About this Report
This is the ?rst ESG (Environmental, Socialand Governance) report released by MideaGroup, focusing on information related toour economic, social and environmentalsustainability. Midea Group hopes this reportwill provide an opportunity to promotecommunication with our stakeholders so thatwe can build a better future together.
The reporting period is 1 January 1 2021to 31 December 31 2021. Moreover, certainevents mentioned in this report, whetherfrom before or after the aforesaid period, areincluded for the sake of context and detail.
Reporting period
The report covers Midea Group and itssubsidiaries. For the convenience ofexpression, references to "Midea", "Midea" or"we" in the report refer to "Midea Group".
Scope of the report
The data and cases used in the report aresummarized and counted from Midea'so?cial documents, statistical reports andother documents.
Nature of the data
This report is free of misrepresentations andmisleading statements, and Midea Groupguarantees the truthfulness, accuracy andcompleteness of its contents. The amountsdisclosed in the report are expressed in RMBunless otherwise indicated.
Contents of the report
This report has been prepared in accordancewith the Sustainability Reporting Standards(GRI Standards) issued by the GlobalReporting Initiative (GRI). Please refer to "GRIContent Index" on page 75 for the disclosureof each indicator used in this report.
Standards of reporting
This report can be downloaded from theo?cial website of Midea Group. If you haveany suggestions and comments on thisreport, simply send an e-mail to ir@midea.com. Your input will be appreciated.
Access to the report
Contents
Executive's Message
01.
About Midea Group03.
Sustainable Development ConceptESG Key Issues AnalysisCommunication with StakeholdersManagement of Sustainable Development16 /17 /18 /
15.
Product Quality and SafetyTechnological InnovationUser ServicProducts and Services48 /53 /55 /
47.
Equal Employment and EquityEmployee Welfare and ProtectionEmployee Development andCommunicationOccupational Health and Safety
Talent Development58 /59 /60 /70 /
57.
Support Rural RevitalizationSupport Anti-pandemic Disaster ReliefCare about Science and TechnologyEducationGive Back to the Local Community
Community Welfare activities72 /72 /73 /74 /
71.
Report Index75.
Responsible ProcurementCon?ict Minerals ManagementValue Chain Management20 /22 /19.
Green DesignGreen PurchaseGreen ManufacturingGreen LogisticsGreen RecyclingGreen Services
Environmental Management28 /32 /33 /37 /40 /41 /
25.
Governance MechanismCompliance with the LawAnti-corruptionCompany Management10 /13 /14 /
09.
In 2021, the world continued to face the challenges of the COVID-19 pandemic, the social andeconomic impact continued to ferment, and the external environment continued to undergosigni?cant changes. Global warming has not fundamentally changed after a brief twist and turn,and low-carbon green development is undoubtedly a historic call for a better life.This is a century of change. A falling leave reveals the coming of the fall, and each leaf, eachperson can feel the changes of this great era. This year, facing a signi?cant increase in the pricesof bulk commodities, severe global shipping disruptions, continued tight energy supply and highprices, Midea still made it to the Fortune Global 500 list for six consecutive years and ranked No.288 in 2021. As one of the world's largest technology groups, Midea is continuously transformingand upgrading its technology with comprehensive digitalization and intellectualization as thedriving force. At the same time, Midea actively responds to the sustainable development goalsof the "Decade of Action" program of the United Nations, with a great vision to "protect theplanet and improve the lives and prospects of everyone". And as the advocate of "Bring GreatInnovations to Life", Midea will continue its e?orts in sustainable development, and will continueto move forward despite the challenges.Great truths are always simple. While aiming high, Midea needs to ?nd certainties amiduncertainties to build strengths. Midea's strategic focuses are "Technology Leadership, Direct toUsers, Digitization & Intelligence Driven, and Global Impact", and the two fundamental businessframeworks of "Household Consumer Market + Industrial and Commercial Market" has beenput in place, with ?ve business groups (the Industrial Technology Business Group, the BuildingTechnologies Division, the Robotics & Automation Division, and the Digital Innovation Business).With that, Midea is able to boost continuing vitality and innovation across multiple dimensionsand systems from core components, building energy saving to future factories.We adhere to green development and are built to grow with hard work and determination tocreate products that are beyond this era. Midea will actively respond to the national goal of"peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060".With the six green strategies—green design, green purchase, green manufacturing, green logistics,green recycling and green services, we are actively working with the upstream and downstreamindustrial partners to drive sustainable growth. Meanwhile, we have signi?cantly reduced ourown energy consumption and increased the proportion of green energy used by Midea. We willrespond to the national policy of green development and write a great chapter of high-quality andsustainable development.We play our part as a corporate citizen, share growth with stakeholders, and truly put employees,users, customers and partners at the center of all things.. We assume social responsibilitytogether with our suppliers to guarantee labor-related standards are met across the supplychain. We disclose information to the public with better transparency. Also, employee diversity iscontinuously improved, and global R&D, global production and global services are adhered to.We boast high compliance in corporate governance, with sound systems to share responsibilities,rights and bene?ts, as well as encourage entrepreneurship. Additionally, we dare to reform,to challenge ourselves, to innovate and to change. Midea comprehensively strengthens riskmanagement, follows the principle of fairness, justice and openness, continuously optimizesinternally, and strives to create a healthy atmosphere within Midea.This ESG report is aimed to disclose our environmental, social and governance practices andresults in a more comprehensive, open and transparent manner, a showpiece of our realcommitment to sustainable development. We hope this report can provide an opportunity for usto communicate with stakeholders in a more e?ective manner, systematically respond to theirexpectations and demands, and receive more public oversight, which are also what Midea shoulddo as a public company.
Executive's Message
Executive's Message
About Midea Group
Upon 53 years of development since it was founded in 1968 in Foshan City, Guangdong Province,Midea has grown into a global technologies group comprising ?ve business segments—SmartHome, Building Technologies, Industrial Technology, Robotics & Automation, and DigitalInnovation. At present, Midea Group has 35 R&D centers and 34 major manufacturing basesworldwide. It provides products and services for around 400 million users in over 200 countriesand regions. And it boasts a diversi?ed brand portfolio including Midea, Little Swan, Toshiba,WAHIN, COLMO, Clivet, Eureka, KUKA, GMCC, Welling, WINONE and WDM.In 2021, the COVID-19 pandemic remained a serious problem for the world, and the political andeconomic environment became more complicated both at home and abroad. Uncertainties andchallenges became the new normal. Against this backdrop, Midea delivered expected operatingresults, manifesting its resilience. In spite of the ever-changing external environment, technology-driven transformation remains the main theme of the current era. Midea adhered to the strategicfocus with "Technology Leadership" as the core, promoted development both in the ToB and ToCbusiness, as well as carried out transformation in both the domestic and overseas operations.With innovation, breakthroughs and planning as the keynote, it took the ?ve business divisionsinto a new stage, and promoted the implementation of the strategic focus.Midea jumped to No. 288 on the 2021 Fortune Global 500 list, moving up 19 places from the 2020ranking. Midea ranked No. 39 on the Fortune China 500 list, the highest-ranking among the homeappliance industry in the country for seven consecutive years. Midea ranked No. 33 on the "2021BrandZ Top 100 Most Valuable Chinese Brands" list, with its brand value up 58% compared with2020. In 2021, based on the diversi?ed development of Midea and the enhancement of its brandcompetitiveness, Standard & Poor's ("S&P") upgraded Midea's credit rating to "A", which is thehighest credit rating received by a domestic private manufacturer.In January 2022, Midea established a green framework and promoted green ?nance to supportMidea's green strategy by providing funding for projects that can deliver positive environmentalimpact. After S&P Global Ratings issued a second party opinion on the framework, Mideasuccessfully issued USD450 million 5-year senior unsecured green bonds on 16 February 2022,with proceeds to be used for eligible green assets under Midea's green ?nance framework,including eco-e?cient product design and development, energy-e?cient and eco-e?cientmanufacturing and process transformation, development and production of core componentsfor new energy vehicles, and operation of photovoltaic power plants. The proceeds will be usedto ?nance eligible green assets under Midea's green ?nance framework, including eco-e?cientproduct design and development, energy-saving and eco-e?cient manufacturing and processtransformation, R&D and production of core components for new energy vehicles, and operationof photovoltaic power plants. For green bonds, Midea has set up a special green ?nance taskgroup to screen, review and approve quali?ed green assets/green expenditures. In addition,Midea will set up a special group responsible for the allocation and use of the funds raised, andwill disclose the amount corresponding to the use of speci?c green projects in the ESG annualreport every year.Following the operating philosophy of creating a better life for everyone in the world, MideaGroup actively assumes responsibility for the environment, society and governance in the courseof business, and is committed to contributing to society through innovative products and servicesto create a better life and future together.Philosophy of Midea
Value
MissionVision
Embrace what's next
Aiming HighCustomer ?rstTransformation and InnovationTolerance and partnershipDedication and commitment
Integrate with the world,
to inspire your futureBring greatinnovations to life
165,799
374,562
6,986,563,844
Total number of employees
Total number of shareholders
Total shares issued
About Midea Group
About Midea Group
Awards
The Residential Air Conditioner Division, the Refrigerator Division, the Laundry Appliance Division, the Midea Microwave & Cleaning Appliances Division, the Kitchen and Water Heater Appliance Division, andCOLMO AI-powered Home Appliances
The Residential Air Conditioner Division, the Laundry Appliance Division, COLMO AI-powered Home Appliances
The Midea Microwave & Cleaning Appliances Division, COLMO AI-powered Home Appliances
2021 ESG highlights
Second Prize of National Sci-Tech Progress Award (ResidentialAir Conditioner)2021 Science and Technology Progress Award (2 ?rst prizes, 11 intotal)2021 Geneva International Invention Award Gold Medal (MideaFreshness Pro Artistic Floor-Standing Air Conditioner KW200,Midea iColor Wall Mounted Air Conditioner XT100, MideaXiaofangwu Dehumidi?er DM)Special Commendation Gold Medal of the Geneva InternationalInvention Award 2021 (Midea U-shaped Window Air Conditioner)
State CouncilChina National Light Industry CouncilCommittee of Geneva InternationalInvention ExhibitionCommittee of Geneva InternationalInvention ExhibitionScience andtechnology
awards
Name of awardsAwarding unit
China Quality AwardNational Demonstration Enterprise of Product and ServiceQuality IntegrityPreferred Brand of Air Conditioners for National GovernmentProcurement in 20202020 National Best Service Provider for GovernmentProcurement of Air Conditioners
The Fourth China Quality Award Selectionand Commendation CommitteeChina Association for Quality InspectionCommittee of National GovernmentProcurement Gathering Annual MeetingCommittee of National GovernmentProcurement Gathering Annual Meeting
Quality/service
awards
Name of awardsAwarding unit
Red Dot Award
International Design Excellence Awards
2PIN UP Design Awards
German Design Council.Industrial Designers Society of AmericaKorea Association of Industrial DesignersDesign awards
Name of awardsAwarding unit
Low-carbon & Eco-friendly Technology Leadership AwardUN Montreal Protocol 30 Years Outstanding Contributor AwardOutstanding Contribution Award for Energy E?ciency andEnvironmental Protection
United Nations Environment ProgrammeUnited Nations Environment ProgrammeUnited Nations Industrial DevelopmentOrganizationEnvironmental
awards
Name of awardsAwarding unit
Best Employer Brand AwardChina Hu Liangwei TOP EmployerExtraordinary Employer of the Year
LinkedInLagouLiepinHuman resources
awards
Name of awardsAwarding unit
11,710
Quality and safety relatedcerti?cates obtained so far
367 millionRMB2021 overall EHS investment
International standardsformulated/revised accumulated
69.5 billion
RMBaccumulative distributed cash dividends
ESG key issues analysis were conducted and26 key issues were identi?ed
98.1%
Customer satisfaction rate3000 millionRMBCumulative investment on social development
National standards formulated/revised accumulated763,359Midea's internal training attendance
200+
Support projects
Industrial standards formulated/revised accumulated
3,623,980
tonsWater consumption reduced compared to 2020
MWExceeding 160MW installed capacity ofphotovoltaic power projects
10.1%
Consumed energy renewable
4,350,532
tonsWaste reduced compared to 2020
Midea Group's"Green Strategy" was released
A mature management system of professional managers has been put in place
Six red linesfor supplier socialresponsibility was de?ned
"Con?ict-free Minerals Pledge"wasrequired for suppliers to sign
About Midea Group
About Midea Group
Company Management
While pursuing performance growth, Midea Group continuesto deepen its bottom line of responsibility and actively ful?llsits responsibilities in corporate governance, board governance,protection of shareholders' rights and interests, risk managementand anti-corruption, in order to lay a solid foundation for Midea'ssound development.
Governance Mechanism
Governance structureMidea Group attaches importance to the building and improvement of the governancestructure. At present, in accordance with the existing laws, regulations and rules, Midea Grouphas established a modern corporate governance system, including the general meeting ofshareholders, the board of directors and its special committees and the supervisory committee,as well as the corresponding rules of procedure and management systems. Meanwhile, Mideavalues the building of the governance structure and centralized and decentralized systems.A mature professional manager mechanism has taken shape. Midea provides a platform forprofessional managers to exercise and grow through the business division system, and hasestablished an appraisal system on the basis of its target-oriented responsibility system to ensureorderly corporate governance.
Company Continuity
Open humanresource systemTeam of managers
Incentive mechanismDiversi?edownership structure
Board of Directors/Executive Committeedecision-makingmechanism
Managementmechanism with
a high level ofempowerment
Entrepreneurship"Determination to change"
People-oriented,motivate talent withmechanisms andprotect talent withsystemsProfessional managermechanism based ona modern enterprise
Performance-orientedand long-acting incentivemechanism to align theinterests of shareholders
and managementRational and suitableownership structurethat puts theCompany's interests?rst
Clear and transparentcollective deliberationand decision-makingmechanism
Decentralizationsystem with high levelsof empowerment,performance and returnsto boost organizationalvitality
Governance · Sustainable Opportunities
Company Management
Board governance
Shareholder interests
In order to share growth with shareholders, Midea gives high priority to shareholder returns andrewards shareholders with real bene?ts while maintaining a steady operating performance andincreasing pro?tability.Since the Group listing in 2013, Midea has distributed cash dividends more than RMB 69 billion,with over 40% of the net pro?t attributable to shareholders of Midea being distributed as cashdividends every year. Midea reviews its shareholder return plan at least every three years toensure a consistent pro?t distribution policy and protect investor interests.While stabilizing its dividend payout, Midea has continued to implement a series of sharerepurchase plans. Following the completion of a RMB4 billion share repurchase in 2018, Midealaunched three share repurchase plans since 2019 for its equity incentive schemes/employeestock ownership schemes to maintain the stability of Midea's market value and the interests ofall shareholders. As at 31 December 2021, Midea has used over RMB13.6 billion for the sharerepurchases during the year, with a total share repurchase over RMB24.5 billion since listing.In addition, to ensure that the interests of shareholders and Midea's management are aligned,Midea has developed a series of long-term stock option incentive plans. In 2021, Midea launchedthe Eighth Stock Option Incentive Scheme, the Fifth Restricted Share Incentive Scheme, theSeventh Global Partner Stock Ownership Scheme and the Fourth Business Partner StockOwnership Scheme, which have helped, in a more e?ective manner, to align the long-terminterests of senior management and key personnel with that of all shareholders.
Shareholders' Meeting
Board of Directors
Board of
Supervisors
Management
StrategyCommittee
RemunerationCommittee
NominationCommittee
AuditCommittee
Cash Dividend Distribution after Listing (BN)
2013
2014
2015
2016
2017
2018
2019
2020
2021
69.5 billion
24.5 billion
RMB
RMBAccumulative distributed cash dividends over
Accumulative share repurchased over
Midea Group is an A-share listed company. Midea's board of directors currently consists of 9directors, including 3 independent directors; 1 of the 3 members of the supervisory committeeis an employee supervisor; over half of the directors of the special committees are independentdirectors; and the chairpersons of the audit committee, the remuneration and appraisalcommittee and the nomination committee are independent directors. Midea revises and improvesits management systems and the decision-making mechanism of the Board of Directors/ExecutiveCommittee, establishes a clear and transparent collective deliberation and decision-makingmechanism for better corporate governance.In 2021, 4 general meetings of shareholders, 12 board meetings, 7 meetings of the supervisorycommittee, 3 meetings of the audit committee, 4 meetings of the remuneration and appraisalcommittee and 3 meetings of the nomination committee were held to ensure that major decisionswere legitimate, compliant, true and valid.All along, Midea has been committed to cultivating a professional, reliable and loyal managementteam to ensure the healthy operation and sustainable development of Midea. Midea's seniormanagement personnel have an average working time of over 15 years in Midea. With a profoundknowledge of Chinese and the global household appliance industry, they also have a deepunderstanding of the industry environment and corporate management.In order to encourage its core management to take responsibility for Midea's long-term value andgrowth, Midea has established the full decentralization system and the performance-orientedappraisal and incentive system. Midea has approved the Salary Management System for theDirectors, Supervisors and Senior Executives, and established a Remuneration Committee tomanage the management's remuneration. The remuneration of the management consists of basicannual payments and performance-related annual payments: the basic annual payment remainsstable. Performance-related annual payment is related to the completion rate of corporate pro?t,the assessment result of target responsibility system and the performance evaluation structureof their own department. Such a remuneration system can ensure that it serves Midea's strategy,and shall be adjusted with Midea's operating conditions in order to meet Midea's developmentrequirements. From the remuneration management concept of "combination of incentives andconstraints", Midea also set the remuneration "red line". If a member of the senior managementteam fails to meet certain employment conditions or goals, or violates Midea's red line, he or shewill be required to return the remuneration previously received to Midea.During the Reporting Period, Midea has carried out appraisals of senior management members onthe basis of its target-oriented responsibility system and the appraisal result was re?ected in theannual performance-based incentive rewards.
Governance · Sustainable Opportunities
Company Management
Compliance with the Law
Anti-corruption
Compliance is a key component of sustainability of enterprises. Midea Group attachesimportance to compliance and observes business ethics. We promote comprehensive compliancemanagement under the guidance of the goal of "Development of Midea, Compliance". Bystrengthening compliance system and cultivating compliance culture and awareness, Mideaactively improves Midea its compliance level to ensure the health and sustainability ofdevelopment.
As a multinational enterprise group, Midea always abides by the laws and regulations of thecountries or regions where it operates in conducting its business and commercial activities, andprohibits any form of commercial bribery. Midea continued to improve its anti-corruption systemand repeatedly emphasized integrity and fairness through special anti-corruption measures,case noti?cation, publicity and education, so as to create a transparent and honest businessenvironment.In 2018, Midea introduced the Code of Business Conduct of Midea Group, which emphasizes theimportance of complying with the local country's laws and ?ghting against unfair competitionthrough "no commercial bribes", "no bribing government o?cials" and "political donations,charitable donations and sponsorships". Meanwhile, Midea has developed systems in variousareas such as marketing, supply chain, human resources, and ?nance to ensure integrity indi?erent areas of work. The existing systems include Management Measures for Accountability,Six Red Lines for Professional Managers, Ten Prohibitions in the Marketing Field, IntegrityCooperation Agreement, etc.In 2021, Midea further issued the Notice on the Prohibition of "Greeting" Interference in Businessand Other Improper Actions and Notice on Further Increasing the Reporting Incentive Policy toencourage partners to take the initiative to report and build a line of integrity. Midea conductsindependent investigations into reports from employees, partners and others, and keeps allinformation and materials reported con?dential.
Compliance organizational structure
Compliance in key areas
Compliance promotion and training
Compliance certi?cationIn 2020, Midea Group Legal Compliance Center and a professional compliance management teamwere established, which are responsible for improving the Group's compliance managementsystem and special management of material compliance risks. Meanwhile, business unitcompliance o?cers and business unit compliance representatives are appointed in business unitsto form a three-tier compliance structure. By empowering the three lines of compliance defense,compliance is realized in the daily work.
At the Group level, Midea has formulated management systems in six major areas: anti-unfaircompetition, anti-monopoly, data compliance, trade compliance, anti-commercial bribery andanti-money laundering, based on the "risk map" summarized globally, and has set up specialcompliance working groups headed by special compliance o?cers to promote day-to-daycompliance risk management on the business frontline in an orderly manner.For data compliance, Midea has set up a data protection o?ce and a data compliance workinggroup to serve as the lead agency for data compliance control. Midea has released the DataSafety Management Measures, Personal Information Protection Management Measures and othersystems, and set up several data approval processes to implement data compliance through aseries of initiatives. In addition, Midea has released the IoT Privacy White Paper, continuouslyconducted data compliance self-inspection and audit of apps and applets, organized datacompliance publicity training and workshop, and strengthened internal data complianceawareness.
According to the above-mentioned key areas, in 2021, Midea has carried out several o?ine and
online compliance training activities, of which the online training covers all employees. The
training covers various ?elds such as trade system compliance, data compliance, anti-monopoly
and anti-unfair competition compliance, etc. In particular, training on compliance methodology
for ISO37301 compliance system construction was also organized.
Midea actively uses multiple channels to promote compliance awareness to all employees. Midea
has created a service number "Midea Compliance", which has released more than 60 compliance
newsletters so far, covering current news, legal hotspots, new law express, case analysis, and
group policy analysis. Meanwhile, we regularly explain key cases or legislative developments
on the major compliance areas through Weekly and Monthly Compliance Newsletter on
Midea Connect; we also publish compliance updates in Chinese and English to provide tips on
compliance points.
Midea Group actively responds to the national policy and has been working deeply in the ?eld
of compliance for many years, and has passed many compliance certi?cations such as TRUSTE,
ISO27001 ISO37301 and APEC CBPR.
In 2021, BSI, the world's most authoritative standardization body, released the latest international
standard ISO 37301:2021 Compliance Management System - Requirements and Implementation
Guide to encourage and support Chinese enterprises to implement compliance system based
on risk appetite and business priorities, by areas and phases, to demonstrate compliance
management capability to relevant parties and meet the Board of Directors' requirements for
organizational governance. After a rigorous audit by BSI, Midea Group has successfully obtained
the ISO37301:2021 international standard certi?cation of compliance management, which covers
the anti-monopoly and data protection compliance management of Midea Group's smart home,
industrial technology and building technologies business operations in China. This is the ?rst
ISO37301:2021 international standard certi?cation of compliance management issued by BSI in
China, which is also a full a?rmation of Midea Group's compliance construction.
Midea Group Risk Management Committee
合规专项工作组
Midea issued guidelines to guide legal compliance in the area of advertising andpromotion
In May 2021, Midea updated and released the Compliance Guidelines for Advertising andPromotion Behavior of Midea Group, and conducted compliance self-inspection and auditwork related to advertising and promotion materials. Meanwhile, it introduced a third-party professional organization's publicity compliance self-inspection tool for each unit toself-inspect on publicity materials, so as to ensure the legal compliance of the Companyin advertising, brand promotion, public relations and We Media.
The Anti-bribery Compliance Management Code of Midea Group Partners
Anti-corruption Task
GroupAnti-monopoly TaskGroupTrade Compliance
Task GroupData Compliance Task
GroupOther compliance taskgroups
Tier
Tier
Tier
Midea Group LegalCompliance Center
Compliance TaskGroup
Business divisioncompliance o?cers
Business department/branch and
subsidiary/factory compliancerepresentatives
Under any circumstances, improper ?nancial transactions with Midea's employees are prohibited.Do not invite or allow Midea's employees to join the stock.Do not o?er bribes to Midea's employees.Do not receive Midea's employees in violation of the law.Do not privately greet Midea's employees to seek bene?ts or cooperation opportunities.Report directly to the Group Integrity O?ce for all violations such as soliciting bribes, asking forequity, unfair cooperation opportunities, asking for payment to Midea employees.
Governance · Sustainable Opportunities
Company Management
Sustainable Development Sustainable DevelopmentManagementManagement
Midea believes that sustainable development is closely relatedto Midea's strategy and that only by adhering to the concept ofsustainable development will Midea be able to build a long-lastingbusiness. Therefore, Midea Group strives to develop and carry outbusiness activities while working together with stakeholders topractice the concept of sustainable development and create sharedvalue.
Sustainable Development ConceptMidea Group adheres to the concept of "creating a better life for everyone in the world", takes"Bring Great Innovations to Life" as its vision, insists on integrity, responsibility, health andscienti?c development, integrates the concept of sustainable development into every aspect ofenterprise production and operation, and is committed to creating shared value together withstakeholders.At the environmental level, Midea Group takes its "green strategy" as the core, actively advocatesthe concept of green development, and promotes energy saving and emission reduction of thewhole industrial chain through scienti?c and technological innovation.At the social level, Midea Group pays attention to the growth and development of employees,cares about community construction, and hopes to bring better products and services tocustomers through scienti?c research and innovation, and actively ful?lls its corporate socialresponsibility.At the level of corporate governance, Midea always upholds the basic principles of integrity, law-abiding, honesty and compliance, builds a modern corporate governance mechanism, safeguardsthe interests of shareholders, and keeps Midea running soundly and well.
Governance · Sustainable Opportunities
Management of Sustainable Development
ESG Key Issues AnalysisCommunication with Stakeholders
In 2021, in order to further improve ESG management and practice, Midea carried out ESG keyissues analysis as an important reference basis for ESG governance and information disclosure ofMidea.Through the process of sustainable development background analysis, stakeholder identi?cation,topic identi?cation and questionnaire research, Midea identi?ed 26 key ESG topics, and thenscored the 26 topics according to their importance in two dimensions: "the importance ofeconomic, environmental and social impacts" and "the impact on stakeholder assessment anddecision" making to form the ESG key topics matrix.
Midea Group attaches great importance to the communication with stakeholders. In its daily operation, Midea Group hasestablished a regular communication mechanism and interaction with stakeholders, and responds to the demands ofstakeholders in an open and transparent manner.
Signi?cance of economic, environmental, & social impacts
In?uence on stakeholder assessments & decisions
Green productsE-wasteSocial responsibility management ofsupply chainProduct quality and safetyCompliance with the law
Highly substantive topics
Carbon emissionClimate changeResource saving/recyclingWaste managementWater resource utilizationGreen operationsHealth and safety of employeesEmployee training and developmentRemuneration and Bene?tsDiversity and equal opportunitiesInformation security and privacyprotectionScience and technology innovationClient experienceAccessibility of products and servicesCorporate governanceBusiness ethics and moralityBoard governanceShareholder equityAnti-corruption
Medium substantive topics
Intellectual property managementPromotion of industry development
Low substantive topics
StakeholderExpectations and demandsResponse and communication
? Operation in compliance with laws and regulations? Respond to national policies? Abide by business ethics? Create job opportunities? Promote energy conservation and emissionreduction? Development of green production? Research and development of energy-saving greenproducts
? Compliance with the Law? Tax payment according tolaws? Anti-corruption? Employment security? Green development
? Improve risk management mechanism? Optimize governance structure? Transparency in information disclosure? Protection of shareholders' rights and interests? Corporate governance? Information disclosure? Shareholder equity
? Protect the rights and interests of employees? Provide competitive remuneration and bene?ts? Respect the diversity of the workplaceenvironment? Promote measures to ensure the occupationalhealth and safety of employees? Build a perfect career development channel
? Legitimate rights and interestsof employees? Remuneration and bene?ts ofemployees? Diversity and equality? Health and safety ofemployees? Career development
? Provide quality products and services? Establish systems and processes to protectcustomer privacy? Improve product accessibility? Product and serviceexperience? Privacy protection? Product accessibility
? Standardize the procurement process? Supplier evaluation and audit? Supplier social responsibility management? Promotion of industry development? Fair procurement? Co-development? Mutual bene?t and win-win
result
? Sharing development achievements? Build a community of interest with partners? Promotion of industry development? Honest cooperation? Fair and just? Industry development
Governments andregulators
Investors andshareholders
Employees
Customers
Suppliers
Partners
Governance · Sustainable Opportunities
Management of Sustainable Development
Carrying out the whole value chain management is an importantpart for enterprises to assume social responsibility and achievesustainable development. Midea Group actively works togetherwith suppliers to integrate the concept of sustainable developmentinto the whole value chain of products by formulating a perfectevaluation mechanism of suppliers' social responsibility andbuilding an industrial chain system that is transparent, safe, agile,remarkably cost-e?ective and sustainable
Value Chain ManagementValue Chain Management
Responsible Procurement
Scienti?c and strict supplier management can e?ectively reduce business risks and ensureproduct quality. To realize the sustainable development of Midea and practice corporate socialresponsibility, Midea Group has established a comprehensive supplier admission and assessmentmechanism in three aspects: pre-event management, in-event management and post-eventmanagement.
Governance · Sustainable Opportunities
Value Chain Management
Pre-event managementIn terms of supplier admission, Midea continuously optimizes the management system andestablishes a supplier corporate social responsibility (CSR) system review mechanism to assessand constrain suppliers. Meanwhile, Midea also clari?es the ful?llment of social responsibilityand accountability requirements of suppliers during introduction phase through the MaterialSupplier Cooperation Agreement of Midea Group, the Midea Supplier Code of Conduct and otherdocuments and systems and build a self-assessment mechanism to urge suppliers to self-inspecton social responsibility.
In-event managementBased on Midea Group's supplier CSR system, routine reviews are conducted for quali?edsuppliers on labor compliance and other content, and the review results are disclosed.Based on the routine evaluation results and the comprehensive performance of suppliers, Mideaclassi?es and grades the social responsibility risks of suppliers, and conducts on-site evaluationof some high-risk suppliers. Through quali?cation check, random check of accounts (child laborsituation, wages, working hours, etc.), records and documents of system propagation, and on-site observation and inquiry, suppliers' responsibilities ful?llment will be scrutinized and strive tobuild a responsible procurement chain together.Focusing on "control of hazardous substances, energy saving, carbon reduction and greenmanufacturing empowerment", Midea establishes a green supply chain system that takes intoaccount environmental impact and resource e?ciency. Midea promotes the management ofcarbon footprint/carbon emission of suppliers, gradually forms the carbon management standardof suppliers, and actively supervises the clean production of upstream partners in the supplychain.Post-event managementMidea Group has drawn six red lines for suppliers' social responsibility during supervision, inwhich the key contents such as labor rights, business ethics and environmental protection areclearly elaborated and incorporated into Material Supplier Cooperation Agreement of MideaGroup and Midea Supplier Code of Conduct.Midea implements regular review that covers all the cooperative suppliers (including OEM/ODMproduct assembly suppliers, parts suppliers, raw material suppliers) with direct transactions, andfor those who violate the red line, Midea will restrict the supply ratio, cancel the cooperation andother punishment according to the severity of the circumstances; the use of child labor, forcedlabor is a veto item, and the cooperation will be terminated once found.The supply chain's red line requirement for suppliers is the core of responsible procurement, andMidea views it as an important factor in awarding and extending supplier contracts, incorporatingit into the supplier social responsibility system, the Material Supplier Cooperation Agreement,Midea Supplier Code of Conduct and other documents to further clarify the supplier labormanagement terms and recourse requirements. For suppliers in cooperation, Midea also activelyconducts respective training to improve suppliers' awareness of ful?lling responsibilities. In 2021,Midea has carried out several trainings for suppliers on labor management entities.Meanwhile, Midea actively encourages suppliers to use clean energy including solar energy,wind energy and hydrogen energy and plans to introduce more suppliers that use new energytechnology .Gradually raise the standards of clean and low-carbon production for suppliers underthe premise of ensuring the stability of Midea's supply chain.
Midea takes the issue of con?ict minerals seriously to avoid con?ict or human rights violationscaused by the minerals procured. Relevant evaluation clauses were established in the supplieradmission and daily evaluation, and explicitly requires suppliers to sign a "Con?ict-free MineralsPledge" covering raw materials such as tantalum, tin, gold and tungsten. Meanwhile, Mideapublicly declares that it will not purchase or support the use of any con?ict minerals that directlyor indirectly ?nance or support areas a?ected by armed con?ict, and conducts due diligence onthe use of con?ict minerals in the supply chain using the RMI-CMRT questionnaire.Midea also uses the global supplier cloud (GSC) platform to manage the number and geographicallocation of suppliers in real-time through IT technology, and requires suppliers to report theorigin attributes of materials to trace the origin of incoming materials for production and avoidpurchasing raw materials from relevant regions involved in human rights violations, illegal trade,?nancing violence and other issues to ensure the safety and reliability of Midea's supply chainsystem.
Supplier Corporate Social Responsibility (CSR) System of Midea Group
To implement e?ective supervision and management of suppliers, Midea has establisheda supplier social responsibility system to examine supplier before introduction and duringcooperation, based on ISO14001, ISO45001, Responsible Business Alliance (RBA), SupplyChain Sustainability Audit (JAC), Supply Chain Social Responsibility Management SystemGuide (IPC1401) and other related internationally recognized management systems,industry standards and regulations such as national safety, environmental protection,occupational health, and ?re protection.The evaluation system starts from ?ve aspects: labor rights, occupational health andsafety, environmental protection, business ethics, and management system, and isdesigned to manage and supervise all direct trading suppliers (including OEM/ODMproduct assembly suppliers, parts suppliers, and raw material suppliers), including theevaluation of suppliers' CSR management system, con?ict minerals, social responsibilitygoals and action plans, and other related contents.
Con?ict Minerals Management
Prohibit the use of any form ofchild labor, forced labor, and anyform of violence, verbal abuse,corporal punishment or sexualharassment against employees.
Prohibit any form of bribery,extortion and kickbacks.
Prohibit any serious massincidents.
Prohibit the payment ofemployees' wages below the localminimum wage standard.
Prohibit any serious safety andenvironmental incidents, such aswork-related accidents, major ?reand explosion accidents, seriousenvironmental pollution accidents.
the review, stop production andrecti?cation, stop construction, etc.due to its own violation of relevantnational laws and regulations.
Six red lines for suppliers of Midea Group to ful?ll their responsibilities
Prohibit the enterpriseto be ordered by thegovernment to restrict
Governance · Sustainable Opportunities
Value Chain Management
Environmental ManagementEnvironmental ManagementMidea Group is committed to integrating the concept of greenenvironmental protection into every aspect of the Group'sproduction and operation. In 2021, in order to actively respond tothe national carbon peak and carbon neutrality strategy, MideaGroup released the "Green Strategy" and set the Group's carbonpeak and carbon neutral targets, in order to make continuouse?orts to achieve the vision of "building a green and better home formankind".
Green StrategyAs a large technology group with ?ve business sections, Midea is committed to integrating greeninnovation and clean technology into Midea's operation and the whole life cycle of its products. Atthe same time, in order to actively respond to the national "14th Five-Year Plan" and the "CarbonPeak, Carbon Neutral" strategy and deepen sustainable development, Midea Group has releasedthe "Green Strategy" in 2021.Medea's green strategy is based on the construction of green technology standard system andoperation management, with "green design, green purchase, green manufacturing, green logistics,green recycling, green services" as the six pillars, and comprehensively considers raw materialpreparation -- processing and manufacturing -- product packaging -- use and maintenance -- end-of-life recycling -- comprehensive utilization of resources and other elements. Strive to build alow-entropy product manufacturing and use model, and strengthen the ecological links betweenindustries and between industries and society by improving product quality and performance,extending product life, and reducing material and energy consumption during manufacturing.Through innovation and collaboration, Midea plans to reduce carbon from the whole product lifecycle, build a green, intelligent and e?cient global supply chain, provide users with trustworthyproducts and services, and build a better future together.
Create a green global supply chain,and provide green products and services to build a green and
better home for mankindPromote the "3060" strategy to have carbon peaking by 2030 and
achieve carbon neutrality by 2060GreenDesign
VisionandObjec-tivesSixPillarsSystemFoun-dation
GreenPurchase
GreenManufac-turing
GreenLogistics
GreenRecycling
GreenServicesEnergy saving, water saving, material saving, land saving, low carbon,environment-friendly, new energy, recycling, ecology, healthy, safe and
sustainableEstablish a green technology standard system
Environment · Green Opportunities
Environmental Management
Contribute to carbon neutrality
Based on its green strategy and low-carbon future, Midea has set the goal of "having carbonpeaking by 2030 and achieving carbon neutrality by 2060" and set up a green strategy task groupbased on this. The task group is led by the group vice president and includes the main coredepartments, forming a green strategy construction organization with comprehensive coverageand strong implementation to the main promotion departments and support departments of thesix pillars of green strategy. Under the leadership of the Green Strategy Promotion Group, Mideaattaches great importance to the implementation of green strategy and carbon neutrality target.Midea has divided the carbon neutrality path into four stages, and will gradually promote carbonpeaking and carbon neutrality work in a cycle of every 10 years from 2021. Midea plans to ?rstachieve green power self-management and internal peak carbon emissions by 2030, and thengradually increase the proportion of green power through continuous optimization of energystructure, and plans to achieve 10% of green power in 2025 and 30% of green power in 2030, andintroduce a number of clean production technologies. Based on current emission data and energystructure projections, Midea expects to achieve direct and indirect emissions (Scope 1 and Scope
2) to peak within itself around 2030, while ensuring incremental development. Meanwhile, Midea
actively collaborates and guides suppliers to gradually green production, establish and improvethe recycling system (Scope 3), and ultimately achieve carbon neutrality within Midea by 2060.In addition, Midea will also deepen its environmental work and practice green developmentcomprehensively through the six pillars of green strategy, continuously reduce the impactof production activities on the environment, actively study and introduce clean productiontechnology, and contribute to the sound and sustainable development of ecology. Meanwhile,Midea is organizing and implementing environmental work under four themes: climate change,natural resources, pollution and waste, and environmental protection, and fourteen topics suchas carbon emissions, product carbon footprint, and green ?nance, to bring new opportunitiesMidea in the future.
Green DesignMidea insists on promoting technological innovation and green design, and to lead the industry'sgreen development by investing research on green and low-carbon technologies, leading theconcept of green product design, participating in the formulation of green standards, andreducing carbon emissions throughout the life cycle of products.
Household appliances are the second largest source of energy consumption for residents, whichcontribute around 30% of carbon emissions. Midea focuses on the research and innovation ongreen technology, and utilizes its research advantages to accelerate the realization of energy-saving and green operation of products. In September 2021, Midea won the "National Scienceand Technology Progress Award" for its "Theory of Building Thermal Environment and its KeyTechnology of Green Creation". In the future, Midea will also conduct research on technologiesrelated to green and low-carbon, and promote green and low-carbon products.
Green technology
Midea's environmentally friendly natural refrigerant application technologyhelps global energy saving and emission reductionR290, also known as propane, is a new type of environmentally friendly refrigerant mainlyused in HVACs, heat pump air conditioners, household air conditioners and other smallrefrigeration equipment. As a natural refrigerant, R290 has a high cycle e?ciency anda near-zero greenhouse e?ect, making it the only viable option for the air conditioningindustry and in line with the Kigali Amendment to the Montreal Protocol. However, R290 is?ammable and explosive with low volumetric refrigeration capacity, and harsh allowablecharge, thus has not been taken seriously in developed countries such as Europe and theUnited States, and its patent layout is almost blank.In the United Nations Industrial Development Organization's project of Leading theresidential air conditioning industry to a more environmentally friendly path, Mideahas been working on R290 research for many years, and overcome the key challengessuch as the decay of air conditioning performance due to the severe shortage of R290air conditioner ?lling volume and harsh safety protection requirements, and formedthe R290 room air conditioning application technology with independent intellectualproperty rights. The breakthrough application of R290 not only meets the demand forhigh e?ciency and energy saving, but also e?ectively replaces the traditional refrigerantHCFC-22, and makes a positive contribution to the global greenhouse gas emissionreduction and ozone protection actions. The technology was successfully applied tothree categories of split units, mobile air conditioners and dehumidi?ers, reducing theamount of refrigerant per unit from 1 kg, 0.45 kg and 0.08 kg to 0.32 kg, 0.24 kg and
0.07 kg respectively. Through technological innovation, a total of 2.249 million tons of
carbon emissions will be reduced during in 2021 only in the use of raw materials andmanufacturing, according to the sales of the three major products.This breakthrough provided a Chinese solution for the implementation of the KigaliAmendment to the Montreal Protocol on a global scale, and was identi?ed as aninternational leader. The project won the First Prize of Science and Technology Progressof China Light Industry Federation, and was awarded the "Low-carbon & Eco-friendlyTechnology Leadership Award" by the United Nations Environment Programme,the "Outstanding Contribution Award for Energy E?ciency and EnvironmentalProtection" by the United Nations Industrial Development Organization and the "UnitedNations Montreal Protocol 30 Years Outstanding Contributor Award" and many othercommendations. Midea Air Conditioner has ?led 36,371 patent applications and has beengranted 21,165 of them, of which 586 patents have been applied for and 308 have beengranted in the ?eld of energy conservation so far.
Midea won the "National Science and Technology ProgressAward" for its "Theory of Building Thermal Environment and itsKey Technology of Green Creation".
Stage 4Stage 3Stage 2Stage 1
2021
2030
2040
2050
2025
2035
2045
20552060
Early planningfor steadypeakingInitial replacementwith green powerfor carbon emissionreduction step by stepWide use of greenpower for signi?cantcarbon emissionreductionMaking joint e?ortsto achieve carbonneutrality
Self-supply of green powerin the 14th Five-Year periodEarly carbon peaking inthe 15th Five-Year periodGreen power ramp-up inthe 16th Five-Year periodSteady carbon emissionreduction in the 17th Five-Year periodWide use of green power inthe 18th Five-Year periodSigni?cant carbonemission reduction in the19th Five-Year periodNet zero carbon emissionin the 20th Five-Year periodCarbon neutrality in the21st Five-Year period
Environment · Green Opportunities
Environmental Management
Midea not only provides customers with e?cient and stable products, but also continues tointegrate green concepts into the whole life cycle of its products. Taking the General Rulesfor Green Product Evaluation (GB/T 33761-2017) as a guideline, Midea creates "green designproducts" and "eco-design products" through four major grasps: resource conservation, energyutilization, environmental protection and quality improvement. In the process of productdevelopment, Midea also tries to avoid the use of harmful substances to protect human healthand safety while controlling the environmental attributes of the products from the source.Midea Group is committed to promoting green energy-saving products. The energy-e?cient airconditioners developed based on Midea's green air conditioner technology have greatly improvedenergy e?ciency, and the annual output of about 2.85 million sets is estimated to save about416 million degrees of electricity, reduce carbon dioxide emissions by about 414,700 tons, andreduce sulfur dioxide emissions by around12,400 tons. And residential electric water heater AIenergy-saving key technology can achieve precise thermostat for bathing water, can save 40% ofelectricity, achieve annual electricity savings of 478.15 degrees per single electric water heater.Based on the 30 million units of electric water heaters, the electric water heaters with on-demandintelligent control technology can reduce carbon dioxide emissions by about 14.3 million tons.
While introducing many high-tech, green products, Midea constantly improves its own greenproduct standards based on green technology and green products. At present, Midea has34 categories and 40 enterprise standards to achieve leadership, truly promoting the overallimprovement of product quality with key core technologies, helping to lead the standard withtechnology and products, and driving the industry upgrade with standards. The highest energye?ciency of Midea's High E?ciency Speed Controllable Room Air Conditioner reaches APF 6.58,which is 31.60% higher than the national standard and tops the list of the same category; thehighest energy e?ciency of High E?ciency Centrifugal Chiller (Heat Pump) Unit reaches IPLV
10.13, which is 25.06% higher than the national standard; in addition, Midea Group's washing
machines, refrigerators and other types of products have been awarded the enterprise standard"Leader" certi?cate. In 2021, Midea was selected as the "leader" of corporate standards for fourconsecutive years.While leading the green product standards, Midea also actively collaborates with variousstandardization technical committees to lead the development and revision of green standards.As of October 2021, Midea has led or participated in the development of more than ten greendesign product evaluation speci?cation standards, making outstanding contributions to theimprovement of industry green standards. Among them, the new national standard for airconditioner energy e?ciency, which Midea mainly participated in revising, has improved theenergy e?ciency standard by 14%, e?ectively promoting the popularization of the applicationof inverter energy-saving air conditioners. Midea also actively advocates "carbon labeling" andpromotes the carbon reduction of the industry. Midea hopes that by calling for the establishmentof carbon emission evaluation standards for home appliances, it will traction the scienti?c andtechnological investment of the whole industry and realize the low carbon and environmentalprotection of home appliances in various aspects such as design, production and use.
Green products
Green standards
Scroll compressor for Midea's server room air conditioners
In recent years, the wave of low-carbon construction of new infrastructure such asdata centers has risen, putting forward higher requirements for energy saving andconsumption reduction of supporting equipment such as server room air conditioners.Midea Industrial Technology Group grasps the market demand, and successivelyovercome the high apparent heat ratio, high energy e?ciency ratio, high reliability,high precision, high load and continuous operation and other technical and productdevelopment points, and successfully developed a special 96CC scroll compressor forserver room air conditioners. On this basis, 80CC and 135CC scroll compressors weredeveloped, and 60CC and 70CC products can be developed upon customers' needs.Meanwhile, the products adopt high energy e?ciency and reliability to meet a variety ofprecision temperature control needs while e?ectively reducing energy consumption inoperation, saving 15%-30% compared to traditional air conditioners.
能源利用
Greenproducts
Environment
protection
Energy utilization
Quality improvement
Resource saving
Strictly control thehazardous materialsand pollutionsgenerated duringusage
E?ciencyimprovement andenergy saving duringmanufacture or usage
Product durability, healthissue, etc.
Reductionand recyclingof materials,packaging
Implementation path for Midea Group's Green Product
Environment · Green Opportunities
Environmental Management
Green Procurement
Supplier carbon audit
Hazardous substance control
Midea is committed to establishing a procurement system that integrates environmental impactand resource e?ciency, helping enterprises to develop sustainably and taking positive actionsto achieve zero environmental load, while pulling upstream suppliers in the value chain to learn,transform and implement the results of Midea's green strategy and contribute to the national dualcarbon strategy.Green procurement revolves around four dimensions: social responsibility review, hazardoussubstances control, energy saving and emission reduction, and green manufacturingempowerment.
Midea conducts social responsibility review of suppliers in ?ve dimensions: labor rights,occupational health and safety, environmental protection, business ethics, and systemcompleteness. Midea also actively leads upstream suppliers in the industry to build greenfactories together and organizes suppliers to conduct carbon screening. Non-bulk suppliers haveto compile "supplier carbon emission mapping (template)" with reference to the requirements ofcarbon emission checking in Midea's manufacturing plants, and issue o?cial documents to clarifythe supply chain team of the business division to promote supplier carbon checking. For majorbulk suppliers under strong state control, such as steel and petrochemicals, Midea has conductedcarbon emission data mapping to closely monitor and responds to the carbon peak policies andrequirements on supply.To ensure the smooth implementation of carbon emission survey, Midea also organized carbonemission survey training for suppliers. By the end of 2021, more than 600 suppliers haveparticipated in the training. To let suppliers better grasp the essentials of carbon emission check,training videos were recorded sent to all suppliers.
To ensure green and safe procurement, Midea has conducted strict control on suppliers andestablished a three-dimensional control process for hazardous substances: control process fornew parts, control process for mass-produced parts, and control process for supplier HS system(online ?ne control, traceability, and fast handling of accidents).All purchased raw materials and components must comply with national and local regulations(including but not limited to the Restriction of Hazardous Substances Directive, PolycyclicAromatic Hydrocarbons Directive, Regulation on Registration, Evaluation, Authorization, andRestriction of Chemicals, Battery Directive, Packaging Directive, Persistent Organic PollutantsRegulation, Safe Drinking Water and Toxic Enforcement Act of 1986, restriction on the use ofhazardous substances in children's products, restriction on the use of hazardous substances inelectrical and electronic products), and provide hazardous substance test reports.
Environment · Green Opportunities
Environmental Management
Green Manufacturing
Green factory
Midea attaches great importance to green manufacturing, constantly promoting an environmentallyconscious manufacturing system from four dimensions: carbon emission from the park, carbon footprintof products, degree of production intelligence, and degree of recycling of renewable resources, a modernmanufacturing model that integrates customer demand, environmental impact, resource e?ciency andenterprise e?ciency, a sustainable manufacturing model that adheres to conscience, social responsibility andthe bottom line, and promoting green factory intelligent innovation and green benchmark construction. Byaccelerating manufacturing automation and intelligence, Midea uses Internet and big data to facilitate high-endmanufacturing. Midea upgrades energy management capacity of production process with digital technology,sets energy-saving standards and targets, improves energy management assessment system, increases theproportion of new energy use and promotes the application of energy-saving and low-carbon technologies.Midea will build a green manufacturing system in ?ve directions, such as intensive land use, harmless rawmaterials, clean production, wastes recycling and low-carbon energy.According to the Green Manufacturing Carbon Neutral Master Plan, Midea has formulated a detailed ?ve-year plan (2020-2025), which plans to achieve a 20% reduction in energy consumption per unit of GDP in 2025compared to 2020, and reduce CO
emissions per unit of GDP by 25% compared to 2020, with clean energyaccounted for more than 10%. Midea is renewing its organization, building a team of professionals to deal withclimate change, and striving to innovate its processes from the perspective of energy conservation and emissionreduction to make substantial carbon reduction.To this end, each factory is actively holding Green Improvement Week to brainstorm ideas. In 2021, Midea hasimplemented and plans to organize and implement 1,551 energy-saving management and process technologyimprovement projects, such as the centralized material supply energy-saving improvement project in theinjection molding workshop, the compressed air piping renovation/use link anti-air blowing project, the oil-based paint to water-based paint environmental protection project, the waste heat recovery and reuse project,and the sheet metal suction cup energy-saving renovation project, and these projects were promoted orderlyMidea using operation and maintenance time. It is expected that ?ve factories of Midea Group will pass theevaluation of GB/T 36132 Green Factory in 2025.
As a responsible enterprise, Midea strictly abides by the Law of the People's Republic of China on EnvironmentalProtection, the Law of the People's Republic of China on Environmental Impact Assessment, and the relevantlaws and regulations of each group's subordinate enterprises, and clearly de?nes environmental protectionred lines in the production process for environmental protection compliance management, new reformand expansion projects, and "three waste" emissions, thus protecting ecological diversity and ensuring nosubsidiary or employee may violate it. Midea has not experienced any major environmental violations in 2021because of comprehensive management measures and resource investment. Meanwhile, based on ISO14001environmental management system standard, each business unit under Midea Group has set up Environment,Health and Safety (EHS) management department, formulated corresponding environmental managementpolicy and the daily management standards of wastewater, waste gas, solid waste and noise.To actively respond to climate change, Midea continues to optimize its industrial and energy structure, updateits management model, adopt new process technologies and accelerate the transformation of manufacturingprocesses into energy-e?cient ones. Meanwhile, Midea actively introduces digital technology to acceleratethe energy management capability of the production process and realize the transparency, visualization andcontrol of energy e?ciency management of process. From 2019 to 2021, the unit output value of standard coalconsumption declined from 0.41 tons/RMB10,000 to 0.34 tons/RMB10,000, a reduction of more than 10%.Midea continues to promote the use of clean energy. Solar power was installed in three of Midea's kitchen andwater heater appliance manufacturing bases, and currently all three sub-plants have achieved 100% solarcoverage on the roof (Wuhu factory is scheduled to be put into use in March 2022). Among them, 26% of greenenergy is used in the net drinking plant; 11MW of solar power is installed in the Wuhu plant, accounting for 10%of green energy; 4.5MW of green energy is installed in the ?rst phase of the Handan plant, accounting for about12% of energy usage. Currently, over 20 factories and R&D innovation centers in Midea have built photovoltaicpower generation projects with a capacity of over 160MW. The average percentage of clean energy use in Mideahas reached more than 10%, an increase of 4.54% from 2020, and more clean energy will be introduced tofurther increase the percentage.To better practice green manufacturing, Midea also actively carries out carbon veri?cation work in eachproduction base. In 2021, Midea specially produced the Carbon Exhaustion SOP Manual, which explains 4aspects from carbon background, carbon source, carbon collection and carbon calculation, laying a solidfoundation for each production base to understand and cooperate with carbon exhaustion work.
Shunde factory photovoltaic power generation projectTo promote green production, Midea has built a 35MW photovoltaic power generationsystem at its Shunde plant. The PV project mainly includes 34 dry-type transformers,34 inverters and 129,400 meters of cables, covering an area of 226,900 square meters,accounting for 24% of the park area.At present, the photovoltaic power generation system has been connected to the grid,and the energy storage of photovoltaic power generation can reach 29,283,500 KWH,which e?ectively improves the green power ratio of the park to 19% and reduces theannual CO
emission by 23,000 tons.
Wuhu factory waste heat recovery project
There are many heat-producing and heat-using equipment and areas in the park ofMidea's Wuhu Factory, and the heat loss in the park is large after the calculation of theoverall heat supply and demand relationship. To realize heat energy recovery and reuse,Midea's Wuhu factory adopts a decentralized and centralized approach to build two heatstorage centers within the factory and conducts phase change heat storage pilot in theheat storage centers.The factory makes compound use of waste heat recovery pipeline of air compressor, andgives priority to heat energy collection by using gas-gas heat exchange and waste heatcombustion inlet in the drying oven of cleaning line and curing oven and drying oven linkof powder spraying line to realize using the excess heat energy for hot water of dormitoryand heating of workshop. By recycling and reusing the waste heat, the factory can reduce76 tons of CO
emission every year.
SupervisionWarningCollection Analysis &
Application
Greenhouse gas emissions per unit ofoutput valueTotal GHG emissionsRenewable energy as a percentage oftotal energy consumption
Tons of CO
/RMB10,000(Tons of CO
equivalent)
0.04941,149,997
4.96%
201920192019
0.0666
1,564,414
5.46%
202020202020
0.0600
1,712,766
10.1%
202120212021
Environment · Green Opportunities
Environmental Management
Atmospheric pollutant managementWaste management
Water resources management
The management of atmospheric pollutants is an important part of green manufacturing work.Midea's factories have built corresponding exhaust gas treatment systems for di?erent types ofexhaust gases, and the emission concentrations of benzene, toluene, xylene and VOCs (volatileorganic compounds) in the exhaust gases are emitted at high altitude in strict compliance withthe Emission Limits of Air Pollutants. In order to reduce dust emission, Midea also adopts theclosed operation of dust equipment and treats dust through its own automatic vacuum cleaner ordust recovery device, and there is zero dust emission to the outside.Midea also reduces air pollutant emissions during production by upgrading environmentalprotection facilities and continuously optimizing production processes. For example, the electricalproducts company of the Electromechanical Business Group switched the dipping paint processfrom oil-based paint to water-based paint, reducing VOCs emissions by about 410 tons per year;the motor of the Suzhou plant of the Microwave and Cleaning Appliances Division reduced VOCsemissions by more than 83% by replacing insulation paint with environmentally friendly paintwithout styrene components. In 2021, the total VOCs emissions of Midea is 608 tons.At the same time, in accordance with Midea's "Comprehensive Digitalization and ComprehensiveIntellectualization" strategy, Midea has also developed an environmental information platformto collect and process environmental protection data, to quickly and accurately control theenvironmental protection operation data of its subordinate units. At the same time, Mideahas independently developed an online monitoring system for exhaust gas, which realizes thedigitalization and intelligence of air pollutant management through rapid perception and control,real-time monitoring and control, advance warning and pre-control, linkage disposal and control,and system evaluation and self-control. Based on the green manufacturing strategy, Midea plansto achieve a 10% reduction in single product exhaust gas in 2022 compared to 2020.
All factories of Midea Group strictly classify and manage waste, and classify solid waste intohazardous waste, general waste and domestic waste according to the Law of the People'sRepublic of China on the Prevention and Control of Environmental Pollution by Solid Waste andother relevant regulations, and set up corresponding disposal measures for di?erent categories ofwaste: for hazardous waste, factories establish a management system to clarify the requirementsof collection, storage and transportation, transportation and disposal, etc.; and entrust a quali?edhazardous waste disposal agency for disposal. General waste is collected and disposed of byresource recycling manufacturers after classi?cation in the factory; domestic waste is entrusted tolocal sanitation departments for disposal.In order to reduce the generation of hazardous waste, the plant continuously tracks the generationand disposal of hazardous waste in each process and develops improvement measures from thesource. For example, the Shunde A/C compressor plant separates oil, water and cutting ?uid fromiron sludge through a vacuum infrared drying device, which allows the remaining component (ironpowder) to be disposed of as general waste and can be used as a resource for recycling. Using thismethod, we can reduce the amount of hazardous waste iron sludge generated by 1,600 tons and5,000 drums per year.In 2022, Midea will continue to strengthen waste management and plans to achieve 100%environmentally friendly disposal of solid waste.
Midea insists on promoting water conservation in all aspects and continuously explores e?ectivemeasures for wastewater treatment and water reuse. Midea strictly complies with applicablelaws, regulations and standards such as the Water Pollution Prevention and Control Law of thePeople's Republic of China and the Water Pollution Prevention and Control Action Plan, and hasestablished a corresponding wastewater discharge management system and strictly monitors theoperation and maintenance of wastewater treatment facilities.All subsidiaries of Midea classify and manage wastewater: domestic wastewater is dischargedto municipal sewage treatment network and sewage treatment plant after pretreatment to thestandard by septic tanks and other means; industrial wastewater is discharged to municipalsewage treatment network and sewage treatment plant after pretreatment to the standardby factory sewage treatment stations. At the same time, the plants also actively promote thediversion of rainwater and sewage from the old plants, update the sewage treatment equipmentand optimize the existing process in order to reduce the overall sewage discharge through anintegrated approach.In 2021, the total water consumption of Midea will be 14,453 thousand cubic meters, achievinga continuous decrease in integrated water consumption per unit of output value. In 2022, Mideaplans to achieve a 10% decrease in wastewater generation per unit of product compared with2020 and a 10% increase in wastewater reuse rate compared with 2020.Optimizing production process and reducing wastewater dischargeThe environment appliances manufacturing company under the Small DomesticAppliance Division of Midea Group adopts advanced sewage treatment technology, theCOD index after wastewater treatment is controlled within 5 mg/L, and the wastewaterrecycling rate reaches 50%, which saves water consumption while reducing pollutantdischarge.
Integrated waterconsumption per unit ofoutput value
Amount of waste generated
Tons/RMB10,000
ton
2019
2019
0.868
6,425,815
2020
2020
0.770
7,672,580
2021
2021
0.507
3,322,048
Environment · Green Opportunities
Environmental Management
Green LogisticsMidea ?rmly promotes the green development of itself and its partners. Through businessaccumulation and technological innovation, it integrates technologies such as Internet of Things,big data, cloud computing and arti?cial intelligence into actual business scenarios to improvethe quality and e?ciency of the whole process and reduce carbon emissions. In 2021, Mideawill comprehensively accelerate green transportation, green storage and green packaging, forma green intelligent logistics system, and help the whole industry chain improve quality ande?ciency and reduce carbon emissions, and join hands with partners to share the responsibilityof protecting the earth.To achieve the long-term goal of peak carbon emissions and carbon neutrality, Midea hasformulated a phased green intelligent logistics 1.0, 2.0 and 3.0 strategy in the ?eld of greenlogistics, and has committed to reach the peak carbon emissions in 2030 and reduce CO
emissions per unit of output value within the Group by 60% to 65% compared to 2005.
Green transportation
Green storage
Transportation is the key in green logistics. Midea uses technologies such as Internet of Things,big data, cloud computing and arti?cial intelligence to optimize transportation routes, reducetransportation distances and times, and improve transportation e?ciency. Meanwhile, Mideaachieved accurate matching of vehicles and goods, reduced the amount of greenhouse gases andpollutants generated in the transport link, to create a green, intelligent transport system throughthe integration of freight lines and capacity resources.On this basis, Midea also continues to promote the application of new energy vehicles in the?eld of transportation and distribution, e?ectively reducing the exhaust emissions generated bydistribution vehicles. By the end of 2021, Midea has used over 300 new energy vehicles, and plansto promote the use of new energy vehicles in 30 branches nationwide through procurement andleasing, and gradually replace traditional fuel vehicles with new energy vehicles in short-distancetransportation.The structural adjustment of the "Road to Railway" is the only way to reduce cost, increasee?ciency and achieve green development in transportation. In 2021, the Chinese governmentissued the Outline of the 14th Five-Year Plan of the National Economic and Social Development ofthe People's Republic of China and the Vision 2035 and the Action Plan for Peak Carbon Emissionsby 2030. It is clearly proposed to vigorously develop intermodal transportation with railroads andwaterways as the backbone, and accelerate the "Road to Railway" transportation of bulk cargoand medium- and long-distance cargo. Midea actively responds to the national call, takes theinitiative to adjust the transport structure, and accelerates the process of implementing "Road toRailway". In 2021, Midea and China Railway Guangzhou Bureau Group Co., Ltd. Started in-depthcooperation to create a new mode of multimodal transportation, which can increase the amountof cargo transported by railroad and signi?cantly reduce the mileage of traditional fuel cars.Midea has also set up a cargo dispatching center to collect and consolidate cargoes with the samedestination into containers to maximize the loading rate and turnover rate of each transport lineand build up an intensive and e?cient, green and low-carbon transport system.
Midea takes "digital intelligence" and "energy saving and consumption reduction" as the entrypoint to promote the construction of a green storage system. With the support of big data andarti?cial intelligence technology, Midea implements measures such as optimal allocation ofstorage resources, intelligent packaging and automatic sorting to greatly improve the storage andtransfer e?ciency and reduce the number and distance of handling in the park. For automatedstorage, Midea plans to build an integrated, industry-leading, domestic ?rst-class large automatedstorage and retrieval warehouse - Malong High-rise Warehouse in 2022, and to promote theconstruction of intelligent logistics park in Midea.In 2021, Midea also vigorously conducts energy saving and consumption reduction improvementprojects in the warehouse park to reduce power waste and save cost by adding timers, light-controlled switches and recycling lighting. Midea advocates reasonable planning of the number oflighting lamps according to demand and replacing traditional lighting lamps with energy-savinglamps to promote the reduction of consumption in lighting. In addition, Midea has also installedinfrared sensor switches at the charging piles of the ferry bus to reduce the energy consumedwhen the piles are not working. Currently, Midea has achieved remarkable results in improvingenergy saving and consumption reduction. Annto Warehouse and Logistics has carried out workon energy saving and consumption reduction nationwide in the form of MBS improvement week,and the rate of national storage centers has reached 96%, reducing the total cost of water andelectricity by RMB1.39 million.In addition, the paperless project is also one of the ways to promote the construction of greenstorage. Midea has realized the electronic sign-o? of sub-projects and paperless managementin the warehouse so far, and built the electronic sign-o? platform of Smart Sign-o? to promotethe digitization of warehousing in phases and to reduce paper consumption in the o?ce. As ofDecember 2021, the paperless project has covered 152 warehouses in and out of the warehouse,reducing 70% of printing cost, and increasing personnel e?ciency by 20%.
Greenpackaging
Intelligent mapIntelligentstorage
Intelligenttransportation
? Establish a green operation model
covering the entire process, includingproduction logistics, warehousingand transportation, delivery andinstallment, recycling, and return tothe factory for reproduction to o?ercustomized solutions.? Based on big data, optimize the
allocation of storage resources,intelligent packaging and automaticsorting to improve storage andtransfer e?ciency and reduceprocess energy consumption.
? Plan with the optimal routes to
reduce transportation energyconsumption by applying logicalalgorithms and considering factorssuch as product aging and distance.? With the support of bid data analysis
and deep-learning skills, achieveaccurate matching of vehicles andgoods through the integration offreight lines and capacity resources.? Based on geographic big data,drivers are reminded to usepredictive navigation and fuel-savingalgorithms to reduce transportationenergy consumption.2021202220232024202520262027202820292030Green intelligentlogistics 1.0
Green intelligentlogistics 2.0
Green intelligentlogistics 3.0? Intelligent park? Green energy? Intelligenttransportation? Intelligent map
? Green packaging? Intelligentwarehouse? Green energy? Intelligenttransportation? Intelligent map
? Intelligent park? Intelligentwarehouse? Green energy? Green supply chainsolutions? Low-carbonoperation
Environment · Green Opportunities
Environmental Management
Green packaging
Green packaging can improve the recycling rate of packaging materials, e?ectively control theconsumption of resources and reduce the pollution caused to the environment. In order tocontinuously improve the energy saving and environmental protection of the product packaginglink, Midea, on the one hand, through the establishment of product packaging design system,improve packaging integration design, upgrade the foam material process and other measuresto reduce the use of packaging materials; on the other hand, actively explore the recyclableenvironmental protection packaging materials, and now achieve an annual reduction of wastematerials of 11,500 tons through the use of environmentally friendly packaging materials.Midea plans to fully promote circular packaging in 2022 and build an integrated mode oftransportation and packaging to maximize resource saving and reduce pollution. Packaging isan important element throughout the entire logistics process, and successful optimization ofpackaging apparatus can pry the optimization of the entire logistics value chain. The integratedmode of transportation and packaging starts from bene?ts, goes directly to customers, links pre-production, production and post-production logistics operation needs, combines recycling andgreen direction, plans and designs packaging solutions and transportation and warehousingservice solutions, conducts integrated services to help internal and upstream and downstreamcustomers to realize logistics standardization and greening, while helping to upgrade automationand digital intelligence. Take paperless packaging solution as an example: the solution reducesresource consumption by adopting recycled material packaging and complying with the principleof moderate packaging; improves cargo loading and unloading e?ciency through unitizedpackaging machinery operation; enhances the full load rate of transportation through thestandardized and modularized design of packaging size; and realizes cost reduction and e?ciencyincrease by reducing unnecessary transfer links.Midea is committed to the shared use of recycling packaging and green management. Through therecycling packaging center, Midea forms a collaborative transfer platform for sharing packagingresources to rent the packaging instead of buying. Universal packaging (such as standard pallets,universal crates, wrap-around boxes, etc.) can be shared nationwide or even globally in a largecycle, and special packaging for classi?ed product design can be shared in a small cycle withinthe same industry for similar customers. The sharing of packaging containers can e?ectivelyoptimize the resources utilization.In addition, Midea has also established a warehouse packaging recycling managementmechanism to recycle waste cartons for packaging materials out of the warehouse, and promotepackaging reduction and greening.
Green RecyclingMidea actively undertakes the environmental responsibility of product end-of-life recyclingrequirements, responds to the extended producer responsibility system, builds a green recyclingsystem, and especially establishes a green recycling business department to carry out therecycling of used products. Midea's green recycling takes users' peace of mind in replacing newproducts, convenient recycling channels and traceability of dismantling and scrapping as thevision goal. Through Midea's online platform, 130,000 retail terminals in the o?ine "Midea CloudSales+" system, and 160,000 service engineers, we build a reliable replacement system andconvenient recycling channels. Midea simultaneously connects formal dismantling channels andopens the whole chain process from the user end to the dismantling factory end.At present, Midea's recycling service network has covered all provinces and regions in Chinaexcept for Taiwan, Hong Kong, Macau, Tibet and Xinjiang. Users can realize the old machinerecycling and trade-in through the o?ine dealer stores, and also recycle used appliances throughthe customer hotline, Midea service public number and other after-sales service system self-reporting orders. Midea's after-sales engineers will take the initiative to recycle the materials atthe customer's' place after receiving orders. Currently, the recycling of used household appliancescovers mainly for air conditioners, refrigerators, washing machines and other large appliances.In addition, Midea also provides old machine recycling services for distributors, and recyclingservice providers are responsible for recycling old machines at designated locations and carryingout subsequent processes such as distribution, logistics transfer, inspection and disassembly,classi?cation and treatment, and centralized environmental protection recycling.On e-waste disposal, Midea strictly abides by the Basel Amendment Convention and doesnot export e-waste to any non-OECD countries. At the same time, Midea vigorously promotesthe Notice on Encouraging Household Appliance Manufacturers to Carry out RecyclingTarget Responsibility System Actions within the group to implement the extended producerresponsibility system. To maximize resource recovery and reuse, Midea cooperates deeply withthird-party dismantling enterprises with corresponding quali?cations, formulates and implementse-waste dismantling programs, and sends recycled old machines to 109 dismantling enterpriseswith national fund subsidy quali?cations for compliant dismantling through green recyclingchannels. By the end of 2021, Midea had completed the recycling and dismantling of 32,220 usedhousehold appliances, and sent 28,499 refrigerators and washing machines recovered from thefactory side and 3,721 air conditioners, refrigerators and washing machines recovered from themarket side to the dismantling factories.In the future, Midea plans to deepen the "Internet + recycling" end-to-end digital recyclingmodel through "Midea Service", "MSmartLife App", "Midea Cloud Sales" and other onlineterminal platforms. Midea will continue to expand product recycling channels and optimize thegreen recycling system. Midea will continue to increase the construction of recycling network,and to improve the door-to-door recycling service capacity, it plans to strengthen training andempowerment in the existing 10,000 service outlets, increase the authorized recycling outletsfor consumers, expand the coverage of recycling services, and build an "Internet + recycling"platform. At the same time, Midea combs factory end-of-life machine processing systemdocuments, develops end-of-life machine processing methods and standards according toindustry standards. At the dismantling end, Midea plans to build its own dismantling factory, usesits own production advantages and factory operation experience to quickly improve the operatingcapacity of the dismantling factory, realizes comprehensive utilization of resources, developscircular production, and forms a whole life cycle management of household appliances fromproduction to dismantling and scrapping.Packaging redesign
Optimize packaging
with low carbon
Optimized transportationwith a circular economy
Optimized processeswith cost reduction ande?ciency improvement
Mode optimization and
rebuild
Environment · Green Opportunities
Environmental Management
Green Services
Green energy storage
Green services take green energy services and intelligent building services as the core to build acomprehensive green service system integrating "building, intelligence and energy", and Mideais committed to providing customers with green, low-carbon, e?cient and intelligent integratedsolutions to achieve sustainable development together with customers. To implement the greenservice construction, Midea has scheduled the green service capacity construction action planfrom 2021 to 2024 to clarify the path of implementing green service.
In 2021, Midea has launched renewable energy solutions, natural cold and heat source systemsolutions, grid-friendly energy solutions, and planned heat recovery system solutions in greenenergy services. Among them, Midea promotes the development of green low-carbon technologyinnovation through the development of photovoltaic, energy storage, heat recovery and otherdemonstration projects. Midea plans to achieve the goal of 1,000MW of installed capacity of greenpower by 2030, with power generation reaching 30% of total electricity consumption.Midea has laid out the key technologies for energy storage and distributed light storage projectsrespectively. In terms of key energy storage technologies, the household energy storage modulewill be put into production and released in the second half of 2021, and sales will begin; thecentralized energy storage module is scheduled to be put into production and rolled out in April2022. In terms of distributed light storage projects, a distributed light storage system integratingbuilding integrated photovoltaics, monocrystalline silicon modules, power storage and inverterwill be completed in the industrial park of Midea Global Innovation Center to help realize zerocarbon o?ce. Meanwhile, in 2022, we plan to start 130MW of photovoltaic projects and completemore than 70MW; in 2022, we plan to complete the construction of 20MWh-30MWh of energystorage system. RMB320 million of output value is expected to be completed in 2022.
Distributed light storage zero carbon o?ce building
The distributed light storage zero carbon o?ce building is in the industrial park nearMidea Global Innovation Center. The light storage project con?guration mainly includes:
300KW photovoltaic power generation, 100KWH power storage module, and it supportsrelated technologies of building energy saving, including heat recovery multi-connector,high-e?ciency intelligent multi-connector, heat recovery new air conditioner, cold storagemodule, energy recovery elevator, etc. The building will achieve zero carbon operationthrough low carbon equipment, space intelligence, human comfort ?exibility, space heatcapacity ?exibility and light storage equipment, respectively. In addition, the building willintegrate relevant systems through intelligent technology to realize intelligent operationand carbon management. The ?nal project acceptance will be completed in April 2022.
Total solution of distributed light storage zero carbon o?ce building
Distributed PV Storage Zero Carbon O?ce Building - Zero Carbon Pathway
Building ?exibility70%Building energy e?ciency
30%
Photovoltaic
33.4%
Energy storage
31.5%
Low-carbon equipment
18.1%
Space intelligence
11.9%
Space ?exibility
3.2%
Human ?exibility
1.9%
Distributed light storage zero carbon o?ce building
Environment · Green Opportunities
Environmental Management
Green building and MEP technology servicesIn the ?eld of intelligent building services,Midea has set up a solution and deliverycommittee and launched buildingautomation control services, customizedconsulting services for intelligent scenarios,and building technology service projects.Midea has always been concerned aboutenergy saving and emission reduction inlarge public buildings, and created the"M-BMS Intelligent Building System" asearly as 2018: using the "heat recovery"technology in HVAC design to recover theexcess heat/cooling discharged from thebuilding and reutilize it. The system makesfull use of natural cooling sources to reducethe use of air conditioners, and collects,analyzes and systematically manages theoverall energy consumption of the buildingin real-time. Through design optimization,
Four leading international technologies promote the development of low carbon and energy saving in intelligent buildings
Ice and snow event dances the beauty of building technology
In July 2021, the four core technologies (research and application of horizontal opposed magnetic levitation inverter centrifugal compressortechnology, research and application of non-uniform similar synergistic heat transfer strengthening mechanism of fan speed and ?nwidth distribution, research and application of digital high-performance inverter control technology, and research and application of keytechnology of digital simulation of multi-connector) were identi?ed by the China Refrigeration and Air Conditioning Industry Association asreaching the international carbon neutrality key technology for HVAC buildings leading level.Magnetic levitation inverter centrifugal compressorMidea has innovated and developed horizontal opposed high-e?ciency magnetic levitation inverter compressor technology, which hasbroken through the key technical problems of magnetic levitation inverter centrifugal compressor and is of great signi?cance to promotethe implementation of China's dual carbon strategy. The biggest highlight of this innovation is the whole life cycle low cost, which canrealize oil-free, high-e?ciency and low-noise operation. 25 invention patents, 25 utility model patents and 4 design patents have beengranted. The technology has been applied to projects such as Shenzhen Metro and Beijing-Zhangjiakou High-speed Railway, achievingenergy saving and emission reduction of 11%.The method of non-uniform similar synergistic heat transfer strengthening of fan speed and ?n width distributionThe method of non-uniform similar synergistic heat transfer strengthening of fan speed and ?n width distribution achieves the synergisticmatching between non-uniform wind speed and unequal width of ?ns, reduces or even eliminates the in?uence of non-uniform wind ?eldon heat transfer performance degradation of heat exchangers. Midea designed the integral C-type heat exchanger based on this method,which improves the heat transfer by more than 7% and the drainage rate by 21% compared with the traditional V-type heat exchanger.At present, this technology has been applied to Air C+ series air duct internal unit, which won the special award of "2020 Commercial AirConditioning Excellence Product in Golden Choice Award".Digital high-performance inverter control technologySingle-chip digital inverter control technology has its own intellectual property core control algorithm, which enhances the existing inverterair conditioning technology industry chain and solves the problem of core components. The technology also greatly improves the e?ciencyof small-load operation of air conditioners, reduces pollution to the power grid, and improves the utilization rate of power grid. As at 2021,the digital high-performance inverter control technology has obtained independent intellectual property rights, and has been granted 19invention patents and 18 utility model patents.Key technology research and application of digital simulation of multi-connector
In view of the mismatch between the selection and load of multi-connector system, in?exible prefabricated control strategy and di?cultyin detecting refrigerant leakage, Midea's project team has developed an industry-leading multi-connector simulation platform, basedon which it has proposed multi-connector system scheme optimization design technology based on building load simulation, controlstrategy optimization technology based on actual operation scenarios and refrigerant quantity detection technology based on simulation,which has signi?cantly improved the energy e?ciency of the whole life cycle of the multi-connector system. The appraisal committeeunanimously concluded that "the results are innovative and the multi-coupling simulation platform is highly robust, applicable and fast,which is of great signi?cance to promote the development of multi-coupling technology in China."
The beauty of life in a smart building
The National Stadium is used as the opening and closing ceremony venue for the 2022Beijing Winter Olympic Games, with a ?oor area of about 258,000 square meters and avariety of cooling, heating, temperature and humidity control needs.Firstly, Midea's MDV series multi-connected units can realize energy-saving hardware toinstall greener "lungs" for the building.Secondly, the centralized control system solution of Midea Intelligent Building isassembled with "brain" and "nerve" to realize distributed control. All equipment in thevenue is divided into groups, enabling remote control of single or multiple devices forswitching and operating modes, meeting the di?erent cooling, heating, temperature andhumidity control needs of multiple areas, devices and scenes, and saving 40% of energye?ciency in operation.The combined solution of Midea Building Technologies allows the venue to combine withgreen technology and become an intelligent building life body that can breathe, thinkand feel, re?ecting the beauty of life of intelligent buildings everywhere.
The green beauty of a zero-carbon parkThe charm of building technologies is not only in the venues of important events, but alsoin the protection around major activities.? Through Midea's self-developed MDV-Link chip, the incoming equipment is linked
with the national grid for peak regulation with dual signals, providing an importantguarantee for Zhangjiakou's green power transmission.? The units that Midea provides natural cooling for Mountain Broadcasting Centerare equipped with precision temperature control algorithms. When the fresh airtemperature is lower than the system's return water temperature, the natural coolingsystem absorbs cold from the external environment and reduces compressor operation,ensuring cold supply even when the compressor is shut down, thus realizing freecooling and allowing Broadcasting equipment to be cooled naturally, dynamicallymeeting the temperature ?uctuation range, signi?cantly reducing energy loss, andachieving energy-saving and low-carbon operation.(The Zhangjiakou Mountain Broadcasting Center is the central hub for presenting ice andsnow events to the world. The venue's huge cluster of communication and broadcastingequipment requires the highest stability, temperature control and security of the datacenter)
National Stadium
Midea's MDV multi-connector (external unit) for Mountain Broadcasting Center
operation control optimization, and systemiteration optimization, a theoretical energyconsumption reduction of about 55% can beachieved.In 2021, Midea, based on "M-BMS IntelligentBuilding System", jointly launched "carbonneutrality smart household appliances"and installed smart meters and sensorsfor buildings to monitor the electricityconsumption of users and buildings, soas to develop corresponding energy-saving strategies, and actively respondto the pressure of the power grid at thepeak of electricity consumption, and helpachieve carbon neutrality. Midea BuildingTechnologies won the Excellent EngineeringAward, Excellent Energy Saving ProductAward, Excellent Energy Saving Technology
Award, Outstanding Engineering Awardand Excellent Energy Saving TechnologyAward in the 2021 "Blue Sky Cup" ExcellentEngineering Award for E?cient Rooms(Energy Stations) with the Yue Ran Plaza,Guangzhou Metro Tianhe Park Station Ultra-E?cient Intelligent Ring Control System andShanghai Waigaoqiao Logistics Park PhaseII 5-3 Warehouse 2# C Warehouse Project.M-BMS Xbrain cloud energy e?ciencyplatform of Shanghai MeiKong IntelligentBuilding Co., Ltd. was awarded as one of thetop ten "certi?ed platforms" and "Top TenBuilding Automation Brand Award in 2021" inthe "China Intelligent Building Brand Award".At the end of November 2021, the 1,000thcentrifuge of Midea in 2021 was deliveredto Shenzhen BYD from Midea's Chongqingfactory.
Environment · Green Opportunities
Environmental Management
Products and ServicesProducts and Services
Midea Group takes product quality and safety as the cornerstone ofbusiness development, and takes technological innovation as theguarantee for achieving product competitive advantage. In order topromote high-quality development and improvement, Midea hasestablished and continuously implemented a quality strategy of "buildinga global-oriented intelligent quality management system to provide userswith green, safe, intelligent, easy-to-use, and durable good products".With the business strategy of "Technology Leadership", Midea continuesto focus on technological innovation and innovation system construction,forming a solid foundation for Midea to maintain its leading producttechnology advantages. Based on this, Midea Group has also built areliable customer service system, and has continuously optimizedcustomer service management according the strategy of "Directto Customer" and "Digital & Intelligence Driven".
Product Quality and SafetyEnsuring product quality and safety is the cornerstone of Midea's business development. Bycontinuously strengthening quality responsibility, risk and integrity management, Midea hasestablished a quality management system covering the whole value chain and an intelligentdigital quality operation system driven by two wheels of VOC (Voice of the Customer) and VOP(Voice of the Process), combined with quality culture construction and sta? incentive mechanismto achieve high quality growth.
Social · Innovation Opportunities
Products and Services
Midea has obtained 11,710 certi?cates related to quality and safety up to now, because ofits unremitting pursuit of quality. In the past ?ve years, its subsidiaries have won 29 awards,including "National Market Quality Credit Grade AAA", "National Quality Benchmark" and "ChinaQuality and Integrity Benchmark Enterprise".To enhance the quality consciousness of the whole value chain, Midea actively shapes thequality culture of "full participation, quality products, true cause pursuit, essential improvement,source ?ow management, reissue prevention", and shares the values and concepts conveyedby the quality culture with related parties through various forms such as meetings, signboardsand public numbers. Through the dissemination of quality culture, a good situation of internaland external synergistic development is formed. Within Midea, Midea especially guides allemployees to participate in the construction of quality culture through various forms, such as skillcompetition, technology month, quality month award selection, etc.Midea attaches great importance to quality skills training and has established a three-leveltraining institution system of training center-division-factory/team, and systematically put onlineand o?ine quality education resources to carry out various training covering all employees,such as quality awareness training, job skills training and management ability improvementtraining. Relying on the training center, Midea continues to build an internal lecturer team,promotes the precipitation and dissemination of internal knowledge and skills, and creats alearning organization atmosphere of sharing and winning together. In addition, Midea alsoactively introduces international/domestic professional training institutions, universities andscienti?c research institutions educational resources, and introduces cutting-edge concepts andtechnologies. In 2021, Midea opened a total of 182 external training programs for middle andsenior management and grassroots individuals, training a total of 683 people and accumulating11,681 man-hours.
Quality strategy and culture
To implement the national quality country and the "14th Five-Year Plan", Midea Group, based on the overall strategicobjectives, combined with customer demand and other internal and external factors analysis, clari?ed the quality vision,quality strategy and quality culture of Midea, and unswervingly promoted the quality change and quality improvementwork.With more than 50 years of business development, Midea's quality and safety management has gone through threedevelopment stages: Mandatory/recommended safety control stage, pan-safety control stage and global quality and safetycontrol stage. Firstly, it started from the traditional quality of compliance which focuses on the basic needs and can be usedand available, and upgraded to the comprehensive reliability quality which focuses on user experience and durability, easeof use and product reliability. Now it has extended to global intelligent quality management through intelligent qualitymanagement mode and ?ne, quantitative and e?cient total reliability system methodology. Midea continues to providecustomers with trustworthy products and services, continuously improves the core competitiveness of enterprise quality,and supports global excellence in operation.Under the guidance of quality strategy, Midea has formed a pan-safety management mechanism with product defectprevention management, information security and privacy protection as its core, realizing the identi?cation and treatmentof safety hazards at the product development stage and regular reviews after production. Midea has also systematically builta global compliance control method, guarantees the quality and safety of the whole scenario and escorts the globalizationstrategy operation through the speci?cation documents such as Global Product Compliance Map, Privacy Regulation Map ofEach Country and Food Safety Risk Control Map, and information security management system (ISO27001 certi?cation).Quality visionProvide trustworthyintelligent products andservices to the world andcreate a better intelligentlife for users
Quality strategyBuild a global intelligentquality managementsystem to provide userswith good products thatare green, safe, intelligent,easy to use and durable
Quality cultureFull participation,quality products, truecause pursuit, essentialimprovement, source ?owmanagement, reissueprevention
Development Stages of Quality and Safety ManagementQuality and safety 1.0
Mandatory/recommended safety
control
? Compliant with the ProductSafety Law, the ProductQuality Law, and other lawsand regulations? Higher-than-industry-
standard reliability designand manufacturing, withsafety review from "sixdimensions"
Safety review + Deviceattenuation control +
Process PL review
Information security
system + Privacyprotection system;
Implementationreview + Emergency
response
Information security
Quality and safety 3.0
Global quality and safety control
? Information and cyber security
(obtained the declaration ofconformity of T?V S?D's ETSI EN303 645 (V2.1.1), Cyber Securityfor Consumer Internet of Things:
Baseline Requirements)? Established a global OBMsystem for quality and safetycompliance and prevention,created compliance mapsfor multiple scenarios,implemented global qualityand safety compliant operationcontrol
ISO27001 Information Security Management Document and System Certi?cation
Full Participation in the Construction of Quality Culture
Quality strategy seminar, annual/semi-annual business meeting, monthly businessanalysis meeting, annual talent andtechnology meeting, annual quality meeting,annual management review meeting, etc.Quality strategy seminar, annual/semi-annual business meeting, annualmanagement review meeting, annual qualitymeeting, monthly business analysis meeting,monthly quality joint meeting, annual talentand technology meeting, weekly qualitymeeting, etc.Pre-shift/post-shift meeting, self-improvement with full participation,rationalization suggestions, annual talentand technology meeting, employee skillcompetition, quality month activities, etc.
Senior management
Middle management
Frontline workers
Quality and safety 2.0
Pan-safety control
? Safety defect managementunder non-mandatory safetystandards? Prevention andimprovement of physicalsafety defects
User whole-touchpointand defect review
Scenarios analysisHazard identi?cationRisk assessmentRisk evaluationRisk reduction
Physical safety
11,710
Quality and safety related certi?catesobtained so far
Quality related awards
Social · Innovation Opportunities
Products and Services
After-sales service? Standardized
installment? After-sales servicenetwork? Replacement insteadof repair service within365 days
Integrity assessment? Quality credit points? Quality performance
assessment
Recall mechanism? Defect assessment and
management? Management
measures for recall? Material incident
management
Integrity education? Promotion of integrity
culture? Special training onintegrity? Re?nement of integrityresponsibility
Integrity inspection
? Testing capacitybuilding? Examiningquali?cations? Recording intelligenttraceability
Integrity incentives
? Integrity rewards? Integrity appraisal
Quality assurance systemTo e?ectively implement the qualitystrategy and culture, Midea has built asystematic "3 + N" (3 refers to the strategylayer - organization layer - implementationlayer, N refers to all kinds of major qualityresponsibility accountability, etc.) qualityresponsibility mechanism: the group vicepresident serves as the chief quality o?cer,the ?rst person in charge of the ?ve businesssectors or business groups, business unitpresident is primarily responsible for qualityand safety, and implements the goals andKPIs of the quality and safety responsibilitysystem. At the same time, a documentedquality management system coveringthe whole life cycle of marketing, R&D,procurement, manufacturing, logistics andafter-sales has been established.Based on the six dimensions of quality andintegrity, Midea has established a four-
dimensional quality and integrity model,signed the Enterprise Quality and IntegrityManagement Commitment and carriedout integrity supervision, which has ?nallyformed an honest and trustworthy qualityself-discipline mechanism. Meanwhile,Midea has established a quality managementsystem covering the whole organizationoperation process, such as QualityResponsibility Traceability ManagementMeasures, Quality Responsibility SystemManagement Measures, Quality InternalControl Manual, etc. by deepening the"Five Precision" project (precise planning,exquisite R&D, lean manufacturing, sincereservice and high-quality) of the whole valuechain. Up to now, Midea's quality and safetyassurance system has reached 3,618 items.Based of holistic system , Midea attachesgreat importance to the identi?cation and
prevention of quality and safety hazards,establishes control rules and veri?cationmethods in accordance with systemrequirements and product quality and safetyelements, and implements quality and safetysupervision and evaluation of the whole sta?and the whole process. Midea supervisescontinuous improvement based on theevaluation results, and promotes qualityassurance work improvement through dailyaudits (supervision and sampling, businessself-inspection) and quality internal controlmanagement.
Six Dimensions of Quality and Integrity
"5 all 5 Digitalization" intelligent quality management modelIn the new era, around the vision of "Building a Better Life", Midea has built a unique "5 all 5Digitalization" intelligent quality management model through "5 All" management innovationand "5 Digitalization" management innovation to connect both sides of supply and demand.Through this model, Midea can realize intelligent analysis, intelligent warning, intelligent control,intelligent prediction and intelligent decision making for the business scenarios of the wholevalue chain from end to end. Based on the "5 all 5 Digitalization" and the two-wheel drive basedon VOC (Voice of the Customer) and VOP (Voice of the Process), Midea is actively carrying out thewhole process of digital intelligence change of planning, R&D, manufacturing, marketing andservice and transforming into comprehensive digital intelligence and high quality to meet theneeds of users with intelligent means.The "5 all 5 Digitalization" intelligent quality management model has been veri?ed to be widelyused in more than 40 sub-sectors, with signi?cant demonstration and promotion, and can alsorealize cross-enterprise collaboration and build a mutually bene?cial and win-win ecology.Within Midea, the model has been replicated and promoted in 34 bases in the form of global jointmanagement. For the upstream of the industry chain, the management output of more than 5,000suppliers, Midea creates an upstream digital industry chain through APS + MES + SRM to connectsuppliers manufacturing, quality and other data. For the downstream of the industry, Mideacreates a downstream digital industry chain through Midea Connect and Midea Cloud Sales topull through the operators, retailers marketing and service data. At the same time, Midea is alsoexporting services to upstream and downstream and related enterprises through Midea Cloud,deepening intelligent manufacturing solutions, integrating IoT and industrial ecology.
"5 all 5 Digitalization" Intelligent Quality Management ModelThe "5 All" management innovation is a strategy and ideology that highlights global visionand total value chain management, meets the individual needs of the global market,and re?ects the organization's market value orientation of "listening to the voice of thecustomer", including global user co-creation, global platform group development, total T+ 3 operation of the whole value chain, global joint management, and system-wide 632.The "5 Digitalization" management innovation is a management tool and method toimprove the quality and e?ciency of the organization's internal operations through digitaland intelligent management, re?ecting the organization's lean management orientationof "listening to the voice of the process" and analyzing the industry's big data to discovermarket opportunities. It includes digital intelligence planning, digital intelligence R&D,digital intelligence manufacturing, digital intelligence marketing, and digital intelligenceservice.
Social · Innovation Opportunities
Products and Services
Technological InnovationTechnological innovation is the guarantee to realize the competitive advantage of products."Technology leadership" is the core strategy of Midea Group's four strategic focuses, emphasizingthe construction of R&D scale advantages, and increasing the layout and investment in core andcutting-edge technologies. Under the guidance of this strategy, Midea continues to pay attentionto technological innovation and innovation system construction, constructing the ?rst researchsystem, laying medium and long-term technology reserves, laying a solid foundation for Midea tomaintain the leading product technology advantage.
Midea focuses on building a global R&D layout and multi-level R&D system with globalcompetitive advantages. In the past 5 years, Midea has invested more than RMB45 billion in R&Dand increased it year by year, and the R&D investment in the past 2 years has exceeded RMB10billion. Midea has set up 35 research centers in 11 countries, including China, formed a global R&Dnetwork of "2+4+N" and continuously improved its R&D scale advantage.Midea gives full play to the regional technological advantages of each center, integrates globalR&D resources, and builds a global R&D layout. At home, Midea takes Midea Global InnovationCenter in Shunde District, Foshan City as the core and Midea Global Innovation Center in Shanghaito radiate the Yangtze River Delta; overseas, Midea America Research Center, Midea GermanyResearch Center, Midea Japan Research Center and Midea Milan Design Center are the mainones, forming a regional center with complementary advantages. With its technology leadershipstrategy, Midea has more than 18,000 R&D personnel, including more than 500 senior foreignexperts.While strengthening the global R&D layout, Midea focuses on building an open innovationecological platform, deepens the implementation of high-end technology projects, integratesglobal advantageous technology resources, and forms a global innovation system. Integrating 5major categories and hundreds of resources, such as large enterprises, technology companies,universities, research institutes and innovation consulting institutions, Midea built an R&Dtechnology ecological network and a scientist system, established 8 academician workstations(rooms), introduced 19 strategic cooperation academicians and docking more than 100cooperation projects.Strong innovation capability and resources are the basis for technological innovation, while acomplete innovation system can e?ectively improve the e?ciency of technological innovation.Midea Group takes the dual-drive model of "user-driven + di?erentiated technology-driven"to promote continuous product leadership. On the basis of continuous innovation of productR&D mode, Midea has established a new R&D mode combining a "Four-Tier R&D System" and"Three Generations". Through this model, Midea formulates medium and long-term product andtechnology planning around user needs, lays out cutting-edge technologies by organization andby technology, and builds product leadership and technology leadership capabilities. At the sametime, Midea also continued to optimize the innovation system. In 2021, Midea improved the sixcore development pain points, and achieved the overall R&D e?ciency by 30%.Midea has continued to invest in research and development, and up to now has plowed intomore than 30 research ?elds, with core technology layout including common basic technology,consumer electronics and HVAC technology, electromechanical key technology, industrialautomation and other key technologies. Several its technology research has made signi?cantbreakthroughs, and more than 160 core technologies have been identi?ed by authoritativeexperts in the industry as "Internationally Advanced".Around the strategy of "Technology Leadership", Midea will build a global technology-leadingR&D digital platform from six dimensions, such as technology, users, products and globalization,continuously promote technology and product innovation advantages, and continuously promotethe development of Midea's business competitive advantages.
While engaging in core technology research, Midea also pays great attention to the transformationand protection of innovation achievements. By the end of 2021, Midea (including TLSC)maintained more than 70,000 patent licenses; applied for more than 10,000 patents worldwidein 2021, and granted more than 3,000 Chinese invention patents and more than 1,000 overseasinvention patents annually. Midea won multiple awards at the 2021 22nd China Patent Awards,including a Silver Invention Award for its "Air Conditioner with a Coverable Air Outlet", SilverDesign Awards for "Electric Kettle" and "Wireless Rechargeable Handheld Dust Mite VacuumCleaner", in addition to over 20 Excellence Awards for technologies such as the "Air-conditioningSystem with Enhanced Vapor Injection".To better support the strategic goal of "Technology Leadership", Midea always insists onthe parallel double drive of "product innovation + standard innovation", trying to transforminnovation achievements and invention patents into advanced enterprise standards. Mideapromotes them to upgrade to international standards, national or industry standards, local orgroup standards and other external standards, to comprehensively enhance Midea's contributionto international and domestic advanced technology standards.In 2021, Midea actively promoted the implementation of the "3+1" standardization strategyof "Innovation Patentability, Patent Standardization, Standard Internationalization and MideaStandard Goes Out". To ensure the e?cient implementation of Midea's standardization strategy,Midea has set up a standardization management committee and secretariat, established a two-level standard management system for Midea and business divisions, and promoted externaltechnical standardization work at multiple levels. At present, Midea has 50 core standard sta?,including 13 full-time standardization engineers and 37 internal and external technical standardexperts. Up to 2021, Midea participated in 1,347 external technical standards, including 41international standards,514 national standards and 277 industry standards, and 515 local andgroup standards.For intellectual property protection, Midea upholds the principle of "respecting innovationand intellectual property", comprehensively implements intellectual property risk control ofR&D projects, and actively promotes intellectual property protection at the same time. Mideaprotects the intellectual property rights through comprehensive use of litigation, administrativeinvestigation and complaints on the e-commerce platform, protects the rights and interests ofconsumers, and promotes market puri?cation and technological upgrading in the industry whileestablishing competitive advantages.
Innovation capacity building and guarantee
Transformation and protection of innovation achievements
"Midea'sStandards GoGlobal" Strategy
PatentStandardizationStandardInternationalization
InnovationPatentability
120.15 billion
+18.74% YoYRMBTotal R&D investments+18.61% YoY18,105Number of R&D personnel
National standards formulated/revisedaccumulated
International standards formulated/revisedaccumulated
Industrial standards formulated/revisedaccumulated
Local and group standards formulated/revised accumulated
Social · Innovation Opportunities
Products and Services
User Service
Midea has built a reliable customer service system, continued to improve the layoutof the service network, and continued to deepen the change of customer servicemanagement around the two strategies of "Direct to Users" and "Digitization &Intelligence Driven".Currently, Midea has realized the digital construction of the user service system, builta comprehensive service reach and access channels, including WeChat service publicnumber, customer service phone, e-commerce platform, the MSmartLife App, etc.Meanwhile, Midea is also taking the intelligent customer service center as the focuspoint to continue to deepen the application of AI technology. In 2021, under thepremise of ensuring user experience, Midea's 7 x 24-hour voice self-service reportingsystem achieved self-service triage 2.8 million orders, 7 x 24-hour online consultingsystem completed 1.1 million orders. In addition, Midea created the ?rst videocustomer service interaction form in the industry to solve the problem of complexscenarios.To ensure that sales products can enjoy quality after-sales service, Midea built a100% service network that can cover all sales areas in the country. Midea did itsbest to provide service protection for every user of Midea. For "how to cover theremote township is the problem of service network construction", Midea launched aremote cost subsidy policy, and subsidized the areas with faraway network coverageaccording to the distance beyond the standard distance. 2021, Midea's subsidyamounted to RMB153 million.On this basis, Midea also continues to promote user service optimization andinnovation from all aspects.
Midea attaches great importance to protecting users' rights and interests. In terms of return andexchange, Midea is committed to providing users with worry-free return and exchange services,and has launched a return standard higher than the industry standard - 100% should be returned.In terms of user information protection, all sensitive user information (address, phone number,identity information, etc.) in Midea's user service system has been desensitized to fully protectusers' privacy information from infringement, and has been certi?ed by the national privacyinformation management system security.User feedback is an important source of information for Midea's customer service system andproduct quality optimization. Midea continues to carry out user satisfaction management workand has built a perfect information and evaluation system. In the service evaluation, the user ?rstgives a star rating of 10 stars for service satisfaction, and then the user can make a positive ornegative evaluation for the engineer according to the alternative label (or ?ll out by themselves)to help the user feedback speci?c satisfaction or dissatisfaction. Users who have not evaluated viaSMS or WeChat will enter the return visit pool, and a manual return visit will be made to ensurethat the user feedback information is comprehensive and e?ective. In 2021, the user satisfactionof Midea reached 98.1%.
Service chargeThe whole process of charge transparency is realized: o?cial public display of usercharge standard, real-time charge details can be checked and visualized, charge resultscon?rmed on site, one-click complaint if there are problems.
Work order managementthe construction of direct management and direct payment of engineers was promotedcombined with the platform operation mode, up to now a total of 42.64 million directdispatch work orders were achieved.Maintenance policyintelligent small electricity fully realized the performance of replacing the repair of thepackage failure products. The time limit for replacement has been shortened to within3 days, and we have simultaneously promoted the conversion of home delivery andconsignment repair.Value-added business
value-added business such as home cleaning was expanded from the whole life cycle ofhousehold appliances, the annual scale of RMB105 million was achieved.Service customization
we created COLMO high-end service, independent exclusive online customer service1v1 butler service, exclusive engineer door-to-door customization service and exclusiveservice rights system.
Customer Service Satisfaction
2019
97.5%
2020
98.0%
2021
98.1%
7*24
hourServices
2.8 million
ordersSelf-service triage
%Service network covering national sales area
1.1 million
ordersOnline consulting system
Social · Innovation Opportunities
Products and Services
Talent Development Talent Development
Midea Group regards talents as the primary productive force. Afterdecades of development, Midea has formed the organization andtalent concept of "be people-oriented, drive employee diversity,and promote fairness, openness and inclusiveness", and has builta comprehensive talent system in terms of equal employment andrights, employee welfare and security, employee development andcommunication, and occupational health and safety to promote thegrowth of talents.
Equal Employment and Equity
Equality is the cornerstone of the talent management system of Midea. Midea always attachesimportance to providing equal work opportunities for employees, and is committed to building awork-life balance work atmosphere and a high level, safe and comfortable working environmentfor employees.Employment compliance is the bottom line of Midea's talent management system. By establishinga sound employment compliance management system, Midea puts equal employment andthe basic rights and interests of employees into practice, insists on employment according tothe law, prohibits the employment of child labor, and prohibits all discriminatory behaviorsagainst nationality, region, race, ethnicity, gender, age and other factors. Meanwhile, Midea willnot use forced labor and will ?rmly protect the legitimate rights and interests of employees.As a globalized company, the rights and interests of Midea's employees around the world areprotected by local laws, regulations, rules and guidelines. In Germany, for example, Midea doesnot collect data on employees covered by labor-management bargaining agreements."Reform and Innovation, Inclusion and Coordination" is the core of Midea's work culture."Diversity, Inclusion and Innovation" is an important core of Midea's work culture. We believethat employee diversity is a source of innovation and business success. In Germany, KUKA underMidea Group has signed the Diversity Charter, a commitment to a diverse and non-discriminatorywork environment. It has also included diversity, inclusion and understanding into its compliancemanual, and gives full consideration to diversity when formulating new policies and processes.Internally, KUKA continues to support the women's network OrangeWIN to facilitate thedevelopment of female employees. In spite of the COVID-19 pandemic, a total of 12 "Lunch &Learn" online events were held during 2021, attracting around 330 attendees. Externally, KUKAplays an active role in Women in Network (a women network association covering Munich and itssurroundings), the Augsburg Cross-Mentoring Program, which works to uphold gender equalityat work, as well as MigraNet, which aims to achieve the professional integration of immigrantgroups, promoting diversity, equality and inclusion in the workplace in a holistic manner.These actions not only demonstrate KUKA's positive attitude towards diversity, but the globallyapplicable diversity principles also represent the clear expectations of the Executive Board, theGroup Human Resources Department, and the management of each branch and department.These principles are designed to ensure equal rights, equal opportunities and mutual respect forall, which help to prevent discrimination and possible violations with due punishment.
Talent
? People-
orientated? Fairness,
Justice, Open? Rotation
mechanism
and the Sailor-
Voyager-Pilot
program
IncentiveOrganization? Performance-
orientated? Long-term
incentive? Diverse bene?t
? Undertakecompany'sstrategy? Match thebusiness? Streamlinedand Synergized
Social · Innovation Opportunities
Talent Development
Employee Welfare and Protection
Employee Development and Communication
Incentive mechanism for growth-oriented employees
On top of fully protecting the basic rights and interests of employees, Midea also providescomprehensive welfare programs for employees, adding protection to their work and life in termsof health, ?nance and risk. Midea's welfare system covers six sections
: Guarantee, Enjoy Work,Enjoy Life, Love Your Family, We Care and Speci?c Bene?ts.
In the past two years, Midea issued a commendation and incentive policy for overseas sta?and foreign employees in China who meet certain criteria, to fully recognize their perseverancein foreign places and overcome di?culties during the epidemic. The policy covers spiritualincentives, material incentives, family care and other aspects, including the honorary title of"Hero in Harm's Way" and honorary medals with one-time special awards, New Year's allowancesfor foreign employees in China, and medical checkup bene?ts for employees' family members.
? Guarantee: As required by law, ?ve insurance bene?ts and the housing provident fund, statutoryholidays and other bene?ts are provided for employees to guarantee their basic rights andinterests.? Enjoy Work: Bene?ts are provided to eradicate obstacles for employees in dinning, commuting,
taking a business trip, etc. so that employees can enjoy work.? Enjoy Life: Bene?ts are provided for employees to enjoy life, including holiday bene?ts,health bene?ts, risk protection, and additional holidays. Midea places particular importanceon employee health. Besides the annual medical checkup, it also o?ers facilities such asprofessional sports venues, Chinese medicine physiotherapy halls and in?rmaries to promotebetter health for employees. Free-of-charge psychological counseling hotlines are also providedfor employees to help solve their mental problems.? Love Your Family: Midea cares for its employees and their families. We celebrate with ouremployees at their special moments such as getting married and having a baby. The employeescan accompany their children with pay when they are going through the senior high school andcollege entrance exams. Additionally, we provide commercial insurance for employees' familymembers to protect their beloved ones.? We Care: To build itself into a friendly enterprise, Midea provides aid for employees in need.Midea has established the "May I" Support Funds in 2007. Employees can apply for aid fundsfor himself/herself or their immediate family members over medical expenditures on criticaldiseases or accidents. More than RMB50 million of such funds has been given out for the periodfrom 2016 to 2021.? Speci?c Bene?ts: Midea o?ers di?erentiated and considerate care and services to its employees.For instance, housing and car allowances for technology personnel show Midea's appreciationand respect for them; policies and services specially designed for high-level talents maximizetheir bene?ts; and for expatriate workers, relevant trainings, information guidance, insurance,safety protection, among others, are provided to fully facilitate their work and life.
Midea attaches great importance to the cultivation of talents. Compared with capital appreciation,Midea values the bene?ts brought by human capital appreciation and aims to succeed togetherwith its employees.Midea has established a set of performance evaluation responsibility systems based ongoal orientation, which comprehensively covers performance target and plan formulation,communication and counseling, stage summary, evaluation and feedback, improvement plan,etc. Since 2021, Midea has internally promoted the OKR tool, encouraging employees to speak up.Speci?c objectives are established through sharing innovative ideas together on a quarterly basisto inspire innovation from the bottom up and to develop self-driven employees.To better help employees learn and grow, the management "fuels up" their team members ona quarterly basis in ?exible ways such as having lunch together and tea session for commonprogress and growth. Through this system, Midea creates an open and fair working environment,provides development platform and resources for high-level talents from all over the world, andmotivates employees to create value, achieve self-realization, win trust with character and ability,win reward with contribution, and develop together with Midea.Midea has put in place a sound and competitive remuneration system. It uses value contributionand professional ability as the basis for salary determination, provides global-oriented, future-oriented and su?ciently competitive salaries, and builds a comprehensive remuneration andincentive system. Midea provides employees with competitive remunerations in the industrybased on their work responsibilities and skill levels, and puts forward salary increase plans onan irregular basis according to its ?nancial performance, and employees' development andcontributions. Midea gives annual performance bonuses based on company performance andemployee performance to ensure performance-oriented remunerations and incentives and allowemployees to share Midea's performance growth. Meanwhile, special awards are o?ered forinnovation projects beyond regular incentives to encourage innovation and breakthroughs.Midea also puts in place a diversi?ed long-term incentive mechanism. In order to improve thegovernance structure, re?ne the incentive mechanism, as well as enhance the management andkey business personnel's sense of responsibility and mission towards the sustained and healthydevelopment of Midea, Midea has launched long-term incentive schemes for eight consecutiveyears from 2014. For key management personnel, global and business partner incentive schemesare put in place to encourage entrepreneurship; and with respect to other key employees, stockoption and restricted share incentive schemes featuring employee alignment and value sharingare established to drive common growth under a long-lasting incentive mechanism. Meanwhile,Midea keeps driving improvement of the long-term incentive schemes to attract high-end talentsfrom outside, and a special incentive policy has been implemented to stimulate young employees.To ensure compliance in the incentive system, Midea has established sound performanceincentive management rules and carries out regular compliance checks on internal control toimplement standardized whole process management and monitoring for policy design, resourcedecision, standard setting and payroll accounting.
We need to step up our e?orts in talentdevelopment. The importance of talent cannever be overemphasized. With Midea beinga global company, it is without a doubt thatits chairman and the general managers ofits business divisions need to be the chiefhuman resources o?cer at the same time.?Fang Hongbo, Chairman of the Board of
Midea Group
sections
Employee bene?t items
The speci?c welfare programs that employees enjoy are di?erentiated with the speci?c conditions of the region or country where theywork, fully re?ecting the tolerance and respect for regional and employee diversity by Midea.
? Eight terms of Stock
Option IncentiveSchemes for about9,700 employees? Mainly management
in R&D andmanufacturing
? Five terms of RestrictedShare IncentiveSchemes for around1,650 employees? Mainly seniormanagement in thebusiness units
? Seven terms ofGlobal PartnerSchemes? Four terms ofBusiness PartnerSchemes? For coremanagementpersonnel? From "professionalmanager" to"business partner"
Stock OptionIncentive Scheme
Restricted ShareIncentive Scheme
Partner Scheme
Combination of motivations and restraints: three levels of appraisal (corporate,
departmental and individual) with "red lines"
Social · Innovation Opportunities
Talent Development
Sustainable career development channel
In terms of employee career development, Midea has established a career development planningsystem for employees, adheres to the management philosophy of "Be people-oriented and taketalent as the primary resource of Midea" based on the development requirements of the overallstrategy. Midea guarantees the career development channels of employees from the system level,and the career development channels and corresponding quali?cations are clari?ed through theManagement Measures of Midea Group Grade System and Management Measures of Midea GroupJob Quali?cation System.Midea provides a career development system for employees to boost their professionalism.Covering all stages and aspects of employees' career development, the development pathsprovided take the four strategic focuses as the core and organically combines organizationalcapability requirements with individual capability development. With empowerment andappraisal on multiple dimensions including professional skills, results & outputs, leadershipcapability and values, career development paths that are clear, ?exible and diverse are o?ered toemployees.Fresh graduates are one of the important parts of the talent supply system of Midea. For thecareer development needs of graduates, Midea has specially sorted out the graduate qualitymodel in order to provide targeted career development support for graduates. Furthermore,Midea provides graduates with diversi?ed courses and exclusive mentors to realize the wholeempowerment of graduates and help them grow.In April 2021, Midea launched the second-quarter campus recruitment caravan program -- "Midea,looking for hardcore players", where 24,000 students from 19 universities in 15 cities took part ino?ine interaction. Through this program, the students can learn about Midea as an employer inadvance, and also get interview cards through o?ine interaction and innovation experience. Theprogram has strongly promoted school-enterprise cooperation and student employment.
Three-tier training
mechanismGroupDivision/unitDepartment
Three-yearcontinuous follow-upOne-year introductionTwo-year integration Three-year retraining
Three levels of
attentionDepartmental mentor
HRSenior management
Competency Constructon Model for Graduates
Social · Innovation Opportunities
Talent Development
Systematic employee training coursesTo promote lifelong learning of employees, Midea provides comprehensive and systematic trainingfor employees, from induction training to job skills training, and promotes the improvementof various professional and general abilities of employees. The training of employees is mainlycarried out by Midea Academy and the business divisions, which was established in May 2006 andlocated in Midea Global Innovation Center. For more than ten years, Midea Academy has alwaystaken the mission of cultivating outstanding Midea people, providing employees with high-qualitylearning resources. It takes into account both "development goals of the organization" and"individual aspiration and possibility", and places high emphasis on the unity of knowledge andaction, helping more Midea people grow.
Employee growth platform
Culture propagation platform
Strategy drive platform
Knowledge managementplatform
Positioning ofMidea Academy
Professional DevelopmentVisit/Cross-boundary/Seminar/Mentor SystemCovering 15 occupational groups and 101 occupational categoriesChuangmei
18+ andProfessional
manager
15-1713-1410-123-9O-category
Senior DevelopmentProgramPilot ProgramExplorerProgramVoyagerProgram
Sailor Program
Huimei
NewcomerEmpowermentCenter
LeadershipEmpowermentCenter
ResourceObject
M-learning · Digital Learning platformCurriculum SystemTeaching SystemSocial Recruit · Jumei"
Campus Recruit · Midea Star + New Power
IntelligentManufacturingEmpowerment
Center
GlobalizationEmpowerment
Center
Digital andIntelligentInnovationEmpowermentCenter
GeneralEmpowermentCenter
InformationTechnologyOperation, FinanceManufacturingMarketingSupply ChainLogisticsQualityManufacturing
R&DInformationTechnology
CareerCompetenceGeneral Skill
Midea Academy Curriculum System
Chuangmei: Uni?ed training for new employees of social recruitment of level 18 and above organized by the group
Huimei: Uni?ed training for new employees of social recruitment of level 13-17 organized by the group
Jumei: Training for new employees of social recruitment organized by each unit
Midea Star & New Power: Graduate recruitment and training program organized by the group
Social · Innovation Opportunities
Talent Development
The Sailor-Voyager-Pilot program
Pilot Program
Training Target: President of Business UnitTo explore cutting-edge business model
Training Target: Mid-level core sta?To transform from personal contributor to
group manager
Training Target: Head of Department/
General Manager of Business Unit
To be the leader of Midea's sustainable
growth in future
Sailor Program
Sunrise Voyager Program
Digital and Intelligent VoyagerProgram
Research and DevelopmentVoyager Program
Manufacturing Voyager ProgramMarketing Voyager ProgramExplorer Program
Midea Academy has six empowerment centers, which are supported by two platforms, and aprofessional online learning platform—M-Learning, which empowers all Midea employees andecosystem partners through special learning courses and practical learning functions.Leadership Empowerment Center: Midea promoted the Leadership Development Programs suchas the Sailor-Voyager-Pilot program and a High- Potential Leaders Training system. 55 talenttraining programs were carried out, where 3,205 highly skilled managerial sta? were trained for atotal of 68,160 man-hours. Midea sees the importance of combining leadership curriculum withemployee diversity and equality, and also arrange special courses on women's leadership.Globalization Empowerment Center: Implementing the "Global Impact" strategy from theorganization and talent perspectives, Midea drives the connection of resources for internationaltalent training and development, and relevant infrastructure improvement.Intelligent Manufacturing Empowerment Center: Midea supports the empowerment of talent inthe big manufacturing system. Specialized training programs such as Class for Factory Managershave been launched. A uni?ed skill worker training system has built to strengthen cooperationwith colleges, conduct practical training and compile training materials, etc. During 2021, 97,203key technical sta? and working team leaders were trained for a total of 349,169.43 hours.Digital and Intelligent Innovation Empowerment Center: This center is established to focus onthe customer-oriented strategy, explore innovative solutions for smart scenarios, and developproduct managers with a big picture in mind and creativity.
Newcomer Empowerment Center: Newcomer training programs such as Jumei, Huimei,Chuangmei, and Fresh Graduate Training Camp can help new employees ?t in quickly, understandcompany operations, familiarize with the corporate culture and values, and establish networksand communities. In 2021, 121 relevant programs such as the Retraining of New Graduates, theTraining Camp for New Graduates, and the Orientation Training Camp for New Graduates wereorganized, where 8,288 new graduates were trained for a total of 19,078 man-hours.
General Empowerment Center: The Career Development Center and other programs have beenorganized to comprehensively improve employees' soft skills, with the purpose of developingversatile management talents. In 2021, 706 general skill improvement programs such as theLecture for Sta? were launched, where 145,147 sta? were trained for a total of 341,666 man-hours.
Trainings are supported by two platforms—the trainer certi?cation platform and thecourse development platform. Di?erenttrainers are certi?ed for di?erent courses, andthe course development tools are upgradedto step up Midea's capability to develop itsown courses, driving the accumulation ande?cient utilization of intellectual assetswithin Midea. In 2021, with the addition of1,235 new internal trainers, annual teachingtime reached 8,184 hours in total. And a totalof 1,185 courses were designed in the year.Meanwhile, customized learning and growthmaps are provided for every employeethrough M-Learning, a professional internalplatform for online learning. In 2021, 141,037sta? visited M-Learning for a total of 763,359times.
Social · Innovation Opportunities
Talent Development
Diversi?ed cultural activities for employees
In Midea, employees can take part in a rich variety of activities and embrace the open andinclusive corporate culture. These activities provide opportunities for employees to make friendsand achieve work-life balance.Since 1992, Midea has funded a grand group wedding ceremony for employees every year.Newlywed representatives and their family members are invited to celebrate their specialmoment together. Midea has witnessed around 30-50 couples tying the knot each year.To create an open atmosphere at Midea where diagonal communication is possible provideopportunities for young employees to express themselves, the "Produce 030 'Young Mentors'"program has been launched since 2018. Every year, 30 mentors who were born in or after 1995 areselected within Midea to serve as the "young mentors" for senior management. They show thesenior management team what's trending and what the young people are thinking, watching andusing. Meanwhile, these 030 mentors, as representatives of young employees, are invited to sharetheir ideas on key projects of the business divisions and even the Group.Additionally, each operating unit of Midea also organizes various kinds of activities andcompetitions, which not only help people to build teams and relax, but also transmit the spirit ofcompetition and friendship, solidarity and cooperation, and collaborative struggle. At present,Midea has more than ten recreational associations, covering photography, singing & dancing,badminton, table tennis, football, basketball, swimming, Ultimate Frisbee, outdoor sports, etc.Every year these associations organize cross-divisional and cross-unit recreational activities toenrich the life of employees, guide them to maintain a healthy lifestyle, and create a warm andharmonious community atmosphere of Midea.We also place emphasis on diversity when holding events for di?erent employees. Midea has adiversi?ed range of employees who come from 21 countries. For di?erent employees such asforeign employees, female employees and expatriate employees, the Group and the businessdivisions hold tailor-made activities for them on a regular basis and create an open and inclusiveMidea for them.
Social · Innovation Opportunities
Talent Development
Diversi?ed employee communication channels
Midea appreciates the value of employees and provides employees with a democraticcommunication platform and borderless communication channels to ensure their voices to beheard.As the o?cial internal publication of Midea Group, "Midea News" has been running for over threedecades. The monthly issue delivers the corporate philosophy and culture to employees andprovides a platform for them to share their ideas. "Midea News" has become a unique experiencefor everyone in Midea.Midea has set up feedback channels such as Direct to Chairman and Direct to HR Director whereemployees can directly communicate with the senior management about personal growth andmake suggestions for Midea's development. "Midea Quarterly Talk", a live show, is launched forthe communication between employees and executives. Every quarter, senior executives areinvited by the human resources department to have a live show for the latest trends and policiesof Midea and listen to the employees' ideas. Moreover, "Midea Talk", a community communicationplatform, is established for Midea employees to post questions or suggestions on all levels ofproducts, services, life, etc. by using their real or anonymous names. "Midea Talk" has become animportant platform for employees to express their opinions and solve problems.In addition, Midea Group also attaches importance to understanding employees' needs throughemployee satisfaction & engagement surveys to improve employee satisfaction.
Midea strictly follows local laws, regulations,standards and codes of conduct related tooccupational health and safety in variouscountries and regions, and has put in placean e?ective occupational health and safetymanagement system.Based on the Law of the People's Republicof China on Work Safety, Law of the People'sRepublic of China on Prevention and Controlof Occupational Diseases and the relevantlocal laws and regulations of the regionsit operates in, Midea aims to "create anexcellent EHS system with zero accidents,controllable risks, and full participation ofall employees" to continuously improvethe level of occupational health and safetymanagement. In 2021, the overall EHS costwas RMB367 million, and the lost time injuryrate per 200,000 hours was 0.10, which wasan internationally advanced level, and therewas no general production safety accident inMidea.For management mechanism, safetycommittees were set up in the headquartersas well as each subordinate businessdivision and product company to takecharge of the management of productionsafety and occupational health of Midea.An annual safety responsibility letter wassigned by the Group and each subordinatebusiness division to stipulate annualsafety assessment indicators and guidingindicators, and regularly followed up on theindicator progress. Meanwhile, according tothe requirements of the universal productionsafety responsibility system in the newProduction Safety Law, each functionaldepartment of the factories takes the leadin setting up factory safety sub-committees,such as equipment protection and upgrade
Occupational Health and Safety
FiveControl
Model
Rapidperception
Systemevaluation
Coordinative
response
Real-timemonitoring
Advancewarning
Fast control
Apply technologies such as intelligent sensing,measuring instruments, and edge computing tocollect information from all elements
Self-controlDevelop assessment models andtool sets based on the IndustrialInternet of Things to fullyassess safety incidents and tosystematically assess productionsafety
MonitoringPromote equipment andsystems to the cloud platformin order to monitor productionin a comprehensive, real-timemanner
ResponseEstablish and use emergencydrill and response plan librariesto enhance science-based,accurate, and rapid response
Pre-control
Establish a risk and failure featuredatabase and apply big dataanalysis to achieve accurateprediction and intelligent advancewarning
safety sub-committee and logistics safetysub-committee, to consolidate the safetyresponsibility system. Midea vigorouslypromotes the dual prevention mechanismof safety compliance, risk identi?cation andhidden danger management to e?ectivelyprotect the lives and health of employees.We enhanced the safety awareness of allemployees, and formed an all-round and full-coverage grid-based management model.On this basis, Midea fully implements EHSmanagement requirements in variousways. The divisions and their subordinatefactories prepared and improved the EHSmanagement manual and proceduredocuments of the divisions accordingto the Group's EHS guidelines and theGroup's manual of the EHS managementcontrol framework, and based on theactual situations of the divisions. TheEHS system maturity standards weredeveloped to encourage and guide thedivisions to continuously improve theirEHS management system, EHS culturepromotion, on-site control of key proceduresand special improvement. Meanwhile, Mideaalso conducts a comprehensive review of 36companies belonging to the group throughthe EHS system maturity standard, pullsthrough the safety improvement of eachbase, and creates an excellent EHS culturethrough the atmosphere of "compare, learn,catch up and help".Midea also deeply integrates safetymanagement with lean manufacturing, andtakes accident prevention and process riskcontrol as the two core grasps to ensurethe e?ective implementation of safetymanagement system by carrying out MBSsafety week improvement and encouraging
employees to submit proposals fordangerous hazards. In 2021, Midea conducted320 Lean Work Safety Week improvements,118,152 employee voluntary improvements,217,662 potential accidents reported byemployees, and 439,732 hidden hazardsfound and handled by safety managers.To tackle occupational disease hazards,Midea's factories regularly carry out testingand evaluation of occupational diseasehazards every year, and take action basedon the results of the testing and evaluationreports to reduce or eliminate occupationaldiseases and other injuries caused by toxicand harmful factors by reforming productionprocesses.With the development of the digital wave,Midea is also exploring the realization ofinformation and intelligent managementof EHS. On October 10, 2020, the Ministry ofIndustry and Information Technology andthe Ministry of Emergency Managementjointly released the action plan of "IndustrialInternet + Safety Production". In response tothe national strategy, Midea has establishedan EHS digital twin factory and an EHSinformation management platform throughthe overall planning of EHS business processdesign, and collected and processed EHSdata. Based on this, the factory can realizerapid perception and control, real-timemonitoring and control, advance warningand pre-control, linkage disposal and control,and system evaluation and self-control.Finally, the factory can achieve integratedsafety, environment and consumptionmanagement to prevent problems beforethey occur. Up to now, the total number ofequipment on-line is 154, and there are 3,144equipment measurement points.
Social · Innovation Opportunities
Talent Development
Community Welfare Activities Community Welfare Activities
Midea Group has always attached great importance to the power ofcorporate citizenship and paid extra attention to its impact on localcommunities beyond economic contributions. Over the years, Mideahas been actively contributing to the local community throughsincere and warm public welfare activities, and seeking futuredevelopment with community residents.
Support Rural RevitalizationFrom 2017 to 2020, Midea has spent a total of nearly RMB30 million in Yao Autonomous Countyof Liannan in Guangdong Province and Leizhou and Xuwen in Zhanjiang to carry out more than200 projects to help build infrastructure and social, cultural and educational facilities for thelocal community to improve the local social living environment and promote local economicdevelopment.2021 is a key year for China to complete the battle against poverty and start the 14th Five-YearPlan. Midea continues to plow deeper on top of the existing projects to help the rural revitalizationstrategy. Leishan National High School is the only general senior high school in Leishan County,Shunde District, the main structure of the school's gymnasium has long been completed, butdue to the ongoing lack of funds for internal decoration, the gymnasium has not been able tobe used e?ectively. To ensure the early opening of the school gymnasium, to meet the needs ofindoor physical education, Midea invested RMB350,000 for the construction of the gymnasium,to help the Shunde District Leishan County Ethnic High School to improve the quality of schoolteaching. In order to further improve the medical level of Yingmaili Township in Payzawat County,Xinjiang, Midea Group has spent RMB150,000 for the construction project of Yingmaili TownshipHealth Center in Payzawat County, Xinjiang, including the renovation, greening construction andpurchase of medical equipment in the health center.
Support Anti-pandemic Disaster ReliefIn 2021, many places in Henan Province su?ered from rare and persistent heavy rainfall, resultingin ?ooding in some counties and cities centered on Zhengzhou City, which greatly threatenedpeople's life and safety. Annto Henan Branch, a subsidiary of Midea, quickly took action to open a"green channel" for the transportation of disaster relief materials, giving priority to providing freetransportation services for disaster relief materials. In addition, Annto also opened the ZhengzhouLogistics Park to provide temporary shelters for the public, and provided free hot water andcharging services for the public to tide over the di?culties together with local residents.In addition, during the critical period of epidemic prevention and control, Midea is mindful of thefront-line epidemic prevention personnel. In May 2021, Midea spent RMB400,000 to donate 500cool fans and 80 mobile air conditioners to the epidemic prevention teams in Shunde, sendingcoolness to the epidemic prevention teams in the hot summer. In December 2021, Midea donatedRMB100,000 to purchase 1,200 beds for the epidemic prevention sta? of Xi'an Jiaotong Universityto help create a better resting environment for the front-line epidemic prevention sta?.
Social · Innovation Opportunities
Community Welfare activities
Care about Science andTechnology EducationScience and technology innovation is animportant driving force for the sustainabledevelopment of Midea. While focusing on itsown scienti?c research ?eld, Midea also caresabout the cultivation of future scienti?c andtechnological talents, and aims to providea broader learning platform and enhancescienti?c and technological literacy for youngpeople with its own advantages.
"Enjoy Cloud Study Together" into Foshan (Shunde) of science and technologyinnovation of Midea
The ?rst "Building Technologies Day" in the world
In October 2021, Midea jointly launched the activity of "Enjoy Cloud Study Together" intoFoshan (Shunde) of science and technology innovation of Midea together with China GuanghuaScience and Technology Foundation. A research team composed of more than 40 teachers andstudents from Congjiang County, Qiandongnan, Guizhou Province, which is paired with Foshancounterparts, entered the Midea Technology Month together with students from many well-known universities. Activities include o?ine "Go Study together -- Midea Technology Open Day"and online "Youth Technology Stars Public Welfare Class – Bu? up together with Technology".Students can fully experience the charm of Midea science and technology intelligence, face-to-face communication with technology stars, and explore the mysteries of science and technologythrough interesting ways, so that the seeds of a strong country in science and technology can takeroot and sprout in the hearts of young people.Guanghua Foundation awarded the Midea Group "Youth Science and Technology InnovationStudy Public Welfare Base" plaque during the event, formally established a school-enterpriseresearch and learning position. To further activate the application of the position, the YouthLeague Committee of Midea also signed a school-enterprise science and technology researchcooperation agreement with the Shunde District Committee, and integrated with the ShundeDistrict Talent Key Project "100 colleges and universities in Shunde", promoted three studymodes, including the study tours of promotion to improve the quality of students, promoting theimplementation of industry-university research joint practical training, ?xed internship to servicegraduates to ?nd jobs, to explore the innovative path of research and education. In the future,Midea hopes to use platform to provide more students with science and technology educationand contribute to a strong country in science and technology.
On 1 November 2021, China Guanghua Science and Technology Foundation under the CentralCommittee of the Communist Youth League, together with Midea Building Technologies Division,o?cially launched the world's ?rst "Building Technologies Day". On the "Science and TechnologyDay", Midea invited 111 left-behind children from 29 cities across China to challenge the worldrecord and complete the Guinness "Most People Building Blocks Online" under the witness ofGuinness Witness. In addition, Midea also invited the children to shoot the "intelligent building"Technology Star Public Welfare Class – Bu? up together with Technology science video. Throughthe guidance of science and technology stars and interesting animation, they contact with digitallife in a special form, and the children know the charm of intelligent building technology, harvestspecial childhood memories.On the event, Midea Building Technologies donated 330 sets of building technology kits toGuanghua Science and Technology Foundation. Midea hopes to have more public welfareactivities in the future to bring more beautiful wisdom life and wisdom city concept to morepeople.Give Back to the Local Community
In 2021, Midea donated RMB70 million for the sponsorship of the Shunde Midea School a?liatedto East China Normal University ("Shunde Midea School of East China Normal University" inshort) and the school scholarship fund. In addition, Midea has also supported the preparation,construction and development of the East China Normal University Shunde Midea Schoolby building a resource platform, etc. On March 28, the construction of the East China NormalUniversity Shunde Midea School commenced in Beijiao Town, Shunde District, which is expectedto provide over 5,000 primary and junior high school places after completion, which is of far-reaching signi?cance to the education and comprehensive social development of Beijiao Town."I hope the completion of the Shunde Midea School a?liated to East China Normal Universityand look forward to more leading talents in education coming to Beijiao." said Fang Hongbo,chairman and CEO of Midea Group. Fang Hongbo is an alumnus of the history department of EastChina Normal University, class of 1983, and also served as a teacher of the Third A?liated MiddleSchool of East China Normal for six months thirty years ago, and has deep feelings for his almamater and Shunde. Midea, while based on the development of Shunde District, never forgets togive back to the community. Meanwhile, supporting the construction and development of theschool is in line with "Technology Leadership and Talent Leadership" advocated by Midea. Inthe future, Midea will make more e?orts to introduce global diversi?ed talents to make Beijiao aglobal innovation source.
Social · Innovation Opportunities
Community Welfare activities
Report Index
GRIStandards
Disclosure contentPosition in the reportPage
G102: General disclosuresG102-1Name of associationAbout Midea Group4G102-2Events, brands, products and servicesAbout Midea Group4G102-3Headquarters locationAbout Midea Group; giving back to local communities4, 70G102-4Business locationAbout Midea Group4G102-5Ownership and legal formAbout Midea Group; board governance4, 11G102-6Market servedAbout Midea Group4G102-7Organization sizeAbout Midea Group; shareholders' equity4, 12G102-9Supply chain
Value chain management; responsible procurement; pre-management,in-event management and post-event management; con?ict mineralsmanagement; green procurement
19, 20, 21, 22, 32G102-11Early warning principles and guidelinesGreen factory; occupational health and safety34, 66G102-14Statement from senior decision makersExecutive's message2G102-15Key impacts, risks and opportunities
Executive message; about Midea Group; sustainable developmentconcept; green strategy
2, 4, 16, 26G102-16Values, principles, standards and codes of conduct
Executive message; philosophy of Midea; law-abiding compliance;compliance organizational structure; key compliance areas; compliancepromotion and training; anti-corruption
2, 4, 13, 14G102-17Mechanism for recommendations and concerns about ethicsLegal compliance; anti-corruption; sustainable development concept13, 14, 16G102-18Governance frameworkBoard governance11G102-21
Stakeholder consultations on economic, environmental and socialissues
About Midea Group; ESG key issues analysis; stakeholdercommunication
4, 17, 18G102-22
Composition of the supreme governing body and itscommittees
Board governance11G102-25Con?ict of interestBoard governance; shareholder rights11, 12G102-26
The role of the highest governance body in setting purpose,values and strategy
Board governance; shareholder rights11, 12G102-28Performance evaluation of the highest governance bodyBoard governance11G102-29
Identi?cation and management of economic, environmentaland social impacts
ESG key issues analysis; stakeholder communication17, 18G102-30E?ectiveness of the risk management processCompliance organizational structure13G102-31Review of economic, environmental and social issuesESG key issues analysis; stakeholder communication17, 18G102-32
The role of the highest governance body in sustainabilityreporting
ESG key issues analysis; stakeholder communication17, 18G102-34Nature and total number of important issues of concernESG key issues analysis; stakeholder communication17, 18G102-35Remuneration policyBoard governance; growth employee incentives11, 60G102-36The process of deciding on compensationIncentive mechanism for growth employees60G102-40List of stakeholder groupsCommunication with stakeholders18G102-42Stakeholder identi?cation and selectionCommunication with stakeholders18G102-43Stakeholder engagement approachCommunication with stakeholders18G102-44Main issues and concerns raisedCommunication with stakeholders18G102-46De?ne report content and topic boundariesAbout this ReportCover 2G102-47List of substantive issuesESG key issues analysis17G102-49Report changesESG key issues analysis17G102-50Reporting periodAbout this ReportCover 2G102-53
Contact information available to answer report-relatedquestions
About this ReportCover 2G102-54Statement of compliance with GRI standards for reportingAbout this ReportCover 2G102-55GRI content indexReport index71-72
GRIStandards
Disclosure contentPosition in the reportPageG201: economyG103Management method G201-2
The ?nancial impact of climate change and other
risks and opportunities
About Midea Group4G201-3
Obligated de?ned bene?t plans and other retirementplans
Sta? welfare and security59G203: indirect economic impactG103Management method G203-1Infrastructure investment and support servicesSupport rural revitalization68G203-2Signi?cant indirect economic impactSupport rural revitalization; give back to local communities68, 70G205: anti-corruptionG103Management method G205-2
Communication and training on anti-corruptionpolicies and procedures
Compliance awareness and training; anti-corruption14G301: materialsG103Management method G301-2Used recycling feedWaste management; green packaging36, 39G301-3Recycled products and their packaging materialsGreen packaging; green recycling39, 40
G302: energyG103Management method G302-1Energy consumption within the organizationGreen factory 33G302-3Energy intensityGreen factory 33G302-4Reduction of energy consumption
Green factory; air pollutant management; waste
management; water management
33, 34, 35, 36G302-5Reduce energy demand for products and servicesGreen design; green products28, 29
G303: Water Resources and Wastewater
G103Management method G303-1
Interaction of the organization with water (as ashared resource)
Water resources management36G303-2Managing drainage related impactsWater resources management36G303-5Water consumptionWater resources management36
G305: Emissions
G103Management method G305-5Greenhouse gas emission reductionsGreen factory 34G305-7
Nitrogen oxides (NOX), sulfur oxides (SOX) and othersigni?cant air emissions
Atmospheric pollutant management35
G306: Sewage and waste
G103Management method G306-2
Total amount of waste by category and treatmentmethod
Waste management36G401: Employment
G103Management method G401-2
Bene?ts o?ered to full-time employees (notincluding temporary or part-time employees)
Sta? welfare and security59
Report Index
Report Index
GRI标准披露项内容在报告中的位置页码
G403: Occupational Health and SafetyG103Management method G403-1
Occupational Health and Safety ManagementSystem
Occupational health and safety66G403-2
Hazard identi?cation, risk assessment and incidentinvestigation
Occupational health and safety66G403-3Occupational health servicesSta? welfare and security59G403-4
Occupational health and safety matters: workerparticipation, consultation and communication
Occupational health and safety66G403-6Promoting worker healthSta? welfare and security59G403-7
Prevention and mitigation of OHS impacts directlyrelated to business relationships
Occupational health and safety66G403-9Work injuriesOccupational health and safety66G403-10Work-related health issuesOccupational health and safety66G404: Training and Education
G103Management method G404-2
Employee skill enhancement program and transitionassistance program
Systematic employee training courses63, 64G408: Child Labor
G103Management method G408-1
Operating sites and suppliers with signi?cant risks ofchild labor incidents
Post-event management22
G409: Forced or compulsory labor
G103Management method G409-1
Operating sites and suppliers with signi?cant risks offorced or compulsory labor incidents
Post-event management22
G413: Local communitiesG103Management method G413-1
Operational sites with local community engagement,impact assessment and development plans
Support rural revitalization; give back to local communities68, 70
Report Index
Midea Group O?cial
Website
Midea Group O?cialWeChat Account