Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Content
About the Report
Management’s Statemen
Introduction of the CompanyBusiness SectorsTechnological Innovation
Entering TZE
Economic PerformanceEnvironmental PerformanceSocial PerformanceSustainable Development Awards andHonors
Our Sustainable DevelopmentPerformance
World-leading Intelligent ManufacturingEmbracing Photovoltaics, Going Green
Annual Feature - IntelligentManufacturing to Accelerate theJourney Towards Zero Carbon
Sustainable Development ConceptSustainable Development GovernanceStakeholders and Material Issues
Our Sustainability Philosophy andGovernance
1.1 Our Actions towards Climate
1.2 Leading the Lean Manufacturing
1.3 Creating Low-Carbon Products
1.4 Boosting the Development of the Industry
1. Exploring the Essence
of Carbon Reduction andIntelligent Manufacturing
2.1 Promoting Ecological Harmony
2.2 Strengthening Resource Management
2.3 Promoting Green and Intelligent
Manufacturing
2.Pursuing Green Development for
the Beautiful Environment
3.1 Achieving Excellence in Quality
3.2 Serving Global Customers
3.3 Fostering a Responsible Supply Chain
3. A Value-Oriented Strategy for a
Brighter Tomorrow
4.1 Focusing on People-Oriented
4.2 Attracting Talents
4.3 Boosting Employee Growth
4.4 Protecting Employee Rights
4.5 Safeguarding Employee Health
4.Embracing Excellent Talents to
Chase the Energy of Sunlight
5.1 Committing to Social Responsibility
5.2 Innovating Public Service Practice
5.3 Encouraging Engagement in Public
Welfare
5.Devoting to Social Service and
Public Welfare
6.1 Efficient Governance
6.2 Business Ethics
6.3 Risk Control
6.Reinforcing Corporate
Governance with Full Disclosureand Transparency
ESG Key QuantitativePerformance
Global Reporting Initiative (GRI)Content Index
The Guidelines for SocialResponsibilities of ListedCompanies issued by ShenzhenStock Exchange Content Index
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
About the ReportIntroduction of ReportThis is the seventh sustainability report (i.e., environmental,social and governance report or social responsibility report)released to the public by TCL Zhonghuan RenewableEnergy Technology Co., Ltd (referred to as “TZE”, “theCompany” or “We” below), reflecting the environmental,social and governance (ESG) and economic performanceof the Company and its subsidiaries. This is an annualreport covering the fiscal year from January 1 to December31, 2022 (referred to as “the reporting period”). Some keyinformation may be retroactive to years out of the reportingperiod.Basis for Preparation
This report is prepared according to the requirements of theGuidelines for Social Responsibilities of Listed Companiesissued by Shenzhen Stock Exchange Content Index and theMain Board Information Disclosure Business Memorandum- No. 1 Document: Matters Related to Disclosure in PeriodicReports issued by Shenzhen Stock Exchange. Meanwhile,this report is prepared with reference to GRI Standardsreleased by the Global Reporting Initiative (GRI), combiningwith the current development level and the situation ofsustainable development of the Company.
Scope of ReportThe policies and data used in this report cover the Companyand our subsidiaries. The scope of this report is consistentwith that of our annual report. Unless otherwise specified,the currency used in this report is Chinese Yuan (CNY). Thedata and cases in this report are primarily sourced from theCompany’s statistics and relevant procedural documents.The Board of Directors of the Company guarantees thatthere are no misrepresentation and misleading statementsin this report, and is responsible for the authenticity,accuracy, and integrity of the content of report.
Language of ReportIn case of any discrepancy between the Chinese version andthe English version, the Chinese version shall prevail.Confirmation & ApprovalAfter confirmed by the management, the report wasapproved by the Board of Directors on March 28, 2023.Access & Response to ReportThe Chinese and English versions of this report can bedownloaded from the official website of TZE (https://www.tzeco.com/sdg/).Your valuable advice is the motivation for our continuousimprovement. If you have any suggestions or comments onthis report or sustainable development relevant work of theCompany, please feel free to contact the Company by thefollowing means:
TCL Zhonghuan Renewable EnergyTechnology Co., LtdTEL: +86-022-23789766E-mail: tjsc@tzeco.comFax: +86-022-23789786
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Management’s Statement
The year 2022 shall be a very important chapter in the64-year history of TZE. The photovoltaics industry isfacing the biggest and most profound changes over theyears. In this extraordinary year, all employees of TZEhave worked together with our business partners to forgeahead and made remarkable achievements. The Companywas awarded the Forbes China Sustainable DevelopmentIndustrial Enterprises TOP50, the National Industrial ProductGreen Design Demonstration Enterprise, and other well-known awards at home and abroad.In the face of complex market environment, we firmlybelieve that only rely on technological innovation can theCompany go through the industry cycle. In 2022, we made abreakthrough in the application of thinning and slice waferproduct, helping reduce the cost and improve the efficiencyof the industrial chain while continuously reducing thecarbon footprint of our products. We also actively promotethe transformation of Industry 4.0 intelligent manufacturingto achieve a significant increase in per capita laborproductivity, so that our front-line employees can work withmore dignity.Our business operations are founded upon the principle ofenvironmental friendliness. In 2022, we executed over 40energy conservation and energy consumption reductionprojects, saving 50,214,500 kWh of electricity; and 16 majorwater-saving retrofit projects, saving 12,343,500 metrictons of water. Our development strategy is driven by thedual approach of “Manufacturing green” and “Green &
— Shen HaopingGeneral Manager of TZE
Intelligent manufacturing”, which enables us to prioritizehigh-quality outcomes. Throughout the year, the proportionof renewable materials used in product manufacturing andpackaging was 61.28%, and the recycling rate of solid wastereached 95.12%."People-oriented" has always been an important part ofTZE's sustainable development philosophy. We strive tocreate a diverse, inclusive, and equal working environmentfor our employees, leading them with our unique engineer-respected culture. The Company continues to improvethe construction of talent pipeline. In 2022, the Companyput forward the "Thousand Talents” campus recruitmentplan and launched the recruitment program specificallyfor overseas graduates for the first time, which haveattracted extensive attention and been widely recognizedby graduates. The Company was awarded the "2022 TopGraduate Employers" by 51Job.We strive to “building a dream road towards the light”.Looking forward to the future, TZE will continue to pursuethe corporate vision of “Environmental friendliness,Employee support, Social respect and Customer trust”,respond to stakeholders’ expectations of the company withreal actions, constantly assist on the green transformationof global energy industry, and contribute to a cleaner, better,and more sustainable world.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Entering TZEIntroduction of the CompanyTZE — becoming the leading renewable energy technology company in the worldFounded in 1958, TZE is the world's leading manufacturer of photovoltaic silicon wafers and a technology leader in the globalphotovoltaic material industry.— The Company adheres to the green ecological concept of "dedicating to a world where everyone lives under blue skies andwhite clouds", pursues the corporate vision of “Environmental friendliness, Employee support, Social respect and Customertrust”, insists on innovation-driven development, deeply integrates Industry 4.0 and intelligent manufacturing, always leadsthe industrial application of advanced technology and production mode, and constantly promotes technological innovation inphotovoltaic industry to achieve high-quality, sustainable and leapfrogging development of the global green energy industry.Global Recognition
TZE's outstanding operational capability and efficient innovation capability have been widely recognized by stakeholdersaround the world. In 2022, the Company was awarded the Forbes China Sustainable Development Industrial EnterprisesTOP50 and the 68th place in Hurun China 500 Most Valuable Private Companies. We were also awarded the ManufacturingSingle Product Champion and the Industrial Product Green Design Demonstration Enterprise by the Ministry of Industry andInformation Technology.
Business SectorsPhotovoltaic MaterialsThe Company is mainly engaged in the R&D, production, and sales of photovoltaic silicon wafers. The products mainlyinclude renewable energy photovoltaic monocrystalline silicon rods and silicon wafers. The Company carries out a number oftechnological innovations around the theoretical capacity increase of production equipment, product quality upgrading andcost reduction, and owns a series of patented technologies and know-how. The Company continuously enhances the supplycapacity of G12 monocrystalline silicon wafers and our Industry 4.0 manufacturing capability, to better meet customers' flexibleneeds and their demands for customized products. In the crystal sector, the consumption rate of silicon materials per unitproduct is reduced, and the monthly production capacity of single furnace continues to break the record. In the wafer sector,through the improvement of thinning and slice production, the yield of Grade A silicon wafers has been enhanced significantlyand the number of wafers produced under the same thickness is significantly above the industry level. The Company’sprofitability continues to improve.
Global Industrial DistributionTZE actively promotes the globalization of our industrialsectors. By establishing investment platforms, marketingcenters and production bases at home and abroad, TZEhas gradually expanded our overseas presence in countriessuch as the United States, Singapore, Malaysia, Philippines,and Mexico.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Photovoltaic Cells and ModulesThe Company is engaged in the R&D, production andsales of photovoltaic cells and modules, mainly includingphotovoltaic cells and efficient imbricated modules. TheCompany firmly adopts a differentiated technology andproduct route of the dual-platform of “G12 + imbrication”and comprehensively improves the application ofIndustry 4.0 production modes and the capacity of leanmanufacturing. With high power, high efficiency, and highreliability, G12 efficient imbricated 3.0 modules lead thefuture of low-carbon innovation. In 2022, the Company'sphotovoltaic cells and modules sector achieved a revenueof CNY 10.84 billion.Intelligent Photovoltaic SolutionsTZE provides customers with one-stop comprehensivesolutions for photovoltaic energy industry, coveringresource development, EPC (Engineering, Procurement, andConstruction) construction and management, intelligentoperation and maintenance, and other services throughoutthe project life cycle, to ensure the maximum benefit ofcustomers' power station assets.The Company adopts a diversified commercial powerplant development mode and operates ground-basedcentralized power plants and distributed power plants,covering plateaus, mountains, rooftops, car sheds, andother scenarios. The Company actively carries out the
50.90
10.84
618.91
billion
billion
million
the revenue of the Company's photovoltaic materials sectorreached CNY
the Company's photovoltaic cells and modules sectorachieved a revenue of CNY
the revenue of intelligent photovoltaic solutions sectorreached CNY
A deep understanding of the industry, excellent technologyR&D and manufacturing capabilities, as well as the leadingscale advantage, give the Company the right to define, setcriteria of and price photovoltaic silicon wafer products. TheCompany adheres to the differentiated product strategy.Our G12 "Kuafu" series accumulates multiple technologiesand has an excellent performance. With large size, thinslice and Type-N technology of our silicon wafer products,the Company continues to promote cost reduction andefficiency improvement and leads the ecosystem of theindustry to move forward. In 2022, the revenue of theCompany's photovoltaic materials sector reached CNY
50.90billion.
development of photovoltaic power plants in the wayof independent development and joint development,diversifies our revenue sources, and achieves integrationwith module and silicon wafer business. The Company alsoactively carries out photovoltaic power generation projectsfor poverty alleviation. The ground-based centralized powerplants developed by the Company stably increase theincome of the impoverished people to get out of poverty,effectively protect the ecological environment, and promotethe increase of the proportion of green and clean energysupply. As of December 31, 2022, the Company owns 59photovoltaic power plants, with 1,563.71MW grid-connectedprojects, including 1,395MW ground-based centralizedpower plants and 168.71MW distributed power plants. In2022, the revenue of intelligent photovoltaic solutionssector reached CNY 618.91 million.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Technological InnovationTechnological Development History
R&D StrengthTZE adheres to the principle of technology-led and innovation-driven, empowers the photovoltaic industry with innovativetechnology, and leads the industry reform and industrial upgrading. By the end of the reporting period, the Company holds atotal of 1,223 authorized intellectual property rights and 747 patents under application. For more information on patents, pleaserefer to Chapter 6.2 Business Ethics – Intellectual Property Protection.In addition, TZE has 9 high-tech subsidiaries, 6 provincial and ministerial R&D centers, 1 national technology center, 1 nationaltechnology innovation demonstration subsidiary and 2 provincial and ministerial key laboratories. The Company is the mainundertaking enterprise of the National 02 major science and technology project. All sub-projects the Company is in chargehave passed the acceptance of the project implementation management office.Our R&D team has more than 1,200 experts and engineers, including 3 with doctoral degree or above and 159 with master’sdegree or above, a share of 12.7% of total technicians.
1981One of the first enterprises toproduce monocrystalline siliconfor solar power generation inChina
2002Application of multi-linecutting technology
2009The first enterprise in theworld to achieve the industrialapplication of DW cuttingprocess on diamond wiresaws
2012
The first DW factory(the largest then) wasbuilt
2019
G12 photovoltaic siliconwafer product was launched;Huansheng became thelargest imbricated moduleproducer in the world
2016Innovate M0-130 Ultra-thinSilicon Wafer and realize itsmass production; The largestcapacity of Type-N thin slicein the world
2021The largest crystal intelligentfactory in the world (50GW) wasbuilt.
2022A breakthrough in the applicationof thin slices of silicon wafer, thethickness of which dropped to130?m.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Our Sustainable Development PerformanceEconomic PerformanceSocial Performance
Environmental Performance
109.13
22,175.6
billion
m?/CNY 10K
thousand
◎Total assets
◎Water Intensity
◎The total amount of public welfare donations
◎Our sustainable financing project obtained Category B certification ofthe Equator Principles
67.01
37,312
44.44
billion
MWh
m?
%
◎Total income
◎Green electricity providedby our distributed powerstation
◎Directors and employees’diversityThe ratio of female director:
◎The number of projects implementedin 2022 electricity, water and otherresources conservation)
◎The number of new hires
3.77
391,631,864.20
123,156
◎R&D investment
◎Total amount of water recycling
◎Total number of training hours provided to employees
The performance is in the top 50% of the manufacturingindustry, better than the average
2.12
0.79
MWh/CNY 10K
%
◎Earnings per share
◎Energy Intensity
◎Proportion of spending on local suppliers
◎No major environmental violations throughout the year
◎The number of photovoltaic plants in rural areas
6.82
billion
◎Net profit attributable to equityshareholders of the company
40+
7,923
persons
5.62
77.8
%
%
◎ R&D/Sales Ratio
◎The score of employee engagement
billion
3.35
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Sustainable Development Awards and HonorsAwardsAwardeesAwarders2022 Forbes China Sustainable Development Industrial EnterprisesTOP50
TZEForbes China2022 Forbes China Best CEOsShen HaopingForbes China2022 Hurun China 500 Most Valuable Private Companies (the 68th Place)
TZEHurun Report2022 Top 500 New EconomyTZEChina Enterprise Evaluation AssociationNational Manufacturing Single Product ChampionTZEMinistry of Industry and Information TechnologyNational Industrial Product Green Design Demonstration EnterpriseZhonghuan Applied MaterialsMinistry of Industry and Information TechnologyTianjin Manufacturing Single Product ChampionTZETianjin Bureau of Industry and Information
TechnologySmart Manufacturing Award of the YearTZESolarbeMost Influential Photovoltaic Materials Enterprise TZESolarbeMost Influential Photovoltaic Modules EnterpriseHuanshengSolarbeGreen and Low-carbon Outstanding Contribution Award for Chineselisted companies
TZEJRJ.comNew Fortune Best Listed CompanyTZENew FortuneJinniu Best Investment Value AwardTZEChina Securities Journal
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Annual Feature — Intelligent Manufacturing toAccelerate the Journey Towards Zero Carbon
“After ups and downs, China’s photovoltaic industry has already become an important force in the global industrial chain.TZE aims for global leadership in photovoltaic monocrystalline and silicon wafers by virtue of technological innovation, leanmanufacturing, and industrial chain investments. Meanwhile, TZE is committed to empowering energy transformation andgreen development, so as to benefit society while enjoying commercial success.”
In the century following industrialization, excessive carbon emissions wreaked havoc on the climate and the environmentthe world over. In response, since the Paris Agreement was passed in 2015, more than 130 countries or regions have set "zerocarbon" or "carbon neutrality" goals. As a green and efficient new energy source, photovoltaic power is a prevailing trend andsolution in energy transition, and an important route to carbon neutrality.As a high-tech manufacturer as well as a game changer and trailblazer in the new energy sector, TZE has devised a "zerocarbon" strategy and decided to act on the government’s call for carbon peaking and carbon neutrality. We push ahead withsmart manufacturing and innovation-driven photovoltaics, and help build green power systems, thereby leading the industry tozero carbon.
"TZE upholds the “engineer-respected” culture. By integrating technological, product and manufacturing innovations, TZEkeeps driving the sustainable and high-quality development of the industry."
“Chasing the energy of sunlight is in the right direction. It is our firm conviction that our road to photovoltaics will beilluminated.”
— Li Dongsheng, Founder and Chairman of TCL
— Shen Haoping, General Manager of TZE
— All employees of TZE
Foreword: Silicon-based Roots, Solar-powered FutureIs the gravel that bears witness to time - silicon - the key to new energy? That is a question mankind has frequentlyasked - and finally worked out. Since it was proved that electricity can be generated when the element meets sunlight,numerous companies have tried to refine and forge silicon crystals for such purposes. Through relentless exploration,self-denial and verification, we have found the right route to photovoltaics.TZE builds on silicon-based roots to pursue solar-powered future. Our precise and cutting-edge technology helpsconserve lucid waters and lush mountains; our capability to maximize the energy of sunlight points the way to a low-carbon future.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
World-leading Intelligent ManufacturingAnswering the call for "carbon peaking and carbon neutrality", the Company has set out on a new journey towards precisionand low carbon. To this end, the Company embraces the philosophy of "intensive innovation, integrated innovation, jointinnovation and collaborative innovation", and incorporates smart technology into industry.Industry 4.0 transformation runs through the operational processes and scenarios of all business lines of the Company. Inaddition, our capabilities in advanced and intelligent manufacturing lead industrial transformation and upgrade, driving thehigh-quality growth of the industry.
During the reporting period, the Company intermingled the physical world and the digital space through IT system integration,which enabled standardized collaborative control throughout the value chain, more flexible production & manufacturing, as wellas smarter operation & management. Relying on big data and cloud computing, the "Deep Blue Stereotype" model empowersproduction. So far, we have realized autonomous perception, learning, decision-making, execution, and adaptation, boostingconsistency and efficiency.
Digital Goals of TZEThe Company aims to leverage digital skills, such as networked means, human-machine collaboration and automation& informatization two-way integration, to continuously improve our core competitiveness in these ways: a) reducingthe burden of production and management; b) providing technical support for R&D, production, operation and service;and c) empowering business decision-making and manufacturing.
◎Average labor productivity has risen by
◎Unit production efficiency has risen by
◎Non-defective rate of silicon wafer maintains a
lead
lead
◎Consistency of product quality parameters maintains a
200%
150%
4%
33%
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Building up Flexible Manufacturing Capabilities and Accelerating the Large-scale Application of Intelligent ManufacturingIn November 2022, a 25GW high-efficiency solar ultra-thin silicon single-chip smart factory ("DW Phase III") wasput into operation.DW Phase III thoroughly integrates the technological advantages of the G12 product platform with the designconcept of Industry 4.0, which has slashed manufacturing costs on the one hand, and enhanced productionefficiency and flexible manufacturing capabilities on the other. We expedite the large-scale application ofintelligent manufacturing to empower products, so that the growing demand for differentiated and customizedproducts can be satisfied. Meanwhile, we advocate the collaborative and shared development across theindustrial chain.
All production lines operate automaticallyat the DW Phase III Factory
Certain units operate without light at theDW Phase III Factory
Embracing Photovoltaics, Going GreenCommitments to carbon neutrality will speed up the global transition from fossil fuels to new energy, and renewable energysuch as photovoltaics has become the protagonist of the third energy conversion. By an estimate of the International EnergyAgency, global solar photovoltaic power generation will grow by 1.5TW between 2022 and 2027; it will surpass coal, becomingthe largest source of electricity capacity and playing a dominant role in the carbon-neutral future.To adapt to the growth trend of the photovoltaic industry and respond to the growing demand for photovoltaic powergeneration worldwide, TZE stands committed to the photovoltaic sector with science and technology innovation at its core. TheCompany continues to increase investment in the industry to energize society with green energy and promote a green-orientedtransition, staying dedicated to a brighter future and a world where everyone lives under blue skies and white clouds.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
◎The Company continues to expand investment in industrial technology and innovation in an effort to lower the LCOE (LevelizedCost of Energy) of photovoltaic products while increasing generation capacity throughout the lifecycle, thus empowering theworld to get closer to the “carbon peaking and carbon neutrality” goals.
◎The Company attaches importance to the development of photovoltaic power plants and has made an investment in thebuilding of GW-level photovoltaic power generation projects in North China, Northwest China, North Central China, East China,and other regions. The implementation of a series of “Source-Grid-Load-Storage” integrated projects will be phased in.
Driven by technological innovation:
Focus on developing photovoltaic power plants:
TZE Assisted in Building a National Comprehensive New Energy Demonstration Zone inNingxiaThanks to its abundant solar energy resources and vast deserts, Gobi and wilderness, China’s Ningxia Hui Autonomous Regionis an excellent place to develop the photovoltaic industry.Zhonghuan’s 300MW photovoltaic composite project in Majiatan, Lingwu, NingxiaZhonghuan’s 300MW photovoltaic composite project is located in Yangquanwan Village, Majiatan Town, Lingwu City, NingxiaHui Autonomous Region. The total investment of the project is about CNY1.2 billion and the site covers a total area of 6,136mu. It is one of the 100 major projects for the development of 6 aspects in Ningxia and a key construction project in theautonomous region in 2022.Fully equipped with efficient imbricated modules from TZE, the whole project generates an annual average of 513 million kWhof green power, equivalent to saving 167.1 thousand tonnes of standard coal and cutting carbon dioxide emissions by 405thousand tonnes. Upon completion, the project will effectively assist the regional power grid in peak load regulation, blackstart, demand response, etc. In addition to allowing the grid to achieve peak-load shifting and ease supply pressure during peakhours, this project can also promote the accommodation of new energy. With its ongoing operation, the project is expectedto boost the share of renewable energy in the region and further optimize the power supply structure of the system, thussupporting the construction of a national comprehensive new energy demonstration zone in Ningxia Hui Autonomous Region.
Photovoltaic composite project in Majiatan, Lingwu, Ningxia
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Distributed Photovoltaic Project at Ningxia-Zhonghuan Industrial ParkUsing efficient imbricated modules, the distributed photovoltaic project in Ningxia-Zhonghuan IndustrialPark boasts an installed capacity of 30MW and an annual average output of 36,798 thousand kWh ofgreen power, equivalent to saving 12 thousand tonnes of standard coal and 29.1 thousand tonnes of carbondioxide emissions.The project will bolster the building of green, low-carbon and intelligent plants in the area, and help developa green park with the idea of “green manufacturing, green power supply and green energy development”.
Distributed photovoltaic project at Ningxia-Zhonghuan Industrial Park
In response to the national strategic goal of “carbon peaking and carbon neutrality”, TZE, by virtue of the lifecycle servicingcapability provided by our well-developed photovoltaic power plants, has injected strong momentum into the qualitydevelopment of the photovoltaic industry in various locations. The Company has invested in and constructed many ground-centralized and rooftop-distributed photovoltaic power generation plants in Ningxia, Tianjin, Inner Mongolia, and other regions,with a total of 59 plants completed by the end of the reporting period.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
The Largest Rooftop-DistributedPhotovoltaic Power Generation Plantin Hubei Has Successfully Connectedto the Power GridIn July 2022, Wuhan Huaxing rooftop-distributedphotovoltaic power generation plant, built by TZE,was officially connected to the power grid. With aninstalled capacity of 18.55MW, the project is currentlythe largest rooftop-distributed photovoltaic powergeneration project in Hubei. As the first photovoltaicproject after the launch of the efficient imbricatedmodule 3.0, Wuhan Huaxing rooftop-distributedphotovoltaic power generation plant uses 34,048 G12
57.5P single-glass modules in total.
The plant operates 1,067 hours per year and has anaverage annual generating capacity of 18,564,500kWh. Its photovoltaic system adopts the grid-connected mode for self-generation and self-use. After completion, it is connected to the 20kVdistribution system in the plant, allowing the on-site accommodation of “zero-carbon” electricity.Compared to a thermal power plant that produces thesame amount of electricity, the clean power generatedby the project can save 5.7 thousand tonnes ofstandard coal per annum (306.4 g/kWh of standardcoal consumption) and reduce GHG (CO2) emissionsby approximately 17.2 thousand tonnes per annum. Inthis regard, the project can inject green energy intosociety and aid local enterprises and government inachieving their low-carbon emission reduction targets.
Wuhan Huaxing rooftop-distributedphotovoltaic power generation project
TZE Joined Hands with Other Partiesto Build the “Inner Mongolia-Zhonghuan Industrial City ProjectCluster”In April 2022, TZE, relying on our technologicalinnovation and managerial advantages in the field ofphotovoltaic materials, took the lead in investing inthe “Inner Mongolia-Zhonghuan Industry City ProjectCluster”.Once completed, the Inner Mongolia-ZhonghuanIndustry City Project Cluster will become the principalmonocrystalline silicon production base withinternational competitiveness in China. In the future,the Company will strengthen in-depth cooperationwith Inner Mongolia Autonomous Region to help thelocal government achieve the “carbon peaking andcarbon neutrality” goals.
Aerial view of Inner Mongolia-ZhonghuanIndustry City
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Our Sustainability Philosophy and GovernanceSustainable Development ConceptOur Sustainability Principles and VisionWith the mission of global energy transformation, TZE engraves sustainable development in the corporate value. The Companytakes “Environmental friendliness, Employee support, Social respect and Customer trust” as our sustainable developmentvision, adheres to the concept of "dedicating to a world where everyone lives under blue skies and white clouds" and the qualityof integrity, modesty, and diligence, and integrates sustainability principles into the Company’s operational decision-makingprocess.
Sustainable OperationIn 2022, TZE established a leadership position in intelligent manufacturing technology, leveraging digital upgrade to supportour high-quality development. The Company is committed to promoting our excellence in intelligent manufacturing to theworld and leading the development of the global photovoltaic industrial chain.At the same time, the Company is actively engaged in cutting-edge international ESG trends and is aware of globalsustainability market needs and regulatory trends in advance. We integrate sustainability concepts into our daily operationsacross all industrial sectors, focusing on the use of renewable electricity, the inventory and reduction of the environmentalfootprint of products, and the globalization and diversity of employment to support the stable and long-term development ofthe Company.
Our Sustainable Development Commitment
◎100% Renewable Electricity
◎Create a “Zero Carbon TZE” withInnovation
◎Build a Green Value Chain withStakeholders
◎Committed to Zero Gas Emissions,Liquid and Solid Waste
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Sustainable FinanceTZE is committed to incorporating sustainability factors into our financing mechanism, raising funds through various sustainablefinancial products such as green loans to facilitate the Company’s transition to a low-carbon, resource-efficient, and sustainabledevelopment.
Supporting the UN Sustainable Development GoalsAs a pioneer and leader in global clean energy and sustainable development, TZE takes “contributing to ‘SDG7 affordable andclean energy’ for all mankind” as the main focus. What’s more, TZE integrates 17 goals of the 2030 Agenda for SustainableDevelopment of the United Nation and national “carbon peaking and carbon neutrality” goals into our strategic planning toachieve a symbiosis between corporate and social values.
TZE launched Tianjin's first financing project under the Equator PrinciplesThe Equator Principles (EPs) are a globally applicable set of sustainable financial principles to identify, assess andmanage the environmental and social risks involved in projects during the financing process. The principles specifythe environmental and social indicators that need to be evaluated and assessed in financing projects. The EquatorPrinciples were initiated by major international financial institutions with the participation of other internationalfinancial institutions.Industrial Bank of China, as the first bank in China to adopt the Equator Principles, approved a syndicated loan forTZE's High-efficient Solar Ultra-thin Silicon Monocrystal Wafer Intelligent Factory with an Annual Capacity of 25GWproject in 2022. The project passed the Equator Principles' due diligence, obtained a Category B certification, andwas successfully launched, becoming the first financing project under the Equator Principles in Tianjin.In the future, TZE will continue to work with domestic and international financial institutions to increase theproportion of loans and bonds from sustainable financial products.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
EnvironmentalFriendliness
EmployeeSupport
Social Respect
Customer Trust
Sustainable Development Goals (SDGs) and this Report
TZE VisionUN Sustainable Development Goal Chapter
◎A Value-Oriented Strategyfor a Brighter Tomorrow
◎Reinforcing CorporateGovernance withFull Disclosure andTransparency
◎Devoting to Social Serviceand Public
◎Embracing ExcellentTalents to Chase the Energyof Sunlight
◎Pursuing GreenDevelopment for theBeautiful Environment
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Sustainable Development GovernanceSustainable Development Governance Framework
TZE’s sustainability governance structure is divided into three modules: Environmental, Social, and Governance (ESG).The Company fulfills our responsibilities of governance, supervision, and implementation from top to down, covering fourdimensions of governance, strategy, risk management, performance and target.In 2022, TZE optimizes our sustainability governance structure, vertically linking the Board of Directors and senior management,the Sustainability Working Group and the ESG Executive, horizontally coordinating various functional departments and thecorporate social responsibility organization system of each subsidiary to jointly promote the coordinated development of theCompany in the three dimensions of economy, society and environment.TZE Sustainable Development Governance Structure
Sustainability Working Group
Eco-environmentSocial ResponsibilityCorporate Governance
Project Management Department, StrategicPlanning Department, Compliance ManagementDepartment, R&D Center and ProductionDepartment
Organization Development Department andParty-Mass Service Department
Board of Directors and Senior Management
◎Manage environmental risks inthe whole value chain
◎Produce products that are moreresource-intensive with lesspollution
◎Promote employee growth
◎Facilitate innovation andcustomer satisfaction
◎Support community prosperity
◎Propose the sustainabledevelopment vision of theCompany
◎Develop a social responsibilityplan of the company
◎Disclose goals and managementprogress information
TCL Zhonghuan Targets Economic, Environmental and Social Co-development
The Board of Directors and Senior Management
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Sustainable Development Performance
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Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Statement of The Board of DirectorsTZE's Board of Directors is the highest leading, responsible, and decision-making body for ESG and sustainabilitymatters. The Board of Directors is responsible for deliberating and approving the Company's sustainability vision,social responsibility plan and policies related to climate change and sustainable development, and annuallyreviewing the Company's sustainability report. The Board of Directors regularly discusses material issues of theCompany and provides comprehensive oversight of the Company's sustainability process to achieve shared value ofthe Company and our stakeholders.In order to achieve our sustainability goals, the Company has established the Sustainability Working Group underthe Office of the Board of Directors to lead the coordination of sustainability projects across each executivedepartment within the sustainability development governance structure. The General Manager (CEO) regularlyanalyses and reviews matters related to the Company's sustainable operations and low-carbon development,reports to the Board of Directors on objectives and performance, and provides strategic guidance and resources toexecutive departments on key ESG issues.In 2022, TZE systematically reviews the Company's sustainability development status and comprehensivelydevelops and promotes the governance system and enhancement plan for the issues of ecological environmental,social responsibility and corporate governance. At the same time, we have completed the identification of ESG andclimate risks and opportunities in our operations, including climate change, renewable energy, water resources,biodiversity, talent development and cultivation, occupational health and safety, sustainable supply chain, andbusiness ethics and integrity, and have established and implemented relevant risk response and managementmeasures.During the reporting period, the Company conducted surveys on the sustainable status of suppliers and carbontrainings for them, expecting to lead the long-term and sustainable development of the photovoltaic industrialchain. With great global attention to climate change and ‘carbon neutrality’, we have taken the initiative to followthe recommendation of the Task Force on Climate-related Financial Disclosures (TCFD) to disclose our governance,strategy, risk management, and metrics & targets in the climate field of the Report.The Report faithfully discloses the progress and performance of TZE’s sustainability work in 2022, which wasreviewed and approved by the Board of Directors on March 28 for publication.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Stakeholders and Material IssuesStakeholder Identification and EngagementTZE attaches great importance to stakeholders' expectations and feedback. To facilitate two-way communication with ourstakeholders, we have established various channels to maintain close communication with them through meetings, interviews,the official website, the sustainability report, the official WeChat accounts, and online and offline activities for years andrespond to their expectations and concerns in a timely manner.
During the reporting period, according to the characteristics of our industry and operations, we identified employees,management, customers, investors or shareholders, suppliers, and the society and the public as key stakeholders throughbenchmarking excellent corporate practices at home and abroad and the discussions and agreement between the SustainabilityWorking Group and the management.
In 2022, TZE has completely revamped our official website, with a highly interactive and dynamic web design toenhance the transparency, timeliness, and readability of sustainability-related information. We look forward to workingtogether with our stakeholders to advance our process of sustainable development.
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Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Our Key StakeholdersStakeholderOur ResponseCommunication ChannelsSustainability Areas of ConcernedEmployeesWe are people-oriented,
cultivating key backbone ofthe Company, and the coretalent organizations to form a" Business Community".
◎Employee activity
◎Employees’ congress
◎Corporate intranet and internal publication
◎Employee training
◎Employee self-service system
◎Protection of employee's rights and interests
◎Diversity, equality, and inclusiveness
◎Support employee development
◎Occupational health and safety
◎Diverse employee communication channels
◎Compliance with business ethicsManagementOur Board of Directors and
senior management haveextensive professional andmanagement backgroundand formulate the vision andstrategic planning for theCompany, and oversee ouroperation and management.
◎Board meeting
◎Corporate intranet
◎Email advocacy
◎Training of Board of Directors and seniormanagement
◎Improve sustainability governance structure
◎Strengthen risk resilience
◎Response to climate change
◎Optimize environmental management system
◎Water management
◎Compliance
◎Intellectual property protection
◎Information security and privacy protectionCustomersWe are customer-centric and
committed to continuousinnovation, reducing PV LOCE,and contributing to renewableenergy development.
◎Product exhibition
◎Customer survey
◎Technical seminar
◎Customer service hotline
◎Customer satisfaction survey
◎Product quality and safety
◎Use of renewable energy
◎Low-carbon product
◎Improve customer serviceInvestors orShareholders
We value the rights andinterests of investorsand strengthen investorrelationship throughdiversified interactiveactivities.
◎ Shareholder meeting
◎Financial report
◎Performance Report
◎Roadshow
◎WeChat official account
◎Corporate governance
◎Scientific and technological innovation
◎Carbon emission management
◎Biodiversity protection
◎Social contribution and rights and interests ofemployeesSuppliersAiming at a green supplychain, we work with oursuppliers to build a flexiblesupply chain, developinnovative solutions andenhance industry resilience.
◎Public bidding meeting
◎Strategic cooperation negotiation
◎Mutual visit
◎Save raw materials
◎Green supply chain
◎Responsible supply chainSociety and thePublic
We actively participate insocial welfare activities, listento the public’s expectations,and unleash our strength tocreate a better life together.
◎Community volunteer activity
◎Social welfare project
◎News media
◎WeChat official account
◎Projects supporting other socialundertakings
◎Management of solid waste and emissions
◎Biodiversity protection
◎Support community development
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Material Issues IdentificationIn 2022, TZE integrated similar sustainability issues and added twelve issues related to the company by referring to thesustainable development trend of the photovoltaic industry, domestic and international ESG-related laws and regulations, ESGrating focus, and the status of industry disclosures, in combination with the company's sustainability strategy. The issues wereclassified into four categories: environment, society, corporate governance and economy. Newly added sustainability issues in2022 includes intellectual property protection, external cooperation and communication, response to climate change, use ofrenewable energy, biodiversity protection, green supply chain, low-carbon product, diverse employee communication channels,responsible supply chain, compliance with business ethics, strengthen risk resilience, and information security and privacyprotection.To further identify issues with material impact, we conducted internal and external stakeholder research on sustainability issuesthrough questionnaires and interviews. Based on the survey results and the evaluation of the importance of each issue bystakeholders, we determined highly important material issues after reviewing by the Board of Directors and management andcreated a material issues matrix for sustainability.Indentify RelatedIsssues
Questionnaires andInterviews
Analyse ResearchResults
◎We collaborated with external consultants on domestic and international sustainability-relatedpolicies and trends studies, benchmarked sustainability disclosure framework standards, andpeer ESG performance. We identified 29 issues that are highly relevant to TZE and designedonline questionnaires and interview outlines based on these issues.
◎Internal stakeholders: Questionnaires were distributed to management and employees viaonline office system, WeChat, email and on-site visits.
◎External stakeholders: Questionnaires were sent to our customers, investors or shareholders,suppliers and society and the public through official WeChat accounts, interviews, emails, andtargeted distribution to department heads.
◎We collected questionnaires and interview responses from stakeholders to rank TZE'ssustainability issues in terms of their evaluation results and degree of concern. The sustainabilityissues ranking from "very important" to "not important at all" are identified from the stakeholderperspective.
◎Based on the survey feedback from stakeholders, the Sustainability Working Group took thelead in reporting to the Board of Directors and senior management for discussion. The impactof each issue on our development strategy and operational risks was assessed. Finally, materialissues that should be managed as a priority were identified and highlighted in this report.
Material Issues Analysis Procedures
Finalize MaterialIssues
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Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
In 2022, we prioritized the issues into high importance, medium importance and low importance, respectively, based on howsignificantly our stakeholders believe the issues would be impacted by the Company's operations. The issues are presented inthe matrix of material issues.We defined sustainability issues with high importance as key material issues. In 2022, twelve material issues identifiedthrough our research and analysis procedures include the same six material issues as those in 2021 (compliance with businessethics, continuous scientific and technological innovation, occupational health and safety, product quality and safety, watermanagement, management of solid waste and emissions) and six new material issues (green supply chain, response to climatechange, responsible supply chain, use of renewable energy, support employee development and improve customer service). Inthis report, we provided detailed disclosures on the management approach, objectives, and data of these twelve key materialissues following the GRI framework.
High importance
Low importanceHigh importance
Sustainable profitability
Continuous scientific andtechnological innovationProduct qualityand safety
Intellectual property protection
Promote greenindustrial ecologyExternal cooperationand communication
Response toclimate change
Optimize environmentalmanagement system
Use ofrenewable energyWater managementSave raw materials
Management ofsolid waste and emissionsBiodiversity protection
Green supply chain
Low-carbonproduct
Protection of employee's
rights and interestsDiversity, equality andinclusiveness
Support employee
development
Occupational health
and safety
Diverse employee communication
channels
Improvecustomer service
Responsible supply chain
Support community development
Compliance
Compliance withbusiness ethicsAnti-corruption
Strengthen risk
resilienceInformation securityand privacy protectionImprove sustainability governance
structure
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
44.14.24.34.44.54.64.74.84.95
Importance to the Company's development
Economic issuesEnvironmental issuesSocial issuesGovernance issues
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
ImportanceMaterial IssueChapterHigh ImportanceCompliance with business ethics6.2 Business EthicsHigh ImportanceContinuous scientific and technological innovationAnnual Feature — Intelligent Manufacturing to Accelerate
the Journey Towards Zero Carbon 1.2 Leading the Lean ManufacturingHigh ImportanceGreen supply chain3.3 Fostering a Responsible Supply ChainHigh ImportanceOccupational health and safety4.5 Safeguarding Employee HealthHigh ImportanceResponse to climate change1.1 Our Actions towards ClimateHigh ImportanceResponsible supply chain3.3 Fostering a Responsible Supply ChainHigh ImportanceProduct quality and safety3.1 Achieving Excellence in QualityHigh ImportanceWater management2.2 Strengthening Resource ManagementHigh ImportanceUse of renewable energy2.2 Strengthening Resource ManagementHigh ImportanceManagement of solid waste and emissions2.3 Promoting Green & Intelligent ManufacturingHigh ImportanceSupport employee development4.3 Boosting Employee GrowthHigh ImportanceImprove customer service3.2 Serving Global Customers
EnteringTZE
Sustainable Development Performance
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Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Tackling climate change is the mission and obligation of all responsible enterprises. As the issue of climate change becomesincreasingly severe, it has become a broad consensus of the international community to actively identify and address climaterisks. At the background of “carbon peaking and carbon neutrality” goals, TZE, as an innovator and navigator in the new energyindustry, continues to optimize energy management, accelerate the transformation of Industry 4.0 intelligent manufacturing,strive to reduce greenhouse gas emissions, lead the photovoltaic industry upgrading, and promote the green transformation ofglobal energy industry.In 2022, the revenue of the Company reached CNY 67.01 billion, a 63.02% increase compared to the previous year. The revenueis mainly from renewable energy related industries, a total of CNY 62.36 billion, an increase of 62.20% over the last year,accounting for 93.06% of the total revenue, fully demonstrating the strong strength of the Company as a leader in the newenergy photovoltaic industry.
1. Exploring the Essence
of Carbon Reductionand IntelligentManufacturing
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
◎The Company takes topics concerning climatechange mitigation and adaptation as our ESGfocuses and material issues.
◎The Board of Directors reviews climate and energy-related policies, and regularly deliberates theanalysis results and quantitative performancedisclosure of climate change topics.
◎The general manager reviews and analyzes theclimate change-related affairs of the Companyregularly, summarizes and reports to the Board ofDirectors, formulates annual performance goals andaction plans of climate governance, and arrangesguidance and resources for relevant departmentsof the Company.
◎Multiple departments of the Company worktogether to implement climate governance-relatedwork to ensure relevant performance goals are met.
◎The Company identifies and analyzes majorclimate-related risks and opportunities andevaluates their potential impact on our operationand finance.
◎Business units take management actions in termsof low-carbon operation, response to climatechange and natural disasters, and support for cleanenergy development.
◎The Company identifies potential risks andopportunities in our business and operationalactivities referring to the TCFD climate change riskcategory.
◎The Company identifies and defines the materialityof risks and opportunities based on their probabilityof occurrence and severity of impact.
◎The Company formulates measures for elimination,mitigation, transfer, or control of different typesof risks, and formulates action plans for differenttypes of opportunities.
◎The Company collects data related to greenhousegas emission activities on an annual basis, disclosesresults of relevant goals regularly, and accepts thesupervision of relevant committees and the society.
◎The Company links greenhouse gas emissions datawith the results of the identification and analysis ofclimate change risks, evaluates the managementperformance of the Company’s response to climatechange, and formulates improvement plans andannual performance goals.
Governance
Strategy
Risk management
Metrics and targets
1.1 Our Actions towards
Climate
Responding to Climate Change
TZE is fully aware of far-reaching impact of climate-relatedrisks and opportunities on our business and industrial chaindevelopment. We incorporate climate as a material issueinto our sustainable development management process toenhance climate change resilience.By referring to the proposed disclosure framework of TCFD,we comprehensively improve our climate governancecapability and information disclosure level by focusing onthe four areas of governance, strategy, risk management,and metrics and targets.
EnteringTZE
Sustainable Development Performance
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Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Identification Matrix of Climate Change Risks and Opportunities
Climate-related risksClimate-related opportunities
OpportunitiesTransition risks
High
HighLowProbability of risks and opportunitie
Impact of risks and opportunities
Market risks
Policy and legal risksProducts and services
Adaptability
Resource efficiencyEnergy source
Technology risks
Acute physical risks
Reputation risks
Chronic physical risks
Physical risks
Climate Risks and Opportunities ManagementThe Company identifies potential climate change risks and opportunities that may affect the Company's business and operationaccording to the climate change risk category proposed by TCFD and forms a preliminary list of climate change risks andopportunities. At the same time, we refer to expert opinions, policy survey and the result of peer benchmarking, further analyzeand rank the contents of the list systematically and establish complete climate risk prevention and control measures and anemergency management system for various risk sources.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Main risks of climate change identified by TZEMeasuresRisksPhysical risksAcute physical risksProduction and operation suspension or safetyproduction accidents caused by extreme weather(typhoons, rainstorms, snowstorms, etc.) or naturaldisasters.
◎Actively respond to market expectations for the Company's low-carbon development and communicate with stakeholders onclimate change as a material issue through the sustainabilityreport, articles from official accounts and other channels.
◎Regularly track relevant regulations and policies, and timelyoptimize internal rules, regulations, and work processes to meet(even go beyond) regulatory requirements.
◎The Company makes annual statistics of greenhouse gasemission data of production plants in operation and employsthird-party organizations to carry out annual greenhouse gasemission accounting to strengthen the control of greenhouse gasemissions.
◎Comply with national laws and regulations, establish a soundsystem and management mechanism, prevent and controlpollution in the whole process, and ensure that environmentalcompliance requirements are met.
◎Promote the construction of Industry 4.0 production mode,implement intelligent manufacturing, lean manufacturing, andflexible manufacturing, support the construction of high-standardgreen factories, increase capacity of production lines, and reduceenergy consumption per unit product.
◎Adhere to technological innovation and upgrade, continue tocarry out R&D of new materials in place of conventional materials,and develop low-carbon products.
◎Promote carbon emission reduction in production, conductstatistics of energy consumption and water consumption ofthe Company annually, formulate annual targets for energyconservation, and carry out energy conservation projects.
◎Formulate emergency plans for environmental affairs to improveemergency response capability.
Chronic physical risksResource shortage caused by climate change (globalwarming, rising sea level, etc.).Transition risksPolicy and legal risksIncreased compliance cost to meet regulatoryrequirements, or lawsuits and penalties if theCompany fails to meet regulatory requirements.Technology risksDirect impact of the appearance of new cleanenergy-related technologies on the Company’sbusiness and products.Market risksSince overseas markets have high requirements oncompany’s sustainable development managementand greenhouse gas emissions, the Company maynot adjust our overseas operational strategies timely,which affects customers’ judgement and decision-making.Reputation risksThe Company fails to respond to the expectationof our stakeholders timely, which may cause thereduction of accesses to finance.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Main opportunities of climate change identified by TZEMeasuresOpportunitiesProducts and servicesThe “carbon peaking and carbon neutrality” goalsgive birth to brand-new low-carbon business models.The Company's low-carbon products and innovativesolutions meet the emerging market demand,boosting our business growth.
◎Increase investment in low-carbon product R&D,promote technological innovation and upgrade,and provide customers with diversified, reliable,and efficient low-carbon products and solutions. Atthe same time to expand the Company's revenuesources and increase shareholder returns.
◎Carry out energy-saving renovation projectsin production and operation, promote theconstruction of green and intelligent factories,and further improve the efficiency of resourceutilization. Increase the proportion of the use ofrenewable energy in manufacturing and office,reduce operational greenhouse gas emissions,and improve the carbon competitiveness of theCompany’s products and services.
AdaptabilityTo improve the climate change adaptability, theCompany continues to carry out low-carbon productR&D and technological innovation and upgrade andcooperate with suppliers and customers to build agreen and low-carbon ecosystem.Resource efficiencyUsing intelligent manufacturing to downsize staffand increase efficiency, improve resource utilizationefficiency, and reduce the Company's operating cost.Energy sourceTo cut energy cost, the Company reduces the use oftraditional fossil energy and increases the proportionof the use of clean energy.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
In 2022, our Scope 1 and Scope 2 emissions is 4,890,931.53 tCO2e. TZE formulates and implements 3 strategies:
Accelerate to achieve operational carbon neutrality
◎Achieve online carbon management by establishing a digital emission monitoring platform from the Company’sheadquarter to production bases.
◎Change the energy consumption structure, reduce the use of fossil energy, and increase the proportion of the useof green electricity.
◎Drive low-carbon development through technological innovation and promote intelligent manufacturing, energyconservation and efficiency improvement, green office, and green transportation.
◎Actively participate in carbon asset trading and carbon asset equity project development, offsetting residualemissions through the development, purchase, and sale of relevant environmental equities.
Create low-carbon products to drive carbon neutrality in value chain
◎Creating low-carbon products by continuing to promote the use of granular silicon and large-size & thin siliconwafer, imbricate technology upgrade, high-efficiency. battery technology upgrade and other technologicalinnovation.
◎Achieve product lifecycle carbon emission analysis and management by using product code.
◎Adopt green packaging and transportation to improve material recycling rate and reduce product carbon footprint
◎Carry out the upgrading of green supply chain to drive the carbon neutrality of the value chain through requiringmajor suppliers to reduce operational carbon emissions and product carbon footprint.
Facilitate the construction of a power system with new energy as the main supply
◎Focus on the development of photovoltaic power plants, expand investment in photovoltaic industry, increase thecapacity of photovoltaic products, reduce the LCOE of photovoltaic power, realize the comprehensively affordableaccess to photovoltaic power, and facilitate the construction of a new power system with new energy as the mainsupply to bring green energy into the society.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Carbon Emission ManagementSince 2020, TZE has regularly engaged third-party consultants to conduct carbon inventories of our operation and disclosecarbon verification reports, providing scientific data support for the low-carbon development of our four production bases(Ningxia, Inner Mongolia, Jiangsu, and Tianjin).Since 2021, the Company has expanded our carbon emission inventory boundaries to Scope 3 and has set Scope 3 greenhousegas emission targets. We conduct carbon emission inventory in accordance with ISO 14064-1:2018 Greenhouse gases — Part1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions andremovals. We also obtain the carbon emission verification report by TUV SUD in accordance with ISO 14064-3:2019 Greenhousegases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements. Our G12 andimbricated module products have passed the carbon footprint certification by a French authority. For more information, pleaserefer to Chapter 1.3 Create Low-Carbon Products.2021-2022 GHG Emissions
According to the analysis, the main greenhouse gas emission source of TZE is outsourced power. Therefore, carrying outthe production energy transformation and increasing the proportion of green electricity use are two key approaches for theCompany to achieve the goal of operational carbon neutrality.By comparing the emissions of the Company’s production bases, the main carbo emissions come from the Inner Mongoliaproduction base, accounting for 75.35% of Scope 1 and Scope 2 greenhouse gas emissions of the Company. Therefore, the maindirection for the Company to promote our carbon reduction is toward the Inner Mongolia production base.
Indicator20222021Scope 1 and Scope 2 Emissions (tCO2e)4,890,9323,774,515Scope 1 Emissions (tCO2e)32,26120,597Scope 2 Emissions (tCO2e)4,858,6713,753,918Scope 1 and Scope 2 Emissions Intensity (tCO2e/ CNY 10K)0.730.92Scope 1 Emissions Intensity (tCO2e/ CNY 10K)0.0050.005Scope 2 Emissions Intensity (tCO2e/ CNY 10K)0.730.91Note:
1. All carbon emission data in this table have been verified by a third-party organization. The Company adopts the operational control approach. The emissions
factors used in the calculations are all derived from national or IPCC guidelines. The global warming potential (GWP) of greenhouse gases in 2022 is calculated usingthe recommended values in the Sixth Assessment Report of IPCC.
2. In this report, ‘Scope 1’ represents Category 1 of ISO 14064-1:2018: Direct GHG emissions and removal. ‘Scope 2’ represents Category 2 of ISO 14064-
1:2018: Energy indirect GHG emissions.
3. The statistical scope of greenhouse gas emission data covers subsidiaries and their supporting facilities. The statistical scope of other environmental data in 2022
only includes subsidiaries themselves, while the statistical scope of Huanzhi includes the company itself and its canteen
4. Tianjin Xin Technology Development Co., Ltd. has been changed into a participating stock company of TZE since May 2021, which is not included in the data of
2022.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
“Source-grid-load-storage” power generation park in NingxiaProduction Base
TZE “source-grid-load-storage”power generation parkTZE has built “source-grid-load-storage”photovoltaic power generation parks in InnerMongolia and Ningxia production bases, strivingto achieve the stability of photovoltaic powergeneration source, grid, load, and storage, andguaranteeing the green electricity supply inproduction bases to realize sustainable operation.We will steadily increase the installed capacitywhich is estimated that 4,080MW will be connectedto the grid by the end of 2026, to bring cleanenergy and economic income to the local area andenergize the transformation to the national newenergy power generation base in these areas.
Renewable PowerActively expanding the use of green electricity is the key forthe Company to achieve carbon reduction. TZE incorporatesthe construction of green power parks into the Company'sstrategic planning and is expected to achieve 100%coverage of the rooftop photovoltaic distributed powergeneration system of all production bases in 2023. By 2027,photovoltaic power stations with an estimated capacity of4GW+ will be built, directly supplying power to productionbases in Inner Mongolia and Ningxia.The Company always takes "100% green electricityconsumption" as the long-term goal of electricity used inproduction and operation. At the same time, the Companyactively operates photovoltaic power station business invarious areas to help develop photovoltaic industry thereand promote the green energy transformation.In the siting of new production base, we take theproportion of green electricity in potential operationareas into consideration. Both Inner Mongolia and Ningxiaproduction bases are in areas with a higher proportion ofgreen electricity in China, among which the proportion ofnew energy electricity in Ningxia monocrystalline siliconphotovoltaic production base has reached 50%In addition, the Company accelerates the use of greenelectricity in 3 ways: self-generation, trading, anddeveloping or purchasing renewable energy certificates,striving to achieve carbon reduction in our own productionand operation.
◎Increase the Proportion of Self-generation GreenElectricityBy 2027, the photovoltaic power generation system willbe installed on the roofs of all production bases, whichmainly generates electricity from distributed powerstations and new energy own power stations in the park,increasing the proportion of self-generation electricity.
◎Increase the Proportion of the Use of Green ElectricityPurchasing photovoltaic power, hydropower, wind powerand other green energy to increase the proportion of theuse of green electricity. Some production plants launch apilot project of directly purchasing green electricity.
◎Develop or Purchase Renewable Energy CertificatesFurther promoting electrification and reducing the useof fossil energy, and developing or purchasing renewableenergy certificates timely.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
1.2 Leading the Lean
ManufacturingUnder the wave of Industry 4.0 and Made in China 2025, itis imperative to deepen the industrial application of digitaltechnology comprehensively. The Company plans andimplements Industry 4.0 strategy in advanced to supportthe internal and external, medium-term and long-termdevelopment of the Company, comprehensively improvethe flexible manufacturing ability, and continue to maintaina leading position in the industry.We promote the deep integration of manufacturingautomation and informatization, enabling digital value tofully empower business management. To build the corecompetitiveness of TZE, we comprehensively deploy thesix capabilities of “intelligent manufacturing, equipment,quality, innovation, organization and resource planning”to promote the transformation of Industry 4.0 productionmodes.In addition, to achieve digital agile financial managementand data-driven flexible supply chain and flexible marketing,we extend the digital transformation from manufacturing tooperation.Lean Manufacturing"People-oriented" is the fundamental driving concept of thetransformation of Industry 4.0 in TZE. To comprehensivelyimprove the level of flexible manufacturing, we take Leanmanufacturing, Six Sigma and 5S (sort, set in order, shine,standardize, self-discipline) as our theoretical guidance, andpromote the deep integration of LSS (Lean Six Sigma) andIEOT (industrial engineering automation & informatization).In terms of automation, the Company carries out automaticmodification for inefficient and repetitive operations(such as heavy lifting) on production sites, adopting AGV(Automated Guided Vehicle) robot to transport materialsand products. The Crystal Phase 6 Plant coming intooperation in 2022 has equipped with advanced overheadhoist transport (OHT) facilities.
The Company builds a data middle platform, establishingthe capacity of data warehouse based on data-drivenconcept to improve the efficiency of production decision-making with high-quality data. To develop a more intelligentIndustry 4.0+ production mode in the future, the Companywill gradually establish a digital twin platform and builda virtual and reality co-mapping from product design toproduction.In the aspect of constructing TZE “Stereotype”, theCompany relies on the “Deep Blue” AI model andoptimization analysis, gradually increases the number ofimported models from 15 to more than 50, improves theabnormal analysis ability in the production process by 20%,and further optimizes the consistency of products.In addition, the intelligent transformation of themanufacturing mode will drive to the transformation ofthe organizational structure of the Company’s productionstaff from the previous pyramid shape to olive shape. Inthe future, the proportion of backbone staff is expected toincrease from 47% to 53%, becoming the highest among allproduction staff types.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
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A Value-OrientedStrategy for a BrighterTomorrow
Silicon Investment Project in the IndustryNingxia Zhonghuan Crystal Phase 6 Plant - The Largest Solar MonocrystallineTZE invested to build the 50GW solar monocrystalline silicon materials intelligent plant (Crystal Phase 6 Plant) inYinchuan Industrial Park, Ningxia. This plant focuses on the production of our disruptive G12 photovoltaic products,and further accelerates the mass production and large-scale application of the Company’s G12 monocrystallinesilicon products through the optimization of intelligent plant design, manufacturing mode, organization mode, andmanagement mode, to achieve synergy and joint development with upstream and downstream partners.Specializing in Industry 4.0-related technologies, the Company leverages years of technology accumulation to build asquare rod dark factory. Under the guarantee of production quality, we realize “dark” in certain units of manufacturingprocess, reducing the consumption of human resources and energy. At present, the dark rate and centralized controlrate of the dark factory in Ningxia Zhonghuan have reached 60% and 40% respectively and will be further increasedto 90% and 80% respectively in the future. The dark factory mode has been gradually promoted to other productionbases of the Company.
Dark Factory Illustration
Digital OperationTZE has preliminarily built an efficient operation management platform with ERP (Enterprise Resource Planning) as the coreand integrated with multiple peripheral systems, connecting each part of supply, production, sales, human resources, finance,and logistics, and promoting the integration of operation and finance. The Company gradually unifies main data standards anduses BI (Business Intelligence) management decision support platform to integrate data, build models, and generate visualdashboards to support management decision-making.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
The Application of BPC, SRM, and CRM PlatformsTZE is making every effort to strengthen our digital operation capability. In terms of digital finance and taxation, theCompany further improves the operational efficiency of BPC (Business Planning and Consolidation) system. In termsof supply chain management, the Company connects ERP system with SRM (Supplier Relationship Management)system and CRM (Customer Relationship Management) system, builds an open channel for products flow, informationflow and finance flow of internal and external suppliers, and realizes the whole process closed-loop management ofcustomer business opportunity–order–customer complaint, further improving the capability of flexible supply chainand flexible marketing.
Our Industry 4.0 Performance
The Company's flexible manufacturing capability has attracted extensive attention and been recognized by the society. In 2022,TZE and our subsidiaries won several national, provincial, and municipal manufacturing awards:
No.AwardeesAwardsLevelAwarders
TCL Zhonghuan Renewable EnergyTechnology Co., Ltd
The 7th National Manufacturing Single Product ChampionNational
Ministry of Industry andInformation Technology
Tianjin Huanzhi New Energy TechnologyCo., Ltd
Intelligent Manufacturing Excellent Scenario of Year 2022(Flexible Configuration of Production line)
National
Ministry of Industry andInformation Technology
Zhonghuan Advanced SemiconductorMaterials Co., Ltd.
2022 Jiangsu Intelligent Manufacturing DemonstrationFactory
Provincial
Jiangsu Department ofIndustry and InformationTechnology4Huansheng New Energy (Tianjin) Co., Ltd.2022 Tianjin Digital WorkshopMunicipal
Tianjin Bureau ofIndustry and InformationTechnology
Tianjin Huanzhi New Energy TechnologyCo.,Ltd
2022 Tianjin Intelligent Factory (Large-sizeMonocrystalline Silicon Wafer Intelligent Factory)
Municipal
Tianjin Bureau ofIndustry and InformationTechnology
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Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
1.3 Creating Low-Carbon Products
Through continuous R&D and innovation, TZE promotes the reduction of the product life cycle carbon footprint of all producttypes to truly achieve the target of providing customers with low-carbon and high-quality products and facilitating the greenenergy transformation.
R&D and InnovationR&D Management and IncentivesIn order to continuously stimulate the R&D vitality of the Company, we formulate and implement a series of R&D managementrules and regulations, such as Technology Project Management System, Intellectual Property Management System andRegulations on the Management of R&D Expenditure, based on the characteristics of the R&D of photovoltaic products.To mobilize R&D personnel’s enthusiasm for innovation, the Company formulates and implements several R&D incentivepolicies, setting up technological project awards, intellectual property rights awards, and technological innovation awards forproject teams and their members achieving excellent results in R&D and innovation.
R&D and Innovation InputTZE attaches great importance to the Company's international competitiveness in photovoltaic industry and continues tointegrate the Company's various R&D platforms. In September 2022, TZE Research Institute was established. TZE ResearchInstitute consists of Photovoltaic Materials Sub-Institute and Cells & Modules Sub-Institute, which are responsible for R&D ofadvanced technology in corresponding fields.In 2022, the Company's R&D investment reached CNY 3.771 billion, a significant increase of 46.34% over the previous year,accounting for 5.62% of the sales revenue.Our Low-Carbon ProductsIn 2022, with the reduction of LCOE and the boom of sustainable development in photovoltaic industry, TZE integrates G12large-size silicon wafers and efficient imbricated module technologies and continues to launch photovoltaic products withlower emissions during their life cycle, to promote the realization of "zero-carbon energy".
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Imbricated 3.0 Modules - Increase Benefits from PowerGeneration and Reduce the Use of Power
The Company integrates large-size silicon wafers to create a differentiated dual-platformof "G12+ Imbricated", continuously improving the power generation efficiency and low-carbon performance of modules.In 2022, the Company launched Imbricated 3.0 module P6 series products, including585W 55P single glass modules and 675W 68P single glass modules. Among them, themaximum power generation efficiency of 55P single glass modules reaches 21.7%. Relyingon the technical characteristics of no cell spacing and the design of full parallel connectioncircuit structure, this product series has higher packaging density and output powerthan conventional similar modules, comprehensively improving its power generationperformance, and has better heat spot resistance performance, bringing higher benefitsfrom power generation and lower BOS (Balance of System) cost for costomers andreducing the power usage for the product.
Life Cycle Carbon Footprint - Low-Carbon PhotovoltaicProducts Drive “Zero-Carbon Energy” TransformationTZE engages qualified third-party organizations to analyze and evaluate the life cyclecarbon footprint of photovoltaic materials or products such as rods, slices, and modules.Our G12 and imbricated module products have passed the carbon footprint certificationby a French authority. As of December 2021, the minimum carbon footprint of TZEImbricate modules has reached 504kg CO2e per kW, a general decrease of 8%-10%compared with that of 2020. The lowest carbon footprint of silicon wafer products alsoreached 22kg CO2e.According to the calculation by T?V S?D, the photovoltaic products sold by the Companywill provide more than 4 trillion kWh of clean energy electricity for society and reduceabout 2 billion tons of carbon dioxide equivalent annually in their life cycle.
Imbricated 3.0 Modules
During the reporting period, our subsidiary Zhonghuan Applied Materials was awarded the National "Green Design Product"and "Industrial Product Green Design Demonstration Enterprise" by the Ministry of Industry and Information Technology for itsexcellent low-carbon photovoltaic silicon wafer products.
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1.4 Boosting the Development of the Industry
◎TZE has established long-term cooperative relations with a number of universities and research institutes to jointlyundertake advanced technology R&D projects and promote technological breakthroughs. We also take an active part inseminars organized by governments at various levels, industry associations, and peer enterprises to offer suggestions forthe high-quality development of the photovoltaic industry. In 2022, the Company participated in the drafting of 2 nationalstandards and led the drafting of 1 national standard.
◎TZE is a member of more than 10 trade associations and industrial alliances, such as China Photovoltaic Industry Associationand China Federation of Electronics and Information Industry. We actively fulfill our responsibilities as a leader in thephotovoltaic industry, including participating in the development of industry standards, discussing advanced technicalTZE attaches great importance to cooperation with industries, universities, and research institutes. We work together withTZE Participated in the Compilation of China PV IndustryDevelopment Roadmap (2021 Edition)As an industry expert, TZE was invited to participate in the compilation of China PVIndustry Development Roadmap (2021 Edition). This Roadmap covers the upstreamand downstream parts of the photovoltaic industry chain, including a total of 67 keyindicators such as polysilicon, silicon rods, silicon ingots, silicon wafers, batteries,modules, inverters, systems, etc. At the same time, this Roadmap forecasts thefuture development trend of photovoltaic industry according to the actual situationof the industry combining the technological evolution process and the currentcircumstance of technological transformation of photovoltaic enterprises.
research institutes such as the Chinese Academy of Sciences, and Universities such as Shandong University, Hebei Universityof Technology, Sichuan University, and Xi'an University of Technology to carry out a number of R&D projects.
◎The cooperative project of “Process Optimization of G12 large-size Silicon Wafer Products”: We cooperate with ShandongUniversity to implement analog simulation and set up a laboratory. TZE is responsible for verifying the simulation results andoptimizing the selection of parameters in the simulation instantly based on the field test results.
◎The cooperative project of “R&D of silicon crystal growth technology”: TZE cooperates with Hebei University of Technologyto study crystal growth, monocrystal defects, silicon wafer polishing, and silicon wafer testing technology, etc.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Note: TCL Huanxin Semiconductor (Tianjin) Co., Ltd changed to a joint-stock enterprise company in May 2021 and is not included in the disclosure scope of this report.Please refer to List of Subsidiaries for detailed information.
Adhering to our business philosophy of environmentally friendly, we have been taking our responsibility for global sustainabledevelopment by improving our environmental stewardship system, maximizing resource efficiency, and further developinggreen manufacturing mode.At the end of the reporting period, the Company has 14 plants in China, located in four production bases in Tianjin City, JiangsuProvince, Inner Mongolia Autonomous Region and Ningxia Autonomous Region.
Pursuing GreenDevelopmentfor the Beautiful
Environment
Reinforcing CorporateGovernance with Full Disclosureand Transparency
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A Value-OrientedStrategy for a BrighterTomorrow
2.1 Promoting Ecological Harmony
We are committed to mitigating our environmental impact and creating an eco-friendly manufacturing and development modelthrough the establishment of a sound environmental management system.Management ApproachWe strictly comply with the Environmental Protection Law of the People’s Republic of China, the Environmental ImpactAssessment Law of the People’s Republic of China and other laws and regulations, and strive to mitigate the negative impact ofour production and operation on the ecological environment.The Company formulated and implemented several internal environmental management systems such as the Provision forAdministration of Environmental Protection Management. We continuously improve our environmental management structure.Our Project Management Department has overall oversight of the Company’s environmental matters, while our subsidiaries’professional environmental management team drives progress on implementation. We adopt a "target + process" assessmentmechanism for safety and environmental protection to ensure the sound operation of the Company’s environmentalmanagement. At the end of the reporting period, nine subsidiaries passed ISO 14001 Environmental Management SystemCertification. No violations in pollutant discharge or pollution occurred throughout the year.In addition, we are committed to developing high-standard green factories through continuously technological innovationand Industry 4.0 manufacturing transformation. As of the end of the reporting period, six subsidiaries received the GreenManufacturing System Certification of China’s Ministry of Industry and Information Technology (MIIT), among which twosubsidiaries were recognized as national “Green Factory” and four were recognized as provincial or municipal “Green Factory”.Three subsidiaries plan to apply for provincial or municipal “Green Factory” in 2023.List of “Green Factory”
AwardSubsidiaryGreen Factory (National),Green Factory (Inner Mongolia)
Zhonghuan PhotovoltaicGreen Factory (National),Green Factory (Tianjin)
TianJin Zhonghuan AdvancedGreen Factory (Tianjin)HuanouGreen Factory (Wuxi)Zhonghuan Applied Materials
Note: TCL Huanxin Semiconductor (Tianjin) Co., Ltd was included in the 2021 ESG report as a national “Green Factory”, which is changed to a joint-stock enterprisecompany in May 2021 and is not included in the disclosure scope of this report. Please refer to List of Subsidiaries for detailed information.
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Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Walking Into National “Green Factory”- Zhonghuan Photovoltaic
Organized by China’s Ministry of Industry and Information Technology (MIIT), the evaluation of “Green Factory” includesuch steps as self-declaration, third party evaluation, recommendation by provincial or municipal Bureau of Economyand Information Technology, and re-examination by experts of the MIIT. Since it was established in 2009, ZhonghuanPhotovoltaic has always adhered to green, low-carbon and sustainable development, and was awarded national "GreenFactory" in 2020.As early as the site selection stage, Zhonghuan Photovoltaic has included the proportion of green electricity as a keyconsideration and selected the area with the proportion of green electricity over 50%. During the production andoperation process, the Company has taken a multi-pronged approach to reduce energy consumption in the productionprocess and production emissions. We have completed the renovation of monocrystalline Czochralski (CZ) transformersand supplemented capacitor compensation cabinets, achieving an annual electricity saving of 1.15 million kWh. Theconcentration ratio of cooling tower was also increased to reduce the replacement of water, saving 110,000 metric tonsof water.
National “Green Factory”: Zhonghuan Photovoltaic
Sustainable Project Site Selection and ConstructionComplying with relevant laws and regulations on environment and biodiversity protection in the whole process of projectsite selection, construction and daily operation, TZE takes ecology and environmental resources as an important boundarycondition for project investment, and constantly promotes the integration of the Company’s operation and environment.In terms of project site selection, permanent basic farmland, ecological reserves, nature reserves, drinking water sourceprotection areas, habitats of endangered species and other environmentally sensitive areas should be avoided. We also considerthe energy and resources of the operation site. The environmental impact assessment is carried out according to national lawsand regulations, which is a comprehensive assessment of the project construction and future operation of the potential impacton the ecological environment.
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2.2 Strengthening Resource Management
TZE strictly abides by the industrial energy conservation laws, regulations and standards such as the Energy Conservation Lawof the People's Republic of China and the Measures for the Administration of Industrial Energy Conservation. We establishedthe complete and effective energy policy, energy performance target and energy management system in accordance withthe requirements of ISO 50001 Energy Management System. At the end of the reporting period, three subsidiaries passed ISO50001 Energy Management System Certification.The Power Department of our subsidiaries is responsible for energy security, collection and the statistics of energy consumptiondata, management of power equipment, implementation of electricity conservation projects.The Company continues to digitize energy management. In 2022, the Energy Management System (EMS) was officially put intooperation in our plants in Inner Mongolia, which enables digital energy monitoring, energy statistics and energy consumptionanalysis, improving the management efficiency of key energy consumption equipment, and rational planning and use of energyresources.
Energy ManagementTZE incorporates energy management into the Company's daily management and the performance indicators of themanagement. Relevant persons in charge of our production bases of all products (i.e. crystal, wafer, battery, module, etc.) areresponsible for the annual energy conservation targets and project plans setting and the implementation of annual energyconservation work. At the end of the reporting period, power is the main energy consumed in our production bases, accountingfor more than 95% of the total energy consumed. The distributed power station we have built and put into operation canprovide 37,312 MWh of green electricity.
Achievements of Resource Management in 2022
Of electricity saved in 2022
kWh50,214,500The number of projectsimplemented in2022electricity, waterand other resourcesconservation)
40+
CNY28,657,500Investment of projectsimplemented in 2022(electricity, waterand other resourcesconservation)
metric tons12,343,500
Of water saved in2022
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Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
2020-2022 TZE Energy ConsumptionIndicator202220212020
Natural Gas (m?)3,867,760.002,880,687.82806,550.70Steam (m?)28.4299,613.5527,594,561.30Total Electricity Consumption (MWh)5,268,918.424,414,449.083,067,424.01Electricity Purchased (Green Electricity not incl.) (MWh)5,229,462.76--Green Electricity (MWh)39,455.66--Energy Intensity (MWh/CNY 10K)0.791.071.61Notes:
1. TZE first collected and disclosed electricity purchased (green electricity not incl.) and green electricity in 2022.
2. The calculation formular of energy intensity is “Energy Intensity=Total Electricity Consumption/ Operating Revenue”.
3. The increase in natural gas consumption was mainly due to increased production, air conditioning consumption and compensatory use of natural gas to meet
extranet steam pressure requirements.
4. The decrease in steam consumption was due to the change of TCL Huanxin Semiconductor (Tianjin) Co., Ltd to a joint-stock enterprise company in May 2021,
which is not included in the 2022 statistics.
5. The increase in total electricity consumption was mainly due to the Company's increased production capacity.
Based on the accurate analysis of our energy consumption structure, we continuously optimize the energy utilization in boththe production process and power system. In terms of energy consumption in the production process, we actively improveour production technique by upgrading equipment and developing and applying new materials, and continuously drive theproduction process transitions from low-emission to no-emission. In terms of energy consumption in power system, we focuson energy conservation in such aspects as technology, management and structure, and reduce electricity consumption throughrecycling of residual heat and improving equipment energy efficiency.In 2022, we implemented 21 key electricity conservation projects, saving 50,214,500 kWh of electricity.2150,214,500kWhThe number of keyelectricity conservationprojects implementedin 2022
Of electricity saved in 2022
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2022 Key Electricity Conservation Project & AchievementEnergy Conservation Project in Production ProcessAchievementImplementation Entity
Improvement in the production process: produce larger and thinnersilicon wafer, and further refine the diamond wire saw to increase thewafer yield
Annual electricity savings of 3,174.6 MWhTZEOptimise and upgrade production facilitiesAnnual electricity savings of 5,827.8 MWhTZE
Energy Conservation Project in Power SystemAchievementImplementation EntityEquip transformers with capacitor compensation cabinets additionallyAnnual electricity savings of 4,433 MWhTZESave the energy consumption of the PCW and reduce the operation useof the cooling tower fan
Annual electricity savings of 2,230.8MWhZhonghuan CrystalWaste heat recovery for heating
Electricity saving of 30,200 MWh in annual
heating seasons (151 days)
Ningxia ZhonghuanTake cooling water as a free cold source in winter to supply coolingwater to equipment that needs cooling throughout the year, reducingthe energy consumption of water chilling units in winter
Annual electricity savings of 2,090 MWhTianJin Zhonghuan AdvancedUpgrade air conditioning system to open fresh air ducts for air supply inwinter
Electricity saving of 3,189,1 MWh in annual heating
seasons (151 days)
Ningxia ZhonghuanEquip wet curtain air conditioner in workshops to lower the temperatureof air by direct evaporative cooling and reduce use of refrigerators
Annual expected electricity saving of 17,729 MWhZhonghuan CrystalUpgrading of the water system in production: connect the water pipenetwork directly to the main outlet of the pump and use the pump asan emergency backup
Annual electricity expected saving of 788.4 MWhNingxia ZhonghuanUse of green energyAnnual electricity savings of 3,261.4 MWhTZEUpgrade LED lightingAnnual electricity savings of 3,638.6 MWhTZEAutomation controlAnnual electricity savings of 4,739.2 MWhTZE
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Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Implement Waste Heat Recovery Technology and Optimize Electricity ConservationIn our Tianjin production base, the heat generated from the operation of six air compressors in the power chain is usedto heat the pure water in the cleaning tanks of more than sixty washing machines in the workshop by adding thermalenergy conversion devices, thus achieving electricity conservation.In Inner Mongolia and Ningxia production bases, the waste heat from the monocrystalline furnaces is used as a heatsource, which is converted into hot water by water source heat pumps to supply the production and office areas.By doing so, the plants can determine the heating time according to the weather changes, while striving to achieveindependence over municipal heating. At present, the waste heat recovery technology in our Inner Mongolia plant canprovide heating area of 345,000 m?. The waste heat recovery saves about 200 MWh/day of electricity compared tothe electrode boiler, and the total electricity saving in annual heating seasons can reach 30.2 GWh.
Water ManagementWater is the precious wealth given by nature to our human beings. With increasing water consumption in our productionactivities and daily life, it is important to use and protect water resources rationally. The Company strictly observe the WaterLaw of the People's Republic of China, the Water Pollution Prevention and the Control Law of the People’s Republic of Chinaand other laws and regulations. TZE’s Board of Directors has overall oversight of the Company’s water management strategy,targets and performance. Our subsidiaries set their annual water conservation targets and action plans while the headquartersis responsible for performance assessment.
Water Risk Assessment
We constantly seek to ensure reliable and sustainable water access for our operations. Before water withdrawal, we will conductanalysis and assessment of the current water utilization situation in areas with our facilities, including the rationality of waterutilization, the potential impact on local water resources and the preventive measures to reduce our impact on local waterresources.In 2022, we adopted the Aqueduct Water Risk Atlas from the World Resources Institute (WRI) to evaluate water risk levels inareas with our plants. According to the results, five plants in Tianjin were rated medium-to-high risk while one plant was ratedextremely high risk. Four plants in Jiangsu were rated high risk. And four plants in Inner Mongolia and Ningxia were ratedextremely high risk.To reduce the impact from water risks, we constantly carry out measures to reduce our dependence on local water resources byestablishing emergency response procedures, developing diverse water sources and improving utilization rates.
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TZE WRI Risk Assessment
12,343,500
23.67%
metric tons
The number of key water conservationprojects implemented in 2022
of water saved in 2022
year-on-year reduction in waterconsumption between 2021 and 2022
PlantsMid-to-high Risk
PlantsHigh Risk
PlantsExtremely High Risk
Diverse Alternative Water Sources andWater ConservationWe understand the importance of diverse alternative water sourcesin water management. To avoid shutdown due to water shortage,our plants are all equipped with water tanks with a correspondingcapacity based on the general maintenance period of localmunicipal water suppliers.Our water conservation projects cover all plants. We set annualwater conservation targets and action plans. Our subsidiariesformulated regulations such as the Water ConservationManagement Policy and Water Conservation Management ControlProgram, and compiled the list of water conservation projectsin compliance with annual water conservation targets. We keepincreasing water recycling through collection and reuse, equipmentupgrading, wastewater regeneration, etc. In 2022, we implemented18 key water conservation projects, saving 12,343,500 metric tonsof water.
2022 Key Water Conservation Project & AchievementCollection and ReuseAchievementImplementation EntityWastewater Recycling for Office Toilets
Annual water withdrawal savings up to 60,000metric tons
TZERecycling of Condensate Water from the Central Air-conditioningSystem for the Cooling Tower
Annual water withdrawal savings up to 123,900metric tons
Zhonghuan Advanced
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Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Equipment UpgradingAchievementImplementation EntityReconstruction of overflow trough of cleaning machine with watersaving
Annual water withdrawal savings up to 500metric tons
HuanouRecycling of backwash wastewater from the grit and carbon filter
Annual water withdrawal savings up to 28,000metric tons
TianJin Zhonghuan AdvancedConductivity optimization of the cooling tower
Annual water withdrawal savings up to 715,000metric tons
Zhonghuan CrystalRecycling of circulating water discharge from the cooling tower
Annual expected water withdrawal savings up to578,200 metric tons
Ningxia Zhonghuan
Wastewater RegenerationAchievementImplementation EntityIndustrial wastewater regeneration
Annual water withdrawal savings up to 180,000metric tons
HuanouRegeneration of concentrated water
Annual water withdrawal savings up to 157,700metric tons
Zhonghuan CrystalRegeneration of concentrated water from RO system for water filter tankof the pure water system
Annual water withdrawal savings up to 14,600metric tons
HuanshengRegeneration of the rinsing water
Annual water withdrawal savings up to 250,800metric tons
Zhonghuan AdvancedHydrofluoric (HF) acid wastewater reclamation
Annual water withdrawal savings up to 446,800metric tons
Zhonghuan CrystalRegeneration of grit-containing wastewater for the cooling tower
Annual water withdrawal savings up to 132,900metric tons
Zhonghuan AdvancedReclamation of wastewater from PW system for the cooling tower
Annual expected water withdrawal savings up to288,000 metric tons
Ningxia Zhonghuan
Recycling of Circulating Water Discharge from the Cooling Tower Reduces both Water Consumption and CostsWe have been actively exploring new water conservation and recycling schemes for many years, aiming to reduceboth water consumption and our costs. At the full capacity of our plant in Ningxia, the annual displacement of thecooling tower is up to 830,000 metric tons. We recycle 70% of the water discharge from the cooling tower through thewastewater recycling system, reducing water consumption by 580,000 metric tons per year and saving a large numberof effluent fees.
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Product Water FootprintWe had conducted an assessment of the product’s water footprint. The Power Department of our subsidiaries are responsiblefor collecting water data on our products including water withdrawals, water sources, water quality, wastewater discharge,and amount of water recycling, etc. Our data collection covers phases of our product life cycle including product design,manufacturing, packaging and so on. Meanwhile, our Supply Chain Management Department is responsible for collecting andanalysing water consumption data in both upstream and downstream supply chains.2020-2022 TZE Water Consumption
Indicator2022 2021 2020Total Water Consumption (m?)22,449,90829,410,08814,195,158Total Amount of Water Recycling (m?)391,631,864562,662,54716,774,292Water Intensity (m?/CNY 10K）
3.357.157.45
Note:
1. The data are sourced from statistics of TZE.
2. The calculation formular of water intensity is “Water Intensity=Total Water Consumption/ Operating Revenue”.
3. TCL Huanxin Semiconductor (Tianjin) Co., Ltd has been changed into a joint-stock enterprise in May 2021, and was not included in the statistics of 2022.
Wastewater Management
Our wastewater is classified into industrial wastewater and domestic sewage. The main pollutants in effluents are COD (chemicaloxygen demand), ammonia nitrogen and fluoride, etc. We strictly observe the Water Pollution Prevention and Control Law ofthe People’s Republic of China, the Integrated Wastewater Discharge Standard, the Emission Standard of Pollutants for theBattery Industry and other laws and regulations. Our wastewater is collected and treated internally first through our wastewatertreatment facilities until it meets water discharge requirements.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
2020-2022 TZE EffluentsIndicator202220212020
Total Wastewater Discharge (10,000 m?)1,433.52 1,122.62941.90Chemical Oxygen Demand (COD) (kg)1,268,896.00 --Ammonia Nitrogen (kg)57,961.54--Suspended Solids (SS) (kg)728,761.30--
Note:
1. The data are sourced from the statistics of TZE.
2. The Company first disclosed chemical oxygen demand (COD), ammonia nitrogen and suspended solids (SS) in 2022.
3. The increase in total wastewater discharge during the reporting period was mainly due to the increase in the capacity of the Company.
4. TCL Huanxin Semiconductor (Tianjin) Co., Ltd has been changed into a joint-stock enterprise in May 2021, and was not included in the statistics of 2022.
New Wafer Cleaning Technology
To further reduce our water pollutant emission, we have independently developed new materials for wafer cleaningto replace the traditional materials (the mixture of hydrofluoric acid and nitric acid), which made significantimprovements in reducing the concentration of fluorine and nitride in wastewater.At present, the traditional materials (the mixture of hydrofluoric acid and nitric acid) are no longer used in the wafercleaning process of our Yinchuan Phase VI Plant.
Water Management in Supply ChainWe are keenly aware that we cannot effectively reduce the water footprint of our products without collaborating with oursuppliers. While promoting the product’s water footprint assessment, we assess not only our own water consumption andwastewater discharge covering all relevant operations but also our suppliers’ water management performance.The Company encourages suppliers to improve water management performance in various way, including passingEnvironmental Management System Certification, setting water conservation targets, carrying out water conservationprojects and reducing wastewater discharge. We have developed a program to reduce water usage in our supply chains andidentified critical suppliers with high water consumption based on our assessment results of product water’s footprint. Throughcontinuous communication, we help our suppliers to identify the key operations with high water consumption and wastewaterdischarge, and then accordingly set up their water conservation targets and action plans.
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When developing new suppliers, we assess the supplier's water management performance. Our suppliers are required to obtainEnvironmental Management System Certification. We have incorporated water management performance into the annualperformance appraisal of suppliers and continuously paid attention to their promotion of water conservation projects. From2023 onwards, we will incorporate water conservation projects of suppliers into our onsite assessment and constantly updatebenchmark practices for promotion.To further promote our supply chain water conservation program, the Company have established effective communication anddata collection mechanism. Meanwhile, we are actively promoting the supply chain water conservation target setting. Supplierswith high water consumption are required to set water conservation targets based on their operations. Through regularcommunication with suppliers, we assess the water conservation targets proposed by our suppliers to ensure the feasibility ofthe targets.
2.3 Promoting Green and Intelligent Manufacturing
While innovating renewable energy photovoltaic products, we insist on high-quality development driven by double track of“manufacturing green” and “green and intelligent manufacturing”.Sustainable PackagingThe Company continues to promote the use of non-toxic, pollution-free, recyclable, renewable or degradable packagingmaterials, for example, using EPE (pearl cotton) to replace PE (polyethylene). At the same time, we optimize packagingstructure, reduce packaging material consumption, strive to achieve minimal packaging and strengthen the recycling ofpackaging materials. We switch to stainless steel material boxes in the production process and promote the innovation ofsquare rod transport packaging.In 2022, the proportion of renewable materials used in the production and packaging of the Company's main products andservices was 61.28%.
Green MaterialsReductionReuseRecycle
TZE Sustainable Packaging Strategy
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Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Exhaust Gas ManagementWe properly store, dispose and recycle solid waste to ensure that they meet the requirements for emissions, so as to lessen ourimpact on the environment while reducing operation risks. The Company carries out online monitoring and self-monitoring instrict accordance with the to the requirements specified in pollutant discharge permit. At the same time, to complete the self-monitoring more objectively, we entrust a qualified third-party company to conduct sampling analysis regularly and uploadthe results to the online platform of the environmental protection department. The on-line exhaust gas monitoring equipmentof our plants upload the data onto the network of the relevant environmental protection department's on-line monitoringdata platform. The Company has established emergency procedures for environmental emergencies to ensure the effectiveoperation of the exhaust gas and solid waste management systems.
TZE Exhaust Gas and Treatment MethodsAccording to the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, the Integrated EmissionStandard of Air Pollutants, the Emission Standard of Pollutants for the Battery Industry and other laws and regulations, acidic exhaust gas,alkaline exhaust gas, organic exhaust gas and dust generated from our manufacturing process are all equipped with purification equipments fortreatment to meet corresponding standards before they are discharged.
TZE Exhaust Gas and Treatment MethodsTypeTreatmentAcid and Alkaline Exhaust Gas
Discharge exhaust gas that meets the discharge standard after purifying and absorbing treatment inscrubbing towers, and discharge wastewater generated to the sewage treatment systemOrganic Exhaust Gas(such as VOCs)
Conduct RCO (Regenerative Catalytic Oxidation) for organize exhaust gas after absorbing treatment byactivated carbon or concentrating treatmentDust Exhaust Gas (Fine Silica Particles mainly)Treat exhaust gas by dust control devices
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2020-2022 TZE Exhaust GasIndicator202220212020Exhaust Gas (10,000 m?)989,733.63403,632.85499,187.54Nitrogen Oxide (NOx) (kg)30,912.5395,866.2916,464.16Sulphur Dioxide (SO2)(kg)2,105.680408.35Notes:
1. The data are sourced from the statistics of TZE.
2. The increase in total exhaust gas emissions in 2022 is mainly due to the increase in production capacity of the company.
3. TCL Huanxin Semiconductor (Tianjin) Co., Ltd has been changed into a joint-stock enterprise in May 2021, and was not included in the statistics of 2022.
Precision Glue Stick Technology
The Company adopts automatic glue dispenser and Japanese imported glue, and independently develops the track,speed and amount of glue dispensing, which improves the positioning accuracy and bonding stability, effectivelyavoiding the waste of glue and bad dispensing, and reducing the emission of VOCs from the source.At present, the concentration of VOCs generated during our production process is far less than the emission limit valueof "Electronic Industry" in the Emission Standard of Volatile Organic Compounds for Industrial Enterprises (DB12/254-2014).
Solid Waste ManagementIn terms of solid waste management, the Company strictly complies with the requirements of the Law of the People’sRepublic of China on the Prevention and Control of Environmental Pollution by Solid Waste and other laws and regulations.All solid waste generated during our production and operation is stored in special warehouses in accordance with standardrequirements, and then transferred and treated by qualified institutions. Before disposal of solid waste, we make registrationthrough the hazardous waste transfer platform of the environmental protection department. We also conduct qualified auditsand regular inspections on commissioned institutions, and closely monitors the transfer and disposal of each batch of solidwaste, with particular emphasis on hazardous waste.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
IndicatorTypeTreatment
Industrial Solid Waste
Sludge
Employ a qualified service supplier for treatment (composting or land-filling)Waste products (such as silicon sludge,waste silicon wafers and waste silicon rods)
Employ a qualified service supplier for treatment (recycling)Consumables (such as diamond wire andwaste crucibles)
Employ a qualified service supplier for treatment (recycling)
Hazardous Waste
Acid-containing waste liquid
Employ a qualified service supplier for treatment (neutralization and
physical and chemical treatment)Waste packaging materials (such as emptybarrels)
Employ a qualified service supplier for treatment (recycling)Waste fillers (such as waste activatedcarbon)
Employ a qualified service supplier for treatment (land-filling, incineration
and regeneration)Rubber-containing waste (such as wasterubber and rubber barrels)
Employ a qualified service supplier for treatment (incineration)Oily waste (such as waste engine oil andwaste
Employ a qualified service supplier for treatment (incineration and
recycling)mineral oil)
Employ a qualified service supplier for treatment (incineration and
recycling)Waste abrasive sand
After being fully mixed, the mortar is separated into solid and liquid through
the pressure filter. After being dried, the solids are used as additives for
ceramics, deoxidants for iron and steel plants, refractory materials, etc. The
liquid is used as fertilizer and chemical intermediates after being dewatered
and discolored.
TZE Solid Waste and Treatment
2020-2022 TCL Zhanghuan Solid Waste
Indicator202220212020
Hazardous Waste (metric tons)1,637.021,050.212,968.88Industrial Solid Waste (metric tons)135,222.6775,208.5067,020.49Recycled/Reused Solid Waste (metric tons)130,182.86--Solid Waste Recycling Rate (%)95.12--Notes:
1. The data are sourced from statistics of TZE.
2. TZE first collects and discloses total amount of recycled/reused waste and solid waste recycling rate.
3. TCL Huanxin Semiconductor (Tianjin) Co., Ltd has been changed into a joint-stock enterprise in May 2021, and was not included in the statistics of 2022.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
2022 Waste Resourcing and Reduction AchievementMeasureAchievementWaste liquid recovery from mortar recovery system
Filter press separation of 140 litres of cutting fluid from the system,resulting in the recovery of approximately 112 litres of cutting fluid (80%separation rate) and a 30% reduction in sand consumptionOHT Transport reduces plastic use in the Crystal Phase 6 Plant.Reduce plastic use by approximately 750 tonnes per yearRecycling of raw material wooden palletsSave 500 wooden pallets per year
New Coolant Usage ModeWe independently developed a new ultra-thin and large monocrystalline silicon wafer coolant circulation system, whichadopts a centralized liquid supply mode and effectively prevents potential liquid overflow.The system helps us to be more energy efficient, while effectively reducing auxiliary materials, labour, equipmentoperation and maintenance costs. Compared to the traditional stand-alone cycle mode, the liquid consumption of thesystem is reduced by 37.5%. And the system also decreases the maximum solid content involved in the cutting processfrom 8% to 3%, which greatly enhances the quality of our silicon wafers.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Gaining “social respect and customer trust” and creating a sustainable supply chain is one of TZE’s visions of sustainabledevelopment. We follow the management tenets of “setting standards, developing management systems, dynamicallyidentifying problems, and timely reviewing and improving” to constantly enhance our strength and resilience in product quality,customer service and supplier management. By integrating environmental and social responsibility into our supply chainmanagement, we hope to support the overall sustainable development of the industrial chain.
A Value-Oriented
Strategy for aBrighter Tomorrow
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
3.1 Achieving Excellence in
QualityOur Management ApproachesReferring to the world-leading quality managementphilosophy, TZE and our subsidiaries have established aquality management system covering the whole customerservice process in all production bases, which has passedISO9001 Quality Management System certification.Based on the five main factors (i.e., personnel, machines,raw materials, methods, and environment) affecting productquality, we have formulated and implemented appropriatequality control procedures across the board. Besides, theCompany conducts quality management competitivenessanalysis from multiple dimensions to explore opportunitiesfor improving the quality system, supply chain quality,process quality, customer service quality and reliabilitymonitoring. With these efforts, the Company has developedand implemented a strict product standard managementprocess in order to ensure continuous improvement andupgrade of product standards, acquire cutting-edgetechnology information and customer needs timely, andimprove product quality and process control. In 2022,the Company developed standards for wafer and crystalproducts, and updated over XX standards covering the fullrange of G12 products.The product standard management process of TZE includescustomization solutions, R&D and design and outgoingquality control, which supports the manufacturing of high-quality products with advanced technology and strictbenchmarking.Identification of customer needs, frontierpolicies, laws and regulations, andintroduction of new technologies
◎Focus on identifying the potential product needs ofcustomers accurately and try to strike a balance betweenthe business indicators of the Company and our productperformance.
◎Introduce new technologies, new products and new
equipment to adjust standards according to customerquality feedback, peer benchmarking results, and thelatest changes in policies, laws and regulations.Product standard management and productdevelopment control procedures
◎Share information through the customer informationplatform and the external information-sharing platformin the process of product standard design andmaintenance.
◎Allow plants to participate in the standardized evaluationof plans, identifying and correcting loopholes.
Product shipment standard and productinternal control standard
◎The Customer Quality Center is responsible for approvaland filing management of standards and each BU isresponsible for publicizing and implementing standardsto eventually form product shipment standard andinternal control standard.
Our product quality performanceIndicatorUoM2022First pass yield ofproducts
%
99% for modules and 97% for
crystals and wafersQuality feedbackfrequency
Time596General quality feedbackfrequency
Time419Major quality feedbackfrequency
Time1Batch feedback frequencyTime881
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Product Lifecycle Management
Staying highly attentive to product lifecycle management(PLM), TZE codes products to enable product informationcollection, database construction and product qualityanalysis in a digital way.Responsible MarketingTZE complies with all marketing related laws andregulations and national or local codes of practiceapplicable to our business and requires employees to signthe Employee Integrity and Self-discipline Commitment toconvey the value of responsible marketing.All marketing and sales activities are subject to internalaudit to ensure compliance with laws and regulations.Partners in the upstream and downstream of the supply
Promoting Digital Product Management with Three Codes to Achieve a 25-YearFull Lifecycle TraceabilityTZE has carried out digital transformation management of module products, striving to achieve a 25-year full lifecycletraceability of products with three codes.The Company affixes 3 bar codes on each module, and the barcode images on the module products will be retainedfor 25 years according to the industry requirements. Beyond that, the relevant production data will also be preservedin full and on a continuous basis to make sure that the product is traceable. Intentionally, we apply inner barcodesto ensure the traceability of the products in light of the potential destruction of outer barcodes when exposed tooutdoor areas or other harsh environments for a long time.By coding products, we expect to provide more comprehensive services for our customers and enhance productquality with real-time big-data analysis, while improving our business layout and boosting development.
FrameBackboardTerminal
chain are required to carry out marketing by following theprinciple of legitimacy, honesty, accuracy and science-based, and not to make any false or misleading advertising.In the future, the Company will improve manufacturingefficiency and cut cost from both hardware and softwareby considering upgrading hardware facilities and improvingdigital transformation, to provide excellent products.
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Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
3.2 Serving Global
CustomersTo expend its overseas presence and better servecustomers around the world, the Company has set up theCustomer Quality Center. Focusing on customer qualityservice and product standard management, the Centerconducts intensive quality management in the life cycle ofproducts for a balance between internal/external qualityand the manufacturing link in order to speed up responseto customers and improve customer service quality andcustomer experience.The quality team of the Customer Quality Center, theresponsible department of the factory and the sales teamidentify potential customer quality requirements at thecustomer information platform according to customercomplaints, entrusted survey feedback and customerquality agreements. Also, they carry out a series ofrapid responding measures such as internal closed-loopverification, work to respond to single and individualproblems, and collect and tackle general quality problemsto continuously enhance product quality. Moreover, theCompany delivers quality customer service before, in andafter sales in the full cycle covering order, technical review,manufacturing supervision, on-site installation, and evensafety training for product use in order to improve customerservice quality.The Company has developed and implemented theRegulations on Complaints Management, to ensure thatcustomers get prompt replies and treatments on productquality feedback and return requests. The customer serviceteam and quality management team prioritize and classifyquality feedbacks by plants, product class, and cause ofdefect at the end of each month, develop a summary anddeliver it to the plants for reference, so as to keep improvingquality.
IndicatorUoM2022Number of customer complaintsTime927Number of complaint responsesTime927Complaint response rate%100Total training hours for customerservice quality
Hour2,825Total number of confirmedleakages, thefts or losses ofcustomer data
Case0
The customer service team investigates and collectscustomer satisfaction and feedbacks through directcommunication and annual questionnaire from theaspects of business service, pre-sale and order deliverymanagement, quality assurance, customer service, customerdemand management and technical support, and issuesthe Customer Satisfaction Analysis Report. We summarizethe major problems of products and services identified inthe report and take measures to address them. During thereporting period, the customer satisfaction rate was up to94%.Under the tide of Industry 4.0, the Company has developedthe information-based customer management systemto improve the efficiency of customer service and realizeefficient cooperation with customers and a standardizedglobal management covering the whole process of"business opportunity-order-customer complaint".
Customer service performance
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Digital customer managementTZE independently developed the "CustomerRelationship Management System" (CRM system) toassist the Company to efficiently identify potentialcustomers and their needs for a better customerservice. The CRM system enables a modular functionto address customer complaints covering the wholeprocess of “customer complaints - acceptance -processing suggestions - internal correcting - feedback- changing or refunding - customer confirmation”.
Protecting Customers’ PrivacyCustomer privacy protection has always been a maindriver for TZE to build and continuously optimize theinformation security management system. In the TZE Policyon Information Technology Resources, Data Security andCommunication System, the Company incorporates thecustomer privacy protection into the development goal ofinformation security management system and develops aclear security management strategy.For the management of systems and applications, theCompany strives to ensure the stability, continuity andconfidentiality of information systems and avoid dataleakage or loss due to system failures. In the system, eachuser owns a unique account and controls the permission toquery information in the account. Adhering to the principleof “least privilege, need-to-know”, the Company grantseach program and user the least privilege they need toaccomplish their tasks.For data protection, the Company establishes a standarddata maintenance and operation process and a mechanismin dealing with data use, management, leakage prevention,incident handling and security assessment, to strictlycontrol the whole process of sensitive data from acquisition,
transmission to destruction. During the reporting period,the Company launched a special treatment on datadestruction that the scrapped computer hard disks weretransferred to a specialized company for disposal, strivingto eliminate all hidden dangers that may cause customerprivacy disclosure. The Company will put more efforts intothe protection of private data, using technological meanssuch as encryption and dynamic desensitization to preventexternal illegal intrusion and internal unauthorized access toprivate data.
3.3 Fostering a
Responsible Supply Chain
TZE works with business partners to integrate sustainabledevelopment into supply chain management. Focusing onimproving quality of supply chain, we attach importance tothe environmental and social risk management in all linksof the supply chain and actively build a responsible supplychain with our characteristics.
Our Management Approaches
In strict accordance with the Law of the People’s Republicof China on Tenders and Bids, the Government ProcurementLaw of the People’s Republic of China, the Measuresfor Administration of Tenders and Bids for GovernmentProcurement and other laws & regulations, the Companyhas established and implemented a series of internalpolicies, such as the Supplier Management Regulations, theSupplier Audit Management Regulations, the ProcurementManagement Regulations and the Quality FeedbackManagement Policy. In addition, we clearly stipulate thesupplier admission process, supplier KPI appraisal andsupplier rating system to control the whole lifecycle suppliermanagement.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Grade and quantity of raw and auxiliary materials of suppliers in 2022
The Strategic Management Department, Procurement Department and production plants of the Company jointly participate insupplier management and audit, with a clear division of work, to establish a proven supplier management process and optimizethe structure of supply chain from the periodic performance evaluation, procurement strategy making and raw material qualityinspection.We have established the Supplier Relationship Management (SRM) system, an online co-platform of supply chain to ensure thatsupply chain management is in line with the above policies and standards and improve supplier management efficiency.
GradeScope2022ARaw and auxiliary materials that make up product structure and have significant impact on product quality139BMaterials that affect the properties of products142CAuxiliary materials that have general impact on products, other than Grade A/B materials108Total389
◎The Company will issue the Purchase Suspension Notice to suppliers that supply Grade A materials and are suspended forprocurement over one year, or have quality problems, or fail to meet standards in environmental, labor and other rectificationitems.
◎If the suppliers are suspended over two years for the above reasons, the Company will issue the Notice of Disqualification ofSupply to them.Knockoutmechanism
◎Carry out quality verification quarterly and comprehensive evaluation annually for cooperative suppliers according to theSupplier Management Regulations and the Supplier Annual Performance Evaluation Form.
◎Grade suppliers to preferred suppliers, alternative suppliers, suppliers with problems to be rectified and suspended suppliers,and knock out the latter two if they don’t rectify in time.Comprehensiveevaluation
◎The Company has established the Sourcing, New Products/New Suppliers Management Regulations, setting rules for the newsupplier admission process.
◎Conduct a comprehensive assessment from business, technology and qualification, review documents of suppliers related tolegal operation, chemical safety instructions, permission on production and transportation of hazardous goods, quality systemcertificates, etc. Suppliers of new energy and other key raw materials must obtain the ISO9001 System and IATF16949 Systemcertification.
◎Test new products and verify their quality according to the Sourcing, New Products/New Suppliers Management Regulations.Admissionprocess
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Greenrecycling
Promote the R&D of greentechnology and reduce carbonemissions in production.
Recycle and reuse packagingmaterials to minimize their environ-mental impact.
Establish the formal strategicgoals and guidelines of “carbonpeaking and carbon neutrality”and improve the green suppliermanagement system to conductdynamic evaluation, certi?cationand training for establishment ofgreen technology.
Reduce carbon emissions of transportation equip-ment and improve storage and transportationefficiency.
Reduce packaging size and userecyclable and degradable materialsin place of conventional materials.
Greenproduction
Greenmanagement
Greenpackaging
Greenlogistics
TCL Zhonghuan pays close attention to the occupational health and safety of our partners’ labors. We require suppliers toobtain the ISO 14000 Environmental Management System, ISO 45001 Occupational Health and Safety Management Systemand Employee Occupational Safety System certifications. We require suppliers in our supplier list to sign the TCL ZhonghuanCode of Conduct for New Energy Partners and make the occupational health and safety an indicator in the annual performanceevaluation of suppliers. If it is found in the process of audit or cooperation that the suppliers fail to meet the requirements ofenvironmental system or violate our management requirements in terms of labor and goodwill, the Company will urge them torectify. Suppliers failing to meet our management requirements within the rectification period will be knocked out.
Green Supply ChainWith the commitment to building a green supply chain by 2025, TZE encourages our suppliers to practice environmentalresponsibility and concern carbon emission accounting and performance disclosure, contributing to the national goals of “carbonpeaking and carbon neutrality”.The green supply chain focuses on the following five aspects:
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A Value-OrientedStrategy for a BrighterTomorrow
During the reporting period, the Company carried outcarbon trainings for 71 suppliers, and selected 58 suppliersinvolved in industries with high energy consumption andhigh pollution (such as chemicals, metals and graphite) asthe first pilots to build a green supply chain and collect their"green information". Among them, 49 suppliers can providecomprehensive information and will be selected as keypilots.The Company carries out green management, supervisionand evaluation of suppliers, and discloses the evaluationresults of their green projects. By the end of the reportingperiod, the Company had determined the list of key pilotsuppliers in building a green supply chain, improved thesupplier control measures, and controlled the harmfulsubstances content in products. In the future, the Companywill go all out to achieve the goal of building a greensupply chain by 2025 through putting more efforts in theimprovement of sustainable production capacity, greentraining for suppliers and the transformation of energysupply structure to new energy.
Risk Management of Supply ChainTheCompany places significant emphasis on risk managementof supply chain and identifies risks related to suppliers,environment and the society in time to developcountermeasures ahead and improve supply chainresilience.Our supply chain mainly faces the single source risk andmarket risk.
◎Single source risk: Single sourcing may cause risks inmaterial delivery, quality, and price, so the Companyneeds to find alternative suppliers, or stops using relatedmaterials or initiates independent R&D to reduce singlesource risks.
◎Market risk: The Company keeps up with the latestsituation, makes data-based anticipatory judgements,understands the policies promulgated by variouscountries and seeks opportunities to avoid market risksat home and abroad.During the reporting period, the Company comprehensivelyanalyzed the suppliers of centralized purchasing materials,updated the Risk Assessment Report of Single Sourcing,and sorted out 27 materials of primary risk and 8 materialsof secondary risk. We conduct an all-round investigationinto the potential suppliers to avoid single source risk, followup their admission, and formulate future procurementstrategies. In addition, affected by pandemic in 2022, theCompany continuously oversees the risks related to thesupply chain and updates the logistics support schemesand measures to cope with the logistics and transportationrisks brought by the pandemic.
IndicatorUoM2022Emails sent to suppliers for carbontraining
number71Suppliers receiving carbon trainingemails
number71Suppliers covered in the first batchof "green supply chain" pilot
number58Including: suppliers accounting forover 80% of the purchase amount
number
71 suppliers,accounting for over
90% of the totalpurchase amount in
2022Including: chemical suppliersnumber26Including: suppliers with highenergy consumption
number27
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
The Company takes the initiative in building a flexiblesupply chain to enhance the resilience and stability of thesupply chain in response to emergencies. Focusing onbuffering, efficiency and innovation, the Company adoptsinformation technology to strengthen the communicationefficiency among various departments, making supplychain flexible enough to accommodate marketing changes.In addition, the Company enhances the response abilityof suppliers by building a buffer stock and improving thedelivery efficiency through technological innovation, thusensuring the supply chain liquidity.Management of Conflict MineralsTCL Zhonghuan adheres to the philosophy of "no useof conflict mineral raw materials". The Company knowsthat mining, trading, processing, and exporting mineralsin conflict-affected and high-risk areas not only causegreat damage to the environment, but also risk significantnegative social impacts. Therefore, the following rules are inplace to ensure that metallic materials (including tin, gold,tungsten, etc.) used and sold by suppliers are not in conflictsituations.TCL Zhonghuan has developed the Letter of CommitmentNot to Use Conflict Minerals based on the Chinese DueDiligence Guidelines for Responsible Mineral Supply Chainsissued by China Chamber of Commerce of Metals, Minerals& Chemicals Importers & Exporters (CCCMC), the OECDDue Diligence Guidance for Responsible Supply Chainsof Minerals from Conflict-Affected and High-Risk Areas(Third Edition) issued by the Organization for EconomicCooperation and Development (OECD) and the regulationson tungsten, tin, tantalum and gold minerals in conflictareas of the Dodd-Frank Wall Street Reform and ConsumerProtection Act, specifying that suppliers shall not useconflict minerals. All suppliers are required to sign theLetter of Commitment Not to Use Conflict Minerals in theadmission process. The Company's supplier quality engineerwill use the Responsible Minerals Initiative - ConflictMinerals Reporting Template (RMI-CMRT) in the supplieraudit process to check suppliers in the supply chain for useof conflict minerals. Suppliers using conflict minerals will bedisqualified directly. During the reporting period, we didn’tidentify any use of conflict minerals by suppliers.
According to the TCL Zhonghuan Code of Conduct forNew Energy Partners, partners are required to popularizethe conflict minerals regulations to the subordinatedpartners. Advancement of the digital transformation andthe information system enable the Company to use SRMsystem and IT technology to monitor the geographicallocation synchronously and archive the place of originand property of materials. It helps trace the source ofproduction materials, avoid purchasing materials from areasrelated to conflict minerals, and ensure the reliability of theCompany’s supplier system in terms of the management ofconflict minerals.Suppliers under investigation for using conflict minerals:
IndicatorUoM2022Domestic suppliersNumber353Overseas suppliersNumber4
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
TCL Zhonghuan strives to build a "people-oriented" employer brand and firmly believes that talent is an important cornerstonefor the Company to achieve sustainable development.We always strive to create a diverse, inclusive, and safe working environment for our employees, actively invest resourcesin employee development, and provide good career development opportunities for our employees. The Company's talentdevelopment strategy and management measures have been widely recognized by the society. It was awarded the " MostSustainable Employers" by Forbes China and the "2022 Top Graduate Employers" by 51Job.
EmbracingExcellent Talentsto Chase theEnergy of Sunlight
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
4.1 Focusing on People-
Oriented“People-oriented” is a core value of TCL Zhonghuan'ssustainable development philosophy. We take "engineer-respected culture" as the characteristic talent concept ofthe Company to enhance the sense of belonging of ouremployees and stimulate the vitality of the organization.
An Equipment Engineer in a Race against Time: Zheng HaifengIn 2010, Zheng Haifeng joined the Company and engaged in crystal equipment maintenance work. At the beginning of hiswork, he gradually mastered the maintenance methods of each equipment by repeatedly studying equipment textbookand learning hard from his coach. After that, he was busy exploring for his transition to an equipment engineer.In 2021, Zheng Haifeng participated in the design and construction of plant and equipment in Ningxia as part of theCompany's development plan. He and his team came to Yinchuan, Ningxia. During the construction process, based onhis experience in plant construction and equipment management of Phase 5 plant, he predicted in advance and dealtwith the possible risks in the design of plant and monocrystalline furnace of Phase 6 plant in Ningxia, and completed 28optimization projects of monocrystalline furnace change projects to ensure the stability of equipment. With the efforts ofZheng Haifeng and his team, the Ningxia plant produced its first monocrystalline silicon wafer in January 2022, once againbreaking the "Zhonghuan speed".
Engineer-Respected Culture
The connotation of "engineer-respected culture" lies in twoaspects. One is curiosity. We hope that every engineer in theCompany has a strong desire for knowledge and is willingto explore and discover. The second is professionalism. Ourengineering team is rigorous and professional in innovation.Their pursuit of innovation and dedication to productquality have been inspiring generations of employees.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
The Power of Compatible Culture - Our Female CHO An Yanqing
Diversity, Inclusiveness, and
EqualityTCL Zhonghuan is committed to creating a diverse,inclusive, and equal working environment, and promises totreat workers of different nationalities, genders, countries,ages, and religious beliefs equally. In the EmployeeHandbook, TCL Zhonghuan Business Partner Code ofConduct and other internal rules and regulations, theCompany requires that all employees enjoy equal rightsin recruitment, employment, compensation and welfare,training, and promotion.
The Company is committed to protect the safety and healthof minors from damage in production. With reference tothe requirements of the Law on Protection of Minors, theCompany formulates and implements the Regulations onthe Special Protection and Management of Minors. Wecheck and confirm the valid identity of candidates in variousways in the process of employee recruitment, employmentapproval, registration, etc., strictly prohibiting child laborand protecting minors. Once child labor is found, theCompany will immediately conduct a thorough investigationof the situation and take serious action against the relevant
The lady in the picture is An Yanqing, who has been accompanying the Company for 27 years. She is thecurrent Chief Human Officer (CHO) of the Company and had been working as a workshop director for eightyears.An Yanqing joined the Company after graduation from university. Now as the CHO of the Company, she introduced thatthe talent strategy of the Company has two aspects: "One is independent training, and the other is compatible culture".Compatible culture means employing talents with an inclusive mindset. She firmly believes that inclusiveness is the core ofa great enterprise.TCL Zhonghuan believes that an inclusive culture is an important force for the sustainable development of our company.We sincerely thank every one of our employees.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
persons in charge or business partners. During the reporting period, there was no violation of the Regulations on the SpecialProtection and Management of Minors.The Company adopts a "zero tolerance" policy towards forced labor and ensures that every employee can enjoy statutoryholidays in accordance with national laws and regulations and company policies. The Company constantly optimizes the workarrangement of front-line workers and adheres to the "four crews and two shifts" scheduling mode for them, so that employeescan work and live with more dignity.In terms of protecting the rights and interests of female employees, we have formulated and implemented the Regulationson the Special Protection and Management of Female Employees with reference to the Special Labor Protection of FemaleEmployees, clarifying the labor contraindications and legal rights of female employees in special physiological stages such asmenstruation, pregnancy, and lactation. We set up exclusive baby care rooms in each production base for the convenience oflactating women.
IndicatorUoM2022Total number of employeesPerson17,390By gender
MalePerson14,160FemalePerson3,230By age group
30 and belowPerson9,49931-50 Person7,75851 and abovePerson133
By rank
Senior managementPerson42Middle managementPerson248Junior managementPerson491StaffPerson16,609Number of ethnic minority employeesPerson1,498
Our Diversity Performance
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
4.2 Attracting Talents
Adhering to the employment philosophy of "Everybody hasto start somewhere", TCL Zhonghuan embraces excellenttalents to continuously enhance innovation ability andcompetitiveness.
Talent Pipeline Development
Strategy
The company strictly abides by the Labor Law, the LaborContract Law and other laws and regulations, formulatesand implements the Recruitment Management Procedures,Employee Management Regulations, Intern Managementprocedures, etc., supporting the sustainable development ofthe Company through the construction of talent pipeline.In order to attract high-tech talents, the Research Instituteof TCL Zhonghuan and its subsidiary bodies set up anumber of technical special positions during the reportingperiod, and actively brought in technical personnelmatching the needs. The Company provides competitivesalary and special subsidies for these employees,implements "one person, one discussion" policy on theintroduction and retention of them, and fully considers theirwill to realize customized recruitment and developmentplanning.
Campus RecruitmentIn August 2022, the Company put forward 2023 campusrecruitment “Thousand Talents” plan, meaning the numberof annual campus recruitment positions will exceed1,000, nearly double that of the 2022 campus recruitmentplan. When promoting the campus recruitment plan, theCompany actively responds to and executes the local talentintroduction and subsidy policies, achieving the Company's
strategic talent reserve while fulfilling our corporate socialresponsibility of local talent introduction. During thereporting period, for the first time we launched a specialrecruitment program exclusive for overseas graduates,attracting more overseas students to join us and reservingtalents for the Company’s globalization strategy. TCLZhonghuan attracted more than 500 graduates to join theCompany during the reporting period, an increase of morethan six times compared to that of 2021.In addition, the Company actively deepens exchanges andcooperation with colleges and universities and integratesinternship programs into campus recruitment processthrough school-enterprise cooperation projects. During thereporting period, the Company signed 5 new cooperativecolleges and universities and introduced more than 300interns. Many interns receive the Company’s full-time joboffers through school-enterprise cooperation projects.
IndicatorUoM2022Total number of newemployee hires
person7,923By gender
Maleperson6,463Femaleperson1,460
Our New Employee Hires
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
4.3 Boosting Employee Growth
TCL Zhonghuan offers training programs to all full-time and part-time employees, looking forward to growing together withemployees of all ranks and all job categories. The company formulates and implements the Employee Training ManagementRegulations, establishes the employee training system with Zhonghuan Training Center as the core, and timely adjusts the formand content of training according to the Company's strategy and industry trends.
Zhonghuan Training Center consists of four colleges covering eight major training modules. The four colleges are CrystalManagement College, Crystal Intelligence College, Crystal Materials College, and Crystal Skills College. Based on the consensusof the Company’s strategic goals, Crystal Management College focuses on leadership construction and is responsible forthe promotion and explanation of the Company's culture and talent pipeline strategy. Crystal Intelligence College, CrystalMaterials College and Crystal Skills College focus on professional competence cultivation, among which Crystal IntelligenceCollege provides courses of intelligent manufacturing and lean manufacturing, Crystal Materials College provides courses ofsemiconductor materials and devices, and Crystal Skills College provides courses of team leaders’ ability improvement and newemployee orientation training, to fully meet the Company’s needs of R&D, production and operation.
Inheriting the corporate culture and supporting the achievement of strategic goals
Strategic consensus
Resourcesharing
Leadership
Platform Co-buildingOnline Learning Platform of Zhonghuan Training Center
Crystal ManagementCollege
Course libraryExternal andinternal coursesEvaluation centerOnline + offline toolsEvaluation technology
certificationLecturer libraryInternal trainers,college professorsand industry experts
Case libraryManagement and
production
technology
Professional competence
Zhonghuan Training Center
Crystal Intelligence
College
Crystal Materials
College
Crystal Skills
College
New employee orientation
Team headsDevicesMaterialsLean manufacturingIntelligent manufacturingCorporate cultureTalent cultivatio
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Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
IndicatorUoM2022Total number of employees attending trainingsperson5,675By gender
Maleperson4,431Femaleperson1,244
By rank
Senior managementperson19Middle managementperson157Junior managementperson123Staffperson5,376Total number of training hours provided to employeeshour567,701.06
Average training hours per employeehour32.65By gender
Malehour32.25Femalehour34.36
By rank
Senior managementhour31.15Middle managementhour40.27Junior managementhour13.83
hour33.09Note:
1. Orientation training for new employee hires is not included in the above employee training data.
2. The formula for calculating the average training hours per employee category in this report is "Average training hours per employee category = Total number
of training hours provided to each category of employees / Total number of employees in category " according to the GRI requirements.
Our Employee Training Performance
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◎Inheriting culture: 133 articles on corporate culture have been published in 2022, covering fields such as people-oriented,engineer culture and leadership construction, opening a new window for employees to learn and understand corporateculture.
◎Going global: 5 offline trainings of globalization strategy have been held in 2022, with 1,267 participants. 10 online courseshave been uploaded, with 3,890 viewers. We let all our employee know our globalization vision.
◎Marching toward lean production: A 12 weeks long learning and sharing activity has been conducted in 2022, with 1,220participants and 8,914 posts uploaded (including 157 selected posts). Lean quality knowledge is propagated to all industrialteam for learning.
◎Know-How:
2,700 courses have been uploaded in 2022, an increase of 23% over that of the previous year. Among them, 144internal trainer courses have been updated.
The New Chapter of Zhonghuan Training Center V2.0As an online learning platform of TCL Zhonghuan, our training center adheres to the cultural spirit of people-orientedand teamwork, adopts a mode combining online and offline, and is committed to building a learning organizationfeaturing lifelong learning and growth. Our four modules include:
In the future, Zhonghuan Training Center will continue to enrich the content and presentation of various learningthemes, letting more employees to jointly promote the steady development of the Company by applying what theyhave learned into practice.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
TCL Corporate Social Responsibility (CSR) trainingIn 2022, TCL Foundation, CSR Innovation Center, and T Academy jointly launched a series of CSR training courses,including six themes: basic knowledge of CSR, CSR/ESG reporting, corporate carbon management, green finance andresponsible investment, CSR communication and cause marketing, and CSR and supply chain management. To meetthe diverse learning needs of employees, the training courses are on live, and their video recordings are available forreview.More than 1,000 employees shared their feedbacks and suggestions after the training. About 88% of them felt that theCSR training was of benefit to their work and expected to continually incorporate CSR concepts into practice.
New Manager Training Program
◎This is a training program for new managers who are promoted internally or introduced externally. The programhelps new managers inherit corporate culture, improve management abilities, promote the implementation ofcorporate strategy, and finally complete their role transformation from staff to manager. The goal of the programis to build a group of managers who have a deep understanding of the Company’s strategy and culture and couldlead their team well.
◎The new manager will have nearly 50 days of theoretical learning, then complete practical operation modules inwork scenarios, and apply the knowledge to solve real management problems.
◎In 2022, the practical operation modules of the New Manager Training Program include employee motivation,management collaboration, and task allocation, etc.
Supporting Employee for Further Study
The Company formulates and implements the Regulations on In-Service Education Management, subsidizing employeesto obtain vocational qualification certificates or higher academic diplomas. After employees obtain relevant qualificationcertificates, the Company will increase their salary as subsidies.In terms of academic diploma assistance, we provide varying tuition subsidiaries (depending on the type of degree) toemployees who obtain associate's, bachelor's, master's, or doctoral degrees. For example, the Company will subsidize 50% oftuition fees for in-service employees who obtain master's or doctoral degrees.
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Sustainability Philosophyand Governance
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4.4 Protecting Employee Rights
Employee Benefits and CompensationTCL Zhonghuan signs collective contracts and collective wage bargaining contracts annually, covering all full-time and part-time employees. The Company also purchases social insurance for employees, including endowment insurance, medicalinsurance, employment injury insurance, unemployment insurance and maternity insurance. In addition, the Company providesemployees with high temperature allowance and winter heating allowance in accordance with national standards.In addition to statutory benefits such as paid leave, the Company provides special benefits for employees on their birthdaysand weddings. Female employees can apply for maternity leave after their third month of pregnancy. For employees whoare pregnant for 5 months or more, the Company conventionally requests them to take maternity leave until childbirth. TheCompany also provides parental leave for parents of infants and young children.
IndicatorUoM 2022Total number of employees that were entitledto parental leave
Maleperson5,122Femaleperson1,379Total number of employees that took parentalleave
Maleperson1,139Femaleperson295Total number of employees that returned towork in the reporting period after parentalleave ended
Maleperson1,139Femaleperson295
Parental Leave Performance
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
We are committed to creating a culture of work-life balance for our employees and working with them to build a more people-oriented workplace culture. We are considering introducing flexible working policy, which will help enhance employees’creativity and productivity.Employee Motivation SchemeTo ensure the long-term, stable, and healthy development of the Company, TCL Zhonghuan continues to improve the medium-term and long-term incentive mechanism, fully mobilize the enthusiasm and creativity of employees, enhance the cohesion ofthem, and attract and retain outstanding technical, management, and business talents. In 2022, the Company fully integratesour global leadership strategy, further expands the coverage of the employee stock ownership plan (ESOP), launches thegeneral manager incentive bonus, and adjusts the details of the stock incentive plan of the previous year, letting moreemployees enjoy the fruits from the Company’s development.
2022 Employee Stock Ownership PlanIn August 2022, the Company formulated the 2022 Employee Stock Ownership Plan (Draft), stipulating that theamount of the incentive fund of the 2022 ESOP shall not exceed CNY 395.90 million, and the maximum number ofthe underlying stocks that can be purchased and held is about 9,654,400 shares, accounting for about 0.30% of theCompany's current total share capital. The total number of employees participating in the ESOP is no more than 1,500,including 6 directors, supervisors, and senior managers, and no more than 1,494 middle managers and other staff.
General manager incentive bonusIn 2022, the Company set up the general manager incentive bonus to reward employees who have made outstandingcontributions to BU/BG they belong to, with the total amount of CNY 4.055 million.
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Employee Performance Assessment
TCL Zhonghuan has formulated a systematic and scientificperformance management system as the basis for thecompensation evaluation of senior management andemployees. As supervisory bodies, the supervisory boardand independent directors of the Company are responsiblefor evaluating the impact of the executive compensationplan on the sustainable and long-term development ofthe Company. To determine the total annual income ofsenior management, the Company will conduct the annualevaluation based on the overall operating status of theCompany and senior management members’ individualperformance.In order to increase the management's attention tothe sustainable development of the Company, weincorporate key environmental and occupational healthand safety indicators into the performance assessmentof senior management in accordance with our EmployeeIncentive Management System. For the rationalizationor improvement proposal, the Company will reward theproposer according to the amount of actual cost saving orloss reduction & avoidance. The Company will give negativeincentives to those who are responsible for the breaches ofdisciplines regarding safety, fire prevention, environmentalprotection, and occupational health.
Employee CommunicationTo better understand the real demands of employeesand solve their practical difficulties, TCL Zhonghuan hasestablished smooth, transparent, and fair channels foremployee communication and appeals.The company's SSC (Shared Service Center) are equippedwith employee service hotline and mailbox, as well as full-
time labor relation coordinators. Employees can reporttheir demands on working conditions to SSC by calling thehotline or sending emails. They can also visit SSC offices foron-site communication. SSC and each production base ofthe company are equipped with anonymous mailboxes totimely collect employee grievances.Every production base of the Company has set up arationalization channel, through which employees cantimely feedback their suggestions in respect of workingprocess and operation management of the productionbase. In 2022, the Company received several feasiblesuggestions on employer brand building, workingcondition improvement, corporate culture practice, canteenenvironment, and catering. The Company immediatelycarried out field research on the proposed content andlaunched optimization and improvement plans based on theresearch results, which was well appraised by employees.At present, employee satisfaction survey is carried out byeach production base of the Company. We are planning tooptimize the employee satisfaction survey mechanism atthe Company level, and based on the survey results, we willoptimize the employee benefit policy on a regular basis.
Labor Union and Employee ActivityThe Company has established the labor union, and allemployees are members of the union. As an importantcommunication channel between the Company andemployees, the labor union often communicates with theCompany on behalf of employees about their concerns. TheCompany also respect employees’ rights on freedom ofassociation and collective bargaining.In the aspect of employee activities, our labor unionforms several sports tribes, such as basketball tribe andbadminton tribe, attracting employees with commoninterests to join and play together. Every year, the companyjointly organizes sports competitions with employee interesttribes, encouraging more employees to fully showcase theirtalents and enhance colleague friendship.
IndicatorUoM2022
The percentage of employees subjectto regular performance assessment
%100
Employee Performance Assessment
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
IndicatorUoM2022The percentage of employee having ahealth examination
%100
The 4th Zhonghuan Cup Basketball GameQixi Watermelon Gourmet FestivalIn the summer of 2022, the Company held the4th Zhonghuan Cup basketball game with thetheme of "Fearless youth never stop", attracting 15teams and 180 employees to participate, showingthe youthful vigor of TCL Zhonghuan staff onthe basketball court. Many of the employees whodidn't take part in the games formed cheerleaders,cheering from the side of the court. Finally, thegame produced the champion, the runner-up, thethird-place winner, and several individual awardssuch as the top scorer.
In 2022 Qixi Festival, Tianjin production base ofthe Company launched a watermelon gourmetfestival with the theme of “Fun summer, meetingin Qixi”. In such a hot summer, the Companyprovided a wide variety of Xinjiang cuisine andsweet watermelon juice and curried out the gameof “throwing to win” to give employees multipleenjoyment.
In the aspect of employee activities, our labor union forms several sports tribes, such as basketball tribe and badminton tribe,attracting employees with common interests to join and play together. Every year, the company jointly organizes sportscompetitions with employee interest tribes, encouraging more employees to fully showcase their talents and enhance colleaguefriendship.
Employee Performance Assessment
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4.5 Safeguarding
Employee HealthTCL Zhonghuan attaches great importance to theoccupational health and safety of our employees andfirmly believes that protecting the health of employeesis an important part of the Company's "people-oriented"philosophy. The Company has established and continued tooptimize the occupational health and safety managementsystem and improves the response ability of our employeesin case of a real emergency through safety training and drill.Our Management MethodsWe strictly follow the Work Safety Law of the People’sRepublic of China, the Law on the Prevention and Controlof Occupational Diseases of the People’s Republic of Chinaand a series of national and local laws and regulations,formulating and implementing 26 internal safetyregulations, including the Regulation on the Managementof Work Safety Accidents and the Regulation on theManagement of Occupational Health.TCL Zhonghuan takes Safety Production Committee(hereinafter referred to the Committee) as the highestleading body in the management of production safety. TheCommittee, led by the general manager of the Companyand consisting of safety production directors of eachdepartment and subsidiary, is responsible for managing thedaily affairs of production safety and studying and dealingwith major safety issues in production and operation ofthe Company. The Committee holds a quarterly regionalmeeting to convey the latest laws and regulations on safetyproduction and conduct special trainings for the problemsfound in daily safety inspection of the Company.
We require each subsidiary company to establish asafety production management department and equipwith sufficient full-time or part-time safety managementpersonnel in accordance with the national and local lawsand regulations. The Company has established a safetyproduction responsibility system for all positions andemployees, requiring all employees to sign the SafetyProduction Target Responsibility Statement. The existingsafety production management regulations and operatingstandards have covered 100% of positions and employeesof the Company.We establish the Company’s Occupational Health andSafety Management System in accordance with the ISO45001 Occupational Health and Safety ManagementSystem and require subsidiaries to actively obtain ISO45001 certification. At the end of the reporting period, 9subsidiaries comply with ISO 45001:2018 certification.
Production SafetyProduction Safety Target
According to the classification of safety accidents in theCompany’s Regulations on the Management of ProductionSafety Accidents, the annual targets of the accidentindicators of each subsidiary company in 2022 are asfollows:
◎Zero grade I and grade II production safety accidentsand zero fire accidents.
◎No more than 3 Grade III production safety accidentsreported.
◎Zero work-related fatalities and serious injuries, and theoverall rate of light injuries is no more than 0.2%.
◎Zero new occupational diseases.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
Our Occupational Health and Safety PerformanceIndicatorUoM2022
The number of work-related injuriestime5The number of high-consequencework-related injuries among them
time0The number of fatalities as a result ofwork-related injury
person0Lost time injury rate (per 1,000,000hours worked)
%0.12Note:TCL Zhonghuan deals with production safety accidents seriouslyin accordance with four principles: 1) inspect accident/incident files; 2)analyze problems and loopholes in the investigation process; 3) improvethe management of accident/incident files; 4) prevent similar accidents/incidents from happening again. In addition, we refine the accidentaccountability system, formulate the procedures for dealing with safetyaccidents and set management objectives of production safety, carry outannual assessment of the implementation of accountability system, andcheck whether the objectives are met.
Safety Production InformationManagement Platform
◎The Company has established and launchedsafety production information managementplatform, which is divided into groups,regions, sectors, and company ports,including 10 management modules, 38 sub-modules and 80 specific tasks.
◎We use this platform to conduct real-timesafety supervision and hazard data trendanalysis for our factories.
6 core functions of our safetyproduction information managementplatform
◎Visualization of standardized basicmanagement information of safetyproduction
◎Push plans and tasks in real time and recordthe whole process in real time
◎Specialization of risk identification andcontrol, forming a risk database
◎Hazard investigation and special operationdynamic control
◎Collect real time safety dynamic informationand establish safety information database
◎Expert teams regularly identify productionsafety laws, regulations, and standards, andestablish safety think tanks
Dual Prevention Mechanism
In accordance with the requirements of the new WorkSafety Law of the People's Republic of China cameinto force in 2021, TCL Zhonghuan carries out the dualprevention mechanism, establishes and implements theRegulations on Hierarchical Control of Safety Risks andthe Regulations on the Investigation and Managementof Hidden Hazards, to guide each BG/BU to optimizethe safety risk identification and control mechanism andimplement safety inspections by levels for a better controlof safety risk.We formulated the Annual Safety Hazards Inspection WorkPlan and strictly implemented it. In 2022, we organizedmore than 40 inspections of production bases for potentialsafety hazards, including comprehensive safety inspectionsand special safety inspections of hazardous chemicals,electrical facilities, and mechanical equipment. A total of1,210 safety hazard items have been inspected and all ofthem have been rectified.
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Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Prevention of Occupational Disease RiskIn order to effectively protect employee health and achievethe goal of zero new occupational diseases, TCL Zhonghuanhas formulated and implemented a series of internal rulesand regulations such as the Regulations on the SafetyManagement of Hazardous Chemicals and the Regulationson the Management of Labor Protection Equipment. TheCompany conducts annual inspections on the factoriesinvolved in occupational disease factors and takesimmediate preventive actions according to the inspectionresults.We inform and train employees involved in operationpositions with occupational disease risks in advance,equip them with labor protection equipment and carryout annual occupational health examination for them.Once an employee is found to have potential occupationaldisease, he or she shall be transferred to another positionimmediately to avoid occupational diseases.
Safety TrainingTCL Zhonghuan formulates and strictly implements theRegulations on the Management of Safety Education andTraining, which requires our safety management personnel,hazardous chemicals and occupational health managementpersonnel, special operation personnel, special equipmentoperators, fire control room personnel and automaticfire facilities operators must hold relevant professionalqualifications. For new employees, employees transferredfrom other positions and employees returning to work, theymust receive three-level production safety training.
The Company formulates the Annual Safety TrainingSchedule and carries out several safety trainings for allemployees of the Company and for employees in specialpositions. At the same time, we build and constantly updateprofessional safety training materials and question bank,helping our employees learn better by teaching and testing.In 2022, TCL Zhonghuan completed the annual safetytraining plan online and offline. We conducted 375 safetytraining activities, including 25 special training sessionswhich involved 6,775 employees. Additional trainings onlimited space, first aid and safety-related party have alsobeen conducted.
IndicatorUoM2022The percentage of employee having ahealth examination
%100
Emergency Rescue Skills PracticeTrainingIn June 2022, the Company invited Tianjin BinhaiBlue Sky Rescue Team to organize a training onemergency rescue skills. The training modulesinclude cardiac resuscitation, hemostasis, andbandaging, etc. The rescue team members instructour employees step by step and answer theirquestions. This training improves employees'ability to protect themselves and others in case ofemergency and cultivates their awareness of beingthe first responsible person for their own safety.
The number of safety training activities in 2022
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Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
The number of emergency drills in 2022
TCL Zhonghuan Fire Safety MonthAdhering to the safety management policy of abiding by laws and regulations, people-oriented, production safety andreducing occupational risks, the Company holds Fire Safety Month activities in our production bases. The modules ofactivities include fire safety knowledge teaching and testing, fire drill and fire safety skills competition, etc., allowingemployees to apply their fire safety skills into practices and raising their safety awareness for better fire prevention.
Safety DrillTCL Zhonghuan formulates and strictly implements theAnnual Emergency Drill Schedule, so that employees canapply the knowledge and skills learned in safety training topractice. In 2022, the Company and our production basescarried out a total of 298 emergency drills, including 11special drills on the topics of poisoning and suffocation,limited space, environmental protection accidents, fires andexplosions, scalding accidents, drowning accidents, electricshock accidents, natural disasters, special equipment, silicondust explosions and mechanical injuries. 1,696 employeeshave participated in these special drills.
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Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Devoting to SocialService and PublicWelfare
TCL Zhonghuan incorporates public welfare and community services into the work arrangement and planning of the Company,continuously increases investment in public welfare and advocates public welfare culture, contributing to advancement of ruralrevitalization and prosperity for all.Our domestic production bases are located in Tianjin, Inner Mongolia, Yixing Jiangsu and Yinchuan Ningxia, ranking top inboth building size and investment scale in these cities. Our industrial parks and projects make contributions to the economicdevelopment, employment, resource localization, development of new energy industry chain and business competitiveness inlocal areas.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
5.1 Committing to Social Responsibility
TCL Zhonghuan has been deeply involved in the charity for many years and participated in various public welfare activitiesof TCL Public Welfare Foundation, such as talent training and rural revitalization, harnessing our strengths to fulfil our socialresponsibility.TCL FoundationTCL Foundation was established in 2012. Adhering to the values of “pursuing public interests and promoting social progress”and the purpose of “creating education and growth opportunities for the vulnerable groups and seeking community welfareand sustainable development of the environment”, the Foundation is committed to three major public welfare fields, includingbasic education and assistance, special groups care, and major disaster relief, actively carrying out social charity campaigns andfully fulfilling social responsibility.Development history of TCL Foundation
2013TCL Project Hope Candlelight AwardWe initiated the plan to reward rural teacherswho dedicated to rural education at the frontline, demonstrating their professional ethicsand pursuits, to encourage more outstandingteachers to get involved and drive thedevelopment of rural education
2015
Rose InitiativeOur employee volunteersvisited rural teachers andtold their stories to thepublic
2019
A.I. (Love) into HomeWe developed the “Eagle”storytelling machine with AItechnologies to tell stories to left-behind children in parents’ voice
2019Little Musician+We launched the “Little Snow Music Player”for children who have limited access to musicto enrich education resources in rural regions,bring various famous Chinese and foreignsongs to them for appreciation, and inspireevery child with the power of music
2022Charity donation to an under-developed village inErwangzhuang Town, Baodi DistrictWe made field research on the assistance progressat Jingjiazhuang Village, Erwangzhuang Town, andshowed care to assistance team. TCL Zhonghuandonated CNY 200 thousand to Jingjiazhuang Village
2022TCL Photovoltaic Solar SchoolTCL Zhonghuan donated photovoltaic rooftop solar power generation systems to schools.The electricity generated is fully transmitted to the grid, which brings continuous profitsto the schools and contributes to sustainable education assistance and high- qualitydevelopment of rural education
EnteringTZE
Sustainable Development Performance
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Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
TCL Project Hope Candlelight AwardTCL Zhonghuan always keeps social welfare in mind and is keen on public service. With the intention to bettercare about, support and help people with disabilities, the Company, cooperated with Tianjin Chuangmei, set up anemployment base to help them find jobs. TCL Zhonghuan supports the community in a special way. On 16 May 2021(the 31st National Disability Day), we organized a Color Run public welfare activity and donated CNY 10,000 to theTianjin Welfare Fund For The Handicapped.
TCL Zhonghuan Color RunTCL Zhonghuan always keeps social welfare in mindand is keen on public service. With the intention tobetter care about, support and help people withdisabilities, the Company, cooperated with TianjinChuangmei, set up an employment base to help themfind jobs. TCL Zhonghuan supports the communityin a special way. On 16 May 2021 (the 31st NationalDisability Day), we organized a Color Run publicwelfare activity and donated CNY 10,000 to the TianjinWelfare Fund For The Handicapped.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
5.2 Innovating Public
Service PracticeLight is the best gift given by nature. By exploiting thepower of light and transforming it into electricity via“photovoltaic+” technologies, we keep exploring ways topay back to nature and the society.TCL Zhonghuan connects photovoltaic industry with ruralrevitalization in an efficient way, and actively promotesphotovoltaic programs for poverty alleviation, drivingthe development of labor and material resources inunderdeveloped areas. Our efforts integrate new energyutilization, energy conservation and emission reductioninto poverty alleviation, fully pushing green and sustainabledevelopment in rural areas. We actively implementnational policies, such as the Opinions on SupportingPhotovoltaic Poverty Alleviation and Regulating the LandUse of Photovoltaic Power Generation Industry and theSmart Photovoltaic Industry Innovation and DevelopmentAction Plan (2021-2025) issued by the National EnergyAdministration, Ministry of Industry and InformationTechnology of the People’s Republic of China and otherdepartments. As a response, we launch poverty alleviationprograms by photovoltaic power generation in InnerMongolia, Hebei, Yunnan, Sichuan and other regions.Considering the industrial characteristics and resourceadvantages of different regions, we select poverty-strickenregions meeting photovoltaic construction conditions, andactively carry out photovoltaic power generation projectsfor poverty alleviation.By the end of the reporting period, the Company hadconstructed 6 photovoltaic power plants for povertyalleviation, which are all ground-based centralized powerplants. Our poverty alleviation programs are in line withthe distribution of poverty-stricken population. The abovepower plants will provide 6,901 poverty-stricken familieswithout working ability with sustained income of about CNY3,000 every year for 20 years.
Zhonghuan Renewable EnergyChongli Shengyuan CheqigouPhotovoltaic Power Plant
On 20 February 2022, the Beijing 2022 OlympicWinter Games came to a successful conclusion.Beijing 2022 Olympic Winter Games is the first“carbon-neutral” Olympic Winter Games. Its 26venues across the three competition zones areall powered with green energy. Our ZhonghuanRenewable Energy Chongli Shengyuan CheqigouPhotovoltaic Power Plant is the only ground-basedcentralized solar photovoltaic power generationproject for poverty alleviation in the core area ofthe Olympic Games. With an installed capacity of30 MW, the plant is able to produce approximately
44.53 million kWh of green electricity each year.
While protecting the environment, this powerplant plays an effective role in alleviating poverty,improving the lives of 1,000 poverty-strickenhouseholds with an annual poverty relief fund ofCNY 2.25 million for 20 years.
63,000
6,901
CNY/yearoddThe company has accumulated photovoltaic povertyalleviation projects
Poverty alleviation income per household
The power station will help the poor householdswithout labor capacity in total
EnteringTZE
Sustainable Development Performance
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Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
5.3 Encouraging Engagement in Public Welfare
The Company keeps investing in public welfare undertakings and encouraging employees to take part in public benefitactivities. In order to regulate charity donations and reinforce the management of donation-related matters, we haveformulated and implemented the Regulations on the Management of Social Welfare Donations in 2022, which clarifiesthe major orientations, principles, methods, management and approval procedures of donations, aiming to improve thetransparency in donation.
TCL Zhonghuan supports rural education by introducing photovoltaic programs to schools. We initiated the “TCL PhotovoltaicSolar School” program together with the TCL Foundation. Specifically, we donate photovoltaic rooftop solar power generationsystems to schools. The electricity generated is fully transmitted to the grid, which brings continuous profits to schools andcontributes to sustainable education assistance and high-quality development of rural education.
Shanxi Hanzhong “TCL Photovoltaic Solar School” was launched!In September 2022, the first “TCL Photovoltaic Solar School” was launched in Hanzhong, Shaanxi Province. Wedonated photovoltaic rooftop solar power generation systems to four schools including Caomiao Primary School inXixiang County, Hanzhong, Shaanxi Province. The revenue from power generation in 25 years, amounting to aboutCNY 1.68 million, will be used to improve school environment and help poor students. In addition, the Foundation hasalready introduced its existing public welfare projects such as “Eagle Story-telling Session” and “Little Snow MusicClass” into these schools, forming a sound public welfare funding system.We are on a journey of green and low-carbon public welfare exploration. In the Shaanxi Hanzhong project, theinstalled capacity of photovoltaic rooftop solar power generation system is 54 kW, and the average annual powergeneration capacity is 47,305 kW. Using green and clean electricity, the four schools have saved 1,892 metric tonnesof standard coal and reduced carbon dioxide emissions of 4,716 metric tonnes, equivalent to planting 260 thousandtrees.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
In 2022, and gave indirect donations of CNY 22,175.6thousand through the TCL Foundation. The donations weremainly used in implementing the Company’s distributedcounty-wide development programs and photovoltaicschool-aiding plans in targeted areas where ground-basedprojects will be launched in the future. We also care for left-
Social welfare undertakingsEducation, science, culture, health care and medicalservices, sports, environmental protection, energyconservation and emissions reduction, constructionof public facilities, etc.
TCL Zhonghuan’s major donationorientations
TCL Zhonghuan donation principles
Poverty alleviation, disaster relief and vulnerablegroupsAreas suffered from natural disasters, areas of pairedassistance, areas of targeted assistance, etc.Social groups including Charity Federation, RedCross Society, Disabled Persons’ Federation, YouthDevelopment Foundation, and vulnerable groups
The Company encourages employees to participate in allkinds of volunteering activities and public welfare projectapplication. In 2022, our employees participated in the“Rose Initiative” under the TCL Project Hope CandlelightAward. They visited 29 rural teachers from 29 schools in 12provinces such as Sichuan, Yunnan, Guangxi, by means ofcn“field visit” + “online interview”.22,175.66,000thousandCNY
peopleTotal donation amount in2022
Number of registered
volunteers in 2022
Other social welfare undertakingsSocial welfare undertakings that promote socialdevelopment and progress
VoluntaryPractical
PracticalHonest
Giving a favor to people in needand adding more flavor to their lives- Charity donations to an under-developed village in ErwangzhuangTown, Baodi DistrictOn 21 July 2022, the charity donation to an under-developed village in Erwangzhuang Town, BaodiDistrict was successfully completed with supportfrom the TCL Foundation. Zhang Xuenan, DeputyChief Engineer of TCL Zhonghuan, on behalf ofthe Company, visited the Jingjiazhuang Village tofollow up the progress of the poverty-alleviationassistance, and donated CNY 200 thousand toJingjiazhuang Village to support the developmentof various undertakings in this area.
TCL Zhonghuan’s donation of CNY 200 thousand to JingjiazhuangVillage
behind teenagers as well as teachers and students in need.Therefore, we carry out programs such as “TCL ProjectHope Candlelight Award” and “A.I. (Love) into Home” tohelp them.
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Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
「环」视治理
走走TCL走走 走走走走走走走 走走走走 走走走走走走走走走走 走走走走走走
ReinforcingCorporateGovernance withFull Disclosure andTransparency
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
6.1 Efficient Governance
Corporate Governance Structure
TCL Zhonghuan has established the Board of Directors (“the Board”) and the Board of Supervisors in accordance with theCompany Law of the People's Republic of China and the Articles of Association. And the Company elects directors andsupervisors in strict compliance with the stipulated procedure to achieve a balanced distribution of power.Our Board has established four committees to discharge its duties and ensure effective business management, including theAudit Committee, Remuneration and Appraisal Committee, Strategy and Investment Committee, and Nomination Committee.These committees provide decision-making consultation for the Board, and oversee the execution of the business management,internal control system and the Board’s resolutions.Meanwhile, our Board and committees jointly contribute strategies and decisions to the development planning, businessmanagement, risk control, senior management and reserve talents recruitment, senior management performance evaluation,internal control, and internal audit. Also, we enhance our business planning and risk prevention capability by professionalknowledge and scientific methods.
Board of Directors
Audit Committee
Remuneration andAppraisal Committee
Strategy and InvestmentCommittee
NominationCommittee
The Audit Committee oversees and managesthe internal control system and audit activities ofthe Company, lead the relevant personnel of theCompliance Department who are responsible forinternal audit and internal control to independentlyand objectively perform their functions and powersin accordance with the laws and regulations andthe provisions of the Company, and ensure theeffective implementation of relevant systems andprocesses.The Strategy and Investment Committee reviewsand analyzes market trends and competitiveenvironment to prepare strategic plan andsupervise progress towards objectives. They alsodeliberate on the Company's strategic cooperationagreements and prudently evaluate and deliberateon major investment opportunities.
The Remuneration and Appraisal Committee, asthe administrative institution for the appointment,remuneration and appraisal of senior managementin the Company, is responsible for formulating theremuneration standards and plans for executives,reviewing the performance of their duties andconducting the annual appraisal, and preparingand submitting a scientific and reasonableremuneration plan to the Board for review.The Nomination Committee evaluates theCompany's governance structure and manpowerneeds, proposes nominations for candidatesfor the Board, and ensures that the electionprocedures of directors are in strict compliancewith the requirements in the Articles ofAssociation. It also reviews the job responsibilitiesof senior management and responsible for theappointment of them.
The responsibilities of our four committees are as follows:
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Our Board of Supervisors, with a view to protect ourshareholders’ interests and in compliance with theregulations such as the Rules of Procedure of the Board ofSupervisors, conscientiously performed its duties, conductseffective supervision over and issues independent opinionson the material matters, connected transactions, financialstatus, performance of directors and senior management.
Diversity and Independence of
the Board of DirectorsTCL Zhonghuan believes that enhancing the diversity andindependence of the Board is beneficial to the sustainabledevelopment of the Company. And the diversity andindependence are necessary elements to improve corporategovernance and support the achievement of strategicobjectives.
Diversity of the Board of DirectorsTCL Zhonghuan always emphasizes the diversity andequity of the Company’s operation and decisions. To ensurediversity of the Board so that the quality of decisions can beimproved by bringing different views and expertise into play,the Company takes diversity into account when planningthe composition of the Board from various perspectives,including gender, age, cultural and educational background,ethics, professional experience, skills, knowledge andtenure of service. All appointments by the Board are madebased on talent merits, with due regard to the interests ofthe Board and the Company in an objective manner andwith a view to enhancing the innovation capability of theCompany through the diversity of the Board. In 2022, theBoard consist of nine directors, of which four are femaledirectors, accounting for 44.44%.
Independence of the Board of Directors
Working in accordance with regulations such as theRules of Procedure of the Board of Directors, the Rulesof Procedure for Independent Directors and the Rules forIndependent Directors of Listed Companies, our directorsattend the meetings of the Board and shareholders. If theyfail to attend the meetings in person or by proxy on twoconsecutive occasions, they shall be deemed that theyare unable to perform their duties, and our Board shallpropose the dismissal and replacement of such directors atthe meeting of shareholders. In 2022, our board held ninemeetings with 100% attendance.The Board strictly implements a decision-making systemof collective deliberation, independent voting and personalresponsibility institution, and encourages directors tofully express opinions on one-person-one-vote basis.We established a standardized and transparent systempublicity and disclosure of material matters, safeguardedthe integrity of minutes and proposal materials of theBoard meetings. Also, we established a system of follow-up, implementation, and post-evaluation of the Board’sdecisions to improve liaison and communication with othergovernance bodies. We have a total of 9 directors in ourBoard, three of whom are independent directors (accountingfor 33%) and all independent directors hold key roles in ourspecial committees.All directors actively participate in various training programson business ethics, anti-corruption, ESG and emissions peakand carbon neutrality training, and perform their duties withintegrity, diligence, and responsibility.
TheBoard ofDirectors
Male
Female
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Performance Evaluation of Senior ManagementThe remuneration of our senior management strictly follows the decision-making procedures. The Remuneration and AppraisalCommittee is responsible for formulating the remuneration plan of senior management, of which the remuneration andappraisal of directors and supervisors are assessed and approved by the Board and the meeting of shareholders, and theremuneration and appraisal of senior management are assessed by the Board and then finally implemented. At the same time,as the supervisory body, the Board of Supervisors and our independent directors are responsible for assessing the impact ofthe senior management remuneration plan on sustainable and long-term development of the Company, and then provide afinal opinion on whether there is any circumstances that are detrimental to the interests of the Company and shareholders.The corresponding quota of target stocks of our directors, supervisors and senior management is calculated based on theirindividual performance assessment results.
Meeting in 2022TimeBoard of Directors Meeting9Audit Committee Meeting6Nomination Committee Meeting1Remuneration and Appraisal Committee Meeting4Strategy and Investment Committee Meeting 4Board of Supervisors Meeting9
Board Meeting Attendance in 2022
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Investors’ Rights and InterestsTZE strictly adheres to regulations such as the Rules for the Shareholders Meeting of Listed Companies and the Rules ofProcedure for the Shareholders Meeting to organize the meetings of shareholders. We also formulate the Investor RelationshipManagement System to ensure that all shareholders especially minority shareholders have equal, voting duties and fullyexercise their rights.The Company was awarded the highest rating of "A" by the information disclosure work assessment of the Shenzhen StockExchange, ranking in the top 18% of listed companies, which proves our good management in standardized operation, cashdividend and share buyback, investor relationship, information disclosure quality and ESG performance.We actively promote and communicate with our investors through two official WeChat accounts – "TZE" and "TZE InvestorRelations", and organize regular investor Q&A sessions. Apart from answering investors' concerns and objections in detail, wealso publish an "Investor Relations Activity Record " through our official WeChat accounts to record all relevant investor-relatedactivities and Q&A transparently to facilitate our investors to communicate with us in time. In 2022, TZE received a total of 1,200calls from the investor hotline, responded to 389 questions on the platform, organized 384 online and offline roadshows and62 strategic meetings, and received more than 100,000 investors. Also, we were awarded the “Best Practice in Annual ReportPerformance Disclosure for Listed Companies” from the China Association for Public Companies and the “Award for MostInvestment Value” from China Securities Journal, which are testimonies to our successful relationship with our investors.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
TZE 15th Anniversary Special Project——“Building adream road towards the light”In 2022, the 15th anniversary of TZE’s listing, the Company organized theanniversary celebration with the theme of “Building a dream road towards thelight”, which provided an opportunity for our investors to deeply understandthe Company and received undiluted enthusiasm.We conveyed our vision and achievements through interactive videos and toldthe story of TZE in the aesthetics of light and shade, which enables investors tobe familiar with the Company quickly. The total Self-media views reached morethan 47,000 times.During July 21 to 22, 2022, we organized the "15th Anniversary of Listing andInvestor Reception Day" event in Yinchuan, Ningxia, which aims to promotecommunication with the capital market, enhance our image and influence in thecapital market by organizing investor visits to the automated production line, aswell as conducting on-site presentations and interactive Q&A sessions. A totalof 374 people participated in the event, including 149 institutions.
（Scan QR code to view）
Live Q&A sessions of senior management andinvestors
The Crystal Phase 6 Plant Tour
Tax SystemTZE strictly complies with the tax laws and regulations of the countries and regions with our facilities, discloses and clarifiessuch detailed information as different income tax rates, taxpayers, and preferential taxation of the Company and oursubsidiaries in the annual report. We are committed to providing accurate and truthful financial reports, refraining from false ormisleading data and information disclosures, and ensuring that financial records are kept compliantly. Please refer to the Taxsection of the TZE Annual Report in 2022 for detailed information related to tax.
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6.2 Business Ethics
Compliance and Business EthicsOur Ethics CodeTZE strictly complies with the principle of fair competition.We promote anti-bribery in business activities in accordancewith laws and regulations such as the Contract Law of thePeople's Republic of China, the Anti-Unfair CompetitionLaw of the People's Republic of China, and the Criminal Lawof the People's Republic of China, strengthen the internalcontrol mechanism to be honest and trustworthy. We guidethe employees and other stakeholders (such as customers,suppliers, etc.) to comply with the laws, regulations as wellas code of conduct of the Company, adhere to honesty andtrustworthiness, and project a more positive image of ourcompany.We formulated the Management Regulation on CombatingCommercial Bribes as the code of business conduct andrequire all employees of TZE and our subsidiaries to strictlycomply with the system. Also, any form of commercialbribery and unfair competition is prohibited, which includescontact with governmental authorities, business negotiationwith customer business representatives, productprocurement with suppliers, project implementation withcontractors, and all other commercial activities or externalcontacts. Additionally, we formulated the Code of Conductfor TZE Partners, which requires all suppliers and partnersto comply with internationally accepted standards includingemployees’ rights protection, anti-discrimination, anti-monopoly, anti-unfair competition, anti-commercial bribery,health, safety and environmental responsibility, network andinformation security, intellectual property and confidentialityand compliance management to continuously promote thesustainable development of our suppliers.
Compliance Training
To ensure corporate compliance governance, TZE carriesout a series of compliance tasks, compliance training andpublicity programs in such aspects as market transactionand business partner, safety and environmental protection,information security and labor safety. The training covers allfull-time and part-time employees on topics such as
export control, economic sanction, labor protection andcompetition restrictions. We also further team up with oursubsidiaries to conduct compliance publicity focusing ontrade secret protection and learning of the constitution.
Market Transaction and BusinessPartner
◎To meet the needs of foreign customers on supplychain traceability, the Company employs a law firm tolaunch the supply chain traceability investigation andestablish the traceability mechanism;
◎With the ever-increasing national supervision andpunishment for monopolistic actions, the Companygives risk warnings for anti-monopoly declaration inthe legal support of projects, and cooperates withbusiness units to make anti-monopoly declarations.
Safety and Environmental Protection
◎Strictly comply with Environmental Protection Lawof the People's Republic of China, Water PollutionPrevention and Control Law of the People's Republicof China, Law of the People's Republic of China onthe Prevention and Control of Environment PollutionCaused by Solid Wastes, Soil Pollution Preventionand Control Law of the People's Republic of China,Measures for Pollutant Discharge PermittingAdministration, Provisions on the Prohibition of UsingChild Labor, Law of the People's Republic of China onthe Prevention and Control of Occupational Diseases,Special Labor Protection of Female Employees andother laws and regulations related to environmentalprotection and occupational health and safety, wetimely revise the inetnal mangement process andrelated documents, and improve the Company'smanagement mechanism;
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
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◎The Company develops a complete safety production and riskassessment system. Our regulations on safety managment includeProvision for Administration of Environmental Protection Management,Regulations on the Investigation and Management of Hidden Hazards,the Regulations on Hierarchical Control of Safety Risks, Regulationon the Management of Occupational Health, Regulations on theSafety Management of Hazardous Chemicals, Regulations on theManagement of Safety Education and Training, etc.Information Security
◎The Company works out the information security strategy based onthe trade secret protection system, and develops the data securitymanagement requirements for its digital transformation departmentpursuant to the Data Security Law of the People's Republic of China;
◎The Company attaches great importance to data protection and personalprivacy protection, and ensure that the operation of the our informationsystem complies with relevant national laws and regulations;
◎The Company continuously promotes the authentication of data andinformation security management systems. Our operation system obtainedISO27001 certification. Our security team also obtained other professionalsecurity cerrifications such as CISSP, CISA, CDPSE, CISP, etc.
Labor Safety
◎The Company revises its corporate management regulations interms of competition restrictions, anti-corruption, anti-malfeasance,faithful performance of duties and personal information protection,and also incorporates these aspects into the Employee Handbook;
◎The Company works out the competition restriction managementrequirements and work plans for its human resource department.
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Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Compliance AuditWe establish an audit supervision, prevention, and control system on the basis of "prevention before incidents, managementand control during incidents, and supervision after incidents". According to applicable laws and regulations, the Companyconducts audits in connected transactions, guarantee business, fund raising, external investment and major engineering projectsto ensure that the Company's business complies with laws and regulations, and enhance the authenticity and completenessof information disclosure. In 2022, fourteen audit projects and inspections were completed, including ten business areas suchas logistic costs, procurement business, customs compliance, and canteen management. Our audits covered the new energymaterials industry, semiconductor materials industry, new energy battery components industry, regional pooling platformsupply chain platform, etc., with a coverage rate of 100%. There was no violation of laws and regulations during the reportingperiod.
Anti-CorruptionAdhering to the guideline of "addressing both symptoms and root causes, valuing both punishment and prevention, and givingpriority to prevention", the Company formulates detailed policies and systems in respect of the supervision and administrationover anti-corruption and other aspects of compliance of laws and discipline, which includes the Management Regulation onCombating Commercial Bribes, Management Regulation on Supervision, Management Regulation on Blacklisted Suppliers andManagement Measures for Punishing Employees Receiving Gifts, etc. Also, we publish and disseminate the policies and systemsvia the Company’s intranet. We standardized our supervision processes and conduct annual audits on all business units. In2022, our key series of anti-corruption and anti-fraud compliance work is as follows:
2022 Anti-Corruption and Anti-Fraud ComplianceConstruction
Orgranise staff and partners to sign theEmployee Integrity and Self-disciplineCommitment and the Code of Conductfor Partners to enhance their awareness ofintergrity and self-discipline
Further improve management in conjuctionwith whistleblowing matters
Define the red line, clarify specificrequirements, and publisize in canteens topromote staff's wareness of compliance
Utilize the Company's information platformto promote festival integrity publicity
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
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As for the management of internal staff, we strengthen internal control and training to prevent operational risks and ethical risksand promote diligence and integrity of personnel in key positions. Meanwhile, we develop management methods for personnelin key positions, focusing on the supervision of key personnel in key positions (leadership cadres, cadres, etc.), carrying outmanagement, rotation, and supervision of duties, and strengthening the supervision of performance and accountability fordeployment.In 2022, we made full use of our information platform to conduct all-staff festival integrity publicity. We sent the TCL 2022Anti-Fraud Bulletin to our senior management and employees through our mailbox, guiding them to learn from cases andunderstand regulations to prevent careless mistakes and strictly punish corruption. By 2022, 14,140 employees in key positionshave signed the Employee Integrity and Self-discipline Commitment, with a signing rate of 81%.As for the management of external suppliers and partners, we promote integrity cooperation, properly prevent and controlintegrity risks, and enhance the awareness of integrity and self-discipline between the Company and our suppliers. On August25th, 2022, we participated in the “Manufacturing Industry Integrity Compliance Seminar” organized by the Trust and IntegrityEnterprise Alliance. The Company formulates the Code of Conduct for TZE Semiconductor Partners in accordance with therequirements of the Contract Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republicof China, the Criminal Law of the People's Republic of China and other laws and regulations. We also integrated the spirit of theParty's eight-point frugality code and the requirements related to integrity in employment into the development of the code.As of 2022, 1,341 partners have signed the code, with a signing rate of 95%.In 2022, a total of 17,399 employees participated in anti-corruption training, with a total participation time of approximately115,933.33 hours. Besides, new staffs are provided with additional red line education, which provides clear integrity and ethicalguidelines.
Anti-Corruption Training in 2022TrainingNumber of participantsBoard of Directors9Middle and Senior Management290Other Employees17,100Total17,399
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Publicity of Integrity through MultimediaTZE has a specialized department, which is responsible for the publicity of integrity culture of the Company. Oursubsidiaries assist to complete the integrity publicity work and carries out their publicity work specifically andcreatively with an integrity culture publicity framework.The channels for promoting the culture of integrity include: (1) internal publications, WeChat official accounts,websites, advertising screens, and other media; (2) internal email and other systems; (3) internal company premisessuch as offices and company canteens; and (4) external platforms such as the Integrity Culture Forum, ect.In 2022, the Company held a training on the theme of the "red line of integrity” to clearly publicize to all employeesand senior management the specific requirements and boundaries of integrity:
In 2022, we used our information platform to conduct integrity publicity:
The Company's publicity release on integrity during the Chinese New Year was read 17,588 times. The publicity ofNational Security Education Day was carried out on April 15th. The publicity release to publicize International Anti-Corruption Day on December 9th received 21,935 hits.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
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Whistleblowing MechanismWe encourage employees and external parties to reportincidents of corruption in our operations to our internalaudit department or Audit Committee, including bribery,extortion, fraud, money laundering, etc.To provide a secure whistleblowing channel for allstakeholders, TZE established the Management Regulationon Supervision to regulate the management of alltypes of complaints and whistleblowing. The Companyclearly provides a unified whistleblowing email address,mailing address, and telephone number to ensure directwhistleblowing channels. Our audit and supervisioninstitutions arrange for the incidents received by thewhistleblowing mailbox and telephone to be managedby a special team, which deals with the problem inaccordance with the problematic clues. All whistleblowingemails (including anonymous and real-name types) arerequired to be registered and replied to within 24 hours,and corresponding treatment opinions are requiredto be proposed in accordance with the content of thewhistleblowing and disposed of accordingly after approvalby the leadership. During the reporting period, theCompany did not receive any whistleblowing reports.Additionally, the Company protects whistleblowers.Information about the whistleblower including name,department, and company name is kept strictly confidential.When making an investigation or verification, the original orcopy of whistle-blowing materials and the whistleblowersare forbidden to be shown and exposed; the handwritingof anonymous whistle-blowing letters and materials areforbidden to be identified; whistle-blowing materialsare forbidden to be borrowed from external parties.Furthermore, retaliation against whistleblowers is strictlyprohibited. Those who illegally disclose the information ofwhistleblowers or retaliate against them shall be dismissedand their labor contracts shall be terminated, or theyshall be transferred to judicial authorities for punishmentaccording to relevant laws.
Reporting Procedures
◎Whistle-blowing cases are required to beregistered within 24 hours.
◎Whistle-blowing channels in TZE:
◎Audit and supervision institutions assigndedicated personnel or establish a specialteam to understand the situation, investigateand collect evidence
◎Complete the investigation and evidencecollection within the prescribed time, drawpreliminary conclusions, and report theconclusions to the management
◎Convene special meetings to review thereported cases and investigation results, andfind the solutions
◎Provide feedback to whistleblowers
◎Complete the filing of case materials andtransfer them to the archives administrationfor unified management and permanentpreservation of supervisory files
Telephone:23789766-3228Email:jubao@tzeco.com
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Intellectual Property ProtectionIntellectual property is an important component of a company's success and competitiveness. TZE adheres to the principlesof honesty and professionalism as the foundation of our business and strives to apply industry best practices to operationsthrough an intellectual property management system covering the whole life cycle of products.In the research and development process, we attach great importance to the protection of technological achievements.We form domestic and international patent layouts, prioritize patent quality, and cultivate high-value patents. The Companyhas formulated and implemented the Intellectual Property Management System and Patent Management Regulations basedon relevant regulations such as the Patent Law of the People's Republic of China, Detailed Rules for the Implementation ofthe Patent Law of the People's Republic of China, and Specifications for the Administration of Intellectual Property Rights ofEnterprises. We encourage our employees to invent and create independently, promote technological progress in production,and improve our market competitiveness and economic efficiency. For more information on R&D, please refer to section 1.3“Creating Low-Carbon Products”.TZE has established a "full lifecycle management system" for intellectual property and patents, conducting due diligenceinvestigations, and continuously monitoring intellectual property risks. We conduct risk assessments at multiple stagesincluding product research and development, production, launch, and export, and construct a safety protection network tosafeguard our own and others' intellectual property and continue to expand patent layout in the direction of high-quality "smartmanufacturing".TZE Intellectual Property
Application StatusNumberIntellectual Property Acquired1,223 Invention Patent149 Utility Model Patent1,035 Design Patent1 Integrated Circuit Layout Design21 Software Copyrights17Patent under Application747Note: TCL Huanxin Semiconductor (Tianjin) Co., Ltd has been changed into a joint-stock enterprise in May 2021, and was not included in the statistics of 2022. Inthis form, 69 intellectual property (33 invention patents and 36 utility model patents) obtained by TCL Huanxin Semiconductor (Tianjin) Co., Ltd. and 57 patents underapplication are deducted.
Reinforcing CorporateGovernance with Full Disclosureand Transparency
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2022 TZE Low-Carbon & Electricity-Saving PatentsPower consumption reduction gas guide device for single crystal furnace(Patent NO.: N202220433081.4)
Photovoltaic cell, imbricated cell string and photovoltaic module (Patent NO.:
ZL202222047583.6)
During the reporting period, we optimized the gas guiding structureinside the single crystal furnace and repurposed the circular graphitefelt used in the gas guiding structure after being cut into pieces bythe furnace bottom graphite felt, achieving the reuse of waste. Thistechnology achieves an average power reduction of 2 kW, resulting insignificant cost savings. If applied to 1,000 single crystal furnaces with anelectricity price of CNY 0.3 per kilowatt-hours and an effective operatingtime of 600 hours per month per furnace, a single furnace could saveCNY 360,0001 per month, resulting in an annual cost reduction of CNY
4.32 million.
Silver paste is used to conduct electricity through printing during the batteryproduction process. Component terminals are welded onto the silver paste totransmit current using conductive welding strips.This technology utilizes laser grooving to create slots in the main grid of solar cellsand embeds conductive welding strips inside, improving the quality and stability ofphotovoltaic cells while ensuring equipment precision. The welding strip replacesthe silver paste of the main grid, eliminating the process of printing the main gridsilver paste, resulting in an estimated cost reduction of CNY 0.289 per cell (CNY
0.029 per watt). Moreover, it enhances the reliability of the electrical connection
between the main grid and the auxiliary grid.Note: 1. Calculation formula of monthly cost reduction: 2kw*0.3 CNY/kWh*600h*1000.Information Security and Privacy Protection
To protect the security of the information system and prevent negative impact on customers, the Company and societyresulting from data breaches and network intrusions, the Company has developed the TZE Information Technology Resources,Data Security, and Communication System Policy in accordance with the Cybersecurity Law of the People's Republic of Chinaand other national laws and regulations. Also, we have prepared a series of procedural documents, operational guidelines, andrecord forms to establish a comprehensive information security management system.The Company has established a Digital Transformation Committee ("Digital Committee"), which has the Digital TransformationInformation Security Technical Group responsible for the design, operation, supervision, and assessment of the Company'snetwork and information security.Our Digital Committee conducts regular information security reviews and issues timely feedback reports on identifiedproblems. Additionally, for high-risk threats such as computer viruses, a semi-monthly risk report is issued, and regular systemrisk inspections across all aspects of information management are performed to eliminate vulnerabilities. The Digital Committeealso issues monthly summary report on system stability, security incidents, and system changes, which are further summarizedand analyzed in the quarterly and annual information security reports. During the reporting period, there were no significantinformation security incidents within the Company.In addition, TZE is actively promoting the certification of Graded Protection of Information Security to improve the informationsecurity management according to relevant standards. In 2022, Inner Mongolia and Ningxia production bases obtained thecertification of Graded Protection of Information Security for six important business systems. We are also leading the wayin obtaining ISO27001 certification. The Company's security team members have obtained multiple certifications, includingCertified Information Systems Security Professional (CISSP), Certified Information Systems Auditor (CISA), Certified DataPrivacy Security Expert (CDPSE), Certified Information Security Professional (CISP), etc., which provide reliable professionaltechnical support to the maintenance of our information security.
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To maintain awareness of employee against information security breaches, the Company sends quarterly email securitywarnings to employees during important meetings, major events, or major security incidents in the industry. In December 2022,the Company organized a network security emergency drill to improve the practical skills of technical personnel in handlingemergencies through the simulation of business interruption caused by system abnormality.In September 2022, TZE invited 360 (a cybersecurity company) to conduct on-site cyber security awareness training for ouremployees, with more than 1,000 employees participating, to reduce the risk of information security incidents caused byemployee negligence.The Company also conducts training on information security, conducts research and gap analysis on the information securitymanagement status of major manufacturing subsidiaries and platform subsidiaries. Then, we identify and fix securityvulnerabilities and rectify and repair them one by one.
Information Security Gap Analysis Project with QAXWe invited QAX to assess the current situation of our network and information security and released the InvestigationReport on TZE Network and Information Security, which evaluated aspects such as security management systemand organization, safe operation and maintenance of software and hardware, information security personnel trainingand network security. By benchmarking against the security requirements drafted by QAX, the report accuratelyidentified the Company's shortcomings in information security and formulated a blueprint for information securityconstruction for the next three years, along with detailed implementation plans.
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6.3 Risk Control
Risk Management System
TZE incorporates risk management into all links of our operations and implements special risk governance and internal auditsfor various risks to ensure proper risk management, continuous development and strict compliance with relevant complianceregulations. Additionally, a series of charters and codes have been established to regulate our operations, mitigate risksassociated with operational procedures and ethical constraints, and achieve sustainable development.To manage the regular risks in our daily operation, we take practical and effective measures to make improvements in riskprevention and control, potential dangers identification, and routine management by implementing policies and systems thatapply to each functional department. This ensures that the Company's strategies are properly promoted, and potential risks areprevented.
With rapidly evolving and emerging risks, the Company regularly issues an internal "Bi-monthly Risk Management Bulletin" toidentify the latest developments in emerging global risks and opportunities. During the reporting period, we have identifiedemerging risks and opportunities, including geopolitics, climate change, biodiversity, energy and carbon, labor humanrights, sustainable supply chains, health events, exchange rate changes, and ESG-related policies and regulations. We haveused quantitative data to conduct a stress analysis of our operations to forecast changes in our operating environment andconditions. We have also assessed trends and development of risks in the short, medium and long term to explain the potentialimpact on the Company's financial and strategic decision and to further develop corresponding measures according to theassessment results. Climate-related risks and opportunities have been disclosed in accordance with the TCFD framework, asdetailed in section 1.1 “Our Actions towards Climate”.
各职能部门合规管理部董事会审计委员会
◎Resoponsible for internal auditsand management in respectof the business risks andopportunities in accordancewith the system
◎Identify risks timely,strengthen self-control andbusiness controls to reduce theprobability of risk occurrence
◎Design a compliance and timelyfeedback system to effectivelymanage risk throughout the"pre-exe n - execution - post-execution" cycle for eachfunction
◎Conduct regular internalreviews to prevent potentialrisks
◎Supervise the Company'scompliance review, review theCompany's risk assessmentreports to ensure the effectiveimplementation of riskmanagement measures
Compliance Mangement DepartmentAudit CommitteeFunctional Departments
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ESG Key Quantitative PerformanceIssuesIndicators For Quantitative DisclosureUoM202220212020
Economy
Total assets at the end of the periodCNY 100 million1,091.34779.79587.2Operating revenueCNY 100 million670.10411.05190.57Net profitCNY 100 million68.1940.3010.89Earnings per shareCNY2.121.31620.3770Cash dividendsCNY 10K39,093.7835,549.0718,197.56Cash dividend planCNY / every 10 shares1.01.10.6
Greenhousegas emissions
Scope 1 and Scope 2 emissionstCO2e4,890,931.533,774,515.00-Scope 1 emissionstCO2e32,260.6220,597.00-Scope 2 emissionstCO2e4,858,670.903,753,918.00-Scope 1 and Scope 2 emissions IntensitytCO2e/ CNY 10K0.730.92-Scope 1 emissions intensitytCO2e/ CNY 10K0.0050.005-Scope 2 emissions intensitytCO2e/ CNY 10K0.730.91-
Energymanagement
Natural gascbm3,867,760.00 2,880,687.82806,550.70Steamcbm28.42 99,613.5527,594,561.30Total electricity consumptionMWh5,268,918.42 4,414,449.083,067,424.01Electricity purchased (green electricitynot incl.)
MWh5,229,462.76--Green electricityMWh39,455.66 --Energy intensityMWh/CNY 10K0.791.071.61Investment of resources conservationCNY28,657,500.00 --Electricity saved through electricityconservation projects
kWh50,214,528.14--
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IssuesIndicators For Quantitative DisclosureUoM202220212020
Exhaust gasmanagement
Exhaust gas10K cbm989,733.63 403,632.85 499,187.54Nitrogen oxide (NOx)kg30,912.53 95,866.29 16,464.16Sulphur dioxide (SO2)kg2,105.68 0.00 408.35
Watermanagement
Total water consumptioncbm22,449,908.20 29,410,088.00 14,195,157.56Water derived from municipal watersupply system
cbm15,799,622.20 10,677,112.00 7,299,259.31Total amount of water recyclingcbm391,631,864.20 562,662,547.00 16,774,292.00Water intensitycbm/CNY 10K3.357.157.45Water saved through water conservationprojects
metric tons12,343,487.20 --Total wastewater discharge10K cbm1,433.52 1,122.62 941.90Chemical oxygen demand (COD)kg1,268,896.00 --Ammonia nitrogenkg57,961.54 --Suspended solids (SS)kg728,761.30 --
Solid wastemanagement
Hazardous wastemetric tons1,637.02 1,050.212,968.88Industrial solid wastemetric tons135,222.67 75,208.50 67,020.49Recycled/reused solid wastemetric tons130,187.08 --Solid waste recycling rate%95.12--Packaging materials metric tons13,318.43 11,978.00 7,670.47Recycled packaging materials metric tons2,582.46 289.30 185.40of finished metric tons13,318.43 11,978.00 7,670.47productsmetric tons2,582.46 289.30 185.40Renewable materials of main productsand services
metric tons5,299.76 --
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
IssuesIndicators For Quantitative DisclosureUoM202220212020
R&D
R&D investmentCNY 10K377,100257,653.9290,921.98Proportion of R&D expenditure inoperating revenue
%5.626.274.77Proportion of R&D employees in totalemployees
%7.2088.64Number of patentspiece1,223975732Number of patents for inventionpiece149154127Number of utility model patentspiece1,035797582Number of design patentspiece1--Number of integrated circuit layoutdesign
piece21--Number of software copyrightspiece17--Number of patents under applicationpiece747613518
Productquality
First pass yield of products%Module: 999693Crystal & Wafer: 9796939401,042Quality feedback frequencytime5969401,042General quality feedback frequencytime419414705Major quality feedback frequencytime150
Productresponsibility
Customer satisfaction rate%94--Number of customer complaintstime927--Complaint response rate%100--Total training hours for customer servicequality
hour2,825--
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IssuesIndicators For Quantitative DisclosureUoM202220212020
Employment
Number of employeesperson17,39013,37110,258By age group: 30 and belowperson9,4996,3864,904By age group: 31-50person7,7586,8515,236By age group: 51 and aboveperson133134118By ethnic group: the Han person15,89212,3599,572By ethic group: ethnic minorityperson1,4981,012686Proportion of male employees%81.4381.2779.26Proportion of female employees%18.5718.7320.74Proportion of female executives%26.193030Number of employees in need receivingassistance
person5522933
Developmentand training
Proportion of trained employees in totalemployees
%32.6364.9524.3By gender: male employees%78.0882.6376.3By gender: female employees%21.9217.3723.7By function: management%5.274.4841.6By function: professional%37.7444.792.5By function: technology%34.1540.6324.2By function: marketing%2.272.201By function: operation%20.567.9030.7Average training hours of all employeeshour/person32.6528.7826.8By gender: male employeeshour/person32.2528.0626.2By gender: female employeeshour/person34.3632.1628.9By function: managementhour/person23.1620.0933.4By function: professionalhour/person11.01.5422.3By function: technologyhour/person3.351.3624.2By function: marketinghour/person0.890.5128.2By function: operationhour/person42.69314.6020.3Number of courses at the online learningplatform
course2,4731,093910Number of traineesperson145,460136,47684,968
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
IssuesIndicators For Quantitative DisclosureUoM202220212020
Occupationalhealth andsafety
Coverage of physical exam%100100100Number of employees who died caused by work injuriesperson000Number of work injuriescase5727Lost time injury rate (per 1,000,000 hours worked)%0.12--Number of safety education and training activitiestime375709413Number of emergency drillstime298271112
Corporategovernance
Number of directors in the Board of Directorsperson999Number of female directors in the Board of Directorsperson444Proportion of female directors in the Board of Directors%444444Number of independent directors in the Board of Directorsperson333Proportion of independent directors in the Board of Directors%333333Number of general meetings of shareholderstime344Number of meetings by the Board of Directorstime91722Number of meetings by the Board of Supervisorstime9912Number of meetings by special committees of the Board ofDirectors
time151623Complianceand anti-corruption
Number of completed corruption lawsuits filed against the issuer orits employees
case000Number of employees receiving anti-corruption trainingperson17,3901,300270Proportion of suppliers signed Code of Conduct%95--Note:
1.Source of environmental statistical data: the 14 subsidiaries of TZE Renewable Energy Technology Co., Ltd. (please see the List of Subsidiaries for detail
information). The statistics of greenhouse gas emissions include all subsidiaries and their supporting facilities. Statistics of other environmental data in 2022 includeonly subsidiaries while those of Huanzhi in 2022 include the company itself and its canteen.
2.In 2022, the emission (total wastewater discharge, exhaust gas, hazardous waste, and industrial solid waste) increased significantly compared with that in 2021 as
the Company expanded its production with rising production capacity. The decrease in steam consumption was due to the change of TCL Huanxin Semiconductor(Tianjin) Co., Ltd to a joint-stock enterprise company in May 2021, which is not included in the 2022 statistics.
3.The GHG emission statistics for the GHG categories include CO 2, CH 4, N 2O, HFC s, PFC s, SF 6, NF 3 and follow the ISO 14064-1:2018 Greenhouse gases
— Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. In this report, ‘Scope 1’represents Category 1 of ISO 14064-1:2018: Direct GHG emissions and removal. ‘Scope 2’ represents Category 2 of ISO 14064-1:2018: Energy indirect GHGemissions.
4.The calculation formular of energy intensity is “Energy Intensity=Total Electricity Consumption/ Operating Revenue”. The calculation formular of water intensity is
“Water Intensity=Total Water Consumption/ Operating Revenue”.
5.TCL Huanxin Semiconductor (Tianjin) Co., Ltd has been changed into a joint-stock enterprise in May 2021, and was not included in the statistics of 2022. In this
report, 69 intellectual property (33 invention patents and 36 utility model patents) obtained by TCL Huanxin Semiconductor (Tianjin) Co., Ltd. and 57 patents underapplication are deducted.
6.Orientation training for new employee hires is not included in the employee training data.
7.The formula for calculating the average training hours per employee category in this report is "Average training hours per employee category = Total number of
training hours provided to each category of employees / Total number of employees in category " according to the GRI requirements.
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Independent Assurance Statement
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Reinforcing CorporateGovernance with Full Disclosureand Transparency
Devoting to SocialService and PublicWelfareEmbracing ExcellentTalents to Chase theEnergy of Sunlight
A Value-OrientedStrategy for a BrighterTomorrow
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
Global Reporting Initiative (GRI) Content Index
Statement of useGRI usedAppliable GRI Sector StandardsTZE has reported in accordance with the GRI Standards for the periodfrom 1st January 2022 to 31st December 2022.
GRI 1: Foundation 2021No appliable GRI Sector Standards
GRI StandardDisclosure itemPage
GRI 2: General Disclosures 2021
2-1Organizational detailsAbout the Report2-2
Entities included in the organization’s sustainabilityreporting
List of Subsidiaries2-3Reporting period, frequency and contact pointAbout the Report2-4Restatements of informationESG Key Quantitative Performance2-5External assuranceIndependent Assurance Statement2-6
Activities, value chain and other businessrelationships
Entering TZE2-7EmployeesP682-8Workers who are not employeesNone2-9Governance structure and compositionP892-10
Nomination and selection of the highest governancebody
P892-11Chair of the highest governance bodyP892-12
Role of the highest governance body in overseeingthe management of impacts
P202-13Delegation of responsibility for managing impactsP202-14
Role of the highest governance body in sustainabilityreporting
P202-15Conflicts of interestP922-16Communication of critical concernsP20
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GRI StandardDisclosure itemPage
GRI 2: General Disclosures 2021
2-17
Collective knowledge of thehighest governance body
P202-18
Evaluation of the performance ofthe highest governance body
P76走P912-19Remuneration policiesP76走P912-20
Process to determineremuneration
P89走P912-22
Statement on sustainabledevelopment strategy
P162-23Policy commitmentsP162-24Embedding policy commitmentsP162-25
Processes to remediate negativeimpacts
P992-26
Mechanisms for seeking adviceand raising concerns
P32-27
Compliance with laws andregulations
None. Please refer to P962-28Membership associationsP392-29
Approach to stakeholderengagement
P222-30Collective bargaining agreementsP762-30Collective bargaining agreementsP64GRI 3: Material Topics 2021
3-1
Process to determine materialtopics
P233-2List of material topicsP25
GRI 201: Economic Performance 2016
201-1
Direct economic value generatedand distributed
P6, P8201-2
Financial implications and otherrisks and opportunities due toclimate change
P27-30201-3
Defined benefit plan obligationsand other retirement plans
P74
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
GRI StandardDisclosure itemPageGRI 202: Market Presence 2016202-2
Proportion of senior managementhired from the local community
P69GRI 203: Indirect Economic Impacts 2016
203-1
Infrastructure investments andservices supported
P85203-2
Significant indirect economicimpacts
P85GRI 204: Procurement Practices 2016204-1
Proportion of spending on localsuppliers
P64
GRI 205: Anti-corruption 2016
3-3Management of material topicsP96205-1
Operations assessed for risksrelated to corruption
P96-98205-2
Communication and trainingon anti-corruption policies andprocedure
P96205-3
Confirmed incidents of corruptionand actions taken
None. Please refer to P99GRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitivebehavior, anti-trust, and monopolypractices
None. Please refer to P97
GRI 207: Tax 2019
207-1Approach to taxP93207-2
Tax governance, control, and riskmanagement
P93207-3
Stakeholder engagement andmanagement of concerns relatedto tax
P93207-4Country-by-country reportingP93GRI 301: Materials 2016
301-1
Materials used by weight orvolume
P55301-2Recycled input materials usedP55301-3
Reclaimed products and theirpackaging materials
P51
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GRI StandardDisclosure itemPage
GRI 302: Energy 2016
3-3Management of material topicsP43302-1
Energy consumption within theorganization
P44302-1
Energy consumption within theorganization
P44302-3Energy intensityP44302-4
Reduction of energyconsumption
P44
GRI 302: Energy 2016
3-3Management of material topicsP43303-1
Interactions with water as a sharedresource
P41-43302-1
Energy consumption within theorganization
P44302-3Energy intensityP44302-4Reduction of energy consumptionP44302-5
Reductions in energy requirementsof products and services
P37-38, P101
GRI 304: Biodiversity 2016
304-1
Operational sites owned, leased,managed in, or adjacent to,protected areas and areas ofhigh biodiversity value outsideprotected areas
None. Please refer to P42304-2
Significant impacts of activities,products and services onbiodiversity
None304-4
IUCN Red List species andnational conservation listspecies
None
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
GRI StandardDisclosure itemPage
GRI 305: Emissions 2016
3-3Management of material topicsP46305-1Direct (Scope 1) GHG emissionsP28305-1Direct (Scope 1) GHG emissionsP46-48305-2
Energy Indirect (Scope 2) GHGemissions
P49-51305-4GHG emissions intensityP49305-5Reduction of GHG emissionsP50
GRI 306: Waste 2020
3-3Management of material topicsP53306-1
Waste generation and significantwaste-related impacts
P53-55306-2
Management of significant waste-related impacts
P54306-3Waste generatedP54306-4Waste diverted from disposalP54306-5Waste directed to disposalP54GRI 308: Supplier EnvironmentalAssessment 2016
3-3Management of material topicsP62308-1
New suppliers that were screenedusing environmental criteria
P63308-2
Negative environmental impacts inthe supply chain and actions taken
None. Please refer to P63
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GRI StandardDisclosure itemPage
GRI 401: Employment 2016
401-1
New employee hires and employeeturnover
P69401-2
Benefits provided to full-timeemployees that are not providedto temporary or parttimeemployees
P64-65401-2
Benefits provided to full-timeemployees that are not providedto temporary or parttimeemployees
P74GRI 402: Labor/Management Relations 2016402-1
Minimum notice periods regardingoperational changes
P67
GRI 403: Occupational Health and Safety2018
3-3Management of material topicsP78403-1
Occupational health and safetymanagement system
P78403-2
Hazard identification, riskassessment, and incidentinvestigation
P79-80403-3Occupational health servicesP80403-4
Worker participation, consultation,and communication onoccupational health and safety
P81403-5
Worker training on occupationalhealth and safety
P80403-6Promotion of worker healthP80403-7
Prevention and mitigation ofoccupational health and safetyimpacts directly linked by businessrelationships
P80403-8
Workers covered by anoccupational health and safetymanagement system
P78403-9Work-related injuriesP79403-10Work-related ill healthP80
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
GRI StandardDisclosure itemPage
GRI 404: Training and Education 2016
3-3Management of material topicsP70404-1
Average hours of training per yearper employee
P71404-2
Programs for upgrading employeeskills and transition assistanceprograms
P70-73404-3
Percentage of employees receivingregular performance and careerdevelopment reviews
P76, P91GRI 405: Diversity and Equal Opportunity2016
405-1
Diversity of governance bodiesand employees
P68, P90GRI 406: Non-discrimination 2016406-1
Incidents of discrimination andcorrective actions taken
P67GRI 407: Freedom of Association andCollective Bargaining 2016
407-1
Operations and suppliers in whichthe right to freedom of associationand collective bargaining may beat risk
P76GRI 408: Child Labor 2016408-1
Operations and suppliers atsignificant risk for incidents ofchild labor
None. Please refer to P67GRI 409: Forced or Compulsory Labor 2016409-1
Operations and suppliers atsignificant risk for incidents offorced or compulsory labor
None. Please refer to P68
GRI 413: Local Communities 2016
413-1
Operations with localcommunity engagement,impact assessments, anddevelopment programs
P85413-2
Operations with significantactual and potential negativeimpacts on local communities
None. Please refer to P42
GRI 414: Supplier Social Assessment 2016
3-3
Management of materialtopics
P60-61414-1
New suppliers that were screenedusing social criteria
P61414-2
Negative social impacts in thesupply chain and actions taken
None. Please refer to P61, P64
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GRI StandardDisclosure itemPage
GRI 416: Customer Health and Safety 2016
3-3Management of material topicsP57414-1
New suppliers that were screenedusing social criteria
P54416-1
Assessment of the health andsafety impacts of product andservice categories
None
GRI 417: Marketing and Labelling 2016
417-1
Requirements for product andservice information and labelling
P57-58417-2
Incidents of non-complianceconcerning product and serviceinformation and labeling
None417-3
Incidents of non-complianceconcerning marketingcommunications
NoneGRI 418: Customer Privacy 2016
3-3Management of material topicsP60417-2
Incidents of non-complianceconcerning product and serviceinformation and labeling
P51
Others: R&D and Innovation
3-3Management of material topicsP7418-1
Substantiated complaintsconcerning breaches of customerprivacy and losses of customerdata
P90
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
The Guidelines for Social Responsibilities of ListedCompanies issued by Shenzhen Stock Exchange ContentIndex
Articles of the Guidelines for Social Responsibilities of Listed Companiesissued by Shenzhen Stock Exchange
Chapters in the ReportChapter 1 General ProvisionsArticle 2Sustainable Development ConceptArticle 3Sustainable Development ConceptArticle 46.2 Business EthicsArticle 5About the ReportChapter 2 Protection of the Rights and Interests of Shareholders and CreditorsArticle 76.1 Efficient GovernanceArticle 86.1 Efficient GovernanceArticle 96.1 Efficient GovernanceArticle 10 6.1 Efficient GovernanceArticle 116.1 Efficient GovernanceArticle 126.1 Efficient GovernanceChapter 3 Protection of the Rights and Interests of EmployeesArticle 134.4 Protecting Employee RightsArticle 14 4.4 Protecting Employee RightsArticle 154.5 Safeguarding Employee HealthArticle 164.4 Protecting Employee RightsArticle 174.1 Focusing on People-OrientedArticle 184.3 Boosting Employee GrowthArticle 194.4 Protecting Employee RightsChapter 4 Protection of the Rights and Interests of Suppliers, Customers and ConsumersArticle 203.1 Achieving Excellence in QualityArticle 213.1 Achieving Excellence in QualityArticle 223.1 Achieving Excellence in QualityArticle 233.3 Fostering a Responsible Supply ChainArticle 246.2 Business Ethics
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Articles of the Guidelines for Social Responsibilities of Listed Companiesissued by Shenzhen Stock Exchange
Chapters in the ReportArticle 253.2 Serving Global CustomersArticle 263.2 Serving Global CustomersChapter 5 Environmental Protection and Sustainable DevelopmentArticle 272.1 Promoting Ecological HarmonyArticle 282.2 Strengthening Resource ManagementArticle 292.3 Promoting Green and Intelligent ManufacturingArticle 302.3 Promoting Green and Intelligent ManufacturingArticle 312.1 Promoting Ecological Harmony 2.2 Strengthening Resource ManagementChapter 6 Public Relations and Social Welfare UndertakingsArticle 32
5.1 Committing to Social Responsibility
5.3 Encouraging Engagement in Public Welfare
Article 33
5.1 Committing to Social Responsibility
5.2 Innovating Public Service Practice
5.3 Encouraging Engagement in Public Welfare
Article 345.3 Encouraging Engagement in Public WelfareChapter 7 System Development and Information DisclosureArticle 35Sustainable Development GovernanceArticle 36About the Report
EnteringTZE
Sustainable Development Performance
AnnualFeature
Sustainability Philosophyand Governance
Exploring the Essence ofCarbon Reduction and Intelligent Manufacturing
List of SubsidiariesNoFull name of companyAbbreviation of this report
1.
Tianjin Zhonghuan Advanced Material Technology Co.,Ltd
Tianjin Zhonghuan Advanced
2.Tianjin Huanzhi New Energy Technology Co., LtdHuanzhi3.
Tianjin Huanou Semiconductor Material Technology Co.,Ltd
Huanou
4.Ningxia Zhonghuan Solar Materials Co., Ltd.Ningxia Zhonghuan
5.Inner Mongolia Zhonghuan Crystal Material Co., Ltd.Zhonghuan Crystal6.
Inner Mongolia Zhonghuan Advanced SemiconductorMaterial Co., Ltd.
Inner Mongolia Zhonghuan Advanced7.
Inner Mongolia Zhonghuan Photovoltaic Materials Co.,Ltd.
Zhonghuan Photovoltaic
8.Wuxi Zhonghuan Applied Materials Co., Ltd.Zhonghuan Applied Materials
9.Zhonghuan Advanced Semiconductor Materials Co., Ltd.Zhonghuan Advanced10.Huansheng Photovoltaic (Jiangsu) Co., Ltd.Huansheng
11.Huansheng New Energy (Jiangsu) Co., Ltd.Huansheng Jiangsu
12.Huansheng New Energy (Tianjin) Co., Ltd.Huansheng Tianjin
13.Tianjin Huanou New Energy Technology Co., Ltd.Huan0u New Energy
14.Tianjin Zhonghuan New Energy Co., Ltd.Zhonghuan New Energy