the annual safety control targets for projects are achieved.
"Zero Safety Accident" initiative for infrastructure project
Kicko? meeting for the "Fourth Quarter Zero Safety Accident in Infrastructure Project" initiative
Case
2023 ESG ReportCreating Extraordinary Productswith CraftsmanshipProduct quality is crucial not only for consumer safety and health butalso for the sustainable development of the Company. Gree has alwaysregarded product quality as the lifeblood of the enterprise, forging perfectquality with craftsmanship, and contributing to the strategy construction of"Country Strong on Quality" with its own actions.
Quality Management SystemGree continuously advances quality management reform by establishing acomprehensive quality management system to deepen the construction of anenterprise strong on quality. In recent years, the Company has developed a"Perfect Quality" management model of "Made in China, Loved by the World"centered around the "Five Steps to Quality Prevention" and the "D-CTFPQuality Technology Innovation Cycle". The "D-CTFP Quality TechnologyInnovation Cycle" has been successfully transformed into the nationalstandard GB/T 38356-2019 "Quality Management - Guideline for Customer-oriented Innovation Cycle", implemented since 2020.The "Five Steps to Quality Prevention" promotes the quality plan positivelywith quality objectives, encompassing demand research, planning, execution,inspection, and improvement to strictly control processes across R&D,procurement, manufacturing, and after-sales service, eliminating quality issuesbefore consumer use. The "D-CTFP Quality Technology Innovation Cycle"is a reverse quality drive led by customer needs, continuously driving qualitytechnology innovation to meet customer demands through actions such ascollection and analysis of customer needs (C), inspection technology drive (T),failure mechanism research (F), and process system optimization (P), withstandards closing the loop. The two are interlocking and organically combinedto jointly promote the steady improvement of the Company's product quality.
Businessphilosophy
Gree's "Perfect Quality" management model diagram of "Made in China, Loved by the World"
A companywithout innovation
is a companywithout a soul
A companywithout coretechnology is acompany withouta backbone
A companywithout premium
products is acompany without
a future
Made in China, Loved by the World
Perfect quality
R&D process
Procurement
process
Manufacturingprocess
Sales & serviceprocess
Targetmanagement
Organizationalsystem
Technicalsystem
Standardsystem
Informationsystem
Target driven
Integratedinnovation
FeedbackSupport
GuaranteepreventionInternal and external
5.Improvement optimization
4.Inspection check
3.Implementation
2.Plan development
1.Demand research
CustomerdemanddrivenInspectiontechnologydriven
Failuremechanismresearch
Process
systemoptimization
1.C4.P
2.T3.F
2023 ESG Report
Quality Control Action
Gree's pursuit of perfect quality has a starting point butno end; and has standards but no limits. As early as1995, the Company established a unique "ScreeningFactory" within the industry, screening every componententering the factory to ensure they meet productionline standards. Since then, a quality control systemhas evolved, including the External Parts ManagementDepartment, Screening Factory, and Quality ControlDepartment, of which the Quality Control Departmenthas set up 31 departments to strictly control the qualityof the whole process of the Company's products.For example, household air conditioning productsundergo nearly a thousand rigorous quality inspectionprocedures from component production to assembly tomarket distribution, which increases year by year withthe continuous improvement of the Company's qualitystandards.In recent years, the Company has continuouslypushed product quality upgrades with higherstandards and stricter requirements, leading tocontinuous improvements in the first-pass yieldof product processes and a decline in post-salesfault rates, with customer satisfaction topping theair conditioner industry rankings for 11 consecutiveyears. The Company's projects such as "Disinfectionand Purification Technology and Product ApplicationBased on CKER System", "Research and Applicationof High-precision Maglev System", and "Research andApplication of PV Direct-drive Inverter Air ConditioningSystem" have won many awards in international qualityinnovation competitions.
The Quality Month improvement activity, regularly held by Gree, have become a hallmark quality brand event withinthe Company. By organizing regular quality month improvement activities, Gree creates a strong quality atmosphere inthe Company, strengthens employees' quality awareness in a subtle way, and motivates employees to contribute to theimprovement of Gree's quality level.Quality Month improvement activities are organized annually by the Quality Control Department, and led by the activeparticipation of subsidiaries, production bases and branch factories, with the aim of comprehensively enhancing the sta?'squality awareness and improving the quality level, and jointly casting the enterprise's quality cornerstone to create a century-old brand of Gree. Quality Month improvement activities are divided into three stages: mobilization and publicity, activityimplementation and activity summary, including quality culture atmosphere publicity, quality thematic training, qualitychallenge activities, and sta? skills competition.Seizing the opportunity of the Quality Month improvement activities, Gree not only strengthens the quality and craftsmanshipawareness of all employees but also enhances production and manufacturing process skills, motivating all employees tocontribute to quality improvements.
Initiate the quality kick-o?meeting
Conduct basic quality trainingConduct quality critiqueactivitiesHold quality skills competitions
Review the situation andsummarize the outcomes
Held the national Quality Month improvement activities
Three stages of Gree Quality Month improvement activities
Mobilization and promotion
stage
Activity implementation
stage
Activity summary stage
Case
To further enhance overall work quality, Gree has launched the"Find Faults Within" initiative across the Company, departments,and business processes. This initiative involves mutualsupervision and identication of deciencies within and betweenunits, identifying deciencies and organizing corrective actions todeepen quality management and accelerate the improvement ofbusiness capacity and enterprise management level by solvingkey and di?cult problems.The "Find Faults Within" initiative focuses on market development,product development, efficiency improvement, quality control,cost control, safety management, administrative management,system process optimization and other aspects of the specificwork, extensively sorts and investigates problems, and promotesthe rectication and resolution of problems.The "Find Faults Within" initiative is divided into four phases.Initially, each unit conducts internal reviews and self-correctionsto collect all kinds of problems or suggestions raised by itsemployees, and the rectifying unit develops the correspondingplan. Next, the rectifying unit summarizes and organizes the "FindFaults Within" feedback according to the devised plans, conductscross-checks with upstream and downstream units to identify keyprojects and designates responsible units to follow up and ensureimplementation. Subsequently, each rectifying responsibility unitcompletes the rectifications as per the milestone requirements,with the initial acceptance conducted by the rectifying unit. Finally,a joint acceptance team, consisting of the Business ManagementDepartment, Quality Control Department, and others, performsthe acceptance check and evaluation of the work of the rectifyingunits and their respective responsible units.Under the spirit of the "Find Faults Within" initiative, Greeactively identifies and resolves quality issues, optimizes qualitymanagement mechanisms, and vigorously promotes employeeparticipation in quality improvement efforts, continuouslyadvancing quality enhancement.
The "Find Faults Within" initiative
Improving User ExperienceGree strictly adheres to the "Law of the People's Republic of China on Protection of ConsumerRights and Interests", the "Product Quality Law of the People's Republic of China", and the"Provisions on the Liability for the Repair, Replacement and Return of Some Commodities",and other laws and regulations. Based on these, the Company continually develops andrefines its management systems and operational standards for after-sales service. TheCompany rmly upholds the service philosophy that "every minor detail for the user is a majormatter for Gree", and persists in providing professional and meticulous pre-sale and post-saleservices to consumers and corporate customers. In recent years, the number of complaintsabout products or services has continuously decreased, with the complaint resolution ratemaintaining 100% for several consecutive years.Moreover, the Company's customer service adheres to the principle of "customer satisfaction",regularly conducts customer satisfaction surveys and closely monitors customer evaluationsof the Company's products and services. Each month, the Company extracts service ordersatisfaction data from its self-developed cloud-based after-sales service platform, andannually employs third-party agencies to conduct customer satisfaction market research.
In recent years,the number ofcomplaints aboutproducts or serviceshas continuouslydecreased, with thecomplaint resolution ratemaintaining
100%
for several consecutiveyears.
Case
2023 ESG ReportIn the 2023 customer satisfaction survey of thirteen product categories released by the CustomerSatisfaction Measurement Center of the China National Institute of Standardization, Gree ranked rst inthe air conditioning category and received high praise from consumers in aspects such as brand image,cost-effectiveness, degree of needs satisfaction, product reliability, and service quality. This marksthe twelfth consecutive year since 2011 that the Company has received this honor, demonstrating itsunwavering commitment to the quality of customer service.
Signicant honors received by Gree in thecustomer service eld during the reporting periodGree's after-sales service capabilities received a ve-star rating under the GB/T27922-2011 "EvaluationSystem for After-sales Service of Commodity"
Gree's after-sales service systemachieved a twelve-star (exceptional)
certication
Customer Service Management System
In 2005, Gree was the rst in the industry to propose and implement a policy of "six years of freecomprehensive warranty for household air conditioners", which far exceeds the national legal warrantyperiod. Since 2021, the Company has further advanced this policy to "ten years of free comprehensivewarranty for household air conditioners", currently the longest warranty period in China's household airconditioning industry.Additionally, Gree continuously improves its customer service management system, ensuring high-quality service with meticulous management. After years of exploration and practice, the Companyhas established a three-tier customer service management system comprising the headquarters,sales companies, and service outlets. The Company's customer service network covers the entirenation. By the end of the reporting period, there were 31 regional sales companies (i.e., regionalcustomer service centers) overseeing more than 12,000 service outlets at the rst, second, and thirdlevels, with over 100,000 frontline service personnel. Each level of service outlet must pass a dualreview by the headquarters and regional sales companies to receive service certication authorization.During service provision, the service personnel strictly implement the "Installation Specificationsfor Household and Similar Air- conditioning" (GB17790-2008), "Full-process Manual for After-salesMaintenance of Gree's Household Air Conditioner", "Full-process Manual for After-sales Installationof Gree's Household Air Conditioner" and other national and corporate standards to carry out theservices such as installation, cleaning, maintenance, repair and removal of the machine.
The Company's customer service networkcovers the entire nation. By the end ofthe reporting period, there were
regional sales companies (i.e., regionalcustomer service centers) overseeingmore than
12,000
service outletsat the rst, second, and third levels, withover100,000
frontline servicepersonnel.
During the reporting period, the Company also received several major honors in the customer servicefield, including the "National Standard Five-Star After-sales Service Enterprise" from the NationalCommodity After-Service Conformity Certification Evaluation Committee, the "Top 10 National After-sales Service" from the National Commodity After-sales Service Compliance Certication Agency, andthe "2022 Brand Example Enterprise in the Chinese Refrigeration and Air Conditioning After-marketRegulation Service Industry" from the China Refrigeration and Air-Conditioning Industry Association. TheCompany also received letters of thanks from customers such as the Shanghai Nuclear EngineeringResearch and Design Institute's Model Project No. 1, Shulan (Anji) Hospital Co., Ltd., and Fujian FuqingNuclear Power Co., Ltd.
Customer satisfaction ranking of air conditioning products
Gree
8383
8282
Brand 1Brand 2Brand 3Brand 4Brand 5
Customer satisfaction score
To ensure close contact with customers and promptly address their needs, Gree hasestablished dedicated channels such as hotlines, e-mail, and letters, and has designatedareas on its WeChat o?cial account and online store platforms to accept customer inquiries,installation and repair requests, complaints, and suggestions in real time. After acceptance,customer service information is entered into the Company's cloud-based after-sales serviceplatform, triggering the corresponding after-sales service response mechanisms.For instance, once a work order is created on the cloud-based after-sales service platform,it is assigned to frontline service personnel through sales centers and service outlets, withacceptance SMS, appointment SMS, and rescheduling SMS pushed to the client side. TheCompany requires service outlets to contact the customer within two hours to schedule a visit,and typically, household air conditioner repairs are completed within 24 hours. After repairs,the cloud-based after-sales service platform sends a completion satisfaction SMS, and theCompany monthly evaluates the service quality of service providers based on customerfeedback, notifying and mandating rectication for those failing the evaluation. Additionally, thecloud-based after-sales service platform also facilitates the collection, monitoring, and analysisof after-sales data. Through big data analysis, the Company has developed the installation andrepair demand prediction models, enabling more rational and intelligent allocation of servicepersonnel and tools, thereby making customer service more precise and e?cient.
Customer Information Condentiality System
While advancing the informatization and intelligentization of customer service, Gree places highimportance on the confidentiality of customer information to ensure that customer informationhandling is lawful and compliant, and e?ectively protect customer rights and interests. During thereporting period, the Company newly formulated the "Measures for Administration of User PrivacyProtection" and actively carried out the ISO/IEC 27701:2019 Privacy Information ManagementSystem certication, and as disclosed in this report, the Company has obtained such certication.When customers submit requirements through any ofGree's public information communication channels,they can read the customer privacy protection policyimplemented by the Company. The Company encryptsand backs up sensitive customer information and otherimportant data offsite, and extensively uses networksecurity equipment or systems such as rewalls, gateways,WAF, endpoint security control, antivirus, threat perception,code scanning, vulnerability scanning, SDP, and securitysandboxes. Additionally, the Company employs a largenumber of network security professionals to formulatesecurity strategies, analyze alerts, conduct penetrationtesting and emergency drills on critical business systemsannually, and promptly identify and block vulnerabilities.Moreover, the Company also regularly conducts informationsecurity training to continuously strengthen and enhancethe employees' awareness and level of protecting customerinformation. No incidents of customer privacy infringementor customer information loss have occurred.
2023 ESG Report
2023 ESG ReportAfter-sales ServiceTalent TrainingA professional after-sales service team is essentialfor maintaining customer satisfaction and thebrand's high-quality reputation. Gree continuouslyperfects its after-sales talent training system,with a focus on customer needs and businessdevelopment. It builds its training system, team,instructors, courses, and platforms through learningproject design innovation, deepening trainingmodels and mechanisms, linking managementbenefits enhancement, and promoting talenttraining upgrades, thus constructing a diversifiedautonomous after-sales talent training mechanism.
In 2023, after-sales talenttraining activities were orderlycarried out in combinationwith the Company's diverseproduct demands, overseascustomer training needs, andafter-sales training systemconstruction needs, followingthe development directives ofthe refrigeration industry, withover
500,000
traininginstances conducted throughoutthe year.
Model of the Company's after-sales talent training system
Headquarters resources
Leading promotion
Incentive implementationTraining implementation
Operation supervision
Trainingsystem
Training managementteam system
Training instructor
system
Training coursesystem
Hardwareplatform system
Demandresearch
Trainingprogram
Trainingimplementation
E?ectivenessevaluation
IncentiveimprovementAfter-sales trainingmanagement method
System constructionSystem operation
After-sales instructor management method
After-sales course management methodLearning platform management method
Headquarters management teamSales company management teamAfter-sales network management team
Lecturer selection
Lecturer trainingLecturer appointmentLecturer motivationInduction trainingSkill enhancementAfter-sales recticationKey productsHardware platform constructionHardware platform operationHardware platform managementHardware platform improvement
Annual demand studySpecial demand research
Annual training programQuarterly training programInterim training program
Level 1 trainingLevel 2/3 trainingResponse level assessmentLearning level assessmentBehavioral level assessmentOutcome level assessmentKey performance indicatorsIncentives for assessment resultsContinuous improvement and enhancement
Sales company resources
With the purpose of "Linking Training Innovation Mechanisms and Integrating Resources forTargeted Training", this training camp kicked o? at 41 sites across 18 regions, including 16 in thecommercial segment, 17 in the household segment, and 8 in the household electric appliancessegment, completing over 50,000 training instances, meeting the personalized training needs ofdi?erent sales companies, solidly advancing the cultivation of highly skilled talents, and buildinga team of professionals who are rigorous, innovative, and committed to excellence.
In March 2023, Gree held the third "Gree Cup" Commercial Service Skills Competition, with representatives from 31 regionalsales companies across the country participating. The Company invited members from professional associations such as theRefrigeration and Air Conditioning Engineering Committee of China Refrigeration and Air-Conditioning Industry Association andSichuan Association of Refrigeration, as well as teachers from Southwest Jiaotong University and Chengdu Textile College, toserve as judges and guests.The Competition was divided into installation and maintenance categories. The installation competition utilized standardizedauxiliary material packages throughout the process to better reflect the details of the installation work. The maintenancecompetition set up faults in air conditioning equipment that were in normal use at the practical base, fully testing the contestants'ability to handle issues quickly in real scenarios. Additionally, this Competition was the rst to implement live electrical operationsthroughout the process, further testing the contestants' skills and psychological quality. The teams demonstrated solid serviceskills during the intense competition, highlighting the outstanding brand image of Gree's customer service.
From April to May 2023, as the peak season for after-sales services approached, the Companyorganized the "Ever Vigilant, Safety First" special after-sales safety education activities,strengthening the safety awareness and skills of customer service employees through safetypromotions, safety courses, and safety skills competitions. Moreover, safety supervisioninspections were conducted through a three-tier linkage mechanism led by the headquarters,guided by sales companies, and implemented at service points to identify and rectify safety risks,fully implementing safety responsibilities, not only safeguarding the safety of frontline servicepersonnel but also protecting the safety of customers.
"Journey to Excellence · Building the Future" training campGree conducted the 2023 "Ever Vigilant, Safety First" after-sales safety education series of activities
Intense Service Skills Competition site
The Company conducted the 9th "Journey to Excellence ·Building the Future" after-sales technical training camp
The 3rd "Gree Cup" Commercial Service Skills Competition
Gree conducted the 2023 "Ever Vigilant, Safety First" after-salessafety education series of activitiesCaseCase
Case
2023 ESG ReportSticking to ResponsibleMarketing Concept
Leading Standard Strategy
Gree has always adhered to marketing and sales practices thatcomply with the "Advertising Law of the People's Republic of China"and other legal regulations, industry standards, and social ethicalnorms. The Company engages in honest, accurate, and scienticallyfactual communication with customers, strictly prohibiting any falseor misleading promotions. All marketing practices of the Companyundergo a three-level review process by the respective TechnologyDepartment, Legal Department, and IP Department to ensurethat marketing activities and content are neither exaggerated norinfringe on IP rights. Furthermore, the Company actively conductscustomer education initiatives to enhance customers' abilities toevaluate and compare different products, thereby guiding themtowards making rational and responsible purchasing decisions. TheCompany also strives to provide products and services that benetsociety and the environment.
Gree implements a "Leading Standard" strategy, oriented towardsconsumer needs and social responsibility, taking international andnational standards as thresholds, and consumer demands as thehighest benchmark. The Company continually pioneers on the pathof standardization, leading the enterprise and industry towards high-quality development, and contributing to the sustainable developmentof all humanity.Internally, the Company has established a Technical StandardsCommittee and a Standard Management Department, with nearlya thousand full-time and part-time standardization employees.Standards permeate all processes from design and development,procurement management, manufacturing, to after-sales installationand repair, requiring compliance in all aspects. Externally, combiningits advanced and core technologies, the Company actively leads orparticipates in the setting of standards.By the end of the reporting period, Gree has authored or contributedto 831 international, national, industry, local, and group standards,adding 69 new standards during the reporting period alone.The Company also actively undertakes or participates in asmany as 140 standardization organizations in the domestic andinternational household appliance industry, including 37 internationalorganizations, and holds 38 expert positions in organizations suchas the International Organization for Standardization (ISO) and theInternational Electrotechnical Commission (IEC).
In recent years, some household appliance brands andmerchants have exploited consumers' unclear understandingof the concepts of "warranty" and "guarantee", falselypromoting "free repairs" while engaging in unnecessaryrepairs, major repairs for minor issues, substituting inferiorparts, and non-transparent pricing. Gree has established the"Charging Standards for Maintenance and Services Outsidethe Warranty Period" to strictly regulate uniform charges forafter-sales services, and established a service supervisiondepartment to rigorously address any fabricated faults orfraudulent charges by service providers and personnel,striving to maintain market order and protect customer rightse?ectively.
Rejecting "Fancy Marketing Tricks" topurify customer service environment
Promoting the Healthy Development of the IndustryAs a representative of Chinese manufacturing enterprises, Gree continues to drive innovation and set standards, actively participating inindustry exchanges to foster industry optimization and upgrading. In the transition from "Made in China" to "Created in China", Gree iscommitted to changing the world with its core technologies and serving the world with high-quality products, making the products madein China loved by the world.
Case
Led the formulation of IEC 63349-1 "Photovoltaic Direct-DriveAppliance Controllers - Part 1: General Requirements", andalso led the establishment of six ISO international standardsincluding multifunctional heat pump water heaters andrefrigeration compressors, all of which have been successfullyinitiated and are expected to be released post-2025
Served as the vice-chair of the domestic counterpart unit forIEC/TC59/SC59N (IEC Technical Committee on Performanceof Household and Similar Electrical Appliances, Subcommitteeon Electric Air Cleaners for Household and Similar Uses),being the rst household appliance manufacturer among over200 IEC domestic counterpart units
Selected as one of the first batch of national standardverification points, undertaking the national standardverification work for energy-saving refrigeration equipment,and being the only enterprise selected in the refrigerationindustry
Chairman Dong Mingzhu was honored with the highest national standardization award - the"China Standard Innovation Contribution Award" for Outstanding Contribution (2022), beingthe only entrepreneur to receive this award during the year
The research and evaluation base for technical trade measures for refrigeration equipmentpassed the annual assessment of the General Administration of Customs and was rated as oneof the ve outstanding evaluation bases in China
11 corporate standards were shortlisted for the 2023 "Leader in Enterprise Standards" list guidedby the National Development and Reform Commission and the State Administration for MarketRegulation and selected by a third-party organization, leading the household appliance industryin the number of standards shortlistedConsistently ranked in the "Leader in Enterprise Standards" list for six consecutive years,leading the industry in corporate standards for the past four years, accumulating a total of 88"Leader in Enterprise Standards" certicates, leading the household appliance industry
During the reporting period, Gree achieved the following results in standardization construction:
Gree also serves as the only industry representative at China's WTO/TBT-SPS National Notication Center for Refrigeration Equipment Research and Evaluation, leveraging its technological advantages to representChina in reviewing international technical standards and regulations. By the end of the reporting period, the Company participated in the revision of the American and Canadian national standards for air conditionerelectrical safety, as well as the setting of standards in key "Belt and Road" countries such as Brazil and Laos. By projecting "China's voice" on the international standards stage and timely transmitting China's newconcepts and technologies abroad, Gree promoted Chinese brands internationally, achieving "standards go global" to drive "products go global".
2023 ESG Report
Industry Exchange and CooperationGree values exchanges and communications with global peers, actively joining industry organizations,participating in industry expos, engaging in industry seminars, and co-editing industry white papers.While demonstrating and leveraging the Company's technical advantages and innovation capabilitiesas an industry-leading brand, Gree also learns from the advanced concepts and experiences of industrypeers, tirelessly striving to make the world love "Made by China" and "Made by Gree".
Chair of the Subcommittee on RefrigerationCompressor Testing and Evaluation, ISOCommittee on Refrigeration and Air ConditioningTechnologies, ISO/TC86/SC4Chair of the Low Voltage DC TechnologySubcommittee, IEEE PES DC Power SystemsTechnology Committee (China)
Vice Chair Unit of the ChinaMachinery Industry FederationVice Chair Unit of the ChinaNational Light Industry CouncilVice Chair Unit of the ChinaEnergy Conservation Association
On May 26, 2023, Gree successfully hosted the "2023 Zhuhai · InternationalStandardization Conference", themed "Standards Lead High-Quality Development ·Innovation Empowers Manufacturing". The Conference was attended by 21 foreignexperts from nine countries including the USA, Germany, the UK, Switzerland, India,Brazil, Saudi Arabia, Bangladesh, and Japan, and over 200 representatives fromstandard certication and testing institutions, standardization organizations, universities,and industrial chain enterprises. The event aimed to share international standardizationpractices and explore ideas for green, high-quality, and innovative development inmanufacturing, supporting Chinese standards in gaining global recognition.
Gree hosted the "2023 Zhuhai · International StandardizationConference"
International levelNational Level
2023 Zhuhai · International Standardization Conference scene
Gree's positions in industry associations (partial)
2023 ESG ReportCase
2023 ESG ReportDuring the reporting period, Gree participated in various industryseminars such as the International Standardization Conference, theAnnual Conference of 2023 Chinese Association of Refrigeration,the 2023 China Heat Pump Forum, and the Appliance Science &Technology Conference, and its core products and technologieshave appeared in the major exhibitions both domestically andinternationally, such as the 2023 Air-Conditioning, Heating,Refrigerating Expo (AHR), the 34th International Exhibition ForRefrigeration, Air-Conditioning, Heating and Ventilation, FrozenFood Processing, Packaging and Storage (China RefrigerationExpo), the 133rd China Import and Export Fair (Canton Fair), the2023 Appliance & Electronics World Expo, and the 2023 ChinaInternational Machine Tool Show.
Gree featured at the 2023 Air-Conditioning, Heating, Refrigerating Expo
under the theme "Gree: Heat Pump Specialist"
Gree launched a new product - industrial large capacity high-temperaturecentrifugal heat pump at the 34th International Exhibition for Refrigeration,Air-Conditioning, Heating and Ventilation, Frozen Food Processing,
Packaging and Storage
On May 25, 2023, the Subcommittee for Refrigeration Compressors of ISO/TC 86/SC 4 convened its 12th General Assembly,attended by domestic and international experts and representatives. Dong Mingzhu, Chairman and President of Gree,participated in the meeting as the Chair of the Subcommittee ISO/TC 86/SC 4 and delivered a speech. Participants at themeeting shared their insights and suggestions in the eld of refrigeration compressor standards.
Leading the development of international standards! The 12th General Assembly of ISO/TC 86/SC 4 held successfully in ZhuhaiCase
2023 ESG ReportKey Performance
Economic performance
Environmental performanceGreenhouse gas emissions
Waste emission
Wastewater discharge
Waste gas emission
IndexUnit202120222023
Total operating revenueCNY '000018,965,403.3519,015,067.2520,501,812.38Net prot attributable toshareholders of listed companies
CNY '00002,306,373.242,450,662.382,901,738.76Total Cash Dividends (tax included)CNY '00001,661,003.321,122,768.321,314,222.59Cash dividend for every 10 sharesCNY30.0020.0023.80
IndexUnit202120222023
Direct (scope 1)Greenhouse gas emissions
Ton of CO
equivalent
836,414709,422726,654Energy indirect (scope 2)greenhouse gas emission
Ton of CO
equivalent
830,758740,658587,784Emission intensity
Ton of CO
equivalent/CNY10,000revenue
0.088741
0.076729 0.064113
Greenhouse gas emissions directlyreduced as a result of emissionreduction initiatives
Ton of CO
equivalent
153,594113,088566,831IndexUnit202120222023
Total general solid wastesTon392,865.20323,848.72466,865.10Total hazardous wasteTon19,448.1515,375.7417,571.34Total electronic wasteKg1,424,536.351,016,992.831,010,240.31Total amount of electronic wasterecycled
Kg4,903.322,744.428,226.06
IndexUnit202120222023Total wastewater dischargem
2,969,426.343,042,655.053,526,745.37Chemical oxygen demand(COD)
mg/L79.3779.0176.56Five-day bod (BOD5)mg/L28.4530.8432.68Suspended mattermg/L29.1523.1122.60Ammonia nitrogenmg/L7.367.518.00Total phosphorusmg/L0.941.011.16pH-7.527.577.54
IndexUnit202120222023
Total waste gasemissions
m
35,195,892,237.1228,284,810,418.0328,114,666,183.08Particlesmg/m
6.815.405.52Non-methanehydrocarbon
mg/m
4.958.496.11Nitrogen oxidesmg/m
23.5618.3217.55Sulfur oxidemg/m
4.764.314.79VOC emissionsmg/m
3.433.455.20Water resources utilization
IndexUnit202120222023Purchased municipal waterm
10,324,508.009,374,763.0010,191,754.00
IndexUnit202120222023
Number of incidents resultingfrom violations of environmentalprotection laws and regulations
/000
Emission intensity
Ton of CO
equivalent/CNY10.000 revenue
0.088741 0.076729 0.064113
Employee compositionEmployee volunteer activity
Intellectual property and innovation
Product responsibility and services
IndexUnit202120222023
Number of participants inemployee volunteer activities
Person-times961,140113Average time spent on employeevolunteer activities
h/person0.600.480.73
IndexUnit202120222023
R&D investmentCNY 6,528,680,942 6,429,702,080 7,006,497,353Number of patents owned(authorized)
PCS52,95161,60168,055Number of invention patentsowned (authorized)
PCS13,08716,15919,568Annual number of new patents(authorized)
PCS9,4258,6506,454Number of patents underexamination
PCS32,43932,80633,845Number of copyrights ownedPCS15 10 12
IndexUnit202120222023
Complaint resolution rate%100100100
IndexUnit202120222023
Total number of employeesPerson81,88472,38072,610
By genderMalePerson58,12950,82951,923FemalePerson23,75521,55120,687By educational backgroundBachelor's Degree and AbovePerson17,27416,89316,507Associate DegreePerson13,09511,99912,894Secondary School Graduatesand Below
Person51,51543,48843,209By professional composition categoryProduction sta?Person59,97351,93150,292Administrative sta?Person3,6103,3443,393Sales sta?Person2,9643,0022,528Financial sta?Person1,1041,1261,115Technical sta?Person14,23312,97715,282
Social performance
Index of IndicatorsSZSE Content Index
Term and DisclosureSections of the Report
8.1 OverviewIntroduction
8.2 Business Principles
Solidifying Corporate GovernanceImproving Compliance and Risk Control SystemStandardizing Business Ethical Behavior
8.3 Social Responsibility Strategic Planning and Working
Mechanism
Standardizing Business Ethical BehaviorDeepening the Implementation of Environmental ManagementImproving the Innovative R&D SystemSafeguarding the Legitimate Rights and Interests of EmployeesEmpowering Employees' Career GrowthBravely Assuming Corporate Social Responsibility
8.4 Disclosure of Social Responsibility ReportOverview
8.5 Protection of Employees' Rights and Interests
Safeguarding the Legitimate Rights and Interests of EmployeesSafeguarding the Health and Safety of EmployeesEnhancing Diversied Wellbeing of Employees
8.6: (1)
Compliance with EnvironmentalProtection Laws, Regulations andIndustry Standards
Deepening the Implementation of Environmental ManagementPromoting Green Development Throughout the Life Cycle
8.6: (2)Environmental Protection PlanPromoting Green Development Throughout the Life Cycle
8.6: (3)Use of Natural ResourcesPromoting Green Development Throughout the Life Cycle
8.6: (4)Pollutant DisposalPromoting Green Development Throughout the Life Cycle
8.6: (5)
Pollution Prevention and ControlFacilities
Promoting Green Development Throughout the Life Cycle
8.6: (7)Supply Chain Environmental SafetyBuilding A Responsible Supply Chain
8.6: (8)
Other Environmental ProtectionResponsibilities
Actively Implementing Green Actions
8.7: (1)
Environmental Protection Policy,Objectives and E?ectiveness
Deepening the Implementation of Environmental Management
Term and DisclosureSections of the Report
8.7: (2)Total Annual Resource ConsumptionPromoting Green Development Throughout the Life Cycle
8.7: (3)
Environmental Investment and EnvironmentalTechnology Development
Deepening the Implementation of EnvironmentalManagement
8.7: (4)Pollutant Discharge ManagementPromoting Green Development Throughout the Life Cycle
8.7: (5)
Construction and Operation of EnvironmentalProtection Facilities
Promoting Green Development Throughout the Life Cycle
8.7: (6)
Waste Treatment, Disposal, Recycling andComprehensive Utilization of Waste Products
Promoting Green Development Throughout the Life Cycle
8.7: (9)Other Voluntary DisclosuresActively Implementing Green Actions
8.8 Environmental Policy Implementation and Corrective Measures
Deepening the Implementation of EnvironmentalManagement
8.9 Environmental Information Disclosure
Deepening the Implementation of EnvironmentalManagement
8.10: (1)
Product Safety Laws, Regulations and IndustryStandards
Creating Extraordinary Products with Craftsmanship
8.10: (2)Production Environment and ProcessCreating Extraordinary Products with Craftsmanship
8.10: (3)
Product Quality and Safety Guarantee Mechanismand Accident Emergency Plan
Creating Extraordinary Products with Craftsmanship
8.10: (4)Other Production and Product Safety ResponsibilitiesCreating Extraordinary Products with Craftsmanship
8.11: (1)
Employee Management System and Measures forHandling Non-compliance
Safeguarding the Health and Safety of Employees
8.11: (2)
Prevention of Occupational Hazards and RelatedSafety Measures
Safeguarding the Health and Safety of Employees
8.11: (3)Employee TrainingEmpowering Employees' Career Growth
8.11: (4)
Other Responsibilities for Protecting Employee Rightsand Interests
Safeguarding the Legitimate Rights and Interests ofEmployees
8.12 Code of Scientic EthicsImproving the Innovative R&D System
8.13 Content of Social Responsibility ReportFull Report
Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies - Standard Operation of Companies Listed on the Main Board (2022)
GRI Standards IndexInstructions for UseGree reported in accordance with the GRI standards during the period from January 1, 2023, to December 31, 2023.Use of GRI 1GRI1: Foundation 2021GRIStandards
Disclosed itemChapter Index
GRI 1: Foundation 2021GRI 2: General Disclosures 20212-1Organizational detailsAbout Gree2-2Entities included in the organization's sustainability reportingOverview2-3Reporting period, frequency and contact pointOverview2-6Activities, value chain and other business relationshipsAbout Gree2-7Employees
Upholding People-oriented for ABetter Life2-9Governance structure and compositionSolidifying Corporate Governance2-10Nomination and selection of the highest governance bodySolidifying Corporate Governance2-12
Role of the highest governance body in overseeing the management ofimpacts
Solidifying Corporate Governance2-13Delegation of responsibility for managing impactsSolidifying Corporate Governance2-14Role of the highest governance body in sustainability reportingESG Management2-16Communication of critical concernsESG Management2-19Remuneration policies
Empowering Employees' Career
Growth2-20Process to determine remunerationSolidifying Corporate Governance2-23Policy commitments
Improving Compliance and Risk
Control System2-27Compliance with laws and regulations
Standardizing Business Ethical
Behavior2-28Membership associations
Promoting the Healthy
Development of the Industry2-29Approach to stakeholder engagementESG Management
GRI 201: Economic Performance 2016
201-1Direct economic value generated and distributedAbout Gree201-3Dened benet plan obligations and other retirement plans
Enhancing Diversified Wellbeing
of Employees
GRIStandards
Disclosed itemChapter Index
GRI 203: Indirect Economic Impacts 2016
203-1Infrastructure investments and services supported
Bravely Assuming CorporateSocial ResponsibilityGRI 205: Anti-corruption 2016205-2Communication and training about anti-corruption policies and procedures
Standardizing Business EthicalBehaviorGRI 301: Materials 2016301-2Recycled input materials used
Promoting Green DevelopmentThroughout the Life Cycle301-3Reclaimed products and their packaging materials
Promoting Green DevelopmentThroughout the Life CycleGRI 302: Energy 2016302-1Energy consumption within the organization
Promoting Green DevelopmentThroughout the Life Cycle302-4Reduction of energy consumptionKey PerformanceGRI 303: Water and E?uents 2018303-1Interactions with water as a shared resource
Promoting Green DevelopmentThroughout the Life Cycle303-2Management of water discharge-related impacts
Promoting Green DevelopmentThroughout the Life Cycle303-4Water discharge
Promoting Green DevelopmentThroughout the Life Cycle303-5Water consumptionKey PerformanceGRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissionsKey Performance305-2Energy indirect (Scope 2) GHG emissionsKey Performance305-5Reduction of GHG emissionsKey Performance305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other signicant airemissions
Promoting Green DevelopmentThroughout the Life CycleGRI 306: E?uents and Waste 2020306-2Management of signicant waste-related impacts
Promoting Green DevelopmentThroughout the Life Cycle
2023 ESG ReportGRIStandards
Disclosed itemChapter Index
306-3Waste generated
Promoting Green DevelopmentThroughout the Life Cycle306-5Waste diverted from disposal
Promoting Green DevelopmentThroughout the Life CycleGRI 308: Supplier Environmental Assessment 2016
308-1New suppliers that were screened using environmental criteria
Building A Responsible SupplyChain
GRI 401: Employment 2016
401-2
Benets provided to full-time employees that are not provided to temporaryor part-time employees
Enhancing Diversied Wellbeingof EmployeesGRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management system
Safeguarding the Health andSafety of Employees403-2Hazard identication, risk assessment, and incident investigation
Safeguarding the Health andSafety of Employees403-5Worker training on occupational health and safety
Safeguarding the Health andSafety of Employees403-6Promotion of worker health
Safeguarding the Health andSafety of Employees403-7
Prevention and mitigation of occupational health and safety impacts directlylinked by business relationships
Safeguarding the Health andSafety of Employees403-9Work-related injuries
Safeguarding the LegitimateRights and Interests of Employees
GRIStandards
Disclosed itemChapter Index
GRI 404: Training and Education 2016
404-2Programs for upgrading employee skills and transition assistance programs
Empowering Employees' CareerGrowthGRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesSolidifying Corporate GovernanceGRI 413: Local Communities 2016413-1
Operations with local community engagement, impact assessments, anddevelopment programs
Bravely Assuming CorporateSocial ResponsibilityGRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteria
Building A Responsible SupplyChainGRI 416: Customer Health and Safety 2016416-1
Assessment of the health and safety impacts of product and servicecategories
Creating Extraordinary Productswith CraftsmanshipGRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labeling
Improving the Innovative R&DSystem