2023Environmental, Socialand Governance Report
Sustainable DevelopmentManagementSustainable DevelopmentStrategiesSustainable DevelopmentGovernance StructureMateriality Analysis
Green Development
Response to Climate ChangeGreen OperationEnvironmental ManagementThroughout Product Lifecycle
Talent Cultivation forBusiness ProsperityLabor Management andRightsTraining and DevelopmentOccupational Health andSafety
Excellent Quality
R&D InnovationIntelligent ManufacturingSupply Chain ManagementCustomer Services
Business Integrity
Corporate GovernanceInternal Control and RiskManagementBusiness EthicsData Security and PrivacyProtection
Community ResponsibilitiesCommunity Engagementand Rural RevitalizationCharitable ActivityEngagement
About This ReportMessage from theChairmanAbout SANYRenewable EnergyAwards
Disclosure of ESGIndicatorsIndex for GRIIndicators and UNSDGs
Contents
About This Report
ReportingScope
This report covers SANY Renewable Energy Co., Ltd. (hereinafter"SANY Renewable Energy", "we", or "the Company") and the holdingsubsidiaries of SANY Renewable Energy. The scope of this report isconsistent with the Companys annual report, except for organizationsotherwise specified.
Basis ofPreparation
This report is prepared in accordance with the guidelines oninformation disclosure, including the Guidelines No. 1 of the ShanghaiStock Exchange for the Self-regulation of Listed Companies on theSTAR Market—Standard Operation, the Global Reporting InitiativeSustainability Reporting Standards (GRI Standards), and the UnitedNations Sustainable Development Goals (UN SDGs).
Accessto ThisReport
You can view the report online or download it from various sources,including the Shanghai Stock Exchange website, the official website ofSANY Renewable Energy, and the WeChat Official Account.
Overview
This report is the second Environmental, Social and Governance (ESG)report released by SANY Renewable Energy Co., Ltd., which disclosesits ESG-related actions and achievements in 2023 to stakeholders.This report reviews the ESG performance of SANY RenewableEnergy Co., Ltd. in 2023 (covering the period from January 1, 2023, toDecember 31, 2023). In addition, some information beyond the abovetimeframe is provided to ensure the completeness and continuity of theESG performance disclosure.
DataSources
This report contains financial data in the Company's annual report, datafrom the Company's other public filings or reports based on internalstatistics, and data audited by third parties. All amounts are in CNYunless otherwise stated.
0201
| SANY Renewable Energy | Environmental, Social and Governance Report 2023 |
0403
Message from theChairman
2023 is the fifteenth year since SANY RenewableEnergy started the journey in wind power. As awitness and participant of the prosperous windpower development in China in the past fifteenyears, SANY Renewable Energy has grown into atrustworthy partner and indispensable innovativeforce of the wind power industry culture in Chinaalong with the rapid development of the industry.This year, we sought innovation and transformation,fully launched the construction of the ESG(Environmental, Social and Governance) system,and actively responded to the United NationsSustainable Development Goals (SDGs). Inaddition, we were honored to join the UnitedNations Global Compact (UNGC), committed tosupporting UNGC's ten principles relating to thefour areas: i.e. human rights, labor,environment andanti-corruption. Accordingly, we have formulated asustainable strategy under the four pillars of "greendevelopment, talent cultivation, excellent qualityand business integrity" to inject a new impetus intothe development of the Company.
SANY Renewable Energy is committed tobecoming the global leader in the field of cleanenergy equipment supply and services. In 2023,we overcame challenges and technology barriersin the construction of China's highest-altitudewind power project in Comai, Tibet, which wassuccessfully connected to the grid. In addition, wewill continuously pay attention to climate changeresponse and the circular economy, with the aim toimprove our performance in green development invarious aspects, including strategic planning, riskmanagement, and performance monitoring.
Green Development
SANY Renewable Energy believes in the value ofhard work and perseverance in achieving successand is committed to nurturing employees througha supportive work environment and developmentopportunities. We value the rights and interestsof employees and strive to create a healthy, safe,equal, diverse and inclusive workplace for ouremployees and those of our stakeholders. In 2023,we released policies, organized training, improvedthe remuneration and benefits system andconducted human rights assessments to createa supportive environment and attract a diversegroup of outstanding talents. As we expand ourinternational footprint, we will promote employeeengagement initiatives to achieve joint developmentwith our employees.
Talent Cultivation
Upholding the philosophy of "Quality Changesthe World", SANY Renewable Energy facilitatesthe intelligent and digital upgrade to empowerresearch and development as well as supplychain management. In 2023, SANY RenewableEnergy once again took a leading position inChina's onshore large megawatt wind turbinemanufacturing, relying on the pioneering"Digital Platform" and highly integrated digitalmanufacturing lines. Meanwhile, we are vigorouslypromoting the construction of a green andsustainable supply chain to guarantee productquality and sustainability at the source.
Excellent Quality
SANY Renewable Energy attaches greatimportance to business ethics and compliancemanagement to create a culture of integrity. In2023, we improved the policies for business ethicsand information security management, laying thefoundation for building honest and reliable teamsand fully complying with business ethics standardsin our global journey.
Born from the "wind", SANY Renewable Energy has beendedicated to the wind power industry for 15 years andconstantly explores the way to utilize the wind to create abetter world. Adhering to sustainable development, SANYRenewable Energy will continue to work with industrypartners to turn wind into energy and light up every corner ofthe world with high-quality clean energy in the future.
Business Integrity
Chairman of SANY Renewable Energy Co., Ltd.
Zhou Fugui
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About SANY Renewable Energy
Company Profile
Business Highlights
SANY Renewable Energy Co., Ltd. was founded in 2008 and is committed to becoming the global leaderin the field of clean energy equipment supply and services. The Company was officially listed and tradedon STAR Market of Shanghai Stock Exchange on June 22, 2022 (stock name: SANY Renewable Energy;stock code: 688349). SANY Renewable Energy is among the Global Top 500 New Energy Companies andrecognized by the Ministry of Industry and Information Technology of the People's Republic of China as theBenchmark Enterprise for Intelligent Manufacturing. SANY Renewable Energy's market share has increasedsignificantly and ranked as the 7th largest wind turbine manufacturer in the world and Top 5 wind turbinemanufacturers in China.The main business of SANY Renewable Energy includes the R&D, manufacturing and sales of wind turbines,and the designing, construction, and operation & management of wind farms. By integrating the world's topresearch and technology resources, SANY Renewable Energy continues to create wind turbine platformswith competitive advantages, and has the ability to independently design, construct and operate wind farms.SANY Renewable Energy has developed the comprehensive wind energy solutions including digital top-leveldesign, intelligent manufacturing, complete integration system, core components manufacturing, wind farmdesign, EPC, and wind farm operation and maintenance.
Annual sold of wind turbine in 2023
1,301
By the end of December 31, 2023, SANY Renewable Energy's wind turbine has contributed to acumulative of
84.2
billion kWh of power generation, which is equivalent to a reduction of
48.02
million tons of CO
emissions and saving approximately
10.35
million tons ofstandard coal consumption.
Annual capacity sold in 2023
7,242.55
MW
| SANY Renewable Energy | Environmental, Social and Governance Report 2023 |
Awards
0807
Honorary Awards
Ranking Awards
Hubei Branch of State PowerInvestment Corporation Limited
SANY Renewable Energy
OutstandingSupplier Award
Chinese Wind Energy
Association
Beidaqiao Seventh Wind Farm,Ningxiang Donghutang Wind Farm
Leading PioneerAward
Note: Not all awards are displayed here.
China Securities Journal
SANY Renewable EnergySANY Renewable Energy
The 25th GoldenBull Award for ListedCompanies - theGolden Trust andDisclosure Award
China Energy Media Group Co., Ltd.
The Manufacturing of the World'sLargest Onshore Wind Turbine
Innovative Publicityand Planning Cases Comein Finance
2023 IR Team ofthe Year Awardfor Best InnovationPractices
National Business DailyNational Business Daily, Chinese Enterprise
Research Center of the School of Economicsand Management, Tsinghua University
Beijing EnterpriseAssociation, BeijingEntrepreneurs Association
No. 60 amongBeijing Top 100Enterprises
Beijing Enterprise Association,Beijing EntrepreneursAssociation
No. 18 amongBeijing Top 100ManufacturingEnterprisesChina MachineryEnterprise ManagementAssociation
Top 500 ChinaMachinery
China Machinery Enterprise
Management Association
World First-Class MachineryEnterprise
Top 50 Rising Brands on
the Brand Value List ofChinese Listed CompaniesTop 10 New EnergyCompanies with GlobalInnovation Competitivenesson the STAR Market
| SANY Renewable Energy | Environmental, Social and Governance Report 2023 |
Awards in 2023
HonoraryAwards
RankingAwards
ProjectAwards
ProductAwards
Recipient of the awardRecipient of the awardWinning case
Recipient of the awardRecipient of the award
Awarded by
China Electrical EquipmentIndustry Association
Top 10 among ChinaTop 100 ElectricalEnterprises
SANY Renewable Energy
Recipient of the award
Awarded by
SANY Renewable EnergyRecipient of the award
Awarded by
SANY Renewable EnergyRecipient of the award
Awarded by
SANY Renewable Energy
Recipient of the award
Awarded by
China Machinery EnterpriseManagement Association
Top 500 ChinaMachinery in 2023Awarded by
China Energy News
Top 500 EnergyEnterprises inChinaAwarded by
China Energy News
Global Top 500New EnergyCompanies
SANY Renewable Energy
Recipient of the award
SANY Renewable EnergyRecipient of the award
SANY Renewable EnergyRecipient of the award
SANY Renewable EnergyRecipient of the award
SANY Renewable EnergyRecipient of the award
SANY Renewable EnergyRecipient of the award
Awarded by
Awarded byAwarded byAwarded byAwarded byAwarded by
Awarded byAwarded by
1009
Wind Power Leader - BestOnshore Wind Turbines Award
China Electric Power Quality
Projects 2023
Wind Power Leader - Best
Service Award
Outstanding Wind Farms (Class3A - Class 5A Wind Farms)
Wind Power Leader - BestInnovative Product of the Year
"5G+Industrial Internet"Demonstration Factory
TOP 10 Best Onshore Wind
Turbines (Above 5.6 MW)
Optimal Turbine Manufacturersfor Maximum Unit Availability
Note: Not all awards are displayed here.
Awards (con't)
Product AwardsProject Awards
China Wind News
SANY Renewable EnergyRecipient of the award
Awarded by
China ElectricPower ConstructionAssociationHuaneng Tongyu 2 MillionkW Wind Power Parity onGrid Project (Phase I and II)Recipient of the award
Awarded by
China Wind News
SANY Renewable EnergyRecipient of the award
Awarded by
China Electricity Council
20 outstanding wind farmsRecipient of the award
Awarded by
China Wind News
SANY Renewable EnergyRecipient of the award
Awarded by
Industry and InformationTechnology Departmentof Hunan ProvinceSANY (Shaoshan) WindPower 5G+ IndustrialInternet ProjectRecipient of the award
Awarded by
Wind Power Monthly
SANY Renewable EnergyRecipient of the award
Awarded by
China Electricity Council
5 turbine manufacturersRecipient of the award
Awarded by
| SANY Renewable Energy | Environmental, Social and Governance Report 2023 |
Sustainable DevelopmentManagement
To bear the weight of the times and empower the nation, SANY Renewable Energy hasintegrated the sustainable development concept into strategies and operation management,and formed an ESG strategy system. In addition, the Company established a sustainabledevelopment governance structure in alignment with the current management system toachieve synergy between business and sustainable development strategies.13 Sustainable DevelopmentStrategies and Goals
16 Sustainable DevelopmentGovernance Structure
17 MaterialityAnalysis
1413
Sustainable Development Strategiesand GoalsSustainable Development StrategiesMotivated by the mission "Intelligent Manufacturing Leads the Future" and the vision "To Promote EfficientUtilization of Clean Energy", SANY Renewable Energy is committed to becoming the global leader in the field ofclean energy equipment supply and services. In this way, SANY Renewable Energy is doing its part in helpingChina achieve goals of "carbon peak and carbon neutrality" and contributing to the global transition to cleanenergy. SANY Renewable Energy promotes the corporate values of "Patriotism, Integrity, Struggle, Innovation,Adherence to Long-Termism, Keep Customer Satisfaction as the Top Priority", which guide the Company'slong-term sustainable development.
To achieve high-quality results for the corporate strategies of "Globalization", "Digitalization" and"Decarbonization", SANY Renewable Energy has launched the construction of an ESG system in 2023.As a result, SANY Renewable Energy has built a sustainable development strategy system driven by"becoming the global leader in the field of clean energy equipment supply and services, contributing toChina's 'Carbon Peak and Carbon Neutrality' and the world's clean energy transition" and supported by thefour pillars of "green development, talent cultivation, excellent quality and business integrity". Furthermore,SANY Renewable Energy has developed strategic goals and action plans for material issues.In December 2023, the Company joined the United Nations Global Compact (UNGC), committing tosupporting UNGC's ten principles relating to human rights, labor, environment and anti-corruption. Westrive to continuously integrate sustainable development into our business strategies and operations,create ESG value with our partners, and advance the UN SDGs.
Vision
Vision：To Promote EfficientUtilization of Clean Energy
MaterialIssues
SustainableDevelopmentStrategySystem
StrategicGoals
Green Development
Environmental managementthroughout product lifecycleCircular economyToxic emissions and wasteResponse to climate change
Taking decarbonizationas a core strategy,continuouslyreducing the overallenvironmental impactof the Company'soperation andproducts, to create anenvironment friendlyenterprise.
ESGDrivingForce
Becoming the global leader in the field of clean energy equipment supply and services,contributing to
China's ''Carbon Peak and Carbon Neutrality'' and the world's clean energy transitionStrategicPillars
Employee developmentand trainingLabor managementand rightsOccupational health
and safety
Adhering to the talentconcept of ''hard workand perseverance inachieving success'',we attract high-qualitytalents by continuouslyenhancing the trainingsystem and improvingemployee benefits.
Talent Cultivation
Data security andprivacy protectionBusiness ethics
Regarding honesty asthe basic principle, wecontinuously improvebusiness ethicsrules and regulationsto realize soundmanagement.
Business Integrity
Quality Changes the World,Intelligent Manufacturing Leads
the FutureOur mission
To Promote EfficientUtilization of Clean EnergyOur vision
Patriotism, Integrity, Struggle,Innovation, Adherence to Long-Termism,Keep CustomerSatisfaction as the Top Priority
Our value
Customer servicesSupply chain management
R&D and innovation
Increasing investmentin R&D to manufactureintelligent wind turbinesthat ''can sense, decideand execute'' and buildintelligent wind farms
that ''can achieveultimate safety,excellentenergy performance,and optimal operation
and maintenance''.
Excellent Quality
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent QualityBusiness Integrity
CommunityResponsibilities
1615
Sustainable Development GoalsThe 17 Sustainable Development Goals (SDGs) of the United Nations are the blueprint to achieve a better andmore sustainable future for all, and provide a strategic framework for sustainable practices of enterprises. In2023, in the process of joining the UNGC, the Company clarified the priorities for each material issue under thefour pillars of the sustainable development strategy system, and decomposed them into management goals. Inaddition, SANY Renewable Energy gradually developed and implemented action plans internally to track andimprove performance, advancing the UN SDGs with practical actions.
A sound governance structure for sustainable development is critical to the implementation of sustainabledevelopment strategies. In 2023, SANY Renewable Energy established a formal sustainability governancestructure to drive the sustainable development strategy at three levels: governance, management and execution.PillarsTopics
United Nations SustainableDevelopment GoalsSustainable Development Goals
GreenDevelopment
? Developing a carbon strategy toprogressively manage and reduce ourScope 1, 2, and 3 greenhouse gas (GHG)emissions
? General and hazardous waste disposal is100% in compliance with standards
? Having products certified for theirenvironmental impact and reducing thecarbon footprint of the unit product over itslifecycle
Response to climate changeToxic emissions and waste
Circular economyEnvironmental impactthroughout product lifecycle
?Zero incident in practice
?Employee satisfaction over 90%
? "Zero tolerance and zero violation" in laborrights and interests
?Career guidance for all employeesOccupational health and safetyLabor management and rights
Employee development
and trainingTalentCultivationfor BusinessProsperity
? The coverage rate of business ethicstraining reaches 100%
? 100% of employees have signed theBusiness Ethics Commitment Letter
? Creating an atmosphere of integrity inbusiness, and strengthening supervision,control and restraint mechanismsData security and privacyprotectionBusinessIntegrity
? Continuously promoting research onoffshore wind turbines and onshore largemegawatt technologies to popularize theuse of clean energy
?By 2024, 100% of suppliers will have signedthe Supplier Code of Conduct
?Maintaining high level of customersatisfaction
R&D and innovationSupply chain management
Customer services
ExcellentQuality
Sustainable DevelopmentGovernance Structure
Business ethics
SANY Renewable Energy's Sustainable Development Governance Structure
Board of Directors
Governance
As the highest responsible body for sustainable development at SANYRenewable Energy, the Board of Directors reviews the Company's ESGstrategies, objectives and risk management status.
The ESG Working Group is responsible for formulating the Company's ESGimplementation plans, driving the implementation of strategies and gatheringinformation from ESG-related departments on a regular basis. The workinggroup is also responsible for monitoring the implementation of the plans toadvance the goals, and regularly reporting the work progress to the ESGSteering Group.ESG Working Group
Management
The ESG Steering Group is responsible for developing ESG strategies andgoals, reviewing ESG plans and major ESG projects, promoting cross-functionalESG collaboration, and reporting to the Board.The ESG Steering Group is composed of the Company's Chairman andmanagement assuming key ESG management responsibilities, with ChairmanZhou Fugui as the group leader.ESG Steering Group
The representatives regularly participate in ESG meetings to understandrelevant department objectives and formulate work plans. They alsocoordinate the resource allocation, and report the work progress to ESGWorking Group on a regular basis.Representativesfrom ESG-RelatedDepartments
Execution
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent QualityBusiness Integrity
CommunityResponsibilities
1817
Materiality Analysis
Materiality Matrix
Stakeholder Identification and CommunicationSANY Renewable Energy values the opinions and suggestions of stakeholders and regularly communicateswith them through various channels. This enables the Company to understand stakeholders' expectations andsuggestions for the sustainable development of the Company and to continuously improve ESG management.
To identify sustainable development issues closely related to the Company's operations and stakeholders, weconducted a materiality assessment in 2023, which identified 21 material ESG issues.Our process for identifying material issues is as follows:
StakeholdersExpectations and RequirementsCommunication Channels
?Integrity and compliance?Product and service quality?Product innovation?Sustainable operation
?Contractual performance? Customers feedback mechanism?Market research?Daily liaison?Executives meeting
Customers& BusinessPartners
?Employees' rights and interests?Occupational health and safety?Career development plans?Remuneration and benefits
?Daily communication?Grievance mechanism?Staff seminars? Employee satisfaction surveyEmployees
? Mutual benefits and integrity incontractual performance?Long-term cooperation?Supplier assistance and empowerment?Building green supply chains
?Contract negotiation?Bidding meetings? Supplier assessment and audit? Supplier communication andtrainingSuppliers
?Compliant operations?Tax compliance? Value preservation and increment of thestate-owned assets?Contributing to local economic development?Response to climate change
? Response to national policies? Special meetings and reports?Work report? Visits, supervision, inspection andassessmentGovernmentand Regulators
?Ecological protection? Promoting economic development andemployment?Charity events and donations
?Organizing charity events? Voluntary services andcommunity visits?Open Day?Public media coverage
Communitiesand NGOs
?Corporate performance?Return on investment?Risk control and corporate governance? Authenticity, accuracy, timeliness andcompleteness of information disclosure?Sustainability of corporate development
? Annual and other periodic reports?Investor relations website?Shareholders' meeting?Board meeting?Correspondence?Visitor reception
Shareholdersand Investors
Step 1
? Conducted research on macropolicies and development trendsof the industry? Prepared a list of extensiveissues with reference to majordomestic and internationalsustainability initiatives, disclosureguidelines, rating standards,and the requirements of majorstakeholders? Benchmarked domestic andinternational industry practices,and considered the Company'sbusiness characteristics anddevelopment strategies to sort outextensive issues, with 21 materialESG issues identified
? Conducted research on themateriality of the issues tothe internal and externalstakeholders through interviewsand questionnaires. We alsoconducted 21 managementinterviews and distributed
questionnaires to majorstakeholders? Based on the research, issueswere ranked and categorized bytheir materiality to internal andexternal stakeholders
Step 2
? Finalized the materialitymatrix based on the rankingby materiality, reflecting themateriality of each issue to theinternal and external stakeholders
Step 3
Materiality to SANY Renewable Energy
Materiality to stakeholders
Governance
Corporategovernance
Water resource management
Energy management
Environmentalmanagement throughoutproduct lifecycle
Toxic emissions and wasteCircular economy
Ecological impact
Promoting industrydevelopment
Employee development and training
Talent attraction and retention
Supply chain managementBusiness ethics
CustomerservicesLabor managementand rights
R&D and innovationOccupational healthand safety
Charity and community engagementOpportunity from cleantechnologies
Responsible taxation
Data security and privacy protection
SocialEnvironmental
The materiality matrix is important for setting the direction of sustainable development strategies.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellence in QualityBusiness Integrity
CommunityResponsibilities
Response toclimate change
Green Development
Relying on innovative technologies and optimized management, SANY Renewable Energystrives to reduce environmental footprint, improve energy efficiency and ensure environmentalfriendliness throughout the product lifecycle. We demonstrate our strong commitment togreen development through actions on climate change response, green operations andlifecycle management.
21 Response toClimate Change
24 Green Operation29 Environmental Management
Throughout Product Lifecycle
2221
In the context of global energy transition, wind power, as a major type of clean energy, plays a crucial role inaddressing climate change. As a leading wind turbine manufacturer, SANY Renewable Energy is well awareof its responsibility in driving the green energy revolution. We are committed to making our wind turbinesmore efficient and reliable, as well as driving the low-carbon transition of our manufacture and operations, toprogressively manage and reduce our Scope 1, 2 and 3 greenhouse gas (GHG) emissions.SANY Renewable Energy recognizes the need and urgency to participate in global climate governance andcontribute to the realization of the "carbon peak and carbon neutrality" goals, and actively takes actions to tackleclimate change. We have progressively strengthened our climate change risk management and made climatechange as a material issue in our sustainability strategy and integrated it into our sustainability governancestructure. We keep improving the performance and power generation efficiency of wind turbines, and increaseinvestment in green and intelligent manufacturing, with practical actions to accelerate the low-carbon transitionof our businesses and the whole society.
Response to Climate Change
Decarbonization in Operational Emissions:
Enhancing Energy Management
Upholding the principle of "energy conservation and energy efficiency improvement" and considering theactual manufacture of the Company, SANY Renewable Energy has formulated the Energy Management Policyin accordance with the national energy policies and management standards. We strictly control our energyconsumption and carbon emissions by increasing the energy efficiency and the use of renewable energy.We step up efforts to promote various measures to save energy and reduce consumption, including the use ofelectric pallet trucks, electric forklifts, LED lights, and motion sensor lights in all factories. At the same time, weare accelerating the development and use of renewable energy. We have completed the construction of rooftopphotovoltaics at Nankou Industrial Park, Shaoshan Blade Factory and Chenzhou Industrial Park. The totalcoverage of installed photovoltaics amounted to 111,331 square meter with installed capacity of 15.28 MW. Inaddition, the Company is actively engaged in green electricity trading and the Nankou Industrial Park purchaseda total of 3,804.58 MWh of green electricity in 2023.
Driving Value Chain Decarbonization:
Technological InnovationIn 2023, SANY Renewable Energy continued to overcome the environmental limitations on wind turbines.The Company participated in the construction of China's highest-altitude wind power project in Comai, Tibet,which was successfully connected to the grid in November 2023. The successful completion of this projectdemonstrates that the large-scale centralized wind farms at higher altitudes can be developed along withsupporting bases. In addition, China's first desert wind power project of over 6 MW implemented by theCompany at Beidaqiao of Gansu has passed the test of continuous operation for more than one year. In2023, the two projects, Beidaqiao A and B, generated a total of 706.08 million kWh of electricity, which resultedin a CO2 emissions reduction of approximately 402.8 thousand tonnes.Key Performance: Consumption of Major Categories of Energy in 2023Natural Gas
4.15 million m
Anthracite
14.29 Tonnes
Total Indirect Energy Consumption179,608.84 MWh
Gasoline1,934.22 Tonnes
Steam
369.70 GJ
Liquefied Natural Gas
3.93 Tonnes
Renewable Energy Generated13,666.68 MWh
Diesel Oil
429.66 Tonnes
Total Direct Energy Consumption87,215.68 MWh
Liquefied Petroleum Gas
3.34 Tonnes
Renewable Energy Consumed12,942.10 MWh
GHG Emissions
To capture the Company's GHG emissions and provide sufficient data for future carbon reduction anddecarbonization, the Company engages third-party organizations to conduct a GHG inventory of the entirevalue chain.Key Performance: GHG Emissions in 2023 (tCO2e)Scope 121,489
Scope 33,112,226
Scope 2 (based on market)44,109Scope 2 (based on region)46,279
The total coverage of installed photovoltaics amounted to
111,331
m
With installed capacity of
15.28
MWThe Nankou Industrial Park purchased a total of
3,804.58
MWh of green electricity in 2023.
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
Excellent Quality
2423
Case: Creating an Exemplary Factory in Green and Low-Carbon PracticeThe micro-grid system established by Shaoshan Blade Factory consists of solar power generation,wind power generation, diesel power generation (for backup), energy storage system and energymanagement system. The micro-grid system enables the self-control and self-management of grid-connected micro-grid and maximizes the use of distributed power and renewable energy to ensurethat the energy system of the factory is operated in a stable, efficient, economical and intelligentmanner. Currently, the micro-grid at Shaoshan Blade Factory can generate an average of 16,975kWh of electricity per day, with self-consumption accounting for 66.4%. Shaoshan Blade Factory hasobtained ISO 50001 energy management system certification and has been selected as one of thegreen manufacturing demonstration enterprises in Hunan Province.
Developing a green and low-carbon flagship factory
SANY Renewable Energy, as a clean energy equipment manufacturer, is always committed to promotingenvironmental protection management through the application of appropriate technologies, processes andsystems. In doing so, the Company aims to mitigate and reduce the negative caused by manufacture andoperation on the environment. We strive to reduce the negative impact of our activities on the environment andprevent various environmental accidents. To this end, we keep improving the organizational structure and themechanism for environmental management, carrying out regular investigations into environmental risks andmonitoring the environmental performance in all aspects.
Green Operation
Environmental Management SystemSANY Renewable Energy strictly abides by various regulations and laws concerning environmental managementthat are applicable to the manufacture and operation of the Company, including the Environmental ProtectionLaw of the People's Republic of China, the Law of the People's Republic of China on Environmental ImpactAssessment, and the Law of the People's Republic of China on Promotion of Cleaner Manufacture. In addition,the Company continuously improves environment management system in accordance with the requirements ofISO 14001 system.During the reporting period, the Company formulated and released the Environmental Policy, which defines theprinciples and methods for the management of environmental issues that are closely related to the Company'sbusiness and manufacture. Such environmental issues include, but not limited to, response to climate change,energy consumption, water resource management, raw material and waste management, and environmentalimpacts of product use and end-of-life products. In addition, the Environmental Policy involves and focuseson the environmental impacts of the activities of the Company's stakeholders (including suppliers, customers,and partners), with the aim of strengthening their environmental management and environmental awareness,and joining hands with stakeholders to promote the green transition of the industry. By the end of the reportingperiod, the Company's 5 manufacture and operation sites (Nankou, Huilongguan, Tongyu, Zhangjiakou andShaoshan), which were put into manufacture and under stable operation for over a year, had all obtained theISO 14001 Environmental Management System certification. Meanwhile, Hunan SANY Smart New EnergyDesign Co., Ltd., a major developer of wind farms, had passed the certification as well.
Environmental GovernanceThe Company practices the principle of "taking environmental protection as a must in manufacturingmanagement" and implements the system of "ultimate responsibility undertaken by chief responsible person".The Board of Directors and the Safety Committee of the Company ensure that the environmental policiesand management system are carried out in a coordinated manner. In the meantime, the CEO office, theManufacturing Department, the R&D Institute, the Process Institute, the Administrative Services Department andfunctional departments ensure that various direct impacts on the environment caused by the manufacture andoperation are effectively managed.
100%
had all obtained the ISO 14001 Environmental Management System certification
Wind power system
Solar powerEnergy storage system
Company electricity consumption
Diesel power generation system(back-up power generation)
Mirco-grid
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
Excellent Quality
2625
Environmental emergency drills
Environmental Risks Identification and Control
To further strengthen the identification and control of environmental risks, we identify, evaluate and control theenvironmental factors including wastewater discharge, exhaust gas emission, general solid waste disposal,hazardous waste disposal, chemical leakage and noise emission during wind turbines' lifecycle processessuch as designing and development, procurement and sales, manufacturing and processing, storage andtransportation, services, external construction and services. Based on the identification of environmental risks,we specify the management responsibilities for the control of key environmental factors and require relevantemployees to receive special training and pass relevant examinations. Meanwhile, we have also formulatedthe Management Policy for the Operation of Environmental Equipment to standardize the management ofthe use, inspection and maintenance of various environmental facilities used for the treatment of exhaustgas, wastewater, solid waste and noise. By doing so, we ensure that all types of pollutants are discharged incompliance with relevant laws.During the reporting period, the Company conducted environmental risk assessments on all workplaces. Bythe end of the reporting period, all environmental monitoring indicators, including the rate of classified collectionand disposal of hazardous and general solid waste, exhaust gas emissions, wastewater discharges andnoise control, had met the compliance standards. Meanwhile, the Company had committed no environmentalbreaches.
Management of Water Resource and Wastewater
Despite the weak dependence of the manufacture and operations on water resources, we emphasize theconservation of water resources and the control of wastewater discharges. To save water, we have installedwater-saving and storage devices such as sensor faucets, sensor toilet flushing devices and rainwater collectionsystems in all the operational facilities, and are promoting tips of water conservation among employees. Wehave taken specific measures to treat domestic sewage in strict compliance with various wastewater treatmentstandards. To ensure treatment effectiveness, we implement strict monitoring over the wastewater treatmentstations and regularly inspect and evaluate their treatment capacity to maintain a continuous and stableoperation.In 2023, the Company built a new domestic sewage treatment station, along with the existing wastewatertreatment station, to enhance the capacity of wastewater treatment and water recycling of the Nankou IndustrialPark. The new station adopts the technology of reclaimed water reusing and the treated domestic wastewaterwill be used for greening and toilet flushing. This station is expected to produce approximately 154.4 thousandtonnes of reclaimed water every year, saving approximately 1,389.6 thousand CNY.
Exhaust Gas ManagementWe attach importance to the management of exhaust gas emission during manufacture and operations. Forthe construction of manufacturing bases, we require simultaneous designing, construction and initial operationof the air pollution prevention and control facilities and the main part project. For the manufacture, the ProcessDepartment engaged in the treatment of air pollutants is responsible for developing the operating procedures forexhaust gas treatment facilities and conducting relevant employee training. The departments using such facilitiesare responsible for the maintenance of the facilities and the management of ledgers. To ensure compliantexhaust gas emission, the Company commissions qualified third-party environmental monitoring organizationsto monitor the emissions.
Building Environmental Protection CapabilitiesWe also attach importance to enhancing employees' capabilities of environmental protection. We conductenvironmental protection training for all employees. Through such training, we interpret in depth the energy-saving and emission reduction measures, various environmental protection knowledge, environmental lawsand regulations, and the application of the circular economy. By doing so, we help employees develop anenvironmental mindset and strengthen their awareness of responsibilities for daily environmental protection.Meanwhile, we have developed the Contingency Plan for Environmental Emergencies, which regulates keymatters such as the emergency organization system, prevention mechanisms, reporting process, treatmentmethods, emergency preparedness, publicity and drills. During the reporting period, all manufacturing units ofthe Company carried out annual emergency drills for environmental incidents as planned.
Key Performance: Water Consumption and WastewaterDischarge (Tonnes)Total Water Consumption504,252.32
Total Wastewater (All Domestic Wastewater)297,156.52
Key Performance: Exhaust Gas Generated in 2023 (Tonnes)Sulfur Dioxide
0.20
Benzene
0.0002
Particulate Matters
36.11
Xylene
0.57
Volatile Organic Compound20,732.40
Nitrogen Oxides
0.51
Methylbenzene
0.44
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
Excellent Quality
2827
Waste Management and Circular EconomyWe are committed to reducing the impact of pollution and waste on the environment and local communities.We continue to strengthen our capacity to treat pollutants and waste, and take mitigation measures to handlepotential pollutant discharge and waste.We have the Management Policy for Solid Waste in place, which specifies the management and treatmentof different types of solid waste that may be generated during manufacture and operation, such as domesticgarbage, industrial solid waste, hazardous waste and construction waste. During the reporting period, wecontinued to strengthen the management of hazardous waste, remained cooperative with legally qualifiedorganizations engaged in hazardous waste treatment, and signed contracts of hazardous waste transfer.By doing so, we ensure that all procedures from collection, warehousing, storage to transfer are rigorouslymonitored and recorded based on accurate statistics, so as to ensure that 100% of hazardous waste arehandled in a compliant manner.We are committed to practicing the concept of circular economy throughout our manufacture and wastemanagement and actively promote resource recycling during manufacture through waste reduction, wastereusing, waste recycling and other approaches. During the reporting period, we focused on the recycling ofpackaging materials through such measures as encouraging suppliers to adopt recyclable packaging materialsand upgrading and reusing packaging materials.
Biodiversity ManagementWe respond to the Convention on Biological Diversity of the United Nations by incorporating biodiversityconservation into the corporate management. The Company has formulated the Biodiversity Conservation Policyand the Management Measures for Biodiversity Conservation. With these policies, the Company is committedto the scientific ecological restoration. To be specific, the Company promotes the ecological restoration thatobserves natural processes and planting of local green plants, and practices the ecological protection conceptthroughout the manufacture of wind turbines and the construction and operation of wind farms. During thereporting period, none of the Company's newly established wind farms was located in or adjacent to biodiversitysensitive areas or had any significant impact on the surrounding biodiversity.Project Lifecycle Biodiversity Management for Wind Farm Construction
Case: New Practice of Ecological Restoration of Fangyuan Wind Farm in Guiyang,Hunan ProvinceDuring the construction, the Company made full use of the waste generated from the constructionto carry out ecological restoration. To be specific, the Company used engineering rubble to build upplanting grooves as a blockade to improve greening effects, and built a water barrier out of engineeringmounds of soil to protect slopes from the erosion by confluent flows. In addition, our construction teampaved the temporary roadway with mudstones to divert the confluent flows and mitigate soil erosion.In the post-construction period, we actively carried out ecological restoration and beautification. Tobe specific, we covered slopes with grasses, planted trees and shrubs, and used the hanging netand spraying technology to restore the vegetation in the field as quick as possible. During the projectperiod, our hanging net and spraying work covered a total of 8.61 hectares of land. We planted grassesof 14.50 hectares and 4,700 trees and shrubs. In addition, we constructed the slag-retaining wall of190 m, the water barrier of 3.5 km as well as planting grooves of 1.2 km, and paved mudstone of 9.16hectares, which effectively restored the ecological environment around the wind farms and preventedsoil erosion and other harmful impacts.
Key Performance: Waste Generated in 2023 (Tonnes)Total Hazardous Waste1,171.15Total Non-Hazardous Waste18,250.96
Case: Achieving Green Manufacture by Promoting the Reuse of Packaging MaterialsThe Manufacturing Department keeps promoting the program of reusing waste wooden crates to fulfilthe Company's commitment to environmental protection. We upgraded the wooden crates of the rawmaterials for manufacture to replace traditional self-made ones and these upgraded crates are usedfor the packaging of structural components during transit transportation. In 2023, The ManufacturingDepartment reused a total of 354 wooden crates, saving approximately 5 tonnes of wood.The Manufacturing Department also promoted the project of upgrading old transport tooling, saving atotal of approximately 280 tonnes of steel by upgrading 150 sets of transport tooling of old model thatwere no longer in use to match them with products of new model.
Tonnes of steel by upgrading
sets of transport tooling of old model that wereno longer in use to match them with products of new modelSaving a total of approximately
tonnes of steel
? Prior to implementation, all projectsshall pass the environmental impactevaluation, obtain the approval forsoil and water conservation scheme,and complete special demonstrationreports on birds and forests? Keep away from areas such asecological red lines, ecotones, publicwelfare forests, basic rangeland,and bird migration routes, whenselecting project sites
? Restore the disturbed land by selectingplant varieties according to the principleof "matching site with trees"? For earth slopes, restore them byplanting shrubs and grass? For high and steep rock slopes,utilize the hanging net and sprayingtechnology to improve surface soiladhesion and conditions, and increasethe survival rate and coverage ofvegetation
? Upon completion of the project, takemeasures such as soil restoration,greening and drainage improvementto strengthen ecologicalconstruction, so as to mitigate theimpact of construction activities onthe environment
SiteSelectionProjectMaintenance
ProjectConstruction
ProjectImplementation
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
Excellent Quality
2930
| SANY Renewable Energy | Environmental, Social and Governance Report 2023 |
Environmental ManagementThroughout Product LifecycleSANY Renewable Energy is committed to developing environmentally friendly wind turbines. We haveincorporated the reduction of environmental impacts brought by the use of products as well as the end-of-lifeproducts into the environmental policy. In this way, we have established the environmental impact control overproduct's lifecycle processes including design and development, manufacture, construction and operation, anddecommissioning and scrapping. Through these efforts, we promote the recycling of materials and reduce theconsumption of materials and the waste.At the stage of product design and development, we actively explore the solutions to enhance the environmentalstrengths and sustainability of products while ensuring the product quality and performance. The solutionsinclude the use of green materials with low environmental impacts, lightweight design with lower consumptionof raw materials, and noise control in operations. We have carried out many practices of green design. Forinstance, we applied QT700 ductile cast iron to main shafts, main frames and bearing housing, which improvesthe strength of the structural parts of wind turbines while reducing the weight. In addition, we discussed with oursuppliers about the solutions to replacing the fluorine-containing gases in the switchgear with environmentallyfriendly gases. In the past three years, SANY Renewable Energy has obtained a total of 429 patents, of which139 are green patents.
For the end of life of products, we are gradually improving the decommissioning plan of wind turbines throughsuch measures as precise dismantling, classified recycling, and ecological restoration. To minimize theenvironmental impact of wind turbines at the end of their life, we are also actively exploring solutions to the reuseof decommissioned blades and keeping abreast of the R&D and innovations of the application of recyclable orbiodegradable materials to wind turbine blades.
SANY Renewable Energy has obtained a total of
patentsof which
are green patents
67（16%）
Optimizing BladeManufacturing
16%
27（6%）
Increasing Power
Generation
Capacity
6%
18（4%）
Recycling ofGrease andCarbon Dust
4%
10（2%）
Noise Reduction
2%
17（4%）
4%
Breakdown of SANY Renewable Energy's Green Patents between 2021 to 2023
Application of
Lightweight
Materials
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
Excellent Quality
Talent Cultivation forBusiness Prosperity
SANY Renewable Energy is deeply aware that talents are valuable assets of an enterpriseand the core driving force that promotes the sustainable development of the enterprise.Therefore, we are committed to improving the employment management and the protectionof employee rights and interests. In addition, we provide employees with great room forcareer development and create a working environment that attracts, cultivates and retainsoutstanding talents. Moreover, we pay attention to the health and safety of employees.
33 Labor Managementand Rights
39 Training andDevelopment
42 OccupationalHealth and Safety
3433
Practice of Diversity and Equity
SANY Renewable Energy believes in the value of "hard work and perseverance in achieving success" and iscommitted to nurturing employees through a supportive work environment and development opportunities. In addition,the Company is committed to creating a fair and inclusive working environment of mutual assistance and practices theprinciple of "zero tolerance and zero violation" to protect labor rights and interests. The Company also ensures that therights and interests of employees are fully respected and protected through effective labor management to improveemployee satisfaction. Meanwhile, we continuously invest in talent acquisition and recruit global professionals withdiverse backgrounds to actively promote cross-cultural communication and integration, and strive to create a talentteam that embraces diversity.
Labor Management and Rights
Case: Promoting Diversity and Integration - Foreign Employees Training at theHeadquarters
In August and October 2023, 29 newly-joined foreign employees (88% of the total newly-joined foreignemployees) were organized by the Overseas Marketing Department and the Human ResourcesDepartment to participate in the "2023 Foreign Employees Training Program of SANY RenewableEnergy". By doing so, we enhanced foreign employees' sense of identity and belonging toward thecorporate culture and helped them know about the development strategy, products and technologies,policies and systems, and business of the Company while also enhancing the communication andmutual trust between the foreign employees and employees at the headquarters, thus forming a goodteamwork spirit. The training was carried out in such forms as centralized lectures, wind power salons,exchange lectures, wind power exhibitions and factory visits. The training satisfaction was rated as 4.82out of 5.
Foreign employees visiting the factory of SANY Renewable Energy
Key Performance:
Foreign Employees
Female Employees
Employees with Disabilities
Employees of Minority Groups and/or Disadvantaged Employees
Human Rights ProtectionWe abide by labor laws, regulations and standards that are applicable to the locations where we operate,including the Labor Law of the People's Republic of China, the Law of the People's Republic of China on theProtection of Minors, and the Law of the People's Republic of China on the Protection of Rights and Interests ofWomen.As we became a signatory to the UNGC during the reporting period, we have formulated the Policy for HumanRights and Labor Management out of the respect for internationally recognized policies regarding human rights,such as the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights atWork, so as to convey our human rights policy to our employees, suppliers, contractors and partners. The policyadvocates the protection of the rights and interests of female employees, strictly prohibits forced labor and childlabor in any form, and rejects workplace harassment and discrimination in any form. Besides, the policy specifieskey management actions such as whistleblowing, whistleblower protection, grievance, dispute mediation, as wellas remedies and compensation. We have conducted human rights training for all employees to help them learnabout their rights and interests as well as the essence of the Policy for Human Rights and Labor Management.During the reporting period, the Human Resources Department of the Company conducted the first company-wide internal assessment of human rights and labor management. During the assessment, no reports orcomplaints of harassment or discrimination were received, and no incidents in violation of laws and regulations orinternationally accepted standards regarding labor human rights (such as child labor, human trafficking and forcedlabor) were found.
With the development of business and globalization of SANY Renewable Energy, the Company actively recruitstalents of different gender, ethnicity, nationality, education background and cultural background. In addition, theCompany strives to create a diverse working environment in which different opinions and views are respectedto promote innovation and teamwork. We have integrated the concept of diversity into the managementof human resources. During the reporting period, we formulated the Guidance on Care for Minorities andDisadvantaged Employees, the Guidance on the Protection of Fundamental Rights and Interests and CareerDevelopment of Employees with Disabilities, the Guidance on the Protection of Fundamental Rights and Interestsand Career Development of Female Employees and other guidance manuals for different groups in order topromote the protection of their rights and interests. Besides, we encourage their active participation in the workand development of the Company by establishing a diversified incentive mechanism and caring for their life,development, communication, etc.In addition, we focus on eliminating discriminatory conducts in employment and at work, to create an equal andfair workplace. We have developed the Code of Conduct for Employee in Recruitment Positions to eliminatediscrimination relating to gender, age, race, nationality, religion, or other social and personal factors, thus providingall candidates with equal rights to work. It is stipulated in our Cadre Management Policy that for the evaluation,selection and promotion of cadres, fair and objective evaluation criteria should be adopted, employees shouldbe entitled to fair selection opportunities, diversity and inclusiveness should be taken into consideration, and anyform of discrimination should be prohibited. By doing so, we strive to create a fair career promotion channel foremployees.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
Excellent Quality
3635
Remuneration and Benefits
SANY Renewable Energy offers employees highly competitive remuneration. We have established acomprehensive remuneration and benefits system for employees in accordance with national laws andregulations as well as those of the overseas regions where we operate. The remuneration and benefits include,but not limited to, overtime compensation, statutory public holidays, paid annual leave, maternity leave, paternityleave, and remote working. During the reporting period, the Company signed labor contracts with 100% ofemployees in accordance with the law and offer social insurance to 100% of the regular employees.The Company keeps improving the remuneration management system to stimulate the potential and motivationof employees and encourage them to create values. Our remuneration consists of basic salary, performancebonuses, allowances and subsidies, etc. We offer different remuneration package based on the job value anddevelop tailored remuneration strategies for all employees. In addition, the Human Resources Departmentregularly monitors and evaluates the remuneration of all departments and positions to ensure that theremuneration offered by the Company is reasonable and attractive to talents.
For All Employees
For Specific Employees
Determined by job value, personal ability, and skill levelBasic SalaryShort-term incentives determined by performance resultsPerformance
Bonuses
Based on job characteristics or geographical location
Allowancesand Subsidies
Targeting directors (excluding independent directors), supervisors, senior management, middlemanagement, staff in key positions, and core business (technical) staff. The Company formulated,considered and approved the Employee Stock Ownership Plan in 2023, involving 631 employees.
EmployeeStock
Ownership
For R&D team: Designed for incremental gross profit sharing of R&D products
Incremental
Sales Award
Incentives are devised based on challenging target agreements that are tied to key performanceindicators, such as business revenue and profits. Upon achieving challenging targets, personnel willreceive corresponding cash incentives.
Incentivesfor Achieving
ChallengingTargets
Equity incentive plans targeting senior managers in key positions, R&D core positions, and coremanagement positions (By the end of the reporting period, two periods of exercise registration hadbeen completed as planned)Equity
Incentives
Remuneration System
We pay employees in full and on time and provide payroll details to ensure transparency and fairness. In addition,we stick to the principle of equal employment and equal pay for equal work to ensure that all employees aretreated fairly and enjoy favorable conditions at work. During the reporting period, our unadjusted remunerationfor male employees were 5.59% higher than those for female employees.The Company is committed to providing all employees with more considerate services and protection andcreating working conditions that help them balance work and life. In addition, the Company has formulated theManagement Rules for Employee Benefits to regulate the distribution of benefits
Employee Benefits System
? The Company provides allemployees with pensions, medical,work-related injury, maternity, andunemployment insurances, as well ashousing provident fund. In addition,the Company offers group accidentinsurance and personal accidentinsurance to contractors, employerliability insurance to interns, experthealth insurance to internationalexperts, and overseas personnelaccident insurance to staff oninternational assignments.
Insurance Benefits
?The Company provides employees withmeals, commuting, housing, holidayand birthday benefits. In addition, whenemployees experience major personaland family events such as marriage,funeral, childbirth and critical illness,the Company will provide employeeswith allowances for congratulation orcondolence.
? The Company has a variety of staffactivity rooms, reading rooms, gyms,ball fields, activity centers, parks andother facilities for staff recreation andlearning.
Material Benefits
Lifestyle Benefits
? The Company provides annualphysical examinations for employeesevery year. Employees can attendthe physical examinations at thecontracted medical institutions.
? The Company is committed to solvingthe problem of schooling, fromnursery to compulsory junior highschool, for the children of employeesin need.
Healthcare Benefits
Children EducationBenefits
Leisure sports activityin Nankou IndustrialPark
Mountain climbingorganized by SANYRenewable EnergyBlade Company
Care activity foremployees' families
Spring Festival activity
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
Excellent Quality
3837
Employee Communication and SatisfactionDemocratic ManagementWe respect employees' freedom of association and the right of collective bargaining, gradually improve the policyfor democratic communication and steadily promote the democratic management mainly in the form of staffcouncils and labor unions. During the reporting period, the Company promoted the establishment of the laborunion and set up the first Labor Union Committee, the Financial Review Committee, the Committee of FemaleEmployees and other organizations. In the future, we will actively carry out negotiations on important mattersconcerning the immediate interests of employees and the revision of major policies through the labor union.Besides, we will promote the signing of collective agreements on occupational health and safety, training andcareer management, anti-harassment and anti-discrimination and other issues, so as to effectively safeguardthe rights and interests of employees. During the reporting period, the Company convened a staff council todeliberate and approve the Management Scheme for 2023 Employee Stock Ownership Plan. By doing so, theCompany improved the benefit-sharing mechanism between the Company and employees to enhance thecohesion among employees and the competitiveness of the Company.Proactive CommunicationDuring the reporting period, the Company continued to implement the management process for handlingemployee complaint via email, internet platforms, mobile apps, and other channels. The Company adopteda hierarchical management approach with feedback verification at each level, ensuring effective and timelyresolution of issues raised by both domestic and overseas employees across all levels. Monthly employeerepresentative symposiums were conducted to help employees keep updated with our developments and toaddress their demands regarding office arrangements, accommodations, cafeteria services, transportation, andother services. During the reporting period, the Company received a total of 259 complaints and suggestionsfrom employees regarding property management, cafeteria services, fleet management, security management,reception management, etc. In response, we organized specialized symposiums and assigned dedicatedpersonnel to provide explanations and address concerns, achieving a timely response rate of 100%.
Achieving a timely response rate of
100%
Case: Proactive Human Resource Services for the Benefits of Employees
In June 2023, the Human Resources Departmentorganized a "Human Resources Service Day" eventto enhance employees' understanding of humanresources policies and procedures. Through on-site Q&A sessions and the distribution of brochures,employees were informed about social security, housingprovident fund, and certificate issuance procedures.With extensive participation by employees, this eventserved to address the concerns of employees andeffectively communicate human resource policies tothem.
Human Resources Service DayEmployee Grievance Flowchart
? All grievances will be handled inan appropriate manner? The Company requires that thedetails such as names of thoseinvolved in the grievance be keptstrictly confidential? The Company prohibits any formof retaliation against anyoneinvolved in a grievance
If the employee isnot satisfied withthe decision of theinitial state andprovides detailed andreasonable reasonsfor further grievance,the final grievance will
be initiated
If the grievance isnot resolved, thepreliminary grievancewill be initiated
Employees may exercise the right of grievance,indictment, or reporting when they believe theirrights and interests have been violatedAn employee raises a grievance to his/herimmediate supervisorInitial grievance: Investigations and interviews areconducted by the Human Resources Departmentand the handling recommendations will beprovided within 14 days of the completion of theinvestigationFinal grievance: Investigations and interviews areconducted based on new evidence and reasonsby the Human Resources Department and finalhandling recommendations will be provided within14 days of the completion of the investigation
Employee Satisfaction SurveyThe Company conducts an Employee Satisfaction Survey every year to track employee satisfaction from variousaspects of daily operations, driving management optimization and organizational efficiency. During the reportingperiod, all employees participated in the satisfaction survey. The final scores reached 4.02 out of 5, maintaining aconsistently high level.
The final scores reached
4.02
out of 5, maintaining a consistently high level.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
Excellent Quality
4039
The Company is dedicated to meeting the increasingly diverse personal and occupational development needsof employees, aiming to enhance their professional skills and overall competencies. Efforts are focused onproviding career guidance for all employees, effectively advancing talent development in alignment with theCompany's strategic goals. We advocate for the concept of "integrated training" and have established a trainingsystem that covers all employees and spans their entire careers. Our aim is to inspire proactive learning andprogress among employees. During the reporting period, we continued to optimize the training system, revising26 relevant policies and processes regarding training management, demands analysis, effectiveness evaluation,and course development. We are committed to developing a portfolio of high-quality training programs fortalents. The efforts we made include optimizing a range of key initiatives such as the Mentor-Mentee Program,Supervision Program, internal training courses, talent sponsorship for further education, and professionalcertification.
During the reporting period, we established a goal-centered performance evaluation system for all employees.Diverse methods were applied based on job levels and positions, ensuring the comprehensiveness andobjectivity of the performance evaluation.We have established two career development paths in professional and management roles, spanning 15categories such as R&D technology, IT, and human resources. This initiative aims to align employees' careerprogress with the Company's strategic objectives, thereby achieving a win-win situation for both employees andthe enterprise.
Training and Development
Employee Training System
Employee Career Development
Key Performance:
Participants (person)5,721
Average training hours among employees (hour)
104.9
Training investment (million CNY)
2.45
Training hours (hour)600,191Coverage (%)100%
? In 2023, we held company-level centralized learning andassessment activities suchas Project Managementand Digital Transformation,covering 4,045 employees.? We conducted 19 orientationtraining sessions for newlyrecruited experiencedemployees and 89 pre-servicetraining sessions for workers,with a 100% coverage for bothtypes of training.
Training for All Staff
? The Company has formulatedthe Management Measuresfor Sending OutstandingEmployees for FurtherEducation to provide thetalents with opportunities forfurther education, and to helpthem meet requirements forhigher-level positions.
Talent Cultivation
School-EnterpriseCollaboration
R&D personnel and technicians
The technical staff are evaluated every year based on their level of professionalism.If their level of professionalism increases, their remuneration and benefits will alsoincrease accordingly
Career Advancement Path for Management Staff
Career AdvancementPath for Technical Staff
Job Promotion
Workperformance, jobrequirements,and talentdevelopment
Performanceappraisal results
Performance appraisal results andcurrent job levels
Those whomeet the jobrequirementsare eligible forpromotion
Offer onepromotionopportunity every6 months
Offer the promotion opportunityevery 6 months/1 year/2 years
Rank PromotionJobclassificationJobranks
Jobranks
EvaluationcriteriaEvaluationcriteria
Promotionopportunities
Targetaudience
Promotionopportunities
Promotionopportunities
DirectorStaff
SeniormanagerTopmanagement
Manager
New hiresJunior staff
Middle-level
staff
Senior staffExpertSenior expert
Employee
? The Company has deepenedpartnership with famousuniversities such as Universityof International Businessand Economics and BeijingUniversity of Technology tostrengthen school-enterprisecollaboration. Meanwhile,the Company has providedhigh-quality career guidanceand internship opportunitiesfor university students andworked with universities tocreate training bases.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
Excellent Quality
4241
SANY Renewable Energy follows the requirements of the ISO 45001 occupational health and safetymanagement system to carry out management work. The Company has formulated the Employee Health andSafety Management Manual as a mapping document for managing the occupational health and safety of allemployees, including regular employees, outsourced worker, and interns. We continuously refine and solidifythe management responsibilities of each department and position, requiring top-down safety commitments andbottom-up signing of safety responsibility letters. We strive to promote the compliant and orderly operation of theoccupational health and safety management system. The Company has 5 manufacturing and operation sites(Nankou, Huilongguan, Tongyu, Zhangjiakou and Shaoshan) that were accepted and under stable operationfor over a year. All the 5 sites have also obtained the ISO 45001 Occupational Health and Safety ManagementSystem certification. And Hunan SANY Smart New Energy Design Co., Ltd., a major developer of wind farms,has obtained the certification as well.
Occupational Health and Safety ManagementSystem
SANY Renewable Energy upholds the management philosophy of "people-oriented, safety first". With riskmanagement at the core, we continue to optimize our occupational health and safety management systemsand improve our capabilities to respond to risk incidents. We are committed to providing a zero-incident workenvironment that promotes health and safety for all employees, including regular employees, outsourcedworkers, and interns.SANY Renewable Energy strictly abides by the laws and regulations on occupational health and safety,including the Work Safety Law of the People's Republic of China, Law of the People's Republic of China on thePrevention and the Control of Occupational Diseases, and the Fire Protection Law of the People's Republicof China. The Company regularly reviews the compliance calendar, identifies non-compliant managementpractices, equipment, and facilities, formulates rectification plans, and ensures the compliance of the work safetymanagement.
Occupational Health and Safety
Case: "New Wind Plan" Cultivates Future Core Talents
The "New Wind Plan" is a training programtailored for fresh graduates, focusing onnurturing future core business talents. Thisprogram aims to select young talents whoembrace the Company's culture, possessprofessional capabilities, and demonstratehigh potential, and to help them enhance theircomprehensive abilities. In 2023, a total of319 fresh graduates participated in the "NewWind Plan". Through a series of training andselection activities, including CEO meetings,mentorship guidance, and off-the-job training,93 fresh graduates entered the talent pool,laying a solid foundation for the Company'slong-term development.
The "New Wind Plan" i
100%
obtained the ISO 45001 Occupational Health and Safety ManagementSystem certification
We attach great importance to the nurturing and utilization of innovative and technical talents. Flexible anddiverse methods have been adopted to select and promote R&D innovators as well as outstanding youngtalents. We continue to enhance our premium talent development programs such as the Mentor-MenteeProgram, Supervision Program, Triple-Wind Program, Torch Program, and professional certification. We havenurtured a batch of young leaders through incentives such as the R&D project incentive and special incentive.This has significantly improved the innovation drive and expanded the talent reserve of the Company. The"Craftsman" technician assessment program, targeted at operators, aims to cultivate a group of technicians witha solid theoretical foundation and outstanding professional skills in the wind power field.During the reporting period, a total of 151 operators assessments and 12 senior technician assessments werecompleted. In addition, we are committed to creating favorable conditions for internal job transfers and talentmobility across departments to cultivate versatile talents in the wind power industry. During the reporting period,a total of 220 employees were transferred within the Company. By the end of the reporting period, the coretechnician turnover rate of the Company was only 6.61%.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
Excellent Quality
4443
During the reporting period, the HSE Management Department of the Company issued 21 documentsand guidelines, including the Policy on Safety Risk Identification and Graded Control, the Policy on SafetyManagement of Electrical Tools, and the Guidance on Noise Control Management, in response to changes inbusiness and manufacture. The HSE Management Department also organized the revision of 16 documentssuch as the Policy on Emergency Management of Workplace Safety, the Policy on Hazardous ChemicalsManagement, and the Policy on Safety Education and Training Management, further solidifying the system ofwork safety.
Work Safety
Safety Risk Identification and ManagementIn addition to weekly safety inspections, routine inspections, and cross-team inspections, the Company alsoutilized the HSE digital platform for information management, including hazard rectification and accident reporting.For safety issues identified, a hazard management record was created to document key information such as thecontent, location, responsible department, and person in charge, to ensure the timely rectification of hazards. Inaccordance with the Hazardous Sources Identification and Risks Assessment Control Procedure, the Companyregularly conducts identification and assessment of potential hazards. Based on the results, the Companyadopts graded control measures, focusing on the control of high-risk areas and manufacturing workplaces andleveraging all relevant technical devices such as video monitors, smoke alarms, and temperature-sensitivealarm systems. The Company also conducts regular inspections and special checks, and realizes the integrationof human, devices, and technologies as three lines of defense. In addition, we conduct regular safety inspectionsof devices and keep thorough records to ensure their safe operation.A clear graded reporting and investigation process for incidents has been established to facilitate ongoingoptimization of incident handling procedures. As of the reporting period, the HSE Management Department andSafety Committee had conducted a total of 80 safety inspections and patrols across all parks, factories, andwind farms, identifying and rectifying a total of 739 hazards. Through self-inspections, units and departmentsdiscovered and rectified a total of 14,566 hazards, including 340 high-risk hazards of class A.
On-site inspections of work safety
The first person responsible for the overall HSE work in the Company
Chairman of the Company
?Review and approve work objectives and development plans?Develop policies, rules and processes?Build a sound responsibility system to monitor the performance of main responsibility
Work Safety, Occupational Health, Fire Safety, and Environmental Protection Committee
(with the General Manager of the Company as the Director)
? Following the requirements of "the person in charge takes the responsibility" and upholding theprinciple of "making safety management an integral part of the management of the industry,business, and manufacture and operations", the heads incorporate work safety into the prioritiesof the departments, and are directly responsible for the management of work safety within theirdepartments respectively
Heads of Departments, Branches and Subsidiaries
HSE Management Responsibilities ofEach Department
……
?Organizeregular orirregular safetyinspectionswithin thedepartment
?Conduct hazardidentification andrisk assessmenton a regularbasis
?Strengthenthe safetymanagement ofthe department,and give full playto the role ofworkshop andteam leadersand securitypersonnel
?...
?Formulate HSErisk assessmentand controlmechanismsfor newtechnologies,materials,processes, andequipment
?Develop safeoperatingproceduresfor equipmentand toolingand measuresfor handlinghazards inequipment andtooling operation
?...
?Implementsafetymanagementof wind farmmaintenance
?...
? Provide factory-level safetytraining inthe three-level trainingsystem for newemployees
?Monitor andinspect laborsafety andoccupationaldisease hazardsassociated witheach position ofdepartments
?Implementpolicies andstandards forwork-relatedinjury insurance
?...
?Prepare safetyprecautions fornew projectsand conductrelevant publicitywork
?Implementsafetymanagementduring prototypetesting
?...
Manufacturing
Department
DigitalizationDepartment
ServiceCompany
HumanResourcesDepartment
R&DInstitute
?Organize the formulation of policies, operating procedures and emergency relief plans?Conduct comprehensive supervision and management of work safety? Formulate work safety plans of the Company and assess the work safety responsibility of alldepartments?Organize the Company's emergency drills and safety education and training
HSE Management Department
Top-Down Safety Commitments
Bottom-Up Signing ofSafety Responsibility Letter
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
Excellent Quality
4645
To regulate the handling of hazardous chemicals and avoid potential harm to employees, we have formulatedthe Policy on Hazardous Chemicals Management. Our objective is to prevent and control leaks, fires,poisonings, and explosions during the transportation, storage, use and disposal of hazardous chemicals, andto regulate the scrapping and disposal of hazardous chemicals. Furthermore, the Company provides regulartraining for employees who handle hazardous chemicals in spray booths or manage hazardous chemical wasteto ensure their compliance with operational standards. During the reporting period, no safety accidents related tohazardous materials occurred.
Hazardous Material Management
We consider the building of a culture of workplace safety and the cultivation of safety awareness amongemployees as the priority in our safety management. According to the Company's Policy on Safety Educationand Training Management, we provide safety training for all employees, including outsourced workers, interns,and temporary workers. We also conduct special training for new employees when adopting new processes,technologies, materials, or equipment. During the reporting period, we required each business unit to conductmonthly safety training and each manufacturing unit to conduct weekly special safety training. This aimed toenhance the frequency and relevance of safety training. Additionally, all chief safety officers and safety leadersare required to attend special safety training and obtain certification upon assessment.Furthermore, we continuously update our Collection of Typical Safety Hazards to help employees understandand identify potential safety hazards in the workplace. By the end of the reporting period, we had organized19 company-wide safety training sessions, with a total of 544 trainees. In addition, we held 12 special monthlysafety training sessions with around 28,867 participants, averaging 24 hours of safety training per individual.Furthermore, we administered 12 safety knowledge and skills exams, with a total of 27,892 participants.
Safety Awareness Promotion and Training
We organized
company-wide safety training sessionswith a total of
trainees andwith around
28,867
participants.held
special monthly safety training sessions
The average number of hours of safety training perperson reached
hours.We also administered
safety knowledge and skills examswith a total of27,892 participants.
Management of Relevant PartiesWe apply the same safety standards to contractors, outsourced workers, interns, and other relevant parties asthose we place on our regular employees. In 2023, the Company revised the Management Policy for RelevantParties to strengthen control over relevant parties and external personnel, standardize safety notificationprocedures and content, and conduct advance qualification review of operating units. We strictly implement themanagement requirements and sign the Agreement on the Management of Occupational Health and Safetyand Environmental Protection with relevant parties to define the responsibilities of work safety managementand necessary safety measures. We require relevant parties to provide safety and environmental protectionrelated construction plans and conduct strict review and archival. New employees are required to take trainingand exams before working on site. Furthermore, we require temporary entrants to the factory, such as visitorsand personnel from contractors, sign the safety notification forms. This aims to ensure that external individualsunderstand our safety management regulations and the risk issues.
Case: HSE Information Management of SANY Renewable Energy - Three PresentPlatformAs a modern smart manufacturing factory, SANY Renewable Energy utilizes the camera visionrecognition technology to monitor the "6S", personnel safety and attendance as well as the materialusage and storage relating to manufacture. The data is uploaded to the cloud for smart analysis,achieving online and timely safety monitoring. During the reporting period, the HSE ManagementDepartment conducted online safety monitoring through the three present platform.
Work safety training for relevant parties
Case: Promoting Work Safety and Conducting Safety Training for Relevant PartiesIn 2023, the HSE Management Department of the Company organized a total of 245 safety trainingsessions for relevant parties across various industrial parks, with a total of 5,773 participants. Duringthe training, the Company popularized the knowledge of manufacturing characteristics, safety redlines, and emergency safety management to partners. Additionally, the Company distributed materialssuch as the collection of typical safety hazards and the chart of one hundred work safety pitfalls to helpemployees effectively recognize and avoid risks.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
Excellent Quality
4847
The Company has established the Policy on Safety Rewards, Punishments & Evaluations to specify theresponsibilities and requirements for work safety. By implementing reward and punishment measures, we aimto motivate all employees to actively participate in work safety activities, thereby enhancing safety awarenessand skills. During the reporting period, the Company continued to promote HSE portrait management, assessingand rating safety performance of departments at all levels by workplace injury incidents, hazard rectificationrates, safety education training and exams, and customized tasks. This approach quantitatively evaluates safetyperformance to incentivize employees at all levels to fulfill their work safety responsibilities.
Safety Performance Assessment
Key Performance:
Lost time incident rate of direct labor
23.71%
Lost time serious incident rate of contractors10%
Lost time serious incident rate of direct labor
3.19%
Number of work-related fatalities
Number of work injuries
Lost time incident rate of contractors80%
Annual work-related fatality rate
Lost days due to work injury
Adhering to the principle of "thinking ahead for complete safety", we have formulated the Policy on EmergencyManagement of Workplace Safety and emergency response procedures for safety accidents. We haveestablished emergency response teams, stocked emergency supplies, and conducted emergency drills asrequired by the policy. In addition, each subsidiary and department has developed emergency drill plans andconducts drills on different themes every two months to improve emergency response capabilities and handlingproficiency. During the reporting period, the HSE Management Department, considering the actual manufactureof the Company, organized a total of 11 emergency response drills for poisoning and asphyxiation in confinedspaces, fires, environmental accidents, and lifting and hoisting accidents.
Emergency Drills for Safety Accidents
Emergency drills for work safety
The Company continues to optimize the Fire Safety Management system and implement fire control measuresby regularly inspecting fire equipment and organizing irregular special spot checks. Meanwhile, the Companycultivates the practical fire safety abilities of all employees through professional training and regular fire drills.In this way, employees can effectively use fire extinguishers and hydrants in real-life scenarios. During thereporting period, the Company organized a total of 4 special training sessions and 7 emergency drills on firesafety. The Company also conducted the "Fire Safety Skills Competition" during the Fire Safety Month inNovember 2023.
Fire Safety Management
Fire Safety Month event with the theme of "Prevention First, Life First"
Legally obliged to monitor the health condition of employees exposed to occupational disease hazards, theCompany has formulated the Regulations on Warning and Notification of Occupational Disease Hazards andthe Regulations on Occupational Health Monitoring and File Management to standardize the managementof occupational health monitoring. Employees exposed to occupational disease hazards are required toundergo pre-job, on-the-job, and off-the-job physical examinations. We adhere to the "one employee, onerecord" requirement to track the occupational health conditions of employees. We prioritize occupational healthtraining for all employees. During the reporting period, we conducted online training to educate employees onoccupational disease prevention, hazards identification, and proper use of protective equipment, in order toenhance their awareness of occupational health protection.In addition, the Company has entrusted third-party organizations to identify occupational disease hazards everyyear and assess the current occupational disease hazards every three years. This initiative ensures the effectiveidentification and control of occupational hazards. For risks identified, we post notification cards for occupationaldisease hazards to ensure that employees are aware of the hazards at their posts and take protective measuresas required. Furthermore, we distribute labor protection supplies and ensure their correct usage based onthe assessment result of current occupational hazards. We keep records of the distribution and usage of thesupplies, and regularly inspect their quality. By the end of the reporting period, the Company had no new casesof occupational diseases.
Occupational Disease Prevention
The mental health of employees is crucial for the Company's development and the personal growth ofemployees. Therefore, we consider it as a key aspect of safeguarding employee's health. During the reportingperiod, we released the Guidance on the Protection of Employee's Mental Health. This guidance aims to educateemployees on basic mental health knowledge and to assist managers at all levels in mastering basic methods ofmanaging employee mental health.
Protection of Employee's Mental Health
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Business Integrity
CommunityResponsibilities
Excellent Quality
51 R&D
Innovation
55 Intelligent
Manufacturing
57 Supply Chain
Management
61 Customer
Services
Excellent QualitySANY Renewable Energy firmly believes that quality changes the world. Therefore, we arecommitted to improving our R&D capabilities and product quality management, strengtheningthe construction of sustainable supply chain, optimizing customer service, and workingwith value chain partners to jointly promote the high-quality development of the wind powerindustry. Our goal is to better meet customer needs with superior products and services andto promote the efficient use of clean energy.
5251
SANY Renewable Energy upholds the concept of "every bit of achievements originates from innovation". Wecontinuously increase investment in technological R&D and introduce international high-end talents. We haveestablished an international, specialized and diversified R&D platform covering the Wind Turbine ResearchInstitute, Testing and Inspection Center, and Blade R&D Institute. Additionally, we have set up the R&DManagement Office and multiple R&D institutes responsible for the R&D of products and technologies. Bythe end of the reporting period, the Company had a total of 853 R&D personnel, accounting for 14.91% of allemployees.
R&D InnovationR&D Management System
We have restructured the quality management system and incentivized employees to improve product quality throughmulti-dimensional quality improvement activities. These efforts align with our globalization strategy and aim to meetthe increasing demands for product quality from domestic and international customers. In 2023, our outstanding QCproject won the Gold Award at the Annual Meeting of the China Association for Quality and the 2nd Global Pursuit ofExcellence Conference.The Company has formulated and strictly implemented quality assurance policies and processes such as the SANYRenewable Energy Management Manual, the Quality Award and Punishment Management System and the SupplierQuality Manual to ensure the quality and safety of products throughout their life cycle. We have established the qualitymanagement system up to the ISO 9001 standard and obtained the certification. Continual improvement has beenachieved through regular inspections and benchmarking of our manufacturing bases and wind farms. By the end of thereporting period, the manufacturing bases that have obtained ISO 9001 certification include SANY Renewable EnergyNankou Nacelle Company, Chenzhou Nacelle Company, Tongyu Nacelle Company, Beijing Nacelle Company,Shaoshan Blade Company, Zhangjiakou Blade Company and Tongyu Blade Company.The Company also continues to promote digitalization in quality management. During the reporting period, theCompany launched a total of 8 modules and 176 demands in the digital quality management system. The online rate ofthe quality management process increased from 77.62% in 2022 to 83.67% in 2023.An excellent quality management system provides a solid guarantee for SANY Renewable Energy to produce high-quality wind turbine products. During the reporting period, the Company obtained the certificate of Mode A typeapproval for 14 domestic wind turbine models, 3 international wind turbine models, and 5 wind turbine blade models.This demonstrated our robust quality assurance capabilities in mass manufacture.
Product Quality Management
Wind Turbines Research Institute Test and Inspection CenterBlade R&D InstituteTransmissionComponents InstituteElectrical TechnologyInstituteOverall Wind TurbinesInstitutOffshore TechnologyInstituteOversea TechnologyInstituteStructural ComponentsInstitute
Control TechnologyInstitute
Digital Simulation InstitutR&D ManagementOfficeOperation and MaintenanceTechnology Institute
Wind TurbinesTesting InstituteComponentTesting InstituteTesting ManagementInstituteOverall InstituteComposite MaterialTechnology InstituteR&D ManagementOffice
Structure of the R&D platforms of SANY Renewable Energy
Product R&D and Innovation
The Company focuses on the R&D of offshore wind turbines and onshore large-megawatt wind turbines, andcontinues to promote the technological innovation. During the reporting period, our platform 919 completed thedevelopment, trial manufacture, hoisting and grid connection of four onshore prototypes. Besides, our platform922 released the world's largest onshore wind turbine. The Company also completed the construction of theSANY Renewable Energy Testing Center, which is capable of verifying the reliability of key components such aslarge-megawatt blades and generators.
Wind turbines and blades obtaining the certificate of Mode A type approval
SI-17250H105 CQC CertificationSI-17267H100 CQC CertificationSI-183625H105 CQC CertificationSI-193455H110 CQC Certification
SI-18350H105 CQC CertificationSI-18365H105 CQC CertificationSI-193625H110 CQC Certification
SI-16840 UL Certification
SI-19367H110 CQC CertificationSI-19350H110 CQC CertificationSI-17265H100 CQC CertificationFB82050 Enhanced BladesCQC CertificationSI-16848/16850 UL Certification
The Company had a total of
R&D personnel, accounting for
14.91 %
ofall employees
In 2023, our investment in R&D reached
million CNY, with an increase of
13.45%
compared to the previous year, accounting for
5.83%
of our revenue.
The Company launched a total of
modules and
demands in the digitalquality management system. The online rate of the quality management processincreased from
77.62%
in 2022 to
83.67%
in 2023.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
5453
In 2023, the Company attended multiple well-known wind power related activities at home and abroad, such asthe HUSUM Wind 2023 in Germany, the China Wind Power 2023 and the China (Jiangsu) Wind Power IndustryDevelopment Summit Forum (Offshore Wind Power Sub-Forum). In these activities, we discussed industrydevelopment trends with government agencies, industry peers and industry experts, and shared our practicalexperience in R&D and innovation with other participants.
SANY Renewable Energy actively engages in industry-university-research cooperation activities. Everyyear, we conduct extensive patent analysis projects with partner universities, focusing on key products andtechnologies. We also combine industry trends and patent distribution to provide guidance and support for theR&D innovation of products and technologies. This effort contributes to the identification of R&D opportunitiesand offers insight into our R&D innovation and patent layout direction.
Industry-University-Research Activities
To stimulate the potential of R&D personnel in innovation, the Company continuously improves innovationincentive measures and intellectual property management. In addition, the Company has formulated and strictlyimplemented a series of rules such as the R&D Patent Work and Management Regulations, the ManagementRegulations on Internal Title Appraisal of R&D Department and the Measures for Incentive Management ofR&D Projects. By the end of the reporting period, the Company had obtained a total of 796 patents, including207 invention patents (covering 3 Spanish invention patents), 584 utility model patents and 5 design patents. Inaddition, the Company has obtained a total of 215 software copyrights.The Company is committed to strengthening the ability in the digital management of intellectual propertyrights. To realize online and standardized management of business processes on intellectual property rights,the Company has implemented an intellectual property rights management strategy that is "standardized,online, automated and intelligent". The Company has achieved 100% lifecycle online management on softwarecopyrights. The digital system can be used for downloading application documents, uploading compileddocuments for approval, searching for archived documents and other relevant matters.
Intellectual Property Management
Case: Comprehensive Survey and Analysis of Offshore Machine Patents inCollaboration with Hunan University of Science and Technology
In 2023, the Company collaborated with Hunan University of Science and Technology to conductthe "Comprehensive Survey and Analysis of Offshore Machine Patents" project. We conducted acomprehensive survey and analysis of patents regarding the transportation, installation, and operationand maintenance of offshore wind turbines. This provides guidance for our on-site technical researchand patent layout for offshore wind turbines.
SANY Renewable Energy attended theChina Wind Power 2023
SANY Renewable Energy attendedHUSUM Wind 2023 in Germany
Performance on Intellectual Property Rights in 2023
Including inventionpatents
Patentsin total
Including designpatents
Including utility modelpatents
Software copyrights
New patents in 2023
The Company also actively assumes the role as a leading global provider of cleanenergy equipment and services. During the reporting period, the Company participatedin the formulation and revision of
national or industrial standards and
groupstandard. The Company has participated in the formulation and revision of
nationalor industrial standards and
group standards in total.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
5655
Adhering to the development philosophy of "high quality, high efficiency, high flexibility and competitive cost" inwind turbine manufacturing, SANY Renewable Energy aims to become a benchmark enterprise for intelligentmanufacturing in the wind power industry. Through automation, lean operation and digitalization, the Companyhas taken a leading role in intelligent manufacturing in the industry.
Intelligent Manufacturing
Increasing product qualityIn 2023, we invested an intelligent manufacturing line on hubs in the turbine manufacturing factory, increasingthe overall manufacture efficiency by 14.3% and realizing 100% online quality inspection rate. To increase theconsistency of products, we invested an intelligent manufacturing line on coils in the generator factory, achievingan automation rate of over 60% in the working process.Enhancing manufacturing efficiencyIn 2023, the Digital Twin Meta Platform in Shaoshan Blade Factory of the Company was officially launched,aiming to improve the efficiency on equipment operation and maintenance (O&M), monitoring and management.The platform, which includes 8 modules such as the manufacture, storage and energy, can realize 100% three-dimensional modeling of the plant and real-time visualization of the manufacturing status.
Improving manufacturing flexibility
In 2023, we built an intelligent manufacturing 2.0 factory with flexible and intelligent manufacturing lines inChenzhou Factory. Through the introduction of a highly integrated operating island and a highly compatibleautomatic positioning system as well as a simulation technology based assembly path, the factory has realizedswitching between manufacturing equipment of 3-15 MW wind turbines within 10 seconds. Thus, the assemblyefficiency of turbines has been increased by 25%.
Manufacturing line for intelligent manufacturing of turbine 2.0 in ChenzhouIndustrial Park of SANY Renewable Energy was officially launched
Journey Towards Intelligent Manufacturing for SANY Renewable EnergyThe park has the industry's first 5G fully-connectedintelligent factory. which has realized the full connectionof Man-Machine-Material-Method-Environmentelements as a digital factory. The park has pioneeredthe automated operation island mode for large parts,realizing the automatic assembly of large parts inkey processes such as yaw system pre-assemblyand hub pre-assembly. The park is equipped withpulsating flexible manufacturing lines, which realize themixed line manufacture of a full range of products. Themanufacturing and operation management platform(MOM system) enables accurate and automaticdistribution of large components. As a result, theautomation rate of key processes reaches 40%, theautomated logistics distribution rate of large partsreaches 50%, the number of operators in the yawsystem and hub pre-assembly stations is reduced by 3,and the per capita output is increased by 58.7%.
Nankou Industrial Park 1.0
Based on Industrial Park 2.0, Future Factory 3.0 willadd automated production lines for large megawatttransmission chains. This will enable the park to realizesuch functions as automatic overturning of bearinghousings and automatic docking of spindle systemsand gearboxes to further enhance the automationand flexibility of the manufacturing lines, facilitatingthe flexible manufacture of 3-15 MW turbines. Inaddition, Future Factory 3.0 will innovate the digitaltwin technology to optimize the assembly process ofnew turbines, reduce the investment in preliminaryR&D tests, shorten the manufacturing developmentcycle, and further improve efficiency and safety.Furthermore, the application of AI technology willcontribute to automatic inspection of product quality andthe intelligent dispatch of light- and heavy-duty AGVs,which will speed up the manufacture while reducingresource consumption.
Future Factory 3.0
?Achieving an automation rate of over
60%
in the working process.?Realizing
100%
three-dimensional modeling of the plant and real-timevisualization of the manufacturing status.?Assembly efficiency of turbines has been increased by
25%
.
The park adopts the pulsating flexible intelligentmanufacturing lines, realizing the whole-processautomation of yaw system pre-assembly and hubpre-assembly. In this way, the assembly efficiencyis increased by 25% compared with that of NankouIndustrial Park 1.0, the number of operators isreduced by 5, and the per capita output is increasedby 45%. In addition, adopting the MOM system, thepark realizes the integrated mobilization of orders,3D warehouses and AGVs. The overall distributionof the manufacturingline and the delivery of largeparts to the line are completed by heavy-duty AGVs.The distribution of small and middle-sized partsis completed by light-duty AGVs. The automateddistribution rate is 75%, and the number of logisticspersonnel is reduced by 25%.
Chenzhou Industrial Park 2.0
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
Optimizing manufacturing cost
In all general assembly factories and generator factories, we have launched the manufacturing and manufacturingplatform (MOM system) in an all-round way through the entire process from planning, manufacture and operation,equipment management and quality management to logistics management. In this way, we have realized online andintelligent management from marketing, R&D, manufacturing to services, etc., and reduced wastes and delay in themanufacturing process. Our manufacturing costs have been reduced by about 5%. In addition, the Company hasconnected the internal global supplier portal system (iGSP system) to the IP address management system (IPAMsystem), realizing parking reservation management for suppliers making deliveries and pick-ups within the Company'sparks. By achieving precise control for parking spots, the use ratio of parking spots within the Company's parks hasincreased by 20%.In the future, SANY Renewable Energy will continue to deepen the fusion of digitalization and intelligentization, andpromote data integration and technology empowerment. With efforts to building turbine 3.0 "lighthouse" factories,generator 2.0 "lighthouse" factories and blade 2.0 super factories, the Company will provide the industry with matureintelligent manufacturing solutions, so as to enhance the quality and efficiency of the entire manufacturing process.
5857
SANY Renewable Energy is fully aware of how a stable and competitive supply chain may positively impact theCompany's business. We have established and continuously improved the supply chain lifecycle managementsystem and the procurement management system. A comprehensive and sustainable management system hasalso been formed in key processes such as category sourcing, supplier acceptance, procurement execution,quality management, cost management and supplier exit. The Company's Procurement and Department andQuality Management Department have specialized teams for new product procurement, mass productionprocurement, procurement execution and supply chain lifecycle management respectively.
Supply Chain Management
Sustainable Supply Chain Management System
Managing suppliers from multiple dimensions with the Sustainable Procurement Policy as a managementguide and the Supplier Code of Conduct as a management principle
Policies and Commitments
Requiring existing key suppliers to complete sustainability self-assessment questionnaires so as toconfirm their risk levels and take appropriate management actions
Risk Assessment
Encouraging suppliers to improve the management process according to their risk levels
Response and Measures
Organizing suppliers to promote sustainability, developing sustainable incentives, and improving suppliersustainability performance
Capacity Building
Policies and CommitmentsSANY Renewable Energy consistently works to build a sustainable procurement system and highly valuesenvironmental, social and business ethics factors throughout the supplier lifecycle management. This helps toincrease the sustainability of the supply chain and lower the risk of environmental and social responsibility. Wereleased the Sustainable Procurement Policy in 2023. This policy outlines SANY Renewable Energy's concernsand management principles regarding environmental and social impacts in the supply chain, and empowerssuppliers to improve their environmental and social management capabilities in order to work together for asustainable supply chain.
Material ESG Issues in Sustainable Procurement Policy
Environmental
?EnvironmentalManagementSystem? Toxic emission andwaste discharge?Resourcemanagement
Social
? Labor and humanrights? Health and safety?Conflict minerals
Governance
?Business ethics
The Company always improves the requirements for sustainable procurement management. In 2022, werequired all suppliers to sign a framework contract that includes provisions on occupational health and safety andenvironmental protection. Based on this, the Company issued the Supplier Code of Conduct during the reportingperiod, which updates and clarifies the behavioral requirements for suppliers in areas such as human rights,resource conservation, conflict minerals and business ethics. All existing suppliers and potential suppliers arerequired to sign a procurement framework agreement with us that includes the provisions of the Code. They allhave to follow sustainable development requirements. In 2023, the Company achieved a 92% sign-up rate aftersigning a Supplier Code of Conduct and a procurement framework agreement with suppliers that includes fullESG requirements. By 2024, the Company hopes to achieve and maintain a 100% sign-up rate.
The Company achieved a
92%
sign-up rate. By 2024, the Company hopes toachieve and maintain a
100%
sign-up rate.
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
6059
Risk AssessmentThrough the Supplier Management System, Supplier Quality Management Manual, Quality Agreement Managementand Component Development Process, we carry out risk level assessments of suppliers in the areas of new supplieracceptance, new part product development, mass manufacturing process control and continuous improvement. Fromfour perspectives, i.e., quality management, R&D process manufacture, and operation management, suppliers arecategorized into five levels: A, B, C, D and E. Among them, A/B/C is a low-risk supplier that can be accepted; D canbe accepted if reviewed again to reach A/B/C after a 6-month adjustment period; and E cannot be accepted. Everymonth, we evaluate and categorize our existing suppliers based on five criteria: incoming material quality, manufacturequality, after-sales quality, quality assurance capability and their integrity. We promptly update their status when theyjoin or leave. We monitor the high-risk suppliers that perform below expectations, and provide them with tailoredsupport plans.In addition, we further improve the sustainability risk assessment of the supply chain to strengthen its resilience. Bydistributing and collecting corporate social responsibility questionnaires, the Company requested 80 existing keysuppliers to evaluate their environmental and social practices in 2023. The participating suppliers accounted for morethan 90% of the total procurement in 2023. The Company is gradually distributing social responsibility self-assessmentquestionnaires to more suppliers and intends to choose suppliers for on-site social responsibility audits during theannual audit. At the same time, supplier training will be held to raise suppliers' awareness of sustainable developmentand help them improve their sustainable procurement management system.
Response and MeasuresSANY Renewable Energy views supply chain management as a key aspect of its operations and success, andhas developed several control measures and processes to oversee the whole procurement process. To bettermanage sustainable risks and opportunities in the supply chain, SANY Renewable Energy has incorporated anumber of ESG control methods into the procurement process.Acceptance and Review of Suppliers? SANY Renewable Energy evaluates new suppliers on a variety of capabilities, including quality, research anddevelopment, process, and sustainable development. We also confirm that all their ISO 9001 Quality ManagementSystem certification, ISO 14001 Environmental Management System certification and agency certificates are stillvalid.? Suppliers are subject to an evaluation process that takes into account their policies on sustainable development,employee health and safety, talent development, climate change response strategy and carbon reduction initiatives.Only those who achieve the required minimum score are accepted as suppliers.? Suppliers must promise to comply with the Supplier Code of Conduct, fulfill their responsibilities, periodicallycomplete corporate social responsibility self-assessment questionnaires, accept management status evaluations inareas such as environment, labor and human rights, and business ethics management, and report on sustainablemanagement performance.
Cultivation and Development of Suppliers
? Every year, the Company assesses suppliers' quality, delivery and sustainable development both online and offline.Based on the evaluation results, the Company develops action plans and requires suppliers to make correctionsand improvements to ensure supply stability, maintain product uniformity, and gradually improve suppliers'sustainable development performance.? To empower suppliers, we provide centralized training, and on-site quality and capability support for the suppliers,enhancing their ability to produce high-quality and highly sustainable products.? In 2023, we supported and empowered a total of 15 suppliers, improving the resilience and risk tolerance of oursupply chain.
Supplier Encouragement and Exit? SANY Renewable Energy will keep enhancing supplier incentive mechanisms to recognize suppliers who haveexcelled in sustainable areas like climate change, occupational health and safety, business ethics. This will help theCompany promote and implement sustainable and green supply chain strategy.?Suppliers will be suspended immediately if they fail to meet the minimum quality and sustainability requirements.? If there is a legal dispute or breach of laws and regulations between the suppliers and the Company, they will beimmediately removed.
The participating suppliers accounted for more than
90%
of the totalprocurement in 2023
Dimensions of the Supplier Social Responsibility Questionnaire Assessment
? System certification(ISO 45001 and SA8000)?Workingconditions,human rights, andoccupational healthand safety policies?Human rightstraining?Sustainable supplychain management?Conflict minerals
?Business ethics
policies?Business ethics
training? System certification(ISO 14001 andISO 45001)?Environmentalpolicies?Renewable energyuse?Restrictedsubstancemanagement?Climate changemanagement
?ESG governancestructure?ESG report?Grievancemechanism
ESGManagement
EnvironmentalSocialGovernance
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
6261
As a leading provider of clean energy equipment and services, SANY Renewable Energy has the capability to realizewhole lifecycle management of wind farms from pre-planning, EPC construction to O&M. In addition, the Companyconducts intensive and fine management on wind farms by means of digitalization and model innovation, to achievedigital interconnection, intelligent analysis and closed-loop optimization in the intelligent wind farm system. By deeplyintegrating with the design of the Company's turbine products, the system can make these products give full play totheir advantages.Through the building of a project management collaboration cloud, SANY Renewable Energy has built a quality andscheduling panorama and realized fine management on man-hours, working conditions, men, machines, materials,methods and environment at the project site. By using the turbine health management system and the intelligentO&M platform, the Company can realize online management for the entire O&M process of turbines. Additionally, theCompany can achieve automatic early warning of faults and conduct health diagnosis for turbine units, thus ensuringthe stable operation of wind farms.The Company's intelligent O&M platform is capable of monitoring all the turbine units at the wind farm for 7*24 hours.Relying on the big data and intelligent functions, the platform can realize online real-time analysis and prediction on unitdata. In addition, through the data screening for all units at the wind farm, the platform can identify non-optimal unitsfor improvement. Finally, the platform will realize the closed-loop management of monitoring-analyzing-forecasting-improving to continuously optimize the operating state of units.
Customer ServicesDevelopment and O&M of Wind Farms
SANY Renewable Energy adopts an on-site after-sales management model. At each wind farm, the Companywill designate one project manager who is responsible for handling product faults, conducting regular inspectionsand maintenance, and implementing technological transformation together with the after-sales service team atthe wind farm. The Company has developed a complete set of workflows for fault handling, regular inspectionsand technological transformation to ensure that after-sales services are carried out in a standard way.The Company collects customers' opinions on the improvement of the products and parts through regularinspections and questionnaires. Based on this, the Company develops and implements technologicaltransformation plans. In 2023, the Company launched a total of 192 technical transformation projects tocontinuously optimize the operating status of products sold.
Product After-Sales Management
SANY Renewable Energy adheres to the customer-oriented principle, assumes the main responsibility of"meeting customer needs and creating unique values for customers", and always maintains close contact withcustomers. Through customer satisfaction surveys, SANY Renewable Energy keeps abreast of customerneeds, and continuously improves product quality and service quality, to optimize customer experience.The Company has formulated and strictly implemented the Customer Satisfaction Management Process. TheCEO office takes the lead in conducting a customer satisfaction survey every two months to collect satisfactionscores, opinions and suggestions of customers on request response, maintenance, spare parts, product quality,product safety, etc. The Company will sort out customer requests in a timely manner and prepare a Table forRecording and Tracking Customer Return Visits. Then, the Company will require the department responsiblefor handling the customer request to make a response and provide solutions, thereby realizing closed-loopmanagement via "request verification - handling - continuous follow-up". In case of failing to promptly solve therequest in a closed-loop way, the Company will offer written explanation to the customer.During the reporting period, the Company collected a total of 49 customer complaints, all of which were solvedin a closed-loop way. In 2023, the Company conducted 6 bimonthly satisfaction surveys on all wind farmcustomers, obtaining an average score of 95.7.
Customer Satisfaction Management
Performance on Customer Services in 2023
Number ofincidentsregarding productrecall or return-to-factory repairdue to qualityproblems
Number ofcustomercomplaints
Completion rate oncustomer complainthandling100%
Customer satisfaction score
95.7
(2023)
95.3
(2022)
Capacity Building
In order to build a sustainable and green supply chain, the Company promoted supplier self-assessment of socialresponsibility and strengthened sustainable management capacity for both sides in 2023.The Company places a high value on its procurement staff members' understanding of social responsibility andmanagement skills. Thorough communication and training sessions are conducted regularly by SANY RenewableEnergy to guarantee that procurement staff members are aware of ESG best practices. In November 2023, weconducted the "SANY Renewable Energy ESG Capability Training for Business Department" activity in cooperationwith third-party professional organizations. The main training modules include an introduction to sustainableprocurement systems, methods for assessing and managing suppliers' social responsibility, and techniques fortracking supplier social responsibility performance. Through online training, the Company has provided sustainableprocurement training for 100% of our key procurement staff.Suppliers are a critical part of our value chain. Placing a high value on supplier partnerships, the Company is dedicatedto continually strengthening collaboration with suppliers in the areas of research and development, quality and productdelivery management. This will help to better meet the needs of the Company's operations and manufacture, as wellas to jointly advance the wind power industry's technological upgrading and product optimization.During the SANY Renewable Energy Annual Supplier Conference in December 2023, the Company deeplyexpressed to all suppliers the industry trend of decarbonization and our commitment to enhancing the sustainablesupply chain system while promoting the concepts of sustainability and green supply chain. To better enable oursuppliers to implement sustainable development management, the Company intends to include modules on labor andhuman rights, the environment, and business ethics into our regular supplier empowerment and training system.
The Company has provided sustainable procurement training for
100%
of our keyprocurement staff
SustainableDevelopmentManagement
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
65 CorporateGovernance
68 Internal Control andRisk Management
70 Business Ethics 72 Data Security and
Privacy Protection
Business IntegritySANY Renewable Energy believes that integrity in business is the cornerstone of theCompany in realizing stable operations. We take business ethics as our foundation in thepursuit of sustainable development. We constantly improve our governance system, andaim to create a culture of integrity. In addition, we enhance the internal control and riskmanagement mechanism, and strengthen information security and privacy protection to helpthe Company achieve steady and sustained development.
6665
Corporate GovernanceCorporate Governance StructureThe Company strictly abides by laws and regulations such as the Company Law of the People's Republic ofChina, the Securities Law of the People's Republic of China, the Code of Corporate Governance of ListedCompanies, and the Rules Governing the Listing of Stocks on the STAR Market of the Shanghai StockExchange. The Company has formulated the Articles of Association and established a corporate governancestructure consisting of the shareholders' general meeting, Board of Directors, Board of Supervisors and seniormanagement. The structure has well defined powers and responsibilities, and is operated in a standardized way.Both the Articles of Association and the corporate governance structure provide the Company with systematicguarantee for efficient operation.The Company convenes and holds shareholders' general meetings in strict accordance with relevant laws,regulations and rules such as the Rules for Shareholders' Meetings of Listed Companies, and the Articles ofAssociation. Through these measures, the Company fully respects and protects the right to know and the rightto make inquiries of investors. During the reporting period, the Company held a total of 3 shareholders' generalmeetings.The Board of Directors is responsible for the shareholders' general meeting. The Board of Directors consistsof 4 committees: Audit Committee, Nomination Committee, Remuneration and Appraisal Committee, andStrategy and Development Committee. These committees are responsible for providing advice on specialmatters and assisting the Board in making decisions. The Board of Supervisors is responsible for overseeing theCompany's financial status, important matters, the legality and compliance of the directors, managers and othersenior management in fulfilling their duties. At present, the Company has 3 supervisors, including 1 employeesupervisor.
Name ofDirector
IndependentDirector orNot
GenderMember of the
Audit Committee
Member of theStrategy andDevelopment
Committee
Member of theRemunerationand AppraisalCommittee
Memberof theNominationCommitteeZhou FuguiNoMale√Xiang WenboNoMale√Li QiangNoMale√√√GuoRuiguang
NoMaleDengZhonghua
YesMale√（with an
accountingbackground）
√√
Yang MinYesMale√（with an
accountingbackground）
√√√Cao JingYesFemale
As of December 31, 2023.
Performance on Corporate Governance in 2023
Percentage of femaledirectors
14%
Meetings of the Board ofDirectors:
Meetings of the specialcommittees of the Board
The Board ofSupervisors' meetings
Including Audit Committee meetings：
Including Nomination Committee meetings:
Including Remuneration and Appraisal Committee meetings:
Including Strategy and Development Committee meetings:
Basic Information of the Board of SANY Renewable Energy
Shareholders' generalmeetings
Directors in totalPercentage ofindependent directors43%
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
6867
Investor Relations ManagementThe Company attaches great importance to the management and protection of investor relations, and disclosesinformation in a lawful, compliant, complete and timely manner in accordance with the Articles of Association. Inaddition, the Company communicates with investors through various forms such as the investor relations email,investor relations hotline, SSE e-interactive platform, investor reception for on-site survey and performancebriefings. By actively maintaining good relations with investors, SANY Renewable Energy has been widelyrecognized by the capital market. The Company won the "2023 IR Team of the Year Award for Best InnovationPractices" issued by Comein Finance.During the reporting period, the Company held a total of 3 performance briefings, received investors for 19 on-site surveys, and held 55 road shows.
Case: "I Am a Shareholder" Series of Activities - InvestorsVisited SANY Renewable EnergyThe Shanghai Stock Exchange launched "I Am a Shareholder " – Investors' Visit to Listed Companiesseries of activities. These activities focus on guiding listed companies to enhance investor relationsmanagement and to establish a philosophy of rational investment and value investment. In August2023, investors participating in the "I Am a Shareholder" activities officially visited SANY RenewableEnergy for exchanges to have a better understanding of the Company's high-quality and sustainabledevelopment.
Investors visited SANY Renewable Energy
Internal Control and Risk Management SystemAccording to the Basic Internal Control Norms for Enterprises and other regulations，SANY RenewableEnergy has formulated the Internal Control System and the Risk Management System, which constitute theinternal control and risk management system of SANY Renewable Energy together with a series of documentssuch as the Management System for External Guarantees and the Management Measures for Related PartyTransactions.The Board of Directors is the supreme responsible body for the Company's internal controland risk management. The Audit Department and other internal control personnel of the Company assumeresponsibilities for specific supervision and inspection work.The Company continually improves the internal control and risk management structure, and has built three linesof defense on compliance management:
The first line ofdefense:
Each business department or subsidiary is responsible for identifying and controlling riskpoints involved in its own operations;The secondline of defense:
The Finance Department, Legal Department, etc. assist business departments to controlcompliance risks in their areas of expertise;
The third line ofdefense:
The Audit Department audits the main business processes and high-risk business areasof all departments of the Company covering all risk points of the Company every twoyears. The Audit Department also affixes the responsibility for the identified problems, andworks with relevant business departments to develop rectification plans and track theirprogress.The Audit Department of the Company will communicate with the heads of relevant business departments. Suchcommunication aims to identify high-risk business processes or key control defects and weaknesses from themain processes in order to select the inspection and evaluation objects. The Audit Department will develop anannual internal control evaluation plan by the end of December each year. High risks identified in the internalcontrol of the previous year will be re-evaluated in the current year.
Internal Control and Risk Management
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
7069
Compliance AuditThe internal audit on business departments is the third line of defense to ensure that the Company conductsbusinesses in a compliant manner. Our auditors audit the routine work of each department through attendingimportant business meetings, interviewing personnel at key posts and reviewing working papers to evaluaterisks. For the identified risks, the auditors will communicate with the business department and confirm therectification plan. Then, the auditors will record the risks and the rectification plan into the system to follow upthe rectification. In addition, auditors will report significant risks to the chairman and general manager of theCompany.In 2023, the Company conducted 32 internal compliance audits which covered all of the Company's operationlocations in Beijing, Shaoshan City in Hunan Province, Zhangjiakou City in Hebei Province, Changsha Cityin Hunan Province, Chenzhou City in Hunan Province and Tongyu City in Jilin Province. The risks identifiedwere related to anti-corruption, marketing compliance, information security, finance and manufacturing quality.The Audit Department issued the audit report, which listed the identified risks, suggestions for improvementand recommendations for accountability. During the reporting period, a total of 292 risks were identified in thecompliance audits, of which 273 risks were rectified and closed, with a rectification rate of 93.5%. The remainingrisks will be rectified through the "SANY Smart Supervision and Audit Platform" .
Compliance auditsProportion of the
Company's operationlocations covered
100%
Performance on Compliance Audit in 2023
Identified risks
Rectification rate of risks
Business Ethics Management
Since establishment, SANY Renewable Energy has regarded integrity as a fundamental principle. The Companystrictly abides by laws and regulations such as the Criminal Law of the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China and has a zero tolerance attitude towards violationsof business ethics such as corruption, bribery, fraud, money laundering and anti-competition. In 2023, weformulated the Business Ethics Policy of SANY Renewable Energy, which serves as a guidance on businessethics for all our employees, customers and partners. The policy can help them correctly understand and dealwith related problems, protect the Company's culture of integrity, and enhance customers and partners' trustto the Company. By monitoring risk points on business ethics via irregular compliance audits, the Companyensures that risks are identified and controlled in a timely manner. During the reporting period, the Company hadone lawsuit regarding business ethics, and the personnel involved were transferred to the procuratorate.
Business Ethics
Anti-Corruption
To create a clean and efficient working atmosphere, the Company has formulated the Anti-Corruption and Anti-Bribery Management Policy and the Conflict of Interest and Clean Management Policy. These policies providespecific code of conduct for employees in various scenarios from which corruption and bribery may arise. As adepartment mainly responsible for anti-corruption, the Audit Department reviews the Company's compliancewith regulations in financial and business activities from time to time.Prevent Anti-competitive PracticeSANY Renewable Energy has always advocated normal competitions in market activities and formulated theAnti-Unfair Competition Management Policy. The Company requires that neither departments nor employeesshould seek improper benefits by means of market confusion, false publicity, collusive bidding, etc. This aims toprevent the Company from violating the relevant laws and to maintain a normal competition order in the market.Whistle-Blowing and Accountability
SANY Renewable Energy has formulated and strictly implemented the Complaints and Reports Policy. Besides,the Company also provides multiple whistle-blowing channels such as the mail box, e-mail, hotline, textmessages and WeChat platform. In this way, the Company encourages the employees, suppliers, customersand other stakeholders to report to the Audit Department any behaviors or personnel suspected of violatingthe relevant regulations of the Company's business ethics, including policies regarding anti-corruption, anti-unfair competition behaviors and information security. The Audit Department has a reports and complaintsmanagement specialist who is responsible for receiving report information and arranging acceptance accordingto the priority of matters. The Company promises to keep the whistleblower's information strictly confidential, andthe whistleblower will be protected from retaliation and unfair treatment. Any verified violations will be dealt withseriously in accordance with the Company's Accountability Management Policy.During the reporting period, there were 6 business ethics related reports received and recorded in theCompany's report and complaint account, including matters on bribery, information security and conflict ofinterest. These reports were thoroughly investigated by the Audit Department. In addition, people involved insuch violations were held accountable and made public within the Company in accordance with the regulationsto contain risks in a timely manner.
93.5%
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
7271
Publicity on Culture of IntegrityThe Company conducted 3 training activities on business ethics in 2023, including 2 sessions of honestyand integrity training for business procurement personnel and 1 session of compliance marketing training formarketing personnel. These training sessions covered the areas of business ethics such as anti-corruption,anti-fraud, conflict of interest and anti-unfair competition behaviors.The main content of the training included elaboration on management policies and red lines, explanation on theculture of integrity and analysis and sharing on violation cases. The Company has worked with law firms andother professional third parties to conduct training, aiming to make the training content more professional anddiversified and strengthen the employees' ability to handle relevant issues.The Company has also included integrity and confidentiality education into the employee induction trainingsystem. All newcomers are required to receive special training on integrity, confidentiality, conflict of interestdeclaration, etc., and sign a Commitment to Integrity upon onboarding. These measures are taken to ensurethat employees can learn the Company's culture of integrity and code of conduct in business ethics in acomprehensive way at the beginning of their career, and always maintain an awareness of honesty and integrityin future work.
Performance on Business Ethics in 2023
Newcomers participating in integrity education ininduction training
1,168（covering all newcomers）
Percentage of participants of business ethicstraining among all employees
22.4%
Business ethics training activities
Participants of business ethicstraining activities
（covering 38.5% of procurement andmarketing personnel）
Management on Data Security and PrivacyProtection
A robust data security and privacy protection system is critical for SANY Renewable Energy to achievedigitalization and intelligentization upgrading. The company strictly abides by laws such as the Data SecurityLaw of the People's Republic of China and the Personal Information Protection Law of the People's Republic ofChina. In 2023, the Company issued the Policy on Privacy Protection and Information Security, while constantlyimproving the information security management system.The Company takes the Digitalization Department as the governing body for information security matters. Inaddition, the Company has also set up key performance indicators (KPIs) for the Digitalization Department andthe information security officers within the department, including the number of violations, vulnerabilities andhandling efficiency. The Company conducts a monthly assessment based on these KPIs.The Company has formulated a series of systems such as the Third-Party Personnel Information SecurityManagement System, the System for Information Security Incident Handling and Emergency Management,and the Employee Information Security Management System. These systems have specified the use of theCompany's information by our own employees and third-party personnel, third party information processing andrecord-keeping timeframe, handling of customer privacy, emergency handling, reporting of violations, etc.During the reporting period, the Company did not have any illegal incident or lawsuit related to informationsecurity or privacy protection.
Data Security and Privacy Protection
Audit and Training on Data Security
SANY Renewable Energy carries out internal audits on information security on a monthly basis. By scanningnetwork vulnerabilities, tracking the O&M status of the system and monitoring both internal and externalnetwork traffic, SANY Renewable Energy assesses the Company's overall cyber risks, and issues the monthlyinformation security briefing and the audit report. In 2023, the Company engaged an external professional thirdparty to conduct a penetration test for the intelligent access system and the FSSC (Financial Shared ServiceCenter) system in the Company's parks. For risk points found by the test, the Company optimized informationsecurity management measures based on the professional advice of the third party, such as strengtheningscanning and inspection. The Company has formulated rectification plans for problems identified in each internaland external information security audit, specified the rectification period and defined the responsible person.In addition, the Company continuously tracks the progress of the rectification and discloses it in the monthlyinformation security briefing.Through information security training, we continue to strengthen the awareness of our employees on informationsecurity and the professionalism of our information security engineers. During the reporting period, the Companycarried out 8 information security training activities. About 600 employees participated in these activities, includingall new employees who were fresh graduates. The main content of the training included the interpretation of lawsand regulations, the explanation of the Company's information security management systems and the analysison security incidents
Performance on Information Security in 2023
Information securitytraining sessions
Employeesparticipating in thetraining
Percentage of participants ofinformation security training among allemployees
10.5%
Lawsuits on informationsecurity
（2023）
（2022）
Business ethics reports recorded in the reportand complaint account
（2023）
（2022）
Lawsuits on business ethics
（2023）
（2022）
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent Quality
Business Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
75 Community Engagement and
Rural Revitalization
76 Charitable ActivityEngagement
CommunityResponsibilities
SANY Renewable Energy has always upheld the belief of protecting the environment withclean energy and achieving "zero carbon" with green manufacturing. While ensuringefficient and high-quality operations, the Company is also fulfilling the social responsibilityand promoting the sustainable development of the community based on its businesscharacteristics and resource advantages.
7675
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent QualityBusiness Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
Community Engagement and RuralRevitalizationAs a pioneer in rural revitalization, SANY Renewable Energy takes the initiative to invest in wind farm constructionin economically underdeveloped areas. To make full use of local natural resources, we work out customizedsolutions to ensure that wind power projects are both economical and eco-friendly. This approach to povertyalleviation through new energy provides strong support for building a beautiful and harmonious countryside forlive and work.In 2023, our Shenxianling Wind Farm was rated as class 5A "Outstanding Wind Farm" at the Wind PowerOperations Management and Industrial Development Innovation Exchange Seminar & the 17th Industrial WindPower Operation Index Conference.In the Shenxianling Wind Farm project, SANY Renewable Energy combines wind farm construction,environmental protection and community engagement, making it the first eco-smart wind farm in China with bothecological and economic benefits.
Environmental BenefitsThe Shenxianling Wind Farm has made remarkable progress in ecological restoration. The land consolidationand improvement has covered 49.88 hectares of land, with the disturbed land treatment rate reaching 98.56%.30 hectares of land has been treated for water and soil erosion, with a treatment rate of 98.57% in total. 30hectares of land was revegetated, with a vegetation restoration rate of 99.61%.
Economic BenefitsThe Shenxianling Wind Farm has also exerted an extensive economic impact, creating more than 7 million CNYof tax revenue for the local government per year. In addition, as a key player in China's equipment manufacturingindustry, SANY Renewable Energy has promoted the development of wind power industry clusters in Ningxiangand even Hunan Province through industrial coordination, by focusing on the integration of industrial chain,innovation chain and value chain.
Charitable Activity EngagementAs a responsible corporate,SANY Renewable Energy actively engages in public welfare undertakings.Upholding the working concept that "responsibility goes before performance", we constantly explore solutions tosolve social problems and promote social progress. Accordingly, we are keen on participation in social charitabledonations, contributing to community engagement, rural education and public advocacy.
Community EngagementSANY Renewable Energy attaches great importance to keeping good communication and interaction with localcommunities, endeavoring to improve both the living environment and the quality of life of residents nearby. InMay 2023, SANY Renewable Energy participated in the "First and Countless" social donation activity held inChangping District, Beijing, and donated 60,000 CNY to Changping Charity Association to support people indifficulties in the region under the paired assistance program.
Rural EducationSANY Renewable Energy joins hands with external partners to boost rural education with integrated resources.In May 2023, SANY Renewable Energy carried out a charitable donation activity with external units. In theactivity, we donated a batch of computers to rural primary schools in Bazhong, Sichuan Province, to contributeto the development of rural education.
Public welfare donation for rural education by SANY Renewable Energy
The land consolidation and improvement has covered
49.88
hectares of land, withthe disturbed land treatment rate reaching
98.56%
；
hectares of land has been treated for water and soil erosion, with a treatment rate of
98.57%
in total；
hectares of land was revegetated, with a vegetation restoration rate of
99.61%
.
7877
In September 2023, SANY Renewable Energy and Professor Qian Yonggang donated 1,000 copies of Listen tothe Stories of Qian Xuesen to Minqin No.1 Middle School. In doing so, we hope that students aspire to becomethe backbone of national construction in the future, and to promote the development of education.
Public AdvocacyAt SANY Renewable Energy, employees are encouraged to participate in social welfare undertakings to supportthe building of a better society. The Company has participated in the "Run! Wind Power Man" charity run activityfor many years. In the form of running, the activity donates all registration fees and corporate donations to the"Wind Energy Man, Children Soothing Treatment Activity Center" . In October 2023, SANY Renewable Energyonce again organized a 31-runner group to participate in the charity running activity to show corporate vitality.We thereby worked with industrial peers to help children with leukemia to relieve the pain, as part of our efforts togive back to the society, thus promoting the development of public welfare undertakings.
SANY Renewable Energy's book donation activity
SANY Renewable Energy participated in the charity running activity
GreenDevelopment
Talent Cultivation forBusiness Prosperity
Excellent QualityBusiness Integrity
CommunityResponsibilities
SustainableDevelopmentManagement
8079
Disclosure of ESG Indicators
Environmental PerformanceIndicatorUnit2023
GHG EmissionsScope 1tCO
e21,489 Scope 2 (based on market)tCO
e44,109 Scope 2 (based on region)tCO
e46,279Scope 3tCO
e3,112,226 EnergyTotal electricity purchasedMWh90,583.84Natural gasmillion m
4.15
GasolineTonne1,934.22Diesel oilTonne429.66AnthraciteTonne14.29Liquefied natural gasTonne3.93Liquefied petroleum gasTonne3.34SteamGJ369.70Total direct energy consumptionMWh87,215.68Total indirect energy consumptionMWh179,608.84Water Management
IndicatorUnit2023Total water consumptionTonne504,252.32 Total wastewater (all domestic wastewater)Tonne297,156.52 Waste GasSulfur dioxide generatedTonne0.20Nitrogen oxides generatedTonne0.51Particulate matter generatedTonne36.11BenzeneTonne0.0002MethylbenzeneTonne0.44XyleneTonne0.57Volatile organic compoundTonne20,732.40WasteTotal non-hazardous waste generatedTonne18,250.96 Total hazardous waste generatedTonne1,171.15 OthersConfirmed environmental violationCase0Percentage of premises with ISO 14001 certification%100Percentage of workplaces assessed for employee health and safety risk%100Percentage of employees trained (internally or externally) in environmental matters%100
8281
Social Performance
IndicatorUnit2023WorkforceTotal employees Person5,721Number of employees by gender
MalePerson5,181FemalePerson540Number of employees by educationalbackground
Associate degree or belowPerson3,526Bachelor's degreePerson1,412Master's degree or abovePerson783
Number of employees by region
Domestic employees working abroadPerson294Foreign employees working abroadPerson76Foreign employeesPerson160BeijingPerson684HebeiPerson174HunanPerson652Jilin Person202ShanghaiPerson34Xi'anPerson6XinjiangPerson241BayannurPerson823LingangPerson2LianyuanPerson1DongyingPerson1QingyangPerson1Domestic mobile employeesPerson2,370
IndicatorUnit2023Number of employees by postion level
Senior managementPerson54Middle and junior managementPerson893StaffPerson4,774
Number of employees by job category
ManufacturePerson2,803SalesPerson1,164TechnicalPerson853FinancePerson54AdministrationPerson109OthersPerson738Number of employees by age group
Aged 30 and belowPerson2,403Aged 30-50Person3,235Aged 50 and abovePerson83Number of new employees
Total number of new employeesPerson2,346DomesticPerson2,270OverseasPerson76Number of new employees by genderMalePerson2,124
FemalePerson222Number of new employees by age groupAged 30 and belowPerson1,224
Aged 30-50Person1,109
Aged 50 and abovePerson13Employee Turnover RateTotal%27.27Core technical personnel turnover rate%6.61
8483
IndicatorUnit2023Employee turnover rate by gender
Male%24.70Female%2.57Employee turnover rate by region
Domestic%27.25Overseas%0.02Employee turnover rate by age group
Aged 30 and below%13.04Aged 30-50%13.79Aged 50 and above%0.44Labor Management and RightsIncidents of child laborCase0Incidents of forced laborCase0Labor dispute litigations at home and abroadCase14Harassment incidentsCase0Discrimination incidentsCase0Percentage of workplaces reviewed forhuman rights risks or assessed for humanrights impact
%100Labor contract signing rate%100Social insurance coverage rate%100Diverse WorkforceNumber of employees with disabilitiesPerson
Number of senior managersPerson
Number of female senior managersPerson
Number of employees from minority groupsand/or disadvantaged employees
Person
Number of female directors in the Board ofDirectors
Person
Number of minority employeesPerson
Unadjusted average gender pay gap%94.41Employee TrainingTraining coverage%100Training hoursHour600,191Amount spent on training
10 thousand
CNY
245.2
IndicatorUnit2023Employee training hours by gender
MaleHour542,930FemaleHour57,261Average training hours of employees bygender
MaleHour104.8FemaleHour106.0Employee training hours by post level
Senior managementHour5,515Middle and junior managementHour92,185StaffHour502,491Average training hours of employees bypostion level
Senior managementHour102.1Middle and junior managementHour103.2StaffHour105.3Employee Career DevelopmentProportion of employees receivingperformance evaluation
%100Number of internal job transfersPerson220Occupational Health and SafetyLost time incident rate of direct labor%23.71Lost time serious incident rate of direct labor%3.19Number of work injuriesTime3Number of days lost due to work injuryDay414Number of work-related fatalitiesPerson0Annual work-related fatality rate%0New occupational diseasesCase0Safety training hours per employeeHour24Percentage of workplaces assessed for employee health and safety risk%100Percentage of premises with ISO 45001certification
%100Charitable Activity EngagementTotal amount of charitable donation
10 thousand
CNY
Number of public welfare activitiesSession2Participants of public welfare activitiesPerson4
8685
Governance and Economic Performance
IndicatorUnit2023
Operating PerformanceTotal assets100 million CNY333.76Revenue100 million CNY149.39Net profit attributable to the parent company100 million CNY20.07Innovative R&DR&D investment10 thousand CNY87,166Proportion of R&D expenditure in revenue%5.83Number of R&D personnelPerson853Proportion of R&D personnel%14.91Number of national or industry standardsformulated and revised with ourparticipation
#21Number of group standards formulated and revised with our participation#6Total number of patentsPiece796Number of innovation patentsPiece207Number of utility model patentsPiece584Number of design patentsPiece5Number of software copyrightsPiece215Supply ChainNumber of existing suppliers#255Percentage of suppliers signing the Code of Conduct for Suppliers%92Percentage of suppliers assessed through the corporate social responsibilityquestionnaire (based on total purchase amount)
%>90Percentage of key procurement staff trained in sustainable procurement%100
IndicatorUnit2023Product ResponsibilityNumber of customer complaintsCase49Customer complaint handling rate%100Number of product recallsCase0Customer satisfaction (percentage basis)%95.7Business EthicsNumber of employees trained in business ethicsPerson1,302Percentage of employees trained in business ethics%22.4Number of complaints received by the complaint standing bookCase6Number of business ethics litigationsCase1Number of information security litigationsCase0Number of compliance auditsTime32Rectification completion rate of risks found in compliance audits%93.5Percentage of premises internally audited/assessed for business ethics issuesand risks
%100orporate GovernanceNumber of directorsPerson7Number of independent directorsPerson3Number of female directorsPerson1Number of shareholders’ general meetingsTime3Number of Board of Directors’ meetingsTime14Number of board committees’ meetingsTime12Number of supervisorsPerson3Number of Board of Supervisors’ meetingsTime14
8887
Index for GRI Indicators and UN SDGs
GRI Indicator NumberGRI IndicatorCorresponding
Chapter in the report
SDGs
GRI 1: FoundationGRI 2: General DisclosuresThe Organization and its Reporting Practices2-1Organizational details
About SANY RenewableEnergy2-2
Entities included in the organization'ssustainability reporting
About This Report2-3
Reporting period, frequency and contactpoint
About This Report2-4Restatements of informationAbout This Report2-5External assurance\Activities and Workers2-6
Activities, value chain and other businessrelations
About SANY Renewable
Energy2-7EmployeesHuman Rights ProtectionSDG 102-8Workers who are not employeesWork SafetySDG 3Governance2-9Governance structure and composition
Corporate Governance
Structure2-10
Nomination and selection of the highestgovernance body
Corporate Governance
Structure2-11Chair of the highest governance body
Corporate Governance
Structure2-12
Role of the highest governance body inoverseeing the management of impacts
Corporate Governance
Structure2-13
Delegation of responsibility for managingimpacts
Corporate Governance
Structure2-14
Role of the highest governance body insustainability report
Sustainable Development
Governance Structure2-15Conflicts of interest
Business Ethics
Management2-16Communication of critical concernsMateriality Analysis2-17
Collective knowledge of the highestgovernance body
Corporate Governance
Structure2-18
Evaluation of the performance of the highestgovernance body
\
GRI Indicator NumberGRI IndicatorCorresponding
Chapter in the report
SDGs2-19Remuneration policies\2-20Process to determine remuneration\2-21Annual total remuneration ratio\Strategy, Policies and Practices2-22
Statement on sustainable developmentstrategy
Sustainable DevelopmentStrategy2-23Policy commitmentsAbout This Report2-24Embedding policy commitments
Sustainable DevelopmentStrategy2-25Processes to remediate negative impacts
Business EthicsManagement
SDG 162-26
Mechanisms for seeking advice and raisingconcerns
Business EthicsManagement
SDG 162-27Compliance with laws and regulations
Business EthicsManagement
SDG 162-28Membership associations
Industry-University-Research ActivitiesStakeholder Engagement2-29Approach to stakeholder engagementMateriality Analysis2-30Collective bargaining agreements
Employee Communicationand SatisfactionGRI 3: Material Topics3-1Process to determine material topicsMateriality Analysis3-2List of material topicsMateriality Analysis3-3Management of material topicsMateriality AnalysisGRI 201: Economic Performance201-1
Direct economic value generated anddistributed
\201-2
Financial implications and other risks andopportunities due to climate change
\201-3
Defined benefit plan obligations and otherretirement plans
Remuneration and Benefits201-4
Financial assistance received fromgovernment
\
9089
GRI Indicator NumberGRI IndicatorCorresponding
Chapter in the report
SDGsGRI 202: Market Presence202-1
Ratio of standard entry level wage by gendercompared to local minimum wage
\202-2
Proportion of senior management hired fromthe local community
\GRI 203: Indirect Economic Impacts
203-1
Infrastructure investments and servicessupported
About SANY Renewable
Energy
Climate Action
SDG13203-2Significant indirect economic impacts
Community Engagementand Rural RevitalizationGRI 204: Procurement Practices204-1Proportion of spending on local suppliers\GRI 205: Anti-Corruption3-3Management of material topics
Business EthicsManagement
SDG16205-1
Operations assessed for risks related tocorruption
Compliance AuditSDG16205-2
Communication and training about anti-corruption policies and procedures
Business Ethics
Management
SDG16205-3
Confirmed incidents of corruption andactions taken
Business EthicsManagement
SDG16GRI 206: Anti-Competitive Behavior3-3Management of material topics
Business EthicsManagement206-1
Legal actions for anti-competitive behavior,anti-trust, and anti-monopoly practices
Business EthicsManagementGRI 301: Materials3-3Management of material topics
Waste Management andCircular Economy301-1Materials used by weight or volume
Waste Management andCircular Economy301-2Recycled input materials
Waste Management andCircular Economy301-3
Reclaimed products and their packagingmaterials
Waste Management andCircular EconomyGRI 302: Energy3-3Management of material topicsClimate ActionSDG 12302-1Energy consumption within the organizationClimate ActionSDG 12302-2
Energy consumption outside of theorganization
Climate ActionSDG 12
GRI Indicator NumberGRI IndicatorCorresponding
Chapter in the report
SDGs302-3Energy intensityClimate ActionSDG 12302-4Reduction of energy consumptionClimate ActionSDG 12302-5
Reductions in energy requirements ofproducts and services
Climate ActionSDG 12RI 303: Water and Effluents3-3Management of material topics
Management of Water
Resource and Wastewater
SDG 6303-1Interactions with water as a shared resource
Management of WaterResource and Wastewater
SDG 6303-2
Management of water discharge-relatedimpacts
Management of WaterResource and Wastewater
SDG 6303-3Water withdrawal
Management of WaterResource and Wastewater
SDG 6303-4Water discharge
Management of WaterResource and Wastewater
SDG 6303-5Water consumption
Management of WaterResource and Wastewater
SDG 6GRI 304: Biodiversity3-3Management of material topicsBiodiversity ManagementSDG15304-1
Operational sites owned, leased, managedin, or adjacent to, protected areas and areasof high biodiversity value outside protectedareas
Biodiversity ManagementSDG15304-2
Significant impacts of activities, products andservices on biodiversity
Biodiversity ManagementSDG15304-3Habitats protected or restored\304-4
IUCN Red List species and nationalconservation list species with habitats inareas affected by operations
\GRI 305: Emissions3-3Management of material topicsClimate ActionSDG 13305-1Direct (Scope 1) GHG EmissionsClimate ActionSDG 13305-2Energy Indirect (Scope 2) GHG EmissionsClimate ActionSDG 13305-3Other Indirect (Scope 3) GHG EmissionsClimate ActionSDG 13305-4GHG Emissions IntensityClimate ActionSDG 13305-5Reduction of GHG EmissionsClimate ActionSDG 13
9291
GRI Indicator NumberGRI IndicatorCorresponding
Chapter in the report
SDGs305-6
Emissions of ozone-depleting substances(ODS)
\305-7
Nitrogen Oxides (NOX), Sulfur Oxides(SOX), and Other Significant Air Emissions
Exhaust Gas ManagementGRI 306: Waste3-3Management of material topics
Waste Management and
Circular Economy
SDG 12306-1
Waste generation and significant waste-related impacts
Waste Management andCircular Economy
SDG 12306-2
Management of significant waste-relatedimpacts
Waste Management andCircular Economy
SDG 12306-3Waste generated
Waste Management andCircular Economy
SDG 12306-4Recycle and disposal methods of waste
Waste Management andCircular Economy
SDG 12306-5Final waste disposal
Waste Management andCircular Economy
SDG 12GRI 308: Supplier Environmental Assessment3-3Management of material topics
Construction of SustainableSupply Chains
SDG 12308-1
New Suppliers that were screened usingenvironmental criteria
Construction of SustainableSupply Chains
SDG 12308-2
Negative environmental impacts in thesupply chain and actions taken
Construction of SustainableSupply Chains
SDG 12GRI 401: Employment3-3Management of material topics
Labor Management andRights401-1
New employee hire rate and employeeturnover
Disclosure of ESG Indicators401-2
Benefits provided to full-time employees thatare not provided to temporary or part-timeemployees
Remuneration and Benefits401-3Parental leaveRemuneration and BenefitsGRI 402: Labor/Management Relations3-3Management of material topics\402-1
Minimum notice periods regardingoperational changes
\GRI 403: Occupational Health and Safety3-3Management of material topics
Occupational Health and
Safety
SDG3
GRI Indicator NumberGRI IndicatorCorresponding
Chapter in the report
SDGs403-1
Occupational health and safety managementsystem
Occupational Health andSafety Management System
SDG3403-2
Hazard identification, risk assessment, andincident investigation
Work Safety403-3Occupational health services
Occupational Disease
Prevention
SDG3403-4
Worker participation, consultation, andcommunication on occupational health andsafety
Work Safety403-5
Worker training on occupational health andsafety
Work Safety403-6Promotion of worker health
Occupational Disease
Prevention
SDG3403-7
Prevention and mitigation of occupationalhealth and safety impacts directly linked bybusiness relationships
\403-8
Workers covered by an occupational healthand safety management system
Occupational Health and
Safety Management System
SDG3403-9Work-related injuries
Work SafetyDisclosure of ESG Indicators403-10Disclosure of ESG Indicators
Occupational DiseasePrevention
SDG3GRI 404: Training and Education3-3Management of material topicsEmployee Training System404-1
Average hours of training per year peremployee
Employee Training SystemDisclosure of ESG Indicators404-2Disclosure of ESG IndicatorsEmployee Training System404-3
Programs for upgrading employee skills andtransition assistance programs
Employee CareerDevelopmentDisclosure of ESG Indicators
GRI 405: Diversity and Equal Opportunity3-3Management of material topics
Practice of Diversity andEquality
SDG 5405-1
Diversity of governance bodies andemployees
Practice of Diversity andEquality
SDG 5405-2
Ratio of basic salary and remuneration ofwomen to men
Practice of Diversity andEquality
SDG 5
9493
GRI Indicator NumberGRI IndicatorCorresponding
Chapter in the report
SDGsGRI 406: Non-Discrimination3-3Management of material topicsHuman Rights ProtectionSDG 10406-1
Incidents of discrimination and correctiveactions taken
Human Rights ProtectionSDG 10GRI 407: Freedom of Association and Collective Bargaining3-3Management of material topics
Employee Communication
and Satisfaction407-1
Operations and suppliers in which the rightto freedom of association and collectivebargaining may be at risk
\GRI 408: Child Labor3-3Management of material topicsHuman Rights ProtectionSDG 8408-1
Operations and suppliers at significant riskfor incidents of child labor
Human Rights ProtectionSDG 8GRI 409: Forced or Compulsory Labor3-3Management of material topicsHuman Rights ProtectionSDG 8409-1
Operations and suppliers at significant riskfor incidents of forced or compulsory labor
Human Rights ProtectionSDG 8GRI 410: Security Practices3-3Management of material topics\410-1
Security personnel trained in human rightspolicies or procedures
\GRI 411: Rights of Indigenous Peoples3-3Management of material topics\411-1
Incidents of violations involving rights ofindigenous peoples
\GRI 413: Local Communities3-3Management of material topics
Community Engagement
and Rural Revitalization
Charitable Activity
Engagement413-1
Operations with local communityengagement, impact assessments anddevelopment programs
Community Engagement
and Rural Revitalization
Charitable Activity
Engagement
SDG 7
GRI Indicator NumberGRI IndicatorCorresponding
Chapter in the report
SDGs413-2
Operations with significant actual andpotential negative impacts on localcommunities
\GRI 414: Supplier Social Assessment3-3Management of material topics
Construction of Sustainable
Supply Chains
SDG 12414-1
New Suppliers that were screened usingenvironmental criteria
Construction of SustainableSupply Chains
SDG 12414-2
Negative social impacts in the supply chainand actions taken
Construction of SustainableSupply Chains
SDG 12Topic 415: Public Policy3-3Management of material topics\415-1Political contribution\
GRI 416: Customer Health and Safety3-3Management of material topics\416-1
Assessment of the health and safety impactsof product and service categories
\416-2
Incidents of non-compliance concerning thehealth and safety impacts of products andservices
\
GRI 417: Marketing and Labeling3-3Management of material topics\417-1
Requirements for product and serviceinformation and labeling
\417-2
Incidents of non-compliance concerningproduct and service information and labeling
\417-3
Incidents of non-compliance concerningmarketing communications
\GRI 418: Customer Privacy3-3Management of material topics
Data Security and Privacy
Protection418-1
Substantiated complaints concerningbreaches of customer privacy and losses ofcustomer data
Data Security and Privacy
Protection