Environmental, Social and Governance Report2022
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD.
About HikvisionMessage from the Management
Appendix 1: KPI Tables
Key Operating PerformanceKey Environmental PerformanceKey Social Performance
Appendix 2: GRI Content IndexAbout This Report
Low-carbon Operations and Green DevelopmentOptimizing Environmental Management SystemPromoting Green and Low-carbon ProductionAdvocating Green and Low-carbon OperationsEmpowering Products with Green TechnologyTaking Environmental Actions
Continuous Innovation and Quality OrientationDriving Technological InnovationAssuring Product QualityDelivering Quality ServicesCybersecurity Propositions and Actions
Steadily Advancing Corporate GovernanceEstablishing Compliance EcosystemEnsuring Business Continuity
Optimized Governance and Robust OperationsGovernance Responsibility
Partner Responsibility
Employee Responsibly
Environmental Responsibility
Product Responsibility
Community Responsibility
ESG ManagementESG Management Philosophy and FrameworkESG Honors and AwardsStakeholder EngagementIdentification of Material Issues
Technology for Goodwill,Creating Social Value as an Enterprise
Good SocietyGood IndustryGood HabitatGood Planet
Close Partnership and Shared SuccessBuilding a Responsible Supply ChainDriving Coordinated Industry Development
Public Welfare and Social Good
CONTENTS
Employee Care and Common ProgressRespecting Diversity and InclusionSafeguarding Employee Rights and BenefitsGrowing Together with EmployeesProtecting Employees' Health and SafetyNurturing a Vibrant Corporate Culture
About HikvisionLeading the Future of AIoTHikvision is committed to serving various industries through its cutting-edge technologiesof multi-dimensional perception, arti?cial intelligence, and big data, leading the future ofAIoT: through comprehensive machine perception technologies, we aim to help peoplebetter connect with the world around them; with a wealth of intelligent products, we striveto identify and satisfy diverse demands by delivering intelligence at your ?ngertips;through innovative AIoT applications, we are dedicated to empowering every individual toenjoy a better future by building an intelligent world that is more convenient, ef?cient andsecure.
About HikvisionMessage from the ManagementGovernance ResponsibilityProduct ResponsibilityEnvironmental ResponsibilityEmployee ResponsiblyPartner ResponsibilityCommunity ResponsibilityAppendix 1Appendix 2About This ReportESG ManagementTechnology for Goodwill
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2022 Environmental, Social and Governance Report01
Message from the Management
Milton Friedman, an American economist,proposed a notion in September 1970: "TheSocial Responsibility of Business is to IncreasePro?ts". It has provided ?rms with an incentive –which is also a social responsibility – to boostpro?ts while also sparking extensive discussions.Today, when it comes to sustainable develop-ment, we naturally consider both increasingpro?ts and producing social value. Pro?t is thecornerstone of a business, and without it, nobusiness can survive. Sustainable developmentwithout the support of pro?ts is like water withouta source. However, making pro?ts is far fromenough.Over the past two decades of commercial practic-es, Hikvision has integrated the simple principle of"no harm" into its business planning. Years ago,the topic about whether to launch the pinholecamera was brought up, but the idea was rejectedby the Company owing to potential privacyconcerns. Since then, we have never attempted toset foot in this segment. The bottom line of ourbusiness is to be "harmless" to social responsibili-ty and ethnics, as well as to the environment and
mankind. On this premise, we wish to take a stepfurther by achieving greater social value.We have come to realize that social value is morethan a halo ?oating over commercial interests. Infact, in the process of pursuing social value,commercial value will come along as well. Thepast few years have witnessed our continuedefforts to innovate technologies and products inorder to help maintain public safety, ensure safetyand smooth traf?c, and improve enterprises’operational ef?ciency... While delivering value tocustomers and society, we have also receivedcommercial returns.In the meantime, we are well aware that socialvalue is not just a matter of right or wrong, and thedeterminants of social value in speci?c events arecomplicated. It hence necessitates constantre?ection and examination of our operations, aswell as insistence on doing the right thing anddoing things right.See far, go further.
Chief Compliance Officer (COO), HikvisionHuang Fanghong
April 2023
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About HikvisionMessage from the ManagementGovernance ResponsibilityProduct ResponsibilityEnvironmental ResponsibilityEmployee ResponsiblyPartner ResponsibilityCommunity ResponsibilityAppendix 1Appendix 2About This ReportESG ManagementTechnology for Goodwill
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Technology for GoodwillCreating Social Value as an Enterprise
As a technology company dedicated to innovation, we havedefined our corporate mission as "good perception, forwardthinking". The "good" here means being good at something,which requires us to constantly improve technology andseek progress through long-term accumulation, that is, thecraftsmanship of insisting on producing the best products;the "good" also refers to goodwill, which is to benefit societywith science and technology, integrate social responsibilityand sustainable development into our business operations,and cling to good deeds in the process of development. Wepursue the advancement of ourselves and our partners, withthe goal of attaining great social wellbeing, addressingsocial issues, and resolving problems for users.
Good Society Good Industry Good Habitat Good Planet
Despite the changing times, our ambition for technologicalinnovation and business exploration based on social valuestays unchanged. We believe "being good at makingtechnology" is important, but "making good technology" isalso important. Now that our AIoT capabilities are applied ineducation, energy, agriculture, transportation, medicalcare, culture, water conservancy, environmental protection,social emergency response and other scenarios, thesethousands of industries are where we are workingdown-to-earth. At the same time, we are pleased to observethat children living in poor and rural areas have access tomore educational resources, visually impaired people feelsafer crossing roads, crab farmers wear a bright smile duringthe harvest season, coal miners are better protected whenworking 300 meters underground, cultural relics with a
history of thousands of years enjoy more intelligentconservation, and convenient and orderly traffic is seen inmore cities...We agree that an enterprise’s most pragmatic contributionto society is to do what it is good at: producing exceptionaltechnological products and improving the operationalefficiency of society as a whole. We also believe thatinjecting goodwill into products and allowing business totake root in the soil of goodwill is the only path towardssustainable development, as well as the due socialresponsibility of a corporate. Therefore, we are eager topartner with more like-minded people and gather moregoodwill in science and technology, empowering a moresustainable and better future.
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Good SocietyAs businesses are an integral part of society, technology firms are expectedto play a greater role in creating a better life and greater wellbeing. With thedevelopment of AIoT and other technologies, Hikvision intends to providemore protection and assistance to disadvantaged groups. Through techno-logical innovation, we tailor a variety of products and solutions for theelderly, the young, the disabled, and the sick, securing a smarter and moreconvenient environment where they can live a safe and happy life.
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HIKVISION
Population aging is a defining global trend of our time. In itsWorld Social Report 2023, the United Nations Department ofEconomic and Social Affairs stated that in order to achievea sustainable future, the rights and wellbeing of olderpersons must be put as a priority. Therefore, we providetechnical support for the elderly to enjoy their goldenyears. Nursing institutions are offered intelligent andconvenient assistance to support their efficient serviceand the elderly who live at home are given more thoughtfulattention and protection, so that more elderly people couldenjoy a more secure life.
According to statistics by the National Health Commission,by the end of 2021 China’s elderly population aged 60 andabove reached 267 million, accounting for 18.9% of the totalpopulation, indicating the increasingly significant trend ofpopulation aging. As a result, more and more families arefaced with the challenge of caring for the elderly. How toprevent potential safety hazards that may arise when theelderly live at home alone is a problem that we must addresstogether.Hangzhou EZVIZ Network Co., Ltd. (EZVIZ Network), asubsidiary of Hikvision, has launched a solution of"home-based care services for the elderly". IoT perceptionand intelligent algorithms are applied to detect old people’sunusual activities such as falling down in a timely manner.When detecting abnormalities, the system will immediatelynotify family members, so as to better protect the elderlyliving alone with remote health monitoring technology.This solution is designed to make early warnings about thepotential threats to the elderly commonly seen at home. Ineveryday life scenarios where the risk of falling is high, itcan accurately detect any fall using multi-dimensionalposture data. Long-term inactivity can be recognized aswell. When it finds an older person has not moved for a longtime, an alert message will be sent to the user. Once anyproblem is detected, users will be notified by phone call
within 30 seconds. The system provides basic functions
such as real-time video display, video recordings, andtwo-way chats. It can be used for remote nursing in living
Provision for the Elderly
Service time:
Timeliness of the alerting service:
Smart notification by phone call
within 30 seconds
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room, bedroom and other common locations, allowing usersto learn about the conditions of the elderly in a convenientand timely manner.At the same time, EZVIZ Network is also introducingthird-party services such as online consultation and homedelivery of medicines for the elderly. The service packageincludes two kinds of care services – "autonomous care"and "companion care". Through the combination of intelli-gent hardware + software platforms + third-party compan-ions, we offer 7/24 elderly nursing services featuringwhole-process care, full recordings, considerate emotionalassistance, and all-round health management.
Remote accompanying and health monitoring make the elderly safer at home
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Care for the Young
According to incomplete statistics by the National Health Commission and the Ministry of Public Security, children account formore than half of the annual drowning deaths in China, making drowning a far more deadly threat than injuries caused bytraffic accidents and falls. To reduce drowning incidents, drowning prevention education, and river and embankment patrolbecome an important part of teachers’ work during the summer vacation in many parts of the country.Starting from 2021, Yichun City in Jiangxi Province worked with Hikvision to build an intelligent anti-drowning supervisionplatform throughout the city, and implemented a risk identification and anti-drowning scheme at most of the dangerouswaters. Through locally placed intelligent sensing equipment, the platform intelligently monitors the surrounding dangerouswaters in real time, generates voice broadcasts on the spot to warn students to stay away from the dangerous waters, and atthe same time sends alarm to the corresponding safety administrators in community and safety tutors in school. Theanti-drowning network powered by this intelligent solution not only reduces the workload of teachers and communityworkers, but also improves the effect of anti-drowning efforts and ensures the safety of more children.By the end of the reporting period, the platform had been applied in a number of counties in Yichun City, Jiangxi Province,including Wanzai, Yifeng, Fengxin, Jing’an, Tonggu, Zhangshu, and Fengcheng, covering more than800 drowning preventionspots. The platform had persuaded people to leave the unsafe waters more than 100,000 times throughout the reportingperiod.
Weaving a safety protection net that keeps students from drowningCase
The health and safety of teenagers - the hope of thefuture – is a major social concern. Given that drowningand road accidents are the leading causes of youthcasualties, Hikvision continues to work extensivelywith stakeholders such as the government and schoolsto establish a multi-point safety protection networkthat encompasses risk point identification andmonitoring, safety accident warning and reporting, andother functions to support the healthy growth of youngpeople.
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Assistance for the Disabled
At least 2.2 billion people around the world are visually impaired or blind, according to the WHO’s World Report on Vision. InChina, there are more than 17 million people with a visual impairment, which means there is one "walker in the dark" in every 80people. This huge population needs a more convenient living environment.In Nanning, Guangxi, Hikvision and the local traffic police have built a "smart crosswalk" system in the downtown area thatserves the visually impaired. The system has built-in tactile paving in crosswalk and equipped with IoT sensors. When a visuallyimpaired individual wearing a chip bracelet crosses the street, the devices at both ends of the crosswalk can accuratelyrecognize him or her and activate the intelligent directing system. The phrase "Please let pedestrians cross the street first" willthen appear on the LED display, with a warning light flashing and a voice prompt playing to remind passing vehicles to slowdown and allow pedestrians the right of way. When persons with vision impairments cross the street at night, the early warningequipment at both ends of the crosswalk will additionally emit red light curtains to their legs, so that motorists can betteridentify the crossing pedestrians.The system has allowed over100 blind masseurs working innearby massage parlors to enjoy the convenience brought bytechnology. Since then, they have been more intelligentlyguided and felt more secure when crossing busy streets.Moreover, it encourages local residents to be more respect-ful and understanding of the visually impaired.
The smart crossing systemis the best gift for me andmy colleagueson October 15th,the White Cane Safety Day."Scan the QR codefor more information (in Chinese)
CaseSmart crosswalk makes it safer for "walkers in the dark" to cross roadsBarrier-free facilities demonstrate a city’s warmth andinclusiveness, and it is the collective obligation ofsociety to establish a barrier-free community. Hikvisionthus aims to establish a convenient, friendly, comfort-able and intelligent living environment, with activeattempts in barrier-free facility construction,information exchange, community services, and manyother areas, helping people with disabilities partici-pate in social life on an equal footing.
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Treatment for the Illness
In 2022 the total number of hospital visits reached 8.40 billionacross China, with 250 million discharged patients, accordingto data from the National Bureau of Statistics. With such avast number of medical demands, more efficient smarthospitals are required.In Guangdong Province, Guangzhou Hospital of IntegratedTraditional and West Medicine has teamed up with Hikvisionon a digital transformation of outpatient clinics, inpatientwards, logistical management, command centers and otherscenarios, benefiting patients and hospital staff with newchanges that technology brings to medical services andexperience.Outpatient services are supported by intelligent access andsecurity inspection equipment, allowing patients to enter thehospital in a quick and safe manner. Also, a pattern in patientvisits is described using statistical analysis of outpatientvisits, visit peaks, and retention volume to assist people flowoptimization and dynamic management.In inpatient wards, a patient may initiate a service request bypressing the alarm button in the bathroom or the bedside
Establishing digital hospitals tolet patients feel more at ease during medical treatment
display, and the request is sent straight to the screen atward door/corridor, the nurse station managementsystem/monitoring display, and the smart watches worn bynurses. This enables nurses to instantly receive the call andmake a rapid response, no matter where they are. Intelligentinfusion equipment is installed to monitor infusion dripspeed in real time and to send a warning to the nurses onduty when it detects that the infusion speed is irregular orthe infusion is about to end, in case a patient finds it hard tocall a nurse once the infusion is finished. Through the digitalscreen at the nurse station, physicians and nurses may gaina thorough picture of the ward, the detailed staff schedul-ing, and the nursing emphasis of each patient. This improvesmedical services for inpatients, medical staff’s diagnosisand treatment, as well as ward administration.In 2022, Guangzhou Hospital of Integrated Traditional andWest Medicine received over 1.255 million outpatient visitsand 36,000 inpatient visits. With the application of moredigital technologies, the hospital has continued to improveits management and operation, making medical work moreefficient and patients more comfortable.
Medical care is inextricably related to everyone’s life.Smarter hospitals provide a more comfortable andefficient medical environment, and thus better ensurethe health of the public. Hikvision’s business mission isto improve the medical experience and the efficiencyof medical professionals, which inspires it to continu-ously help propel the high-quality development ofmedical services through digital technology-basedproducts and solutions.
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As a bright future depends on industrial prosperity, accelerating the indus-try’s high-quality development is key component of the sustainable devel-opment strategy. Hikvision continues to boost the digital upgrade andtransformation in the industry harnessing its AIoT technology, assistingorganizations in ensuring comprehensive security and improving operationalefficiency. With such efforts, we aspire for safer and more efficient produc-tion by providing a more comfortable working environment.
Good Industry
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Work Safety
"Safety is the top priority in the development of allindustries". Hikvision continues to explore intelligentmeans to help enterprises lower safety risks, reducework safety accidents, and guarantee work continuitythrough comprehensive perception of people,machines, objects, materials and the environmentduring the production process. Meanwhile, we usetechnology to help people stay away from hazardousworking conditions by enhancing the production andworking environment.
The mining sector is the cornerstone and pillar industry of China’s national economy. However, miners are often exposed tovaried hazards due to the complexity of the terrains, geological conditions and working environment.Jinchuan Group boasts the world’s third largest nickel-copper sulfide deposit, and serves as both China’s largest and world’sleading nickel and cobalt production base and platinum group metal refining center. Together with Hikvision, the group has builta comprehensive intelligent vision system that combines a work safety management platform with AI detection, intelligentinspection, and voice interaction to assure safety in production using the power of technology.Wang Xiaogang, a senior engineer at Jinchuan Group, is in charge of protecting the safety of more than 10,000 workers. Detect-ing hidden dangers with his eyes and recording them in his notebook used to be his daily work. From the top to the bottom ofevery mine, he was overwhelmed by tough work, tension, and immense responsibility.Thanks to technological advancements, Wang Xiaogang’s 30-year inspection work began to change. AI-powered orbital robotsand inspection robots are deployed to perform real-time detection, analysis and early warning in flotation and ball milling areas;AI detection is applied to conduct "health checks" on belts, cyclones, slurry pumps and other devices and at the same timeeliminate staff’s unsafe behaviors such as failure to wear a safety helmet. The data collected at the front end is also automati-cally uploaded to the production safety management platform, so that employees can learn about the on-site situation in frontof the screen and enforce a closed-loop hazard management procedure that is tailored to specific scenarios, thereby reducingthe chance of accidents.
Assuring work safety in mines through big data and AI technology
If a small hole is not repaired in time, it will become toolarge to block off one day. This also applies to hazards.Now we can monitor production safety by simply watch-ing the screen. Technology has moved inspection workfrom beneath the ground to above it, which improves ourwork efficiency and accuracy and also makes us feelmore secure.
--Wang Xiaogang, senior engineer at Jinchuan Group
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Burn-in rooms, an indispensable facility in many production bases, are used for high temperature testing of products to obtainaging parameters and indicators. The equipment in burn-in chambers is prone to abnormalities and potentially fire incidentsdue to prolonged exposure to high temperatures.Mr. Jin, a safety administrator in an electronic equipment plant in Zhejiang, has to visit burn-in rooms every 3-4 hours onaverage to check for smoke, power failure, or excessive temperature. The temperature there is frequently higher than 50degrees Celsius, with some locations reaching 70 degrees Celsius and above. In a large chamber with many products, youmight need to stay for more than ten minutes. And after inspecting dozens of chambers, you will often sweat heavily. "Thedifficulty not only lies in the ‘baking’ experience. After we get off work at night, the burn-in rooms remain at high tempera-tures, which is likely to pose a threat." Mr. Jin said.Hikvision’s thermal imaging and temperature measuring system is therefore introduced to serve as an intelligent inspection"assistant" to Jin. In the production base where he works, 29 burn-in chambers are now supported by the environmentaltemperature measuring function. With an alert threshold set in advance, the system is "on duty" 24 hours a day to monitor theenvironment and send an early warning in the event of any deviation. Today, Jin is allowed to check the burn-in rooms remotelyfrom the fire control center, thus spending more time inspecting other hazards.The early warning also grants sufficient time for responsible staff to respond – an upgrade from passive defense to activewarning. When the system detects an abnormal temperature, it promptly notifies the person in charge of the production linevia the work ticket system. At the same time, a pop-up message is sent to the fire control center, where the security staff mayremotely dispatch personnel and coordinate the response in real time. Finally, the event will be reported to the platform forarchiving.
Since there are many products to be tested, our burn-inrooms are basically open all year round. The 24/7 inspec-tion equipment is a great boost for the work efficiency andperformance of our security staff.
--The person in charge of the electronic equipment factory explained
24/7 intelligent inspection assistant spares securityadministrators from sweltering working conditionsCase
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Due to the huge workload and numerous typesof large materials in welding workshops, thetraditional delivery method is inefficient. Nowour efficiency has substantially increasedthanks to automated delivery. HikRobot’songoing scenario-based application is project-ed to add significant value to the industry overtime.
--Hu Shuai, Director of ME Logistics and Planning Department of Geely Auto, said
Quality and Efficiency Improvement
With the arrival of the digital wave, digital andintelligent upgrade emerges as the inevitable way forenterprises to achieve high-quality development.Through technological innovation in conventionalinformation management, Hikvision enables theeffective management of key elements of productionand operation, such as people, equipment, materials,and space, to help improve the efficiency of manage-ment and business operation, and inject new momen-tum into the sustained development of the industry.
Zeekr, a new energy vehicle brand of Geely Group, sold 72,000 Zeekr 001 models in 2022 alone. Hangzhou HikRobot TechnologyLtd. (HikRobot), a subsidiary of Hikvision, supplies automotive industry solutions to help Zeekr make cars with "intelligentmanufacturing" capabilities.Zeekr Intelligent Factory, covering an area of around 1,946mu, is an advanced manufacturing base that fully integratesintelligent and digital technologies. HikRobot has placed more than 300 AMRs in the factory’s final assembly, welding andpainting workshops to help enable visual inspection, goods-to-person delivery and selection for small items, unmanned deliveryof large items and other functions.This has improved productivity by over 20% and energy utilization by 15%.
Taking the welding workshop as an example, HikRobot has connected the system software data to the upstream anddownstream operational information flow. Any demand for materials from the storage area is directly sent to the driver of apicking forklift. After the driver completes picking as instructed by the system, the AMR intelligently determines the optimaldelivery route and delivers the picked parts to the storage area, where its robot arm will perform accurate feeding. Finally, emptycontainers are returned to the connection point.This procedure not only greatly improves the efficiency of material delivery, but also avoids errors and omissions and makesdelivery more accurate. With the use of HikRobot’s AMR, tractors are no longer needed in welding plants, which reduces the riskof safety accidents, and lights may also be turned off under precise control, leading to a significant drop in energy consumption.In the automotive industry, HikRobot has helpeda number of leading manufacturers such asGeely Auto, FAW Toyota, FAW Jiefang,FAW-Volkswagen, BMW Brilliance, and ChanganAutomobile to advance lean management andintelligent manufacturing. So far, we haveachieved large-scale cluster operation of morethan 900 robots at a single target site, building anew benchmark for smart logistics across theglobal automotive industry.
Supporting Zeekr to make cars withimproved "intelligent manufacturing" capabilities
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Hik-Cloud enables the managementand control of all key stages in thestore operation process, and makesfull use of the marking system toprovide ‘video indexing’ for onlineinspections, so as to quickly locatethe video to be checked, reducing theonline inspection time of a singlestore by at least 30 minutes.
--Chen Kaichuang, Product Director at Goodme
From the opening of the first store in Taizhou, Zhejiang in 2010, to over 6,000 chain stores in 2021, Goodme has become aleading brand in the tea beverage industry. Apart from continuous product innovation, its success also depends on stringentquality assurance in each store.Inspection is a critical task of the day-to-day management of chain stores. Traditionally, inspectors have to visit stores inperson, which is inefficient. Even with remote inspections via video, they need to examine video recordings by repeatedlydragging the progress bar. Goodme has therefore employed a smart solution of Hik-Cloud. Based on the self-inspection itemsand operational data of stores and combined with Hikvision’s devices and capabilities, the solution allows for quick onlinechecks of each store at specific times, such as store opening, order taking, beverage delivery, ingredient preparation, andbeverage making, to ensure standardized services from stores and employees. The connection between online and offlineoperations allows Goodme to have efficient access to precious and transparent store inspection data. Thanks to suchefficient and standardized management,the single-store inspection efficiency has grown by 25%.
CaseAiding Goodme’s standardized management through more efficient intelligent store inspection
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According to the National Bureau of Statistics, China’s urbanization ratereached 65.2% in 2022. In the future, the process of urbanization willcontinue and also embrace high-quality development. A livable, smart andresilient city is anticipated to stimulate people’s sense of gain. At Hikvision,we continue to expand smart city applications and help enhance urbanmanagement and operational efficiency, making transportation moreconvenient, governance more specified, services more individualized, andthe environment more livable.
Good Habitat
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The green-wave belt drasticallydecreases the driving time over longdistances. It provides an alternative toexpressways for small and medi-um-sized cities in China, particularlythose without an elevated expressway,helping extend the reach of cities.-- Huang Xiaoling, an instructor at the Traffic PoliceDetachment Command Center of Zhoushan Public Security Bureau, noted.
Smart City
According to the National Bureau of Statistics, China’surbanization rate reached 65.2% in 2022. In the future,the process of urbanization will continue and alsoembrace high-quality development. A livable, smartand resilient city is anticipated to stimulate people’ssense of gain. At Hikvision, we continue to expandsmart city applications and help enhance urbanmanagement and operational efficiency, makingtransportation more convenient, governance morespecified, services more individualized, and theenvironment more livable.
In Zhoushan, Haitian Avenue is the only urban road that connects the three heavily inhabited regions of Dinghai, Xincheng,and Putuo, which is the city’s traffic "artery" for commuting and tourist vehicles. Each lane of the avenue sees between 800and 1,200 cars per hour, indicating a high traffic density.To improve the travel experience, Zhoushan traffic police and Hikvision have collaborated to develop a "green technology" -dynamic green-wave control. Powered by the innovative phase coordination technology, the solution is designed to adjusttraffic lights in real time according to traffic flow, greatly improving the traffic capacity of urban roads. The dynamicgreen-wave belt of Haitian Avenue is 21 kilometers long and runs through 34 intersections. It spans a long distance and worksin both directions.Static green-wave control need to preset the time duration of green signal, which was more commonly used in the past. Whiledynamic green-wave control adjusts the lighting time of a green signal in real time to improve traffic efficiency. On the road,traffic flow in different directions is sensed in real time by radar assisted video systems and other devices, and the smartinformation control system, which acts as a "brain" at each intersection, calculates in seconds and adapts traffic lights tochanges in the traffic flow at different times. With the automatically optimized time allocation function, traffic signals aremade responsive to traffic flow.
"Green technology" makes road traffic smoother and smarter
Scan the QR codefor more information (in Chinese)
Driving time on Haitian Avenuehas been cut by 50% from 40-50minutes to 20-30 minutes.
During the off-peak period, avehicle may come acrossonly1 or 2 red lightswhendriving through 34 intersections.
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Scan the QR codefor more information (in Chinese)
Ensuring safe gas use
It monitors key areas in real time, and automatically sends an alert in the event of irregular-ities such as leakage, excessive concentration, and damage caused by construction, so asto avoid safety accidents and guarantee gas supply;
Supporting flood prevention
It collects data and releases warning notices on water levels at waterlogging spots to assistwith urban drainage and flood prevention, which protect passing pedestrians and vehicles;
Checking bridge healthIt sends real-time alerts of minor girder displacement, bridge rail damage, rebar exposure, andother hazards, which serves as a data support for ensuring bridge health;
Monitoring underground utility tunnelsIt helps ensure the normal supply of electricity, gas, and water through real-time monitoring ofutility tunnels’ structure, electrical equipment, fire protection facilities, and environmental status.
The daily life of residents is sustained by urban pipe networks such as gas, water, bridges, heat, and electricity. Thesecrisscrossed networks are often described as "a city’s lifelines". According to statistics, the total length of lifelines in Chinesecities is about 3.1 million kilometers, which also keeps growing every year. How to monitor them in real time and detect faultsin a timely manner has become a great challenge to their healthy operation.Hikvision’s "Integrated Application Platform for Urban Lifeline Industries" is designed to summarize data on urban infrastruc-ture in real time and enable a closed-loop procedure of "sensing-monitoring-warning-handling-supervision". By integrating allconnected sensors and images into an operation map of urban pipe networks, the platform may build a panoramic view of cityoperations, making urban management more intuitive and structured.
Intelligent management of pipe networks ensures healthy urban operationCase
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During the flood season, the Qiantang River’s water regimechanges at a faster speed, which leads to a sharp increasein complicated conditions. Only by having timely access towater level, flow velocity, flow volume and other informationcan we effectively build a safety defense for the river.However, the traditional manual monitoring of hydrologicaldata is time-consuming, labor-intensive, and less timely.Moreover, as images and videos cannot be saved, dataverification is difficult.Since the establishment of a joint laboratory by ZhejiangProvincial Hydrological Management Center and Hikvision in2019, the two parties have developed a digital twin of theZhijiang Hydrological Station to meet the requirements ofdigital twinning of river basins and hydrological moderniza-tion, supporting Zhijiang Hydrological Station’s upgrade toan information-based, intelligent and modern facility.Remote monitoring equipment is applied to inspect theQiantang River in real time 24 hours a day and transmit thedata to the back-end, making hydrological inspections moreefficient. And technologies such as video assisted water
Big data and AI technology builds up safety defense at Qiantang River
level meters and back-end water level identificationalgorithms work to intelligently identify water levels andsave on-site pictures to facilitate data verification.The Overall Every Control and Clear (OEC) ManagementApplication is connected to all hydrological data, which canautomatically count and calculate, visually present datachanges, help hydrologists to instantly see the value andtime of the highest and lowest water levels of the day andcompare deviations from historical data. The system alsoautomatically calculates the difference between theprimary and secondary monitoring equipment. When thediscrepancy is too large or the data is missing, the staff isnotified to make corrections.When there is rainfall, the staff may check real-time datasuch as water level, flow rate, and rainfall volume by simplyturning on the computer, while also viewing changes insupplies, inspection tasks, and other information. As aresult, the Qiantang River is under increasingly intelligentprotection.
These modern technological meanshave improved our examinationmethods, raised our work efficiency,and made hydrological managementmore orderly.--According to Shao Jiajian, an engineer at the Zhijiang Hydrological Station
Case
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Digital Village
A village is a geographic complex with special natural,social, and economic properties. It offers functionsassociated with production, life, environment, andculture, and interacts with cities and towns for shareddevelopment. Together they constitute a primaryspace for human activities. Hikvision brings its AIoTtechnology to the fields, adding intelligence to thepleasant life in the countryside.
Shaoxing City, Zhejiang Province is home to a number of superior fruit growing bases, and Zhuji Chunhe Ecological Garden is oneof them. Breeding high-quality fruits in this huge orchard requires more meticulous and agile management. How to maintain thegrowing environment stable, adapt to the changing weather, and reduce farming mistakes... These concerns are gradually beingaddressed thanks to the introduction of digital technology.Hikvision has assisted Chunhe Ecological Garden to build an intelligent production and operation management system. Basedon AIoT equipment and a digital planting management platform, the system has enabled the digital transformation of agricultur-al production management:
As videos, illuminance, soil temperature and humidity, air temperature and humidity and other growing information ofpremium fruits such as Summer Royal Black grapes may be viewed in real time on a mobile phone, farmers no longer need tocheck different instruments one by one every day to record data.The digital planting management platform displays not only basic information such as plant types and planting areas, butalso the distribution and real-time status of facilities and equipment, as well as real-time images and sensor data throughoutthe planting process. Thanks to digital technology, excellent farming expertise can be accumulated.AIoT technology is hoped to help improve the efficiency of agricultural production management and establish intelligent,high-quality and modern agricultural bases, inspiring neighboring farmers to embark on the journey of ecologically efficientagricultural development.
This system has brought about animprovement in our precisionmanagement capabilities.
--He Jianhua, founder of Chunhe Ecological Garden
Big data and AI technologyenables one-click management of 150,000-square-meters greenhouses
Case
2022 Environmental, Social and Governance Report18
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Jiangxia District, located in the south of Wuhan, is surrounded by mountains and rivers and has an abundance of vegetation,which makes it a key agricultural area in the city. Hikvision has developed number of smart agricultural applications for Jiangxiato comprehensively improve the regulatory efficiency, services, and productivity of the local agricultural industry, allowingagriculture, which has always been "depending on the growing environment", to make agile changes in response to naturalconditions.IoT sensing devices, environmental index sensors and smart cameras are placed in the fields to monitor plant growth andenvironmental changes in real time 24 hours a day. Meanwhile, a pest monitoring and reporting system is equipped to transmitdata back to the system. This allows plant protection officers and farmers to remotely check pests and crop growth in real timewithout going to the field, and take timely measures to reduce insect pests, improve crop quality, and maintain food output.Furthermore, greenhouse planting may also be managed remotely, with a greenhouse climate warning mechanism and anautomatic control system applied to make sure that the plants are in an appropriate growing environment. With the support ofAIoT, farmers may view and control the underwater "climate" for aquatic products. And for livestock and poultry farming, themanagement efficiency of farms is boosted by intelligent environmental control, inspection and early warning, and an intelli-gent energy management system.
Smart agricultural applications boost smart planting in Wuhan
Hikvision’s technology has allowed us to more strictlycontrol the quality of the agricultural products we grow.With labor better allocated, we farmers have greatly cutproduction costs and received higher returns.
--Mr. Li, a farmer in Jiangxia District
Case
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River crab farming is a pillar of the fishery in Taihu Lake, as well as a major source of income for many farmers. The farmers usedto raise crabs based on experience and deal with sudden environmental changes in passive ways.
Suzhou Laomao Agricultural Technology Co., Ltd. has introduced the digital fishery management platform jointly launched byHikvision and Suzhou Jiean Information Technology Co., Ltd. Powered by technologies including AIoT and big data, the platformaims to support the healthy growth of hairy crabs. Using the platform, crab farmers can not only check basic information suchas the breeding area and crab categories, but also view a wide range of real-time information, such as the pass rate and qualityof water, as well as records and data on the environment, diseases, etc.With the help of technology, crab farmers are better positioned to cope with extreme weather such as high temperatures. Andas their breeding experience grows, the quality and size of Taihu hairy crabs have improved compared with prior years, earningmore trust from consumers.
Breeding "digital hairy crabs" in Taihu LakeCase
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A Chinese saying goes that "all things need a harmonious environment togrow, and must receive appropriate nourishment and care to thrive." Manand nature form up into a living community. Humans must respect nature,conform to it, protect it, and seek development opportunities amid theharmonious co-existence with it. By unleashing the power of AIoT, Hikvisioncontinues to protect the nature, improve the environment, and advocatefor green and low-carbon development, in a bid to foster the harmoniousco-existence of man and nature.
Good Planet
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Environmental ProtectionAs humans share a planet with many other creatures,protecting them is protecting ourselves. Ecosystemssuch as forests, wetlands, and oceans contain amplenatural resources and play a crucial role in maintainingbiodiversity – the foundation for the stability andsustainability of ecosystems. We wish to protectdiverse ecosystems using innovative technologies andhelp preserve nature via extensive exploratory andpractical efforts.
The Shanghai Chongming Dongtan Birds National Nature Reserve (Dongtan Reserve), situated at the estuary of the YangtzeRiver, is a key stop on the East Asian–Australasian Flyway. The wetland here provides an irreplaceable stopover and winteringlocation for nearly one million migratory birds every year, making it an important "post station" for migratory birds.In order to better protect migratory birds in Dongtan, Hikvision has collaborated with One Planet Foundation to set up videosensing devices in the work area of the World Wide Fund for Nature (WWF). The equipment can assist patrols, engineers andother protection zone workers with bird watching and collect more complete data, granting a more scientific basis for theenvironmental protection work in Dongtan.Today, more than 200 species of birds have been documented in WWF’s operating area, an increase of 50 species from when itfirst started working in the protection zone. Dongtan has also been visited by spoon-billed sandpipers, which have a breedingpopulation of less than 500 around the world, as well as rare birds such as laughing gulls, Dalmatian pelicans, and Chinesecrested terns.
Protecting millions of migratory birds and their home in Dongtan, Shanghai
I’m delighted to see more and more birds living a better life in the area I manage –some having babies, some surviving the winter, and some passing by safely.
--An employee participating in a bird monitoring project in Dongtan
Birds are so sensitive that they flee as soon as people approach. Because monitoringstaff cannot always stay in the wild, it is difficult to record and observe bird behavior,especially reproduction, up close. Video equipment helps us collect more data, makebetter responses and improve our management
--An employee participating in a bird monitoring project in Dongtan
Scan the QR codefor more information (in Chinese)
Case
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Baihuashan grapevine (Vitis baihuashanensis) is a wild plant with a tiny population. The two extant wild specimens werediscovered around Beijing in 1984 and 2016, earning the title of "the 'loneliest' grape in the world". According to theInternational Union for Conservation of Nature’s Red List evaluation system, Baihuashan grape is classified as "criticallyendangered", which is more than 1,000 times more endangered than giant pandas in terms of quantity.Since 2021, Hikvision has worked with the Songshan National Nature Reserve’s management office on the cultivation andprotection of the "second-generation seedlings" of Baihuashan grape. Video assisted perception equipment is used forreal-time video monitoring and continued recording of the seedlings' growth. This gives the reserve staff real-time accessto the growth of Baihuashan grape at all times, providing basic information to support its preservation and research.
Accompanying the growth of the "loneliest" grape species in Beijing
The biosphere on the earth is a com-munity of life. Unfortunately, somespecies have vanished from the planetbefore we know them, which makesexisting species precious heritageshaving undergone hundreds of millionsof years of evolution. Only by preserv-ing rare wild plants can we maintainthe stability of the life community.--An employee at Songshan National Nature Reserve, Beijing
Case
The leaves of Baihuashan grape are palmately divided or totally divided, which distinguishes it from other grape varieties
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Energy Saving and Carbon Reduction
China’s new environmental protection policy ischaracterized by a focus on carbon reduction, thepromotion of the comprehensive green transformationof economic and social development, and theimprovement of ecological and environment qualitythrough an upgrade from quantitative change toqualitative change. While pursuing its own low-carbondevelopment, a business should continue to driveindustrial energy conservation and emission reductionwith technological innovation and scientific manage-ment. This not only benefits its sustainable develop-ment, but also helps create social value. Bearing suchin mind, Hikvision has launched a platform named"Double Carbon Brain" to satisfy the demands ofdifferent users such as industrial parks and govern-ments for energy consumption collection and carbonemission control, as part of its efforts to promotegreen and low-carbon development of society.
Hikvision launched the "Double Carbon Brain" platform in 2022 to support industrial parks and enterprises for "carbon dataviewing, analyzing, managing and collecting", making carbon reduction more intuitive and controllable.Thanks to the "Double Carbon Brain", the Administration Committee of Ningxia Guyuan Economic and Technological DevelopmentZone now has access to the energy consumption data of219 enterprises in the park and can monitor all enterprises’ energy
consumption plans and send alerts in the case of excess consumption. This enables the campus to manage its total energyconsumption and intensity and enhance its energy operation efficiency, thereby achieving energy conservation and carbonreduction goals.
It gathers real-time data on energy consump-tion, coupled with a closed loop of measure-ment-assessment-calibration-optimization
It offers a traceability analysis of emission dataof key industries such as rubber products,basic chemical raw material manufacturing, andsynthetic material manufacturing
It provides a panoramic view of the carbonemission ratio, total carbon emission andemission intensity of the three industrialparks – New Material Park, Light IndustryPark and Qingshuihe Park
Carbon Management ApplicationcCarbon Emission TraceabilityCarbon Panorama
Assisting Ningxia Guyuan Economic andTechnological Development Zone with energy saving and carbon reductionCase
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In 2022, Hikvision released its upgraded hyperspectral water quality monitor:
Optimization of spectral lens' optical path: To improve the spectral stability in complex working environments, thereby making
monitoring data more stable;Addition of tilt lens: To greatly reduce the difficulty of on-site installation;Upgrade of software extension functions: To support the connection with external water quality sensor probes, so as tomonitor other water quality parameters.
Pollution Prevention and ControlPollution prevention and control is a complex socialtopic today, due to the numerous ecological andenvironmental elements such as animals, plants, land,rivers, seas, and the atmosphere, as well as the widelydistributed sources of pollutants and intricatepollution mechanisms. It is hence imperative to usescientific and technological means for more preciseand effective pollution prevention and control. AtHikvision, scientific and technological innovation isleveraged to facilitate precise and scientific pollutioncontrol, with the goal of preserving our blue sky, cleanwater and pure land.
The water quality of a branch channel of the Yellow River Basin in North China used to be rated as below Class V due to theeutrophication caused by local discharge of aquaculture sewage. The conventional manual sampling procedure was subject tomany environmental restrictions, which usually took more than 4 hours to generate monitoring results. Without real-timeaccess to water quality data, it was difficult to trace the discharge sources. Moreover, chemical reagents are commonly usedin traditional sampling methods, which may cause secondary contamination of the atmosphere, water, and soil.In 2022, 16 Hikvision hyperspectral water quality monitors were installed along the river. They are able to capture key waterquality parameters such as chlorophyll, pH value, total nitrogen, total phosphorus, ammonia nitrogen, and suspended mattersin20 seconds, independent of environmental factors such as temperature, humidity and lighting. Then water qualitymonitoring data from different spots is aggregated via the software platform to help local workers access water qualitychanges in real time and detect water pollution in time. This provides technical aid in tracking pollution sources and identify-ing unlawful sewage discharge - a huge help in pollution traceability and other river remediation activities.
Examining water quality through "a beam of light" within 20 secondsCase
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ESG Management
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Technologyfor Goodwill
Integrity and CompliancePlan
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Hikvision’s ESG Management Core and FocusesHikvision’s ESG Management Framework
By integrating corporate social responsibility and sustainable development philosophy into ourbusiness, and driven by technological innovation, Hikvision is committed to becoming awell-respected global technology company. Based on the aforementioned ESG managementphilosophy, combining with the Company’s core competencies and the demands and expecta-tions of different stakeholders, we have identified Technology for Goodwill as the core of theCompany’s ESG development, alongside three focuses: Integrity and Compliance, Green andLow-Carbon Development, and Harmonious Co-existence. With the support of Hikvision’s variousprocesses, a closed loop from information and report disclosure to upgrading and continuouslyimproving ESG management has been formed based on the "Plan, Do, Check and Action" (PDCA)cycle.
ESG Management Philosophy and Framework
Technology for Goodwill
Integrity &compliance
Harmoniouscoexistence
Green &low-carbon development
Partnership andHarmonious Co-existence
Environmental Responsibility
We are committed tocreating value forcustomers, improving socialwell-being, providing a solidplatform for employees andworking together withpartners to build aharmonious and sustainabletechnology ecosystem.
Do the Right Thing andGo Further with ComplianceWe will conduct our businessin a manner consistent withhigher standards of businessethics and pursue abusiness philosophy ofhonesty, integrity and legalcompliance as thecornerstone of our sound,long-term global growth.
Green and Low-CarbonDevelopment
Adhering to the idea of green,sustainable development, wewill continue to enhanceenvironmental management,optimize the resource usage,reduce pollutant emissionsand explore low-carbontechnologies in the process ofbusiness operation andtechnological innovation.
Create Goodwill with AIoT Technology
Product ResponsibilityBased on innovative and intelligent products and technologies, we will serve and give back tothe society with kindness in mind. We are dedicated to empowering every individual to enjoy abetter future by building an intelligent world that is more convenient, efficient and secure.
Governance Responsibility
Employee ResponsibilityPartner ResponsibilityCommunity Responsibility
HIKVISION
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2022 Environmental, Social and Governance Report27
During the reporting period, Hikvision won a number of awards, including:
The Most Socially Responsible Listed Company of 2022hosted by Stockstar.comThe China ESG Golden Awards – 2022 Outstanding Social (E)Responsibility Award hosted by Sina FinanceNo.26 in the Top 100 Chinese Enterprises with BestScientific Innovation 2022 hosted by Southern WeeklyThe 2021-2022 Most Respected Enterprise in China hostedby The Economic ObserverThe 2021 Award for Most Investment Value hosted by ChinaSecurities JournalThe Top 100 Most Valuable Chinese Main Board ListedCompanies, the Top 100 Main Board Listed Companies withBest ESG Performance, and the Annual OutstandingManagement Team of Chinese Listed Companies in the 16
th
China’s Most Valuable Listed Company Selection hostedby Securities Times.Huang Fanghong, the Company’s board secretary, washonored the 2021 Golden Bull Award for Board Secretary byChina Securities Journal, and the Outstanding BoardSecretary of Chinese Listed Companies in the 16
th
China’sMost Valuable Listed Company Selection hosted bySecurities Times.
2021-2022 Most Respected Enterprise in China
Most Socially Responsible ListedCompany of 2022 by Stockstar.com
No.26 in the Top 100 ChineseEnterprises with Best ScientificInnovation 2022 by Southern Weekly
China ESG Golden Awards – 2022Outstanding Social (E) Responsibility Award
ESG Honors and Awards
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The material issues have updated with reference to theindustrial issues concerned by the GRI Standards, capitalmarket rating agencies, and peer companies, and accordingto Hikvision’s operational characteristics. Also, we haveinvestigated the six types of stakeholders via interviews andquestionnaires, updated their focuses, sorted through andoptimized their communication and participation mecha-nism, so as to better respond to the demands and expecta-tions of stakeholders.
Hikvision’s Stakeholders
Shareholders/InvestorsCommunities
PartnersEmployeesCustomers
Government& Regulators
Shareholders/investors
Economic growthSustainable operationR&D innovationTax paymentAddressing social issuesR&D innovationEnvironmental protection
HotlineInformation feedbackSatisfaction survey
Health check-upProfessional trainingActivities
Public tenderingSite inspectionSuppliers’ meetingActivityMedia coverageInterview and investigation
StakeholderIssue of concernWay of communicationResponse
Government& regulators
Customers
Employees
Partners
Communities
Maintaining steady economic growthAdhering to the business philosophy of legal complianceand establishing a sound compliance ecosystemContinuing to expand the business and developingindustry-leading products and solutionsOperating in compliance with laws and regulationsLaunching innovative products and solutions with a focus onsocial development needsPromoting the Company’s low-carbon transformation,continuing to improve the environmental attributes ofproducts, and broadening the application scenarios ofproducts and solutions in the field of environmentalprotectionEmpowering people’s better life with a wider businessscopeEstablishing a robust quality management andcybersecurity management system, and continuing toimprove service qualityProviding competitive compensation and benefitsPaying attention to the development demands of allemployees, and providing diversified training resourcesand career opportunitiesPrioritizing employee health and safety, and ensuringproper health management and work safetyFostering a people-oriented corporate culture,encouraging employee communication, and providingemployee carePursuing the business philosophy of honesty and trustworthi-nessIncorporating the concept of sustainability in every stage ofsupply chain management, and working with suppliers toenhance sustainable development capabilitiesSupporting and applying internationally recognizedcybersecurity standards and best practices, and comprehen-sively enhancing the Company’s security defenseConcerning about the community development, andengaging employees and a broader range of stakeholders involunteering servicesReducing the possible negative impact of the Company’soperations on the environment, and applying technologicalinnovation to address environmental issues
Regular report/interimannouncementOn-site researchTelephone communicationEmail correspondencePerformance briefing/roadshowRegular report/interimannouncementLetterSite inspectionR&D innovationProduct safety and qualityPrivacy and informationsecurityCompensation and benefitsProfessional developmentOccupational health andsafetyEmployee careHonesty and trustworthinessSupply chain managementData security
Community communicationEnvironmental protection
Stakeholder Engagement
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Hikvision held the Global ESG Conference in Geneva, Switzerland in September 2022 in order to have extensive exchanges withexternal stakeholders, learn from advanced experience in sustainability management and practice, and explore opportunitiesof cooperation on sustainable development.Internal and external guests such as employees, customers, partners, and consultants were invited to the conference tohave constructive discussions on key ESG issues and priorities such as business ethics, human rights compliance, corporategovernance, and cybersecurity. In November 2022, the Company continued to hold two ESG conferences in Dubai and Tel Aviv,respectively, so that the "Hikvision’s voice" will be heard by more people.Hikvision looks forward to hosting more ESG conferences across countries and regions to show our efforts in fulfilling ourresponsibilities as a global corporate citizen. At the same time, the initiative is expected to serve as a platform for employeesand partners to participate and work together, creating lasting value and improving social wellbeing.
ESG Conference: An ESG communication platform with global influenceCase
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During the reporting period, we organized interviews orsurveys with nearly 150 internal and external stakeholdersto learn about and analyze our material ESG issues.Through this process, we have gained a thorough under-standing of the expectations, suggestions and develop-ment needs of stakeholders for Hikvision and we haveanalyzed the material issues. All these efforts areexpected to lay a foundation for us to improve theCompany’s ESG management and information disclosure.
Identificationof Material Issues
Identify potential material issuesPrioritize potential material issues
ReviewManagement verifies results
Upon media analysis, peer benchmarking analysis andreview of other relevant documents, we can identifypotential economic, environmental and social impactsof the company’s business, or potential issues thatinfluence the stakeholders’ evaluation anddecision-making to Hikvision.
We assess whether the content of the report providesa reasonable description of the company’s impact andsustainability performance, and whether the processof preparing the report reflects the intent of thereporting principles and invite stakeholders to provideinput.
Present the results of the materiality matrix tomanagement to confirm the significance and impactof the identified issues. We will faithfully reflect ourcompany's performance on relevant issues in thereport.
Develop a stakeholder communication plan, andconduct in-depth interviews, on-site investigationsand questionnaire surveys to understand the materialissues of concern to various stakeholders, and finallygenerate a materiality matrix with which to analyzeand identify highly significant issues.
Materiality Assessment Process
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Economic growth
Occupational healthand safetyTalent acquisitionand developmentDiversification and inclusiveness
Employee benefits
Respect for human rightsand labor practiceEnergy managementGreenhouse gas emissions reductionFactory automation
Chemicals managementInfluence of climate changeRecyclingAddressing social issues
Water resource managementBiodiversity
Waste & hazardous substances management
Product safety and qualityPrivacy and information security
Sustainable operationManagement of cleantechnology opportunities
Supply chain management
Business ethicsR&D innovation
Shared developmentwith partners
Public welfare activities
Significance to stakeholders
Significance to Hikvision’s sustainable development
Level of importanceCategoryIssue
High importance
Governance
Business ethicsSustainable operationPrivacy and information securityProduct safety and qualityR&D innovationOccupational health and safetyTalent acquisition and developmentRespect for human rights and labor practiceSupply chain managementManagement of cleantechnology opportunitiesEconomic growthFactory automationShared development with partnersEmployee benefitsDiversification and inclusivenessChemicals managementWaste & hazardous substancesmanagementEnergy managementWaterresource managementGreenhouse gas emissions reductionInfluence of climate changeRecyclingBiodiversityAddressing social issuesPublic welfare activities
Society
Environment
Moderate importance
Governance
Society
Environment
Low importance
EnvironmentSociety
Stakeholder assessments of material issues in 2022 were as follows:
In the category of "society", "occupational health and safety" was raised to highimportance; while in the category of "environment", "energy management" was reducedto moderate importance, "biodiversity" to low importance, and "recycling" of mediumimportance was added.Finally, 10 issues of high importance, 12 issues of moderate importance and 3 issues oflow importance were identified. Among them, we will focus on the disclosure of highlyimportant issues in the subsequent chapters of the Report.
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Governance Responsibility
Contribution to UN SDGs
Key PerformanceOptimized Governanceand Robust Operations
Honoring the business philosophy of "professionalism, honesty, andintegrity", Hikvision has always regarded integrity and compliance askey pillars for business operations. We make compliance concepts,regulations and procedures an integral part of our global presence andmanagement, hoping that every employee puts the "pursuit of rightnessand compliance" into practice on a daily basis.
4 General Meetings of Shareholders were held to review 31proposals; the Board of Directors convened 8 meetings toreview 61 proposals; the Board of Supervisors convened 7meetings to review 37 proposals; and the committeesconvened 13 meetings to review 31 proposals
Corporate Governance:
A governance framework consisting of "three defenses"and "one ecosystem" was established to consolidateinternal compliance governanceThe Hikvision Whistleblowing Policy was published toencourage reporting of any misconduct or potentialcompliance risk
99.54% of our staff had signed the Employee Integrity
Commitment43 compliance training sessions were delivered, with atotal of 80 training hours, and 50,000 participants
Compliance Ecosystem:
Hikvision was granted the Business Continuity Manage-ment System Certification by China Quality CertificationCenter
Business Continuity:
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Hikvision strives for a healthy and sound corporategovernance system. We have built a governancestructure with well-defined authorities and responsi-bilities as required by national laws and regulations.The Board of Directors, comprised of members withdiversified leadership, aims to push the Company toestablish comprehensive internal management andcontrol regulations, thereby enabling standardizedcompany operations and improving corporategovernance.
Steadily AdvancingCorporate Governance
The Company builds its corporate governance structure under a modern enterprise system. The General Meeting of Sharehold-ers is set with a Board of Directors and a Board of Supervisors. It is the duty of the Board of Directors to lead the decision-mak-ing surrounding operation and management, review and approve strategic goals, and supervise and inspect the Company’ sbusinesses, strategic decisions and performance. Subordinate to the Board of Directors are a Strategy Committee, an AuditCommittee, a Nomination Committee, and a Remuneration and Appraisal Committee – all responsible for examining specializedissues in corporate governance operations.
Governance Structure
Pursuant to the Articles of Association, the fifth Board of Directors is consisted of 9 directors, 4 of whom are independentdirectors. The term of office of the directors is three years, starting from the date of voting and approval by the General Meetingon March 5, 2021. The Company is convinced that a diversified structure is essential to improving corporate governance.Therefore, the present directors boost a wide range of professional backgrounds and expertise, including engineering,management, economics, accounting, and law.
Board of Directors
5 Directors
4 Independent Directors
45% Engineering: 4 Persons22% Management: 2 Persons11% Economics: 1 Person11% Accounting: 1 Person11% Law: 1 Person
56%
44%
Board diversityBoardindependence
Hikvision’s Governance Structure
General Meeting ofShareholders
Management Team
Strategy CommitteeBoard of SupervisorsBoard of Directors
Audit CommitteeNomination Committee
Remuneration andAppraisal Committee
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Hikvision pursues honest, trustworthy, and compliant operation. Continuedefforts are put to the establishment and improvement of our compliancesystem. We have established and are constantly improving the complianceorganization structure and operating mechanism across management andbusiness divisions. At the same time, the Company has built a multi-levelrule framework that covers compliance policies/statements, industry-spe-cific compliance governance specifications/codes, and complianceguidelines for all business units and segmented scenarios. Complianceculture-themed activities are organized on a regular basis to raise employ-ees’ compliance awareness and stimulate their compliance practices
Establishing ComplianceEcosystem
We have a Global Advisory Committee to provide the management with broaderinsights, independent expertise and suggestions. The committee membersinclude authoritative experts in international policy and relations, corporategovernance, cybersecurity, data protection, human rights governance andmany other professions. Meanwhile, a Technical Ethics Committee is set up toput into practice the Company’s understanding of "Technology for Goodwill".With due respect for cross-national or regional gaps around the world, it helpsbalance the different demands of stakeholders.In addition, we have appointed compliance liaisons in our headquarters’functional departments, businesses and branch operations at home andabroad. By extending our compliance organization and capacity to all internalunits, we seek to enhance our resistance to compliance risks and properly putcompliance policies and measures in place.During the reporting period, we continued to review and optimize the Compa-ny’s compliance governance system, consolidate the compliance governanceframework of "three defenses" and "one ecosystem". We are committed tointegrating the awareness of "everyone is a compliance officer" into the dailybusiness behavior of every employee and effectively building a complianceecology for customers, users, suppliers, partners and other related parties.
Strengthening Compliance System Construction
Compliance Organization Structure
Advisory Committee
Business Line
ExecutionCommunication
Board of Directors
ManagementChief Compliance Officer
Legal and Compliance
Department
Compliance
Working Group
st Defense: Operational ComplianceScope:R&D, Sales, Supply Chain, Functional SupportResponsibilities
ScopeResponsibilities
nd
Defense: Specialized Compliance
:Compliance Department, Legal Department, Specialist Centers
rd
Defense: Compliance Supervision
"Three-defense" Structure
Embed the compliance process into business planning, push for compliantcorporate behavior, assist risk management through regular risk reports andconsultations, and organize compliance awareness & capacity training
:
:
Perform risk assessment, enforce rules in specific processes, deliver employeecompliance training, write reports and communicate with other departments, andmake continued improvementsScopeResponsibilities
:Compliance Department, Legal Department, Internal Audit Department, QualityManagement Department, External Auditors
:
Perform daily reviews, test the effectiveness of compliance control measures,conduct compliance audits and internal violation investigations, collectsuggestions, and continuously improve compliance governance
It provides the management withindependent advice andsuggestions, as well as a broadervision on business planning andkey compliance areas.
It studies possible moral andethical conflicts related to theCompany’ s technology R&D andapplication.Process and IT, Human Resources,Financial Center, Internal Audit andother departments help ensure thatcompliance programs are properlyrolled out.Compliance liaison officers areset up in marketing, productdevelopment, supply chain,functional departments, andbranches at home and abroad.
Technical Ethics Committee
Support Line
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While developing express and executableregulations and optimizing business proce-dures, Hikvision endeavors to make sure thatits compliance guidelines are strictly followedacross all dimensions such as business ethics,tax compliance, trade compliance, humanrights governance, and responsible marketing.Our compliance management measures aresubject to regular evaluation for improvedefficiency and effectiveness.
Promoting Compliance Practices
Hikvision attaches great importance to business ethics andanti-corruption work and has established the Integrity and EthicsCompliance Committee as the top-level organizational guarantee.We advocate the corporate core value of "integrity and pragmatism",and actively regulates employees’ business and functionalbehaviors based on laws and regulations applicable to businessoperations, internal and external norms such as the Hikvision Codeof Ethics and Business Conduct and the Hikvision Global Anti-Briberyand Anti-Corruption Manual, as well as high-standard businessethics requirements. We strengthens professional ethics andconduct training for employees, suppliers, and customers to createa clean and law-abiding business ecology with win-win cooperation.We have established a regular assessment and audit monitoringmechanism for business ethics and corruption risks in our internalaudit system to continuously promote the effectiveness and reviewthe risk exposure of the implementation of our business ethics andanti-corruption-related policies, procedures, and codes of practicein our business units, departments, and other corporate operations.We also focus on and evaluate business ethics and corruption riskclues reported from complaint channels. We combine risk assess-ment and analysis results to drive internal control improvementsand enhancements.
Business Ethics
We have developed a comprehensive set of tax managementregulations, including the Hikvision Tax Risk Management Policy, theHikvision Group Guidelines for Transfer Pricing Policy Framework, theTax Management Policy for Overseas Branches, and the Risk Manage-ment Regulations for Standing Overseas Business Organizations. Thesedocuments have specified management objectives, organizationalresponsibilities and scope of work, risk identification and assess-ment, risk response and control, information communication,supervision and improvement, and many other aspects, requiring theCompany to appropriately control tax risks, prevent tax violations,and fulfill tax obligations while avoiding potential legal penalties,financial loss, or reputational damage.
Tax Compliance
As part of its efforts to improve its local tax management system, theCompany compiled the Management of Tax Registration of OverseasBranches and the Tax Declaration Procedure and Operation Guide forOverseas Subsidiaries, added the German and British rules in the TaxGuidelines for Overseas Subsidiaries, and updated the tax guidelines forseveral countries during the reporting period.Hikvision has received Class A credit rating as a taxpayer for manyyears in a row, and has signed the Tax Compliance CooperationAgreement with the Zhejiang Provincial Tax Bureau, demonstrating highrecognition by regulatory authorities.
Hikvision goes to great lengths to keepwhistleblowers’ personal information confidentialand protect their legitimate rights and interests.The Company does not tolerate retaliation in anyform, and will take all necessary informationsecurity measures to protect whistleblowers’personal information and information reportedfrom disclosure and unauthorized access,alteration or destruction.
WhistleblowerProtection Mechanism
Whistleblowing Hotline and E-mailfor Potential Bribery and CorruptionBehaviorsHotline 0571-86611816E-mail jubao@hikvision.com
Hikvision adheres to the concept of fair and proper competition,participates in the market in a legally and ethically compliant manner,and has established a mechanism to review and update its anti-mo-nopoly compliance policy regularly. During the reporting period, weexamined the published anti-monopoly compliance guidelines andcountry-specific guidelines in light of the legislative, enforcement,and judicial practices of anti-monopoly laws and regulations, revisedthe Hikvision Anti-Monopoly Compliance Guidelines and the U.S.Anti-Monopoly Compliance Guidelines. And we have updated theAnti-Monopoly Compliance Guide for Saudi Arabia and the Anti-Monopo-ly Compliance Guide for Colombia to expand the coverage and depth ofanti-monopoly compliance governance continuously.In 2022, the Company published the Hikvision Whistleblowing Policy (inboth Chinese and English) to encourage and support all stakeholders,including employees, customers, users and suppliers to report anymisconduct of the Company, such as a suspected violation of laws,regulations or moral codes, or any potential compliance risk. Also,there are a number of whistleblowing channels available at Hikvisionto ensure that the information reported is smoothly communicatedand efficiently handled.
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Hikvision adheres to global operations, continues to improvethe global trade compliance system, and complies withapplicable laws and regulations on export control andeconomic sanctions in major countries, organizations andeconomies around the world, such as the UN, the EU, China,and the US, and effectively fulfilling its trade complianceresponsibilities. During the reporting period, the Companyfurther refined the country-specific compliance guidelinesfor trade compliance, formulated and issued the HikvisionUK Export Controls Policy and reviewed and optimized thetrade compliance control initiatives and processes toenhance management completeness and maturity, takinginto account the legislative and enforcement dynamics andpractices of export control and economic sanctions.During the reporting period, we were active in addressingthe further sanctions and market access pressure from theUS, by maintaining communication and dialogue withrelevant government departments, mainstream media andall stakeholders to clear misunderstandings and eliminatedoubts. Regarding the Federal Communications Commis-sion’s (FCC) ban on new product authorizations, we activelysubmit complaints and legislative opinions, and filed apetition for review with the U.S. Court of Appeals for theDistrict of Columbia Circuit on February 13, 2023, seekingjudicial relief to safeguard the Company’s rights andinterests. Furthermore, we have strengthened our capabili-ties of preventing supply chain risks, so as to be betterpositioned to continue operational resilience amid externaluncertainties.
Throughout business operations, Hikvision honors thehuman rights as stipulated in the Universal Declaration ofHuman Rights, the International Covenant on Civil andPolitical Rights, the International Covenant on Economic,Social and Cultural Rights, and the ILO Declaration onFundamental Principles and Rights at Work. At the same time,we refer to internationally recognized standards such as theUnited Nations Guiding Principles on Business and HumanRights and strive to integrate these provisions into ourpolicies and work processes. Our top-level compliancepolicy, the Hikvision Code of Ethics and Business Conduct,includes "making equality without discrimination", "prohibit-ing human trafficking, child labor, and forced labor", and"respecting and protecting human rights" as fundamentalprinciples. We also implement our corporate responsibilityto protect human rights by creating a good workingenvironment, building a responsible supply chain, andpracticing technology for good. We are committed tocontinuously strengthening our ability to exercise duediligence and business judgment, avoiding actions thatimpede human rights through misuse of products andtechnologies, and constantly improving compliance with ourbusiness activities.During the reporting period, we developed and released theStatement on Combating Slavery and Human Trafficking. Atthe same time, we held global ESG conferences to communi-cate and convey our human rights governance philosophyand practices to relevant institutions, organizations,customers, partners, employees, consultants, and otherstakeholders, to discuss human rights governancechallenges and solutions considering business enterprises,and to seek best practices in the industry continuously.
In marketing management, Hikvision abides by the Advertis-ing Law of the People’s Republic of China, the Law of thePeople’s Republic of China on the Protection of the Rights andInterests of Consumers, and applicable laws and regulationsof the jurisdictions where we operate. Internal regulationssuch as the Sales Management Policy and the Ten Red Linesfor Integrity Practices are also available to regulate thebehavior of marketers and dealers. This ensures theaccuracy, truthfulness and legality of the informationcommunicated, and protects the legitimate rights andinterests of consumers. Throughout the reporting period, wehave not been imposed with any regulatory punishmentarising from marketing violations.During the reporting period, we continued to expand ourdigital marketing matrix, and assured responsible andcompliant marketing through stringent content, legal andcybersecurity censorship mechanisms. Alongside theconstantly upgrading marketing strategies, pre-sales andsales teams were organized to receive managementcapability enhancement training and other specializedtraining.
Trade ComplianceHuman Rights GovernanceResponsible Marketing
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Hikvision’s Compliance Culture Activities
As a proponent of "pursuit of rightness and compliance",the Company strives to instill compliance awareness inevery employee’s daily work and practices, andconsiders it a long-term growth goal. During thereporting period, Hikvision held the Compliance CultureMonth activity, and publicized information on anti-cor-ruption, anti-bribery, fair competition, export control,data protection, intellectual property rights, andexternal communication through compliance training,compliance quizzes, compliance salons and otheractivities, fostering a compliance culture among allemployees.
A compliance forum and a software compliance salon wereheld, where a number of external lawyers, scholars, andexperts were invited to give keynote speeches. The activitiesattracted hundreds of participants.
Promoting Compliance Culture
Compliance Salon
The compliance promotional video was filmed by departmentleaders and core employees, who shared their stories toencourage compliance actions.Compliance Promotional Video
The Company organized compliance training coveringtailored and closer-to-business topics, such as code ofbusiness conduct, together with a compliance quiz, forglobal employees.
Compliance Training and Quiz
During the Compliance Culture Month, a compliance boothwas set up to display compliance promotional materials andpublicize compliance culture.Compliance Booth
During thereporting period
Total training hours
training sessionswere deliveredTotal participants50,000
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Hikvision’s Business ContinuityManagement System Certification
As a complex and ever-changing external environmentusually poses a great deal of challenges to businessoperations, maintaining resilience during times ofuncertainty is essential for an enterprise to grow steadilyand retain a competitive edge in the market.Hikvision adheres to the path of high-quality developmentin the face of uncertainty. With focus on quality stability,data security, and supply chain continuity, we work toprevent and reduce possible losses caused by operationalrisks for the purpose of business continuity. During thereporting period, Hikvision was certified by the BusinessContinuity Management System – a testament of itsmature and reliable business management capabilities.
Ensuring BusinessContinuity
We follow the product quality management guideline of"leading technology, quality first, customer satisfaction,continuous innovation" and run a sound quality managementsystem. Ongoing efforts are spared to optimize the develop-ment of procedures, tools, methods and culture for qualitymanagement surrounding business and managementobjectives. Moreover, a closed-loop management mechanismspanning from standards formulation, staff empowerment,process improvement, evaluation improvement is enforced toensure that both quality management regulations andactions are in place at Hikvision.
Quality Stability
The Company has developed a set of policies and standardsfor security management in strict compliance with applica-ble laws and regulations such as the Data Security Law of thePeople’s Republic of China and the Personal InformationProtection Law of the People’s Republic of China. Industrystandards, customers’ security demands, third-partyanalysis, industry activities, peer experience andbusiness-specific requirements have also been referred towhen drafting these policies and standards. Coupled with aholistic professional cybersecurity organizational structureand solid technical means, a sophisticated cybersecuritymanagement system has been established at Hikvision. Ourcybersecurity management system has been certified by theISO/IEC 27701:2019 Privacy Information Management System,the ISO/IEC 29151:2017 Code of Practice for PersonallyIdentifiable Information Protection, and the ISO/IEC27001:2013 Information Security Management System,among other certifications.During the reporting period, we updated the Hikvision
Data Security
Cybersecurity White Paper (Third Edition), built the HikvisionSecurity Maturity Model, and quantified the activities ofproduct security R&D. At the same time, consideringdomestic and international legislation and law enforcementpractices on data protection and personal informationprotection, we have formulated and issued personal dataprotection regimes based on South Africa, China mainland,Peru, and Morocco and continuously enriched and improvedmulti-level data protection policies and rules. In addition,considering changes in domestic personal informationprotection regulatory policies and practices, we activelyconduct proactive compliance, timely adjust and optimizecompliance standards and practice requirements for APP andother products and services to ensure compliance withnational regulatory requirements.
To address quality issues more efficiently, the Companylaunched a multi-dimensional quality management improve-ment project during the reporting period. We took control andoptimization measures to effectively lower related indicatorssuch as the annual defect rate, and the number of serious/v-ery serious customer problems, and improve relatedindicators such as the on-time release rate of products.
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Hikvision has made moves to tackle uncontrollable factors inthe supply chain. It increases the strategic reserve of keymaterials, promotes product normalization design, andstrengthens the transparency of supply chain information.For suppliers, we provide financial service support, andcoordinate with them on delivery schedules withoutcompromising quality, laying a solid foundation for coopera-tion. Moreover, we attempt to seek more local suppliers andset up warehouses and factories near production bases toensure timely supply across regions.
Supply Chain Continuity
Market changes, alongside requirements for customization, fast delivery, high quality, and low cost, have brought hugechallenges to Hikvision’s supply chain. In response, the Company has formed a project team composed of specialists in R&D,business, planning, manufacturing, logistics, and procurement to optimize value flow and end-to-end procedures, and redesignthe delivery plan to meet the requirements of lean production in the supply chain.Hikvision enhanced inventory management of multi-variety and small-batch items over the reporting period. Through theoptimization of supply chain procedures, the average delivery cycle was reduced by 50%, and the delivery cycle of 50% of theorders was shortened to 3 days. While the demand for goods rose by more than 30%, the inventory area for multi-variety andsmall-batch products had zero growth, with the merchandise inventory dropping by 30% year-on-year. All of these effortshelped to ensure the continuity of our supply chain.
Optimizing inventory in the supply chain
Case
During the reporting period, the Company optimized localstorage to allow for flexible distribution. About 70% and95% of suppliers at Tonglu site and Chongqing site,
respectively, are now localized, and the localization ofoverseas warehouses has also come to the implementationstage.
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Product Responsibility
Continuous Innovationand Quality OrientationIt is a key social responsibility of Hikvision as a corporate to provideinnovative and premium products and services that match customerneeds for the society. Sticking to continuous innovation and qualityorientation, we deliver superior products and solutions, a reliablecybersecurity environment, and high-quality local services throughinnovative and leading perception technologies and intelligent appli-cations, creating value for customers in better ways.
Contribution to UN SDGs
Key Performance
The Company’s R&D investment was RMB 98.14 billion,accounting for 11.80% of the annual operating incomeWe were granted 1,548 invention patents, 266 utility modelpatents, 380 design patents, 181 software copyrights, and300 trademarksThe Hikvision Innovation Principles was published
Compliance Ecosystem:
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Dedicated to technological innovation in IoT perception,AI, and big data, Hikvision provides AIoT softwares andhardwares featuring Software-Hardware Fusion,Cloud-Edge Fusion, AIoT-Information Network Fusion andBig Data-AI Fusion, as well as solutions tailored tospecific industrial scenarios and client demands. Weenable technological advancement to serve socialdevelopment and benefit more people by removingbarriers between technology and application.
Driving TechnologicalInnovation
Technological innovation is a driving force for Hikvision’s growth. Therefore, we persist in increasing R&D investment,expanding our R&D team, and transforming our R&D outcomes, which leads to constantly improving competitiveness in theindustry. During the reporting period, our R&D investment increased by 18.94% year-on-year to RMB 98.14 billion, accountingfor 11.80% of the annual operating income; and there were 27,951 R&D engineers, accounting for 47.96% of the Company’stotal.We are well aware of the close relationship between intellectual property and technological innovation: they coexist andpromote each other. Therefore, protecting intellectual property equals protecting innovation. The Company follows theprinciple of "protecting our own intellectual property rights and respecting others’ intellectual property rights". To this end, itkeeps improving its intellectual property protection system, strengthening the protection of intellectual property rights, andraising employees’ awareness of protecting intellectual property rights.
There are several channels such as hotline, email, and websiteavailable to report intellectual property infringements, so that allparties could work together to safeguard a healthy intellectualproperty protection environment.Moreover, Hikvision continues to promote standardized industrialdevelopment. For example, Hikvision Research Institute has led orparticipated in the compilation of 15 national standards, 22 groupstandards, and 3 industry standards, consistently contributingHikvision’s wisdom to the industry’s innovation ecosystem.
Fruitful Innovation
27951Number of R&D staff
Accounting for
47.96%
of the total employees
RMB9.81billionR&D investment
Accounting for
11.80%
of the revenueYoY growth
18.94%
Inventionpatent
Number of patents granted in 2022Total number of patents grantedNumber of patents under application
1,5483,7875,100+
Utility modelpatent
Number of patents granted in 2022Total number of patents grantedNumber of patents under application
1,410130+Design patent
Number of patents granted in 2022Total number of patents grantedNumber of patents under application
2,400460+
Softwarecopyright
Number of software copyrights granted in 2022Total number of software copyrights grantedNumber of software copyrights under application
1,70920+Trademark
Number of trademarks granted in 2022Total number of trademarks grantedNumber of trademarks under application
5,0851,728
1.Data as of December 31, 2022.
2.Standards of the statistics of patent:
Number of patents granted in 2022: statistics are based on the number of officialauthorization notices received as of December 31, 2022.Number of patents under application: statistics are based on the number of officialacceptance notices received as of December 31, 2022.Total number of patents granted: statistics are based on the total number of patentsgranted and remaining valid as of December 31, 2022.
3.Standards of the statistics of software copyright:
Number of software copyrights granted in 2022: statistics are based on the number of softwarecopyright certificates received as of December 31, 2022.Number of software copyrights under application: statistics are based on the number ofapplications that have been submitted to copyright center as of December 31, 2022.Total number of software copyrights granted: statistics are based on the total number ofsoftware copyrights remaining valid as of December 31, 2022.Note:
Channels to Report Intellectual PropertyInfringements to HikvisionHotline400 800 5998
weiquan315@hikvision.comwww.hikvision.com/weiquan315Legal and Compliance Department, No. 518 WuLianWangStreet, Binjiang District, Hangzhou 0571-88075998-63844EmailWebsiteMailing address
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Along with the publishing of the Hikvision Innovation Principles, the Company organized anumber of events to foster a dynamic innovation atmosphere and enhance employees’innovation awareness, such as policy interpretation, as well as the release of themedcomputer wallpapers, innovation tips, cultural and creative characters and gifts, a themesong, and a series of innovation stories.
Innovation Culture Promotions
A campaign themed on "Endless Joy in Innovation" was launchedat Hikvision. On the one hand, employees were organized to learninnovation tools, approaches and best practices to improve theirinnovation capacity; on the other hand, we presented theInnovation Demonstration Team, the 2nd TRIZ Innovation andCreativity Competition, the 4th Data Application Model InnovationCompetition, the Innovation Clinic, and the Innovation Roundta-ble to encourage innovation at work.
Innovation Culture ActivitiesFirmly believing that innovation should be incubated in a fertile cultural soil, we hopeHikvision’s infinite potential could be unleashed by the innovation and exploration of allemployees. During the reporting period, we launched a variety of innovation-themedpromotions and activities, allowing employees to learn more about innovation concepts,tools and methods, and apply them in practice.
Innovation Culture
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TRIZ (Theory of Inventive Problem Solving) is an innovation methodology that aims at solving technical problems and boostorganizations’ innovation capabilities through a systematic approach. The TRIZ framework enables Hikvision to better exploreinnovative thinking, discover innovation patterns, produce more innovation methods, and finally accomplish technological orproduct innovation.In 2022, Hikvision launched the 2nd TRIZ Innovation and Creativity Competition for all employees. Activities such as InnovationCafé and TRIZ Workshop were held to pass on diverse knowledge and innovation solutions to our staff through accuratesearch, inspiring them to overcome technical difficulties and develop competitive products.
For the fourth year in a row, the Company held the Data Application Model Innovation Competition to continuously stimulateinnovation potential from within. The competition collected a total of 304 data application models designed for industries andfields such as public security, traffic police, transportation, and government affairs, engaging 40 secondary departments and803 participants. Leveraging an open data capacity system, the competition aims to select data application models withoutstanding performance in marketing and business development, and to help Hikvision develop one-stop capabilities fromdata model design, development and optimization to application and commercialization through practices.
150+ employees were certified as Innovation Engineer(L1) in Zhejiang
30+TRIZ projectspatents
20+
new products10+
Our online and offline TRIZ courses benefited more than 3,000 employees throughout the reporting period
TRIZ Innovation and Creativity Competition: Bringing innovation ideas to life
Case
Data Application Model Innovation Competition:
Creating an atmosphere for application innovationCase
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Hikvision Quality Management Certification
Quality is the cornerstone of an enterprise’s develop-ment. Imprinted with the quality policy of "leadingtechnology, quality first, customer satisfaction,continuous innovation", Hikvision is wholeheartedlydevoted to product quality assurance. While improvingits quality management system, it works continually toenhance all employees’ quality awareness, in a bid todeliver reliable and premium products and services tocustomers.
Hikvision’s vast product system is built on a robust quality management system. The Company has established the QualityManagement Committee, which is responsible for coordinating and supervising quality management at every level of manage-ment. Also, a quality management model of "one concept, two goals, three dimensions, and four measures" has beendeveloped in line with the Company’s actual operations, extending quality management to the entire operation processes. Ourquality management approaches are timely adapted to different development stages and business scenarios in order toactively manage challenges at varied times.
Assuring ProductQuality
Optimizing Quality System
Quality Management Structure
Quality ManagementDepartmentAs the executive body of the Quality Management Committee,it is responsible for organizing, supervising and promotingthe development of products and services to achieve qualitymanagement throughout the whole process.It is responsible for quality managementorganization and promotion in various fields.It is responsible for the implementation specific activitiesin quality-control process and its further promotion.
Level I
Level II
Level IIIExecutive Roles of Quality Assurance
Supply ChainQuality ManagementR&D Quality Management
ServiceQuality Management
Quality Management Model
Customer Success, Innovation ExcellenceBusiness GoalManagement GoalProcess ConstructionEnterprise Culture ConstructionTool & Methodology ConstructionStandard DevelopmentStaff EmpowermentProcess ImprovementAssessment Improvement
One ConceptTwo GoalsThree DimensionsFour Measures
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Quality culture development is a crucial pillar for the Company’s high-quality development. We keep enhancing the quality culture of "Customer Success,Innovation Excellence", and improve employees’ awareness and capabilities of assuring zero quality issues surrounding the work policy of "raisingemployees’ awareness of quality responsibility and consolidating employees’ quality-compliant habits". Quality training and cultural activities in diverseforms are organized for employees in different positions, so that they can have a better understanding of quality work.
Quality Culture BoothQuality Culture Theme SongOn-site Quality Culture Promotion
Enhancing Quality Culture
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Service System Overview
Three Core Service Sectors
Service quality is an integral part of our productresponsibilities. Hikvision has built a sound servicesupporting system centered on customer needs andexperience to continuously improve services andguarantee a desirable customer service experience.
With the tenet of "to act as needed, meet customerneeds, provide professional services, and maximizevalue", Hikvision stays true to its service mission –"to help customers succeed with professionalism,and create value with services".
Delivering QualityServices
Improving Service System
Global Technical Support and Service CenterWith superior resources, it provides global operations with comprehensive on-siteand remote services.Level I
Technology Department of Business Center/Function Center
It is vertically supervised by the headquarters and in parallelconnection with each market.Level II
National/Regional Service Station
and Local Authorized Service Station
Set up all over the world, it helps extend and supplementour local services.Level III
Three-level service systemAssuring customer satisfactionDiversified service solutionsDigital and intelligent service toolsLocal service resources all over the worldComplete internal and external training andcertification system
Technical SupportIt refers to the aggregation of all technical support activities centered on enhancing product competitiveness and maturity.It is responsible for the serviceability and deliverability of products in IPD (Integrated Product Development) activities.
Service DeliveryIt refers to the process of delivering services to customers as agreed in contracts.It is an integral part of LTC (Leads To Cash), with customer satisfaction as the core and payment collection as the goal.Contract types include engineering project contract, service contract and so on.Issue To ResolutionIt refers to the process from a customer’s request for technical service to the fulfillment of such request.Technical service centers on customer satisfaction.Service methods and other details are subject to SLA (Service Level Agreement).
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It refers to the aggregation of all technical support activities centered on enhancing product competitiveness and maturity.It is responsible for the serviceability and deliverability of products in IPD (Integrated Product Development) activities.
Results of Hikvision’s 2022 Customer Satisfaction Survey
Our diversified and customized services are built oncomprehensive and unified service resources, a profession-al and efficient service team, a fast and thorough qualityinspection management mechanism and flexible feedbackchannels. Furthermore, we have a Customer SatisfactionSurvey Team that supervises the whole-process customersatisfaction management, conducts satisfaction surveysand optimizes satisfaction management approaches, so asto continuously upgrade our customer service capabilities.Hikvision launches a customer satisfaction survey eachyear. Customer complaints are handled through a compre-hensive mechanism, coupled with efforts made to optimizecomplaint-related indicators, improve the complainthandling and accountability mechanism, and organize teamsharing of complaint cases on a regular basis. In addition,complaint specialists are responsible for the whole processfrom case assignment, handling, return visit and archiving,ensuring that customer requests are fully addressed.
Upgrading Service Capabilities
Net satisfaction score68%up %Net promoter score69%
up %
Domestic
Respondents included distributors, integrators, installers andother varied customer groups.The overall satisfaction rate of overseas customers was 79.23%.The net satisfaction score showed an increase from 2021, withsignificant improvements in after-sales maintenance, productsand related technical services.
Overseas
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Network and Information Security Committee
Hikvision regards cybersecurity a mission of paramountimportance. We continue improving our internal managementmechanism and promoting cybersecurity culture, whileestablishing an industry cooperation ecosystem to enhancecybersecurity.
We will support and apply general, internationallyrecognized cybersecurity standards and the bestpractices.We will support research on enhancing cyber defenses.We will continue to improve and employ open andtransparent approaches, allowing users to assessHikvision’s security capabilities.
Hikvision’s Commitment to Cybersecurity
To cope with ever-changing cybersecurity challenges, the Company has set up specialized organizations such as the SecurityResponse Center, the Network and Information Security Laboratory, the Product Security Committee, and the CybersecurityDepartment since its establishment. We work hard to establish and improve a cybersecurity system centering on organizationand process to comprehensively enhance the cybersecurity of our products and systems. Our Network and InformationSecurity Committee, founded in March 2015, is responsible for integrating product security activities into R&D, supply chain,marketing and sales, engineering delivery and technical services, and delegating clearly-defined responsibilities to relevantorganizations.
CybersecurityPropositions and Actions
Strengthening Cybersecurity Management System
Network and Information Security CommitteeHikvision Security Response Team
Cybersecurity Department
Product Security Management Group
Information Security Management Group
Legal SupportQuality ManagementPublic RelationsTechnical SupportR&D ManagementSupport TeamSupport Team
R&D SystemR&D System
Systematic BusinessInnovative Business
Supply Chain
Marketing System
Functional DepartmentSystemic BusinessInnovative Business
Legal and ComplianceProcess and ITGeneral AdministrativeHuman ResourcesBrand Management
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Hikvision’s Cybersecurity Management System Certifications of Registration
During the reporting period, the Company drafted or revised anumber of regulatory documents such as the Data SecurityManagement Procedure, the Threat and VulnerabilityManagement Regulations, the Information Security Manage-ment Manual, the Information Security Policy, and theCybersecurity Management Regulations. Regarding manage-ment systems, Hikvision received the ISO/IEC 27701:2019 andISO/IEC 29151:2017 system certifications from the BritishStandards Institution (BSI), an internationally authoritativestandard R&D, certification and audit organization. It meansour privacy information management system has gainedprofessional recognition – a significant step forward in ourcybersecurity management.Meanwhile, Hikvision has also passed BSI’s renewal audit forthe ISO/IEC 27001:2013 Certification with its world-classinformation security management system. In addition, 13 ofthe Company’s systems have been evaluated and approvedfor Classified Protection of Cybersecurity.We have identified key positions for cybersecurity in eachbusiness segment, and clearly defined key positions forproduct security. We stress the standard cybersecurity codeof conduct for employees in key positions, and regularlypromote the signing of the Hikvision Terms of InformationSecurity Management at Customer Site (also known as theHikvision’s Commitment to Information Security Responsibili-ty at Customer Site) as part of our business routine in aplanned way. At the same time, we pay attention to theimprovement of cybersecurity knowledge and skills ofemployees in key positions, and motivate employees foractive learning.
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We’ve released 19 new cybersecurity video courses foremployees, including 11 domestic courses and 8 interna-tional ones, all of which are now available on the onlinelearning platform.Over 130 online and offline promotion training sessions weredelivered to domestic and overseas staff throughout theyear, including daily awareness enhancement training,safety publicity and training for specific job posts, annualtraining examination for all employees, and security attackand defense drills, covering 100% of our employees.
Cybersecurity Culture Activities
Hikvision’s Cybersecurity Partnerships
We raise the cybersecurity awareness of all staff byeducating them on cybersecurity knowledge and skillsand creating a vibrant atmosphere that calls for jointefforts to build up cybersecurity defense. In this way, weaim to continuously improve the Company’s cybersecuritycapabilities.
Themed on “co-establishing data security and sharingsecure data”, the campaign featured an array of eventssuch as cybersecurity conferences, the “Weidun Awards”selection, the “Qiangwang Cup” cybersecurity competencecompetition, cybersecurity contests, online cybersecuritylectures, cybersecurity tips, and information securitypresentations.These activities reached 12 operational sites in total,including the headquarters and remote R&D centers,production bases, and business centers.
While ensuring the availability, reliability and security of itsown network and information systems, Hikvision activelylinks all partners to build a harmonious cybersecurityecosystem with openness and interconnected attitude andjointly defend against cybersecurity threats.
Raising Cybersecurity Awareness
Cybersecurity TrainingCybersecurity Publicity Week
Building Cybersecurity EcosystemInvite domestic and international
security experts for training &communication
Invite domestic and overseasrenowned security companies for
penetration testing
Launch the White Hat Incentive to
reward security researchers
Extensive SecurityPartnership for Win-winResultsInvite world-class companies forbenchmarking with secure R&D
processes
Invite noted security consultingcompanies for information security
assessments
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Environmental Responsibility
Low-carbon Operationsand Green Development
Green and low-carbon development has been incorporated by Hikvision into its ESGmanagement. With adherence to the sustainability philosophy of green development, wecontinuously improve our environmental management system, encourage green manu-facturing and operations, and take energy conservation and emission reduction mea-sures. Meanwhile, we are devoted to the R&D and application of products and servicespowered by clean technology, as well as green culture, pursuing the coordinated andsustainable development of the Company, society and the environment.
The Company’s carbon neutrality blueprint was completedHikvision received the ISO 14064 Greenhouse GasAccounting and Verification CertificationEnvironmental Management:
We made active use of clean energy, with 32,852 MWh ofgreen electricity purchased and 4,508.3 MWh of powergenerated via photovoltaic unitsWastewater, waste gas, solid waste, and chemicals weredisposed and discharged/emitted with 100% complianceWe launched a series of actions to de-plasticize, reduce,degrade, and recycle packaging materials
Green Production:
Hikvision was awarded the 2022 Green and Low-carbonFactory in Zhejiang Province and the 2022 Green andLow-carbon Factory in Hangzhou CityGreen Operations:
We defined the four dimensions to promote the developmentof low-carbon product: product, design, material and deviceLow-carbon Products:
The Low Carbon and Energy Saving Handbook was publishedto encourage environmental actions
Environmental Actions:
Contribution to UN SDGs
Key Performance
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Greenhouse Gas Accountingand Verification Certification
Carbon Neutrality Blueprint
Hikvision observes the Environmental Protection Law of thePeople’s Republic of China, the Energy Conservation Law of thePeople’s Republic of China, the Law of the People’s Republic ofChina on Prevention and Control of Water Pollution, the Law of thePeople’s Republic of China on Prevention and Control of AirPollution, the Law of the People’s Republic of China on Preventionand Control of Environmental Pollution by Solid Waste, and otherlaws and regulations of the place where it operates. Meanwhile,internal management regulations are timely updated andadapted to our business operations. During the reporting period,new regulations and specifications were released, such as theManagement Standards for Environmental Pollution Prevention andControl Facilities and the "Three Simultaneous" ManagementStandards for Construction, Renovation and Expansion Projects,intended to further improve the management procedure.Actively engaged in environmental system establishment, wehave been certified by the ISO 14001 Environmental ManagementSystem and the ISO 50001 Energy Management System. Duringthe reporting period, we invited a third party to account andverify the Company’s greenhouse gas emissions (scopes 1 and 2)in 2021, and obtained the ISO 14064 Greenhouse Gas Accountingand Verification Certification
Hikvision established the Carbon Neutrality Commission inDecember 2021, aiming to improve the top-level design anddrive the Company’s carbon neutrality management through atop-down approach. During the reporting period, we went astep further by forming carbon neutrality operations workinggroups and specifying related operating mechanisms. Theworking groups made short-term and mid-term work plans fortheir respective business fields, and completed the Compa-ny’s carbon neutrality blueprint. Under the blueprint, we will
Optimizing EnvironmentalManagement System
implement new schemes and models of energy conservation,carbon reduction and green development primarily from suchaspects as empowerment with technology, intelligentmanufacturing, green operations and low-carbon products.While propelling its own green and low-carbon development,Hikvision aspires to empower the upstream and downstreamof the industrial chain, and make due contributions to enablethe entire society to work toward and realize China’s "3060dual carbon" target in an orderly manner.
Supply Chain
Strategic Management
Cultural Empowerment
Define targets & scope
Set up organizations &responsibilities
Organize businesses &establish platformsImprove awareness & competence
Value Chain
Legislation & Policies
Organizational StructureOperation Proces
Green Ecology
Low-carbonProcesses
Energy savingRecycling
Clean Energy
Renewable Energy
Consumable MaterialsReduction
Energy Efficiency Increase& Consumption Reduction
Intelligent OperationsGreen Design
Social Governance
Carbon Fixation& Emission Reduction
Digital Transformation
Zero-carbon Operations
Industrial UpgradingIntelligent Factories
SocialResponsibilitiesGreenOperations
IntelligentManufacturing
Sci-techEmpowerment
Low-carbon
Products
System TierOperations TierEcosystem Tier
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Annual Energy Consumption Report
Clean Energy Introduction
Hikvision is an upholder for green production. While producing high-effi-ciency and energy-saving products, it also tries to make the manufac-turing process cleaner, by introducing clean energy, improving energyutilization, promoting water conservation and recycling, reducingpollution, regulating chemicals management and popularizing sustain-able packaging. By doing so, we hope to mitigate the impact of ourproduction and operation activities on the environment across theboard, and build up an environmentally friendly production model.
Promoting Green andLow-carbon Production
The energy used by Hikvision primarily includes gasoline, diesel, natural gas and purchasedelectricity. Our aim is to promote refined energy management, reduce energy use in the operationstage, and improve energy efficiency. To this end, the Company takes multiple energy-savingmeasures such as process improvement and equipment upgrades, and explores the possibilities ofusing renewable energy such as green electricity, photovoltaics, and energy storage to transform itsenergy mix.During the reporting period, we compiled the Annual Energy Consumption Report. The documentreviewed the Company’s overall energy usage for the year, identified the primary energy uses, anddefined the emphasis of energy conservation management based on current progress and require-ments of management both with and outside the Company. Additionally, we tapped into the Compa-ny’s energy conservation potential by launching equipment upgrades and technological transforma-tion and introducing clean energy, in an effort to continually enhance Hikvision’s energy use.
The Company has been actively transforming its energy mix.We are gradually increasing the proportion of clean energyuse through green electricity procurement, distributed PVpower generation, and energy storage. During the reportingperiod, we purchased32,852 MWh of green electricity,and generated 4,508.3 MWh of power using PV units.
Clean Energy Application
From November to December 2022, our Tonglusite and Binjiang Phase I campus shifted to100% green electricity, with green electricityconsumption accounting for about 20% ofthe annual electricity consumption;Green ElectricityPurchase
The Company is going to build a batteryenergy storage system adjacent to the 35KVsubstation at the Chongqing site. Theproject is divided into two phases, with a5MW energy storage facility set up in eachphase. The construction cycle of the firstphase is expected to be 5 months, and thesecond phase will begin after the new plantis put into use.Energy Storage
Tonglu site: Tonglu site has installed
9.118MW PV power generation units on plant
roofs, which serves as a distributed PV powerstation. The expected yearly power output of8 million kWh will be consumed by the siteinitially, with the remainder supplied to thenational grid;Chongqing site: Chongqing site plans toinstall 5.38MW PV power generation units onthe roof of each plant, with an annual powergeneration of about 3.6 million kWh and aservice life of 25 years;Wuhan site: Wuhan site plans to construct12MW PV power generation units, with anannual power generation of about 12 millionkWh, which is expected to be 100%consumed by the site.
PV PowerGeneration
Energy Management
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To address problems such as high energy consumption andlow efficiency, we seek solutions for high-efficiencycomputer rooms, and enable lifecycle operation manage-ment through the application of high-efficiency equip-ment, adaptation of high-efficiency systems, as well asefficient and intelligent management. This allows us toincrease comprehensive energy efficiency, boost efficientoperations, save energy and reduce consumption.
Efficient Computer Room Design
The Company has come up with a sophisticated, high-efficiency cooling solution for computer rooms through a lengthyprocedure, including system optimization, equipment selection, energy efficiency calculation, control scheme design,implementation optimization, adaptation, tracking and optimization, and diagnosis by data monitoring experts. Computerrooms are cooled by a combination of fixed-frequency centrifuges and variable-frequency centrifuges, coupled with a datamanagement platform, so that they can run with high energy efficiency, achieving the purpose of energy saving. By the end ofthe reporting period, the solution had been put into use at Hikvision Wuhan site and Binjiang site Phase IV.
High-efficiency computer room cooling solution,for the intelligent integration of the environment and energy efficiencyCase
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Municipal water, surface water and groundwater are majorwater resources used by Hikvision. To improve water useefficiency and have stronger management of waterresources, we take active water conservation measuresand continue to improve our water resources managementsystem. During the reporting period, the Company estab-lished a leading group and a working group for water-savingmanagement, together with a five-year water conservationplan. Water waste is reduced through balanced watertesting, water use monitoring, water-saving transforma-tion, and rainwater collection.
Water Resources Management
Hikvision Binjiang Phase IV has set up a rainwater recovery system according to the Design Guidelines for Rainwater Control andUtilization of Civil Buildings and the Implementation Plan for Recent Construction Areas for Sponge City in Binjiang District, in a bidto control runoff pollution, alleviate waterlogging, while making rational use of rainwater, improving the water environment, andcreating a multi-functional landscape. The system consists of two concrete storage tanks and a clear water tank, with anannual runoff control rate of 85.46%, and a comprehensive runoff coefficient of ≤0.6. The recovered rainwater is used forlandscape pool replenishment, road cleaning, greenery watering, vehicle washing, and garbage room washing, which greatlylowers the demand for municipal water.
Rainwater harvesting as a way of water recyclingCase
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Solid Waste Disposal Process
Wastewater and Waste Gas Treatment Process
Domestic wastewater: It is discharged into a septic tank through sewage
pipes on the campus, then the municipal sewage pipe network after undergo-ing L3 biochemical treatment and reaching discharge standards, and finallyinto rivers after a further treatment in an urban sewage treatment station;Wastewater from canteen kitchen: It is discharged into a grease trap throughsewage pipes on the campus after going through an oil-water separator, theninto the municipal sewage pipe network together with domestic sewage afterundergoing treatment and reaching discharge standards, and finally intorivers after a further treatment in an urban sewage treatment station.
Wastewater
Organic waste gas/solder fumes: It is emitted after being treated by filtercotton and L2 activated carbon absorption and reaching emission standards;Dust: It is discharged after being treated by equipment’s built-in dustcollectors, filter cotton and L2 activated carbon adsorption and reachingemission standards.
WasteGas
Hikvision continuously regulates emission management in strict compliance with theapplicable laws and regulations of different countries and places where it operates in order toreduce its impact on the environment and grow into an environment-friendly business. Wework hard to reduce waste gas, wastewater, and solid waste while ensuring complianttreatment and disposal.
Waste Management
We manage waste gas emission and wastewater discharge as required by national policies.Our List of Environmental Pollution Factors has specified the primary pollutants at Hikvision –chemical oxygen demand (COD), ammonia nitrogen, total phosphorus, volatile organiccompounds (VOCs), and solder fumes, which are subject to targeted treatment measures.We’ve also prepared a self-monitoring plan for environmental pollutants to ensure compliantwastewater discharge and waste gas emission.
Wastewater Discharge and Waste Gas Emission Management
To manage the waste generated during production and operations in an all-round manner, theCompany improved its waste management system by establishing a waste classification anddisposal system during the reporting period. Waste is classified into general waste, hazard-ous waste, and industrial waste for separate disposal. The whole process is monitored andrecorded to assure standard and traceable waste disposal.
During the reporting period, the Company developed the Hazardous Waste ManagementRegulations, which includes specific requirements for the collection, transfer, storage anddisposal of hazardous waste. It urges related departments to perform their hazardous wastesupervision responsibilities and standardizes hazardous waste disposal procedures atHikvision. Meanwhile, we established a digital management system to monitor hazardouswaste in real time and ensure its legal and safe disposal.
Waste Disposal Management
ClassifyCollect
Check
SubmitDispose
Classify solidwaste by type
Place waste in the “tobe scrapped area”
Check the items in the “to bescrapped area” and prepare adetailed list of items
Submit a scrap application throughthe “inventory loss report applica-tion” procedure, and pack the itemsafter approvalContact a locally-recognized orqualified e-waste disposalsupplier and hand over the waste
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Hikvision advocates sustainable packaging tolessen the environmental impact of packagingmaterials. While ensuring that products arefully protected by packaging, we have takenmeasures to de-plasticize and reducepackaging materials, promote degradablematerials, and increase packaging recyclingefficiency, minimizing the use of packagingmaterials.
Green PackagingManagement
The cushioning and lining material for light and small products is changed from pearl cotton (EPE) to fiber, which isestimated to reduce the use of plastic by 27.9 tons.
De-plasticization
Molded fiber in substitution of EPEYearly plastic reduction of 1.1 tons
Paper board in substitution of EPEYearly plastic reduction of 26.8 tonsPackaging is reduced by cutting the use of plastic cushioning and replacing high-volume, high-quality plasticcushioning and lining with materials with low plastic content, which is expected to reduce carbon emissions by 767tons per year.Reduction
Paper-wood combination insubstitution of pure woodYearly emission reduction of370 tons
EPE cushioning
optimizationYearly emission reduction
of 37 tonsAir column bag insubstitution of EPEYearly emission reduction of177 tons
Wood/paper reductionYearly emission reductionof 183 tonsRecyclingDegradation
Over 60 turnover pallets and turnover containers are added to improve the turnover efficiency of productionlines and promote the recycling of packaging.5 types of 100% degradable plastic bags are applied to mitigate white pollution.
Sustainable Packaging Initiatives
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Advocating Green andLow-carbon OperationsHikvision, as a player in the digital economy, endeavors tomake sustainability concepts such as green and environ-mental protection, energy saving and emission reductionpart of its day-to-day operations while empowering customerdevelopment using IoT technology. The Company encouragesemployees to save resources and live a low-carbon,eco-friendly life through green office and at the same timeintegrates sustainable operations into campus constructionto build up a green and low-carbon workplace and achieveefficient, intelligent, and green operations.
Hikvision continues to optimize energy utilization in the R&D process and maximize the use of virtual machines in replacementof physical machines, thereby reducing energy consumption. In addition to the promotion of energy and water conservationconcepts, we keep on promoting paperless office such as online meetings, e-materials, e-signatures, and online activities.With workflows simplified and standardized, we have also saved a great deal of paper.
Green Office
In 2020, the Company started the construction of an R&D cloud platform environment, and has since then been upgrading thedeployment of virtual machines in the actual production environment to container deployment. During the reporting period, weupgraded and optimized the R&D cloud by expanding and deploying more than 70 high-performance computing and supportingnodes, and completing three smooth upgrades of the platform software version. 65% of the virtual machines of storage areanetwork (IP SAN) have been migrated to a distributed network file system (Ceph), with further replacement expected in the future.By gathering more than 500 computing service nodes and providing 4,200 virtual machine resources, the R&D cloud platform iswell-positioned to cut O&M costs, boost operating efficiency, and reduce the carbon footprint of physical servers. It is expectedto cut electricity consumption by nearly 5,000 MWh and carbon emissions by nearly 4,000 tons per year.
Hikvision has built an integrated business travel platform that provides services such as online booking, refund and change ofmainstream means of transport, online hotel booking, and online vehicle booking, allowing employees to apply for businesstravel online and reimburse travel expenses in a paperless manner. By the end of the reporting period, the online use rate ofeach function was 95% for air tickets, 45% for train tickets, 35% for hotels, and 80% for car use. To encourage online railwayticket and hotel booking, we will broaden the train ticket booking scenarios and increase hotel resources online. It is hoped thatthis would improve energy efficiency and emission reductions while facilitating employees’ business trips and assuring thetransparency, compliance and finer management of travel data.
Upgrading the R&D Cloud to reduce servers’ carbon footprintCase
Building a business travel platform for low-carbon mobilityCase
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Hikvision is committed to building sustainable, intelligentoffice parks. To this end, we integrate sustainable develop-ment into the whole process of park construction, with afocus on low carbon, energy conservation, recycling, andclimate change adaptation. In the meantime, we assume oursocial responsibilities to contribute to business growth andlocal economic development.The concept of sustainable development is appliedthroughout the entire process of campus construction:
Sponge City design: We take into account the control of the
total amount of stormwater runoff and the improvement ofrainwater purification and comprehensive utilization whendesigning and building our parks. Sunken green spaces,rainwater collection pools and other facilities are set up formore effective utilization of water resources.Green materials: We use healthy, green, and eco-friendlydecoration materials. Artificial stones and prefabricated wallpanel systems are selected to save natural resources whilstimproving environmental and cost performance;Prefabricated buildings: We favor the use of steel structuresto reduce environmental pollution caused by waste andensure 100% recyclable materials.During the reporting period, the Company won the title of2022 Green and Low-carbon Factory in Hangzhou, and wascertified as the Green and Low-carbon Factory in Zhejiang inJanuary 2023.
Sustainable Campus
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Empowering Products with Green TechnologyThe development of green and low-carbon products continues at Hikvision. With clean technology, we pursue less impact of our products andservices on the environment throughout their entire life cycle. During the reporting period, more than 41,800 of our models (includingsub-models) earned China Environmental Labelling Product Certification, an increase of about 41.7% from 2021; and about 30,300 (includingsub-models) earned China Energy Conservation Product Certification, an increase of about 6% from 2021.In the future, we will continue to invest more money and efforts in expanding the R&D of clean technology, and drive its iteration and optimizationto benefit products, designs, components, and materials, thereby reducing carbon emissions.
China EnvironmentalLabeling Product Certification (type I)
China Environmental Labeling Product Certification (type II)
China Energy ConservationProduct Certification
CESI-PC-OD66 Certification
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Traditional LED displays are characterized by high energy consump-tion, heat generation, and thermal radiation, resulting in a high price,great costs, and a poor user experience. Against the backdrop ofcarbon neutrality, “energy saving” and “cooling” have emerged as newtrends in the LED industry.During the reporting period, the Company launched the LED Pro seriespowered by a cooling system. It is designed with a low powerconsumption circuit and uses flip-chip with a high light transmissionrate to reduce nodes with loss and heat generation. Its powerconsumption is around 55% lower than that of conventional displays,which means more energy and power saved. At the same time, thecooling technology avoids a scorching touch and a comfortablewatching experience by lowering the working temperature of displays.
“Replacing steel with plastic” has emerged as a crucial approach to saving energy andreducing emissions. Hikvision recognizes the importance of lightweight materials andcontinues to promote the “replacing steel with plastic” project. For our camera goods, aheat conduction and two-shot molding solution is used, which replaces metal enclosureswith plastic-clad aluminum one, aluminum supports with composite materials, andstainless steel ropes with super-strong polymer fibers. While continuously optimizingproduct performance, we take the initiative to practice energy saving and environmentalprotection, and enhance the green attributes of products.
In active response to the national strategy of carbon neutrality, energy conservation andemission reduction, Hikvision continues upgrading and optimizing components in order toboost the energy efficiency of power supply.Frontend: We optimize the power supply technology architecture of our dome cameras bytransforming the original AC power supply into DC power supply. This increases the overallenergy efficiency by about 15%, saving 120 million kWh of electricity every year;Backend: Through ATX architecture optimization, power output is changed frommulti-channel to single-channel, improving the energy efficiency of the whole device byaround 10%. With the power supply efficiency upgraded to the Gold Medal Level, it isexpected to save 375 million kWh of electricity every year.
Energy saving and efficiency enhancement ideas arethoroughly applied to the optimization of product design atHikvision. Our network video recorders feature a streamlinedand efficient overcurrent protection integrated circuit andencapsulation technology. Through the improvement of thepower supply module, we have converted the external powersupply box into a built-in interface board. As a result, themodule’s size is reduced without compromising itsperformance.
Product: LED display with a cooling system,thin, lightweight and energy-savingCase
Component: High-efficiency power supply andarchitecture optimization help boost energy efficiency
Case
Design: Exploring product miniaturization throughpower supply module optimizationCase
Material: Substituting plastic for steel to promotelightweight materials
Case
ProductsDesignsComponentsMaterials
Energy savingMiniaturizationHigh energy efficiencyLow consumption
Clean energyEmpowermentAutomation
Lightweight
ModularVolume reduction
RecyclingRecyclability
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Low Carbon and Energy Saving HandbookEnvironmental Protection Classes
Taking EnvironmentalActions
Hikvision is committed to a harmonious environment that isgreen, environmentally friendly, low-carbon and energy-sav-ing. Through energy saving and environmental protectioninitiatives, popularization of environmental protectionconcepts, and engagement in public welfare activities,Hikvision takes an active part in environmental actions andpromotes green lifestyles among all employees. By enhanc-ing employees’ environmental awareness in every subtle way,we hope to join all forces to build up a low-carbon society andhelp China fulfill National Carbon Peaking and CarbonNeutrality Goals.During the reporting period, we compiled and released theLow Carbon and Energy Saving Handbook to improve employ-ees’ low-carbon energy-conservation awareness in allaspects. It provides a systematic introduction to green life,green office, green production and green finance, as well as
suggestions for employees to develop low-carbon habits bothat work and in life, so as to improve energy utilization andreduce the carbon emission intensity of the Company.The Company is dedicated to establishing a sound energysaving and environmental protection publicity and educationmechanism that regularly shares related policies, regulations,and knowledge through Hikvision’s official forums, publicmailboxes and other online education platforms. We held 12environmental protection classes throughout the reportingperiod, covering themes such as waste battery disposal,wetland action, plastic pollution reduction, zero-wastecampus and more. They were intended to encourage employ-ees at all levels and positions to have appropriate energyconservation and environmental protection awareness andenhance the management of energy saving and environmentalprotection efforts.
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We launched a seasonal campaign themed on “Building a Clean and Beautiful World Together” during the Energy Conservation and Environmental ProtectionWeek in June 2022. The campaign included environmental protection knowledge contests, collection of low-carbon and environmental protection ideas,and an immersive experience of intelligent building technology. Also, banners and posters were posted across the Company to create a workingatmosphere that encourages low-carbon, environmental protection and green office practices.
Energy Conservation and Environmental Protection Week, contributing to a green and low-carbon culture
Case
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Employee Responsibly
Employee Careand Common Progress
Hikvision adheres to the core values of "people-oriented andcommon growth", and emphasizes the corporate culture of "respectand care for each individual". Therefore, we ?nd it necessary toprovide employees with industry-competitive compensation andbene?ts, establish a systematic and comprehensive training system,and safeguard their physical and mental health and safety. We aim toprovide a diverse and inclusive workplace in which every employeeenjoys equal opportunities for development amid harmony, fairness,and inclusivity.
2,411 ethnic minority employees17 disabled employeesThe coverage rate of collective contracts reached 100% atthe Hangzhou headquarters
Diversity and Inclusion:
In 2018, restricted stocks were vested for the secondtime, with a total of 33,142,730 shares granted to 5,533eligible employees
Compensation and Benefits:
A total of RMB 17.226 million was invested in employee trainingA total of 1,871,700 training hours was spent in employeetraining, an increase of 3.75% over last year; 91.3% of theemployees participated in the training, with an average of
32.11 training hours per person
Shared Growth:
No occupational disease cases were found in the CompanyThere were no fatalities caused by work-related injuries52 occupational health and safety training sessions weredelivered, with a total of 3,514 participants and 2,712training hours
Health and Safety:
11 employee associations and over 500 hobby groups wereestablished
Employee Care:
Contribution to UN SDGs
Key Performance
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Hikvision's Employer Awards in 2022
2022 Most In Award2022 Top 11 Employers2022 Star Employer - High Energy Growth Award2022 China Work Different of the Year2022 Chinese Employer with Top Employability - Attractive Brand2022 NFuture Awards - Employer Most Favored by Technological Professionals in Campus Recruitment2022 Top Ten Popular Employer Brands with Young Power2022 China TOP Internet Employer - Top Employer in Digital Transformation2022 Most Popular Employer among Graduates
AwardAwarded by
LinkedInZhaopin.comLiepin.comNews.cn, 58.com, and Chinahr.comNowcoder.comCiwei.netLagou.comGraduate Employer Brand Alliance ofZhejiang University of Technology
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Employment Overview at Hikvision
Respecting Diversityand InclusionHikvision protects the rights and interests of employ-ees in accordance with applicable laws and regula-tions, including the Labor Law of the People's Republicof China, the Labor Contract Law of the People's Republicof China, and the Trade Union Law of the People'sRepublic of China. Child labor and forced labor areprohibited at Hikvision, and employees' legitimaterights and interests in recruitment, promotion,compensation and benefits are under our comprehen-sive protection. As of the end of the reporting period,the coverage rate of collective contracts reached 100%at our headquarters in Hangzhou, and 77.70% of ouremployees had joined in domestic labor unions.We strive to build an equal and inclusive work environ-ment that fosters diversified cultures and opposesunfairness in any form. Employees are also encouragedto use communication platforms. All of these effortsare aimed at creating a peaceful and relaxing workingatmosphere.
Hikvision commits itself to a harmonious yet diverse workplace, where all employees are entitled to an equal developmentplatform and distinct career paths. By doing so, we aim to enhance employees' sense of belonging and gain, and motivatethem to collaborate and contribute to our long-term growth.By the end of the reporting period, Hikvision had58,284 employees, including 2,411 national minority employees and 17employees with disabilities. 18.81% of Hikvision's employees have a master's or doctorate degree, an increase of 18.90%from 2021. The annual employee turnover rate was 13.3%.In addition, we value female power and provide equal development opportunities for female employees. 30.77% of the seniorexecutives at Hikvision were female as of the end of the reporting period.
Diversified Teams
97.97%
Unknown: we respect employees’ privacy,and some employees’ position may not be disclosed.
First LineMiddle ManagementSenior ManagementUnknown
1.54%
0.05%
0.44%
Unknown: we respect employees’ privacy,and some employees’ age may not be disclosed.
57.00%
37.04%
4.41%
0.47%
1.08%
18-3031-4041-5051 and overUnknown
Unknown: we respect employees’ human rights,and some employees’ gender may not be disclosed.MaleFemale Unknown
71.64%
0.86%
27.49%
Employeesby Gender
Employeesby Age
Employeesby Position
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Human Rights ProtectionObjection to Discrimination and HarassmentOpen Communication CultureActively involved in the protection of human rights,Hikvision respects and protects all employees' rights toequal opportunities, freedom of association, and freedomof expression, as well as their personal privacy, at thelevels of management, culture, and practice. Unfairtreatment is not allowed in any form. We follow the lawsand regulations of the countries where we do business,as well as the ILO Conventions and other internationallyrecognized guidelines. Our Code of Business Conduct hasidentified "respecting and protecting human rights" as abasic value of our business. Meanwhile, human rightsprotection is advanced within the organization to ensurethat it works in every stage of our operations. Further-more, we have set up a complaint and reporting channelto respond to and handle the concerns raised byemployees in a timely manner.
Hikvision opposes all forms of discrimination and adoptsan attitude of equality and respect. The Companypromises in the Recruitment Management Regulations andother policies to provide equal opportunities to allcandidates, regardless of race, gender, sexual orienta-tion, age, nationality, religion, marriage status, disabilityor military service. Our Employee Handbook also prohibitsworkplace discrimination or harassment based on race,color, religion, gender, age, nationality, heredity, disabilityor other factors irrelevant to the Company's lawful andlegitimate interests. Complaint channels such as email,the Dabai Hotline, and the section "My Voice" on BBS are inplace to safeguard the rights and interests of employees.
Smooth and effective communication serves as a basis fora company to work and grow together with its employees.Adhering to the principle of "respecting the voice ofemployees", Hikvision has established a number ofplatforms such as the Vision Forum* , hotline/emailconsulting, and the Conversation with Managers tofacilitate open communication and discover and respondto employee demands. During the reporting period, theVision Forum received over 3,900 pieces of feedback,all of which were classified and assigned to correspondingdepartments for timely reply.Moreover, the Company has organized the supplementingof employee representatives to the Worker's Congress inaccordance with the Hikvision Management Regulations onthe Worker's Congress and the Implementation Rules for theWorker's Congress in Hangzhou. Hikvision now has 2,268employee representatives. The Workers' Congress is incharge of protecting employee interests and ensuring thecompliant and sustainable development of democraticprocedures at Hikvision, as part of the continued efforts toenhance employee care.
*Vision Forum: The internal BBS for employees' communication.
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Hikvision's Employee Welfare System
2022 Environmental, Social and Governance Report69Safeguarding EmployeeRights and Benefits
During the reporting period, the Company upgraded the following benefits on the basis of the original welfare system:
During the reporting period, 95% of male employees and 97% of female employees returned to work after taking parental leave(only those whose parental leave ended in 2022 are counted, excluding overseas employees).
Regular free clinicsEmployee assistance program (EAP)Share incentive plan
In keeping with the "people-oriented" approach,Hikvision has developed a fair remuneration policy. Apartfrom fairness within the organization, we regularlycollect and analyze compensation data in the targetmarket to ensure the rationality and industrial competi-tiveness of our salaries. An equity incentive mechanismis also enforced in the Company to provide furtherincentives to top performers.With thorough care for employees' work experience andliving quality, Hikvision has established a welfaresystem with four dimensions: allowances, wellness,enjoyable life, and talent incentives to enhance thesense of gain, belonging, and wellbeing of all staff.
AllowancesHigh-temperature subsidy / Phone allowance / Work meal allowance / Epidemic prevention subsidyWellnessEnjoyable LifeTalent Incentives
Supplementary commercial insurance &annual physical examination 1+X tailoredschemeThe commercial insurance and physicalexamination 1+X scheme are upgradedand tailored to meet employees'individualized needs.
A number of on-site health care andlarge free clinic sessions are organized,allowing employees to see a doctor moreconveniently and at a lower cost.
Diversified psychological empowermentcourses are provided for different groupsof Hikvision employees around the worldto help them improve mental health usingpsychological knowledge and skills.During the reporting period, the number ofhotline consultations grew by
120.86%
year-on-year.
As authorized by the second Extraordi-nary General Meeting of Shareholders in2018, the Company unlocked 33,142,730restricted stocks and granted them to5,533 employees. The shares involvedcame in circulation on the market on May18, 2022
Social insurance / Supplementary commercial insurance / Annual physical examination 1+X tailored scheme /Regular free clinics / Gym / Physiotherapy room / Employee assistance program (EAP)Clubs / Staff canteen / Café / Parking lot / Birthday benefits / Kindergarten and nursery /Housing loan scheme / Parental leaveInnovative business co-investment scheme / Share incentive plan / Year-end bonus /Golden Brick Award
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Growing Together withEmployees
Hikvision marches forward side by side with its employ-ees for common growth. In order to help staff unleashtheir potential and improve themselves, we provide twocareer development paths and a wide range of trainingand development plans, empowering employees in anall-round way.
Insisting on the principle of "fair, impartial andmerit-based employment", the Company has estab-lished internal promotion, job rotation and othermechanisms, ensuring technical professionals andmanagement professionals have the same opportuni-ties in position, salary and development, and give fullplay to their talents and advantages.
Diverse Promotion Channels
Hikvision's Career Development Paths
Senior ManagementManagementProfessionals PathM5M4M3M2
P5P4P3P2P1
TechnicalProfessionals PathMiddle ManagementMid-level Managersin DepartmentsJunior ManagementProfessionals
Leading Experts ofProfessional AreasExperts of ProfessionalAreasExperts of Departments/Senior Core StaffCore StaffStaff Working Independently New Recruits
For a better match between talent and job positions, Hikvision has launched training plans, signed internship base agreementswith several schools to provide thousands of students with internship opportunities, and opened an employment counselingcourse named Hikvision Class in colleges and universities to teach students the necessary skills for working at Hikvision.For the talent recruited, the Company also provides tailored training programs.
Various Training Programs
RMB 17.226 million
funds spent on staff trainingtotal training hours
1,871,700
91.30%
participation rate of employeeaverage training duration per person
32.11 hours
During the reporting period
Internal trainer trainingM2/M3/M4 Training
General competency trainingNew employee training
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Protecting Employees'Health and SafetyHikvision always puts employees' occupational healthand safety in the first place. We implement an occupa-tional health and safety management system with aclosed loop of "goal setting - execution - performanceappraisal" and encourage all employees to improve theawareness and skills of occupational health and safety,as a means to safeguard their health and safety.
Occupational Health and Safety Assessment IndicatorsOccupational healthSafetyNumber of newly-confirmed occupational diseases
Number of serious injuries and above
1‰
Detection rate of occupational hazards100%
Percentage of minor accidents thatdo not exceed the total number of employees
Physical examination rate of employeesin positions with occupational hazards
100%
Upper limit of fire accidents
Serviceability rate of facilities for protectionagainst occupational hazards
100%
Correction rate of safety accidents
100%
Use rate of personal protective equipmentin positions with occupational hazards
100%
Rate of employment with certificatesfor special operations
100%
Coverage rate of safety education and training
100%
Timely and effective response to the emergency events
Hikvision strictly observes the Labor Law of the People'sRepublic of China, the Law of the People's Republic of Chinaon the Prevention and Control of Occupational Diseases, theMeasures for the Administration of Occupational HealthExamination and other laws and regulations on occupationalhealth. We have been certified by the ISO 45001 Occupation-al Health and Safety Management Systems. Third-partyagencies are entrusted to detect all occupational diseasehazards on a regular basis, and staff exposed to such
Occupational Health
hazards are provided with protective supplies and requiredto receive periodic occupational health examinations. In2022, the Company established a system for automaticallyidentifying new and resigned employees in positions withoccupational hazards and optimized the informationcollection process for occupational health examinations,enabling full-process monitoring and management ofemployee health. There were no cases of occupationaldiseases found at Hikvision throughout the reporting period.
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Hikvision assures work safety in accordance with applicable laws and regula-tions such as the Law of the People's Republic of China on Work Safety and theRegulation on Work Related Injury Insurance. A sound work safety managementsystem is also established to comprehensively protect employees' life safetyand the Company's property safety.During the reporting period, the Company published the Safety Inspection andHazard Management Standards. Hazard investigations are launched andcorresponding improvements are made with a 100% rectification rate based onthe document. In the meantime, our Tonglu site has updated the list of hazardsand put up notice boards that indicate the types, locations, risk levels, causes,and safe disposal measures of all major hazards, which serve as a work safetywarning for employees. To guarantee the effectiveness of work safety assess-ment, we examine the environmental, health and safety management systemsand work safety management of each site on a quarterly basis.As of the end of the reporting period, there were 19 work-related injuries in theCompany, with 95 working days lost due to work-related injuries, and no deathscaused by work-related injuries.
Work Safety
To more thoroughly put occupational health and safety into practice, the Company has re-estab-lished a training system by collecting the needs of safety officers from departments and subsidiar-ies, and optimizing and developing tailored courses, covering topics such as safety management,basic fire protection knowledge, and hazard identification.
During the reporting period, the Company held activities such as firefighting skills competitions, fireevacuation drills, and air defense drills to comprehensively improve employees' occupational healthand safety awareness and capabilities, so that they could comply with regulations in everydayoperations, and respond calmly in the event of an emergency.
Safety Awareness
Fire Evacuation Drill
training sessionson occupational healthand safety
3,514total participants
2,712Total training hours
TheHikvision First AidDaywas set up in June 2022,with science popularizationand training activitiesorganized around the 19th dayof each month
Occupational Health and Safety Training
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Hikvision Talk ShowCultural Publication
Mid-Autumn Singing FestivalSingles EventTrekking
Nurturing a VibrantCorporate Culture
Hikvision fosters employee cohesiveness and stimulatestheir creativity through an ideal corporate culture. In 2022,we launched a diversity of cultural activities and encour-aged employees to form clubs and organizations to jointlydevelop a corporate culture of mutual trust, mutualsupport, and vivacity, and enhance employees' sense ofbelonging and wellbeing.
A number of events such as "Tree Hole" and "Hikvision TalkShow" were held for new employees to learn more about theCompany and become part of the big family soon. Fornewcomers from campus recruitment, we produced andpublished the first internal book, Picking Shells*. Dividedinto four chapters: development, growth, dreams, and life,the book presents cases and stories about the Company'shistory, employee growth, work-life balance, and othertopics to promote Hikvision culture.During the reporting period, we also hosted an array ofexciting activities such as "Happy Moments" , "Mid-AutumnSinging Festival" and "Hello, Happiness" to make employees'daily life more splendid and create opportunities for them tomake new friends.
Varied Employee Activities
入职季
*Picking Shells: Collection of management notes from employees of Hikvision
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In March 2022, the Company celebrated the Women's Day with acampaign themed on "appreciating every kind of beauty". Thecampaign included professional makeup lessons, a collection ofdiversified beauties, indoor bungee jumping, boxing courses andother activities, designed to help over 14,000 female employeesfind a pleasant lifestyle. Also, we invited 25 female managers tofeature in the themed poster of "Twenty-Five Lines for Women",inspiring female employees to face up to challenges and establishambitious goals. By promoting their attitude of never giving up, wewish to show the unique charm and courage of women.
Women's Day: Discovering beautyin different waysCase
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Our chess, music, dancing, film & TV, and Hanfu* clubs have added artistic
and cultural vibes in the company
Various cultural and sports activities are a highlight at Hikvision, as employees are encouraged to form and participate in allkinds of clubs based on their hobbies. By the end of the reporting period, there were 11 employee associations in the Company.On Vision Forum, employees can spontaneously set up or join hobby groups, which has grown to over 500 so far.Dynamic Employee Associations
We have basketball, football, volleyball, badminton, table tennis, and swimming clubs andorganize internal and external contests from time to time to attract sports lovers and enhance
employees' physical health
*Hanfu: The traditional clothe of the Han dynasty in China
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Partner Responsibility
Close Partnershipand Shared SuccessHonoring the strategy of "opening-up and mutual support", Hikvisionworks with its partners to create a harmonious and symbiotic technol-ogy ecosystem. On the one hand, we bear responsibility for asustainable and responsible supply chain; on the other hand, wepromote the exchange and sharing of technological achievements toaccelerate our partners' growth.
100% of new suppliers were evaluated using environmen-tal and social criteriaThe concept of green supply chain was proposedThe response rate of suppliers participating in the conflictminerals management and control audit reached 97%
Responsible Supply:
Hikvision established an open ecosystem to empowerpartners from technology, market, and growth, etc.The AI Open Platform passed the AI Development PlatformProduct Capabilities Level 4 evaluation organized by theChina Academy of Information and CommunicationsTechnology
Coordinated Industry Development:
Contribution to UN SDGs
Key Performance
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Building a ResponsibleSupply ChainHikvision not only regulates its own supply chainmanagement system to reduce social and environmentalrisks such as conflict minerals that the supply chain mayface, but also urges suppliers to uphold their socialresponsibilities with high standards, engaging them tobuild a responsible supply chain ecosystem.
Hikvision's suppliers are selected as per rigorous criteria and subject to regular audits, as a way to minimize supply chain risksand ensure sustainable production and operations. We consistently manage suppliers according to internal regulations such asthe Standards of Supplier Development and Selection Management, the Procurement Framework Agreement and the SupplierCorporate Social Responsibility Commitment. In particular, our Supplier Corporate Social Responsibility Commitment explicitlyforbids forced labor, slave labor, child labor and other misconducts, and requires suppliers to minimize potential harm tosociety, the environment and natural resources during the operation process, and to ensure a safe and healthy workingenvironment for outsourced employees. The commitment also includes provisions on business ethics and conflict minerals, andavoids any supplier behavior that is not in compliance or infringes employee rights and interests.
Standard Supply Chain Management
Hikvision maintains stringent controls on supplier accessand exit. In addition to basic conditions, we also take intoconsideration a supplier's potential impact on theenvironment and society and related actions it takes.During the reporting period, 100% of new suppliers wereevaluated using environmental and social criteria. Amongthem, the suppliers with an additional third-partyenvironmental and social certification accounted for 36%and 18%, respectively.
Supplier Access and Exit
Our Management Regulation on Supplier Rating has been formulatedwith reference to the ISO 14001 Environmental Management System,the ISO 45001 International Standard for Occupational Health andSafety (OH&S) Management, and the SA8000 Social AccountabilityInternational Standard. Besides fundamental capabilities, we alsoassess suppliers' sustainable development from the perspectivesof social responsibility and HSF (Hazardous Substance Free)according to quarterly and annual assessment plans. Uponevaluation, we reward, punish or end partnership with existingsuppliers.While requesting suppliers to sign the Supplier Corporate SocialResponsibility Commitment, we help them strengthen their manage-ment capabilities in anti-corruption, business ethics, environmentalprotection and safety through training and assessment. On theother hand, risks are managed through supplier social responsibilityrisk assessments: low-risk suppliers may be exempted from signingthe commitment by providing necessary certification or passing ourevaluation; while for medium and high-risk suppliers, we willorganize regular audits and compile social responsibility evaluationreports.During the reporting period, the Company gave training courses andorganized corresponding assessments on an irregular basis toimprove suppliers' competencies. As of the conclusion of thereporting period,100% of suppliers had participated in training andassessments.
Supplier Assessment
During the reporting period, the Company put forward theconcept of green supply chain for the first time. It seeks tocoordinate economic growth and environmental protec-tion according to corporate strategies and supply chaindevelopment demands, enabling green, intelligent,convenient, and precise procurement, transportation,sales, and recycling. We implement green supply chainmanagement to align materials and products with greendevelopment. A product lifecycle management systemthat covers supply, logistics, consumption, data andrecycling is also established to boost Hikvision'ssustainable development while providing consumers withsafe, premium products and services.
Green Supply Chain
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Hikvision has strict control over conflict minerals. Underthe Procurement Framework Agreement, all suppliers arerequired to promise that what they provide to Hikvision areDRC Conflict-Free. We have established a conflict mineralsmanagement and control system for mineral resources andproducts, including tin, tungsten, tantalum, gold, andcobalt. Our Procurement Management Committee isresponsible for risk monitoring and strategy development,and the Procurement Department and relevant functionaldepartments are in charge of developing and implementingpolicies.
Conflict Minerals Control
We have been investigating our supply chain to bolster our risk control capability of conflict minerals in accordance with fivesteps set forth in the Organization for Economic Co-operation and Development's Due Diligence Guidance for ResponsibleSupply Chains of Minerals from Conflict-Affected and High-Risk Areas. The five steps are: establishing strong company riskmanagement systems, identifying and assessing risks in the supply chain, designing and implementing a strategy to respondto identified risks, carrying out a third-party audit of smelter/refiner's due diligence practices with reference to ResponsibleMinerals Initiative's (RMI) independent third-party verification system, and reporting annually on supply chain due diligence.
Management and Control Mechanism
To regulate suppliers' behavior and operation, we delivertraining on conflict minerals, launch routine mineralinvestigations on present mineral suppliers, and sendconflict minerals questionnaires via the SRM (SupplierRelationship Management) platform. During the reportingperiod, the Company released the Instructions for Filling theConflict Minerals Reporting Template (CMRT), which is used toinstruct suppliers on how to fill in the reporting forms fortin, titanium, tungsten and gold-bearing materials incompliance with the data exchange standards forresponsible mineral sourcing. At the same time, Hikvisiondistributed the Declaration of Metal Conflict-Free tosuppliers to thoroughly investigate the compliance andlegality of sourcing along the supply chain. As of the end ofthe reporting period, nearly 1,000 suppliers had participat-ed in our conflict minerals and metals review, with aresponse rate of97%.
Training and Publicity
A well-established emergency mechanism for conflict minerals management is in place in the Company to deal with possibleemergencies:
During the reporting period, the Company had no violations caused by conflict minerals.
Emergency Response
SmelterSupplierHikvisionCustomer
RMI auditedand certified
Disclosure of thesmelters and countrisof origin
ReportAssessDue diligence
Conflict Minerals Management and Control Mechanism
In case of any suppliers’ violation due to the use of conflict minerals, we will check and isolate theproducts involved in the use of materials and submit a screening report to the material team or theProcurement Management Committee for risk assessment and final decision-making.For suppliers involved in any violations, we will adopt the performance evaluation mechanism and take actionsdepending on their evaluation results (including but not limited to establishing a special team for guidance andcorrection, reducing orders, withholding new product launch and even terminating transactions).In case of serious implications for the Company, the Company will reserve the right to further hold suppliersaccountable under the Procurement Framework Agreement.
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Driving CoordinatedIndustry DevelopmentIt is Hikvision's ambition to facilitate industry-wide develop-ment, governance and communication. As a technologycompany dedicated to innovation, we value technologysharing, support industrial exchanges, and pursue sharedsuccess with industry partners. We work hard to accelerateindustrial and social advancement with cutting-edgetechnological achievements and to build a more efficient andsecure intelligent world with innovative technologies,empowering every individual to enjoy a better future.Hikvision is committed to forming up an industrial innovationalliance as part of its "opening-up and mutual support"theory. Leveraging frontier technology, we would like to teamup with all parties to develop solutions for the industry'sintelligent upgrades and progress towards the intelligentworld together with our partners.We're interested in collaborating on technology, products,solutions, services and sales, and are able to empowerpartners at the technology, market and growth levels.Besides superior development and technical supportservices, industry developments and market information, wealso offer training and certification to assist with partners'rapid growth and contribute to an industry environment filledwith harmony and mutual support.
Open Industry Ecosystem
Hikvision empowered an environmental group with algorithm technology. The partner was assisted to independently trainbasic recognition algorithms for different types of garbage, and customize algorithms for complicated environments. Thisallowed the partner to accurately and effectively identify litter, with a decreased error rate and cost.While improving the efficiency of garbage sorting and recycling, Hikvision helped beautify the living environment and sustainthe notion of sustainable development by reducing the discharge of incorrectly sorted garbage.
Hikvision helped customize an emergency response solution for the video platform technology of an information technologycompany. With knowledge models of various accident and disaster established in the emergency response industry, thepartner enabled lifecycle emergency management. Meanwhile, we empowered the partner with our big data capabilities of theBig Data-AI Fusion Base, which allowed the two sides to work together and develop new applications in the emergencyresponse sector via technological connectivity.Our channel network and countrywide market resources were also made available to the partner, who achieved a nearly 150%performance increase as a result of cooperative market development and promotion, laying a solid foundation for the twosides to establish a harmonious and win-win industry ecosystem.
Hikvision delivered to the engineers of a system company comprehensive training comprised of courses and cases consolidat-ed from industry expertise. This aided the partner in developing adequate O&M and execution skills. Following the training, theengineers had a solid grasp of the software and hardware products involved in the courses.This empowerment project allowed the partner to reduce training costs, improve staff productivity, and invest more resourcesin the R&D of self-developed products and solutions, thus speeding up its upgrade and transformation.
Technology empowerment
Case
Market empowermentCase
Growth empowermentCase
Technology EmpowermentShare open capabilitiesEnhance innovation competition
Market EmpowermentShare market channelsCatalyze business developmentGrowth Empowerment Offer certificationand training Empower partner growth
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Openness and sharing have emerged as an opportunityfor the harmonious development of the industry. Activelyengaged in the establishment of shared platforms,Hikvision encourages data interaction, as well as thesharing of platform users and resources, with the goal tofoster industry innovation.
Sharing in Industry Ecosystem
To better open up and share capabilities, in 2020 the Hikvision Open Platform* website went live, through which the Companyopened resources on a Big Data-AI Fusion Base and a 5 aspects of capabilities – equipment, foundation, data, platform, andapplication. 4 development frameworks, 1,500+ open interfaces, 1,100+ common components, and a total of 278 softwareplatform products including basic software, general software and industry software, were made available, giving birth to anindustrial innovation alliance.
Moreover, Hikvision has produced online and offline training resources to provide development certification for ecosystempartners and accelerate the improvement of their technological capabilities. By the end of the reporting period, Hikvision'straining and certification system offered 10 certification services and more than 300 online video courses covering AI andindustry open platforms, reaching over 300 ecosystem customers and 650 partners.
Open Capability Sharing
The AI Open Platform, as an integral part of Hikvision's open system, is a one-stop AI model opening and applicationplatform designed for industry users and ecosystem partners. In the Trustworthy AI evaluation organized by theChina Academy of Information and Communications Technology in 2022, our AI Open Platform passed the AIDevelopment Platform Product Capabilities Level 4 evaluation, and reached Level 4 in data processing,model building, model-based reasoning, support and services, demonstrating its superiority,maturity, and security in the AI field.During the reporting period, we organized AI Open Day training, in which engineersfrom the headquarters were invited to regularly give offline lectures to potentialecosystem customers in various cities who were interested in AI and hadsufficient project management capabilities. During the training, thelecturers analyzed industry practices, helped clients designprofessional solutions and deploy implementationcapabilities, and offered free cloud/edge tools toempower AI application scenarios.
Comprehensive Open CapabilitiesOpen Device Capabilities
3 Days · Realize an IOT access
Open Basic CapabilitiesOpen Platform CapabilitiesOpen Data CapabilitiesOpen Application Capabilities3 Hours · Build a combinedenvironment of big data componentssuitable for user scenarios3 Days · Complete the interface ofopen protocols for pictures andvideos
2 Hours · Train a new intelligentdetection algorithm2 Weeks · Complete 50 algorithmbindings for 5,000 commonphysical devices
3 Hours · Complete the entireprocess of accessing,standardizing and cataloging aclass of data1 Month · Completion of a projectdata warehouse covering 100categories of data
1 Month · Develop a businessapplication
AI Development Platform ProductCapabilities Level 4 Certification
AI Open PlatformCase
*Hikvision Open Platform: https://open.hikvision.com/
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In 2021, Hikvision and the China Computer Federation(CCF) jointly launched the CCF-Hikvision Bar-headedGoose Fund. The program aims to address the realisticissues and business needs in the industry, and tostrengthen the partnership between the academiccommunity and the R&D teams of enterprises. It is hopedto expand the academic influence of both parties and putresearch results into practice, thereby enhancingindustry-university-research cooperation and providingdevelopment opportunities and platforms for outstand-ing young scholars at home and abroad.During the reporting period, the CCF-Hikvision Bar-head-ed Goose Fund advanced under scientific and efficientmanagement. So far, 11 projects have come to asuccessful conclusion, yielding dozens of papers andvaluable outputs, alongside 3 academic reports andtechnological forums. Therefore, the program hasbecome a driving force for university scholars and R&Dprofessionals to contribute to industry-university-re-search integration.
Support forIndustry-university-research Cooperation
Hikvision not only shares capabilities with its partners, but also provides a communication and sharing platformfor developers, technophiles and the general public, where it spreads science and technology and sharesassociated achievements.Open Communication Platform
The V Club* is a communication platform for machine visiondevelopers and technophiles. Consisting of three sections:
V Bulletin, Q&A, and V College, it helps enthusiasts andusers quickly get started in the machine vision industry andlearn about the latest industry news and technologicaldevelopments through product/case introduction andindustry experience sharing.
Also, the V Club offers certification services for machinevision engineers and ecosystem partners to enhance theirtechnical capabilities and join forces to build a machinevision ecosystem. Up to now, over 80 online and offlinetraining session have been delivered in Beijing, Wuhan,Hangzhou, Shenzhen and other cities, with a total of 925junior, medium and senior certificates granted.
In order to popularize science and technology among thepublic and establish "a sci-tech society for all", in July 2022Hikvision launched the Science & Technology LearningStation – the first sci-tech product introduction platform inthe industry that is designed to serve a wider audience. Ituses WeChat Channels, DouYin* and other new mediachannels to introduce emerging technology to the public andinspire the industry to support China's Carbon Peaking andCarbon Neutrality Goals, protect the environment, andimprove employees' working environment with technology,transforming sci-tech resources into beneficial outcomesthat can be shared by the public.
V Club
Case
Science & Technology Learning Station
Case
Scan the QR code to followHikvision's WeChat Channeland explore the Science &Technology Learning Station*DouYin: TikTok in China*V Club: https://www.v-club.com/home
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Community Responsibility
Public Welfare andSocial GoodPerceiving all nature and understanding the planet. Harnessing thecontinuous development of AIoT technology, we help customerscreate a safer and more convenient social and living environment.Hikvision is committed to sharing its business success with thecommunity. It launches innovative collaboration and public welfareinitiatives to engage employees in public welfare and social services,inspiring them to lend a helping hand to individuals and organizationsin need in every possible way.
Since its launch in 2020, the Hikvision STAR Program hasreached partnership with 20 NGOsThe 3rd Hikvision CSR Open Day was held in Bali and HangzhouHikvision STAR Program* :
Volunteered for left-behind children in mountainous areas,the elderly with no family, children of migrant workers,children with autism, children with cleft lip/palate, andoutdoor workers exposed to high temperature
STAR Employee Program:
Contribution to UN SDGs
Key Performance
*STAR Program: Sustainability through Technology, Actions for Responsibility
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Hikvision calls for public welfare partners and technical partnersfrom all over the world and works with them to explore innova-tions in four fields –Biodiversity Monitoring and Protec-tion, Environmental Monitoring and Protection, DigitalVillages, and Cultural Heritage Protection – with thepurpose of creating a brighter future for people. Since welaunched the Hikvision STAR Program in 2020, it has reachedcooperation with 20 public welfare organizations. We held theHikvision CSR Open Day for three consecutive years, presentedthe new journey, discovery and stories of the Hikvision STARProgram every year in different forms such as exhibitions,speeches, and interactive activities. The 2022 Hikvision CSR OpenDay had two sessions at home and abroad.The Chinese session was held in Hangzhou. Divided into threesections – People and People, People and Society, and Peopleand Nature, the event showcased Hikvision's public welfareefforts and passed on the warm power of tech for a better world.The international session took place in Bali, Indonesia. On theoccasion, we presented the STAR Program's charity journey,discovery and stories during the reporting period, and ourIndonesian partners shared a collaboration program withHikvision to protect tropical rainforest biodiversity using AIoTtechnology.
Hikvision STAR Program
rd
Hikvision CSR Open Day - Hangzhou
rd
Hikvision CSR Open Day - Bali, IndonesiaScan the QR codefor more information
2022 Environmental, Social and Governance Report83
Scan the QR codefor more information (in Chinese)
On October 31st 2022, the Yangtze River No. 11 Themed Post Office located in Shanghai Wusong Paotaiwan Wetland Parkfinished construction. This initiative has touched the hearts of numerous people since the completion of the first themed postoffice in Tanggula Town, Qinghai Province six years ago.The two post offices sit at the source and end of the Yangtze River, respectively - one located on a plateau surrounded bysnow-capped mountains and glaciers, and the other in a metropolis. It takes 40 hours of non-stop driving to travel betweenthe two spots, but having the technical support of Hikvision, people can instantly see the creatures around the No. 1 postoffice even if stand at the No. 11 post office, despite a distance of about 6,000km and a height difference of 4,538m.Seeing up close the living patterns of animals thousands of kilometers away in real time is a rare educational experience.Through real-time video streaming, children are allowed to chat with herders at the Yangtze River's headwaters as well asinhabitants near the estuary. With the help of technology, the Yangtze River Post Offices serve as bridge between thebeginning and end of the Yangtze River, fulfilling the romantic vision of "protecting the Yangtze River together with allresidents living along it".
Protecting the culture and ecology of the Yangtze River spanning 6,000kmCase
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Asian Games Footvball DreamCase
Volunteering Activities of STAR Employee Program
Hikivision Joins the Asian Games Football Dream Program
During the reporting period, the Company drafted the Manage-ment Measures for Hikvision Employee Volunteering Activitiesbased on the progress made to drive the healthy development ofthe STAR Employee Program. The document has stipulated theplanning, review and organization of employee volunteeringactivities, volunteers' rights and obligations, and cost manage-ment, for the standardized and orderly organization of volunteeractivities.During the reporting period, Hikvision's STAR Employee Programjoined forces with the Future Smile Charitable Foundation, YiyouPublic Welfare Service Center in Xiacheng District, Hangzhou,Jinxing Community in Banshan Sub-district, Hangzhou, XingyuanShouhu Public Welfare Service Center in Xiacheng District,Hangzhou, Xifan Library in Hangzhou and other non-profitorganizations in different fields and delivered volunteer servicesto left-behind children in mountainous areas, the elderly with nofamily, children of migrant workers, children with autism, childrenwith cleft lip/palate, and outdoor workers exposed to hightemperature.
STAR Employee Program
For some children living in mountainous areas, football istheir "magic wand", which may allow them to walk out of themountains and see a bigger world. As an official sponsor ofthe Asian Games Hangzhou, Hikvision joined the AsianGames Football Dream program during the reporting period,inspiring students from 10 mountainous schools to achievetheir football dreams. Through the initiative, we intended toboost the development of youth football, and also supportthe Asian Games' charity endeavors in collaboration with theAsian Games Hangzhou Organizing Committee.Looking ahead to 2023, Hikvision is prepared to join handswith employees and partners to shape a sustainable future.
Warm Winter action
“Let’s Smile”fundraising activity
“Delivering Coolnessin Hot Summer” activity
Charity bazaar atMid-autumn Festival
Dream Hut in Da'aoPrimary School
Paired reading eventin Jinxing Community
Summer Library activityTraining on communication
with autistic children
April
May
JuneJanuaryJuly
August
September
December
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Appendix 1: KPI Tables
KPIUnit202020212022
Key Operating Performance
Direct economic valueRMB 1,000,00063,503.581,420.183,166.3
Key Environmental Performance
Energy use
Clean energy
Ton513.8606.1282.4Unleaded gasoline
8,494.38,994.34,508.3
Energy consumption
27,433.431,480.030,253.22,443.024,990.427,769.427,415.6
0.36
3,710.62,837.6
0.430.39
Cash dividendRMB 1,000,0007,474.78,489.96,554.8Tax paidRMB 1,000,0004,901.96,447.35,947.0
Ton27.339.931.3Diesel10,000 cubic meters135.6227.2195.6Natural gas
MWh203,339.3225,951.1223,072.1Purchased electricity
Ton of standard coal equivalentTotal energy consumptionTon of standard coal equivalentDirect energy consumptionTon of standard coal equivalentIndirect energy consumptionTon of standard coal equivalentper million revenue (RMB)Energy consumption intensity
MWhPhotovoltaic power
KPIUnit202020212022
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Greenhouse gas emissions
Water resources
Total emissions(Scope 1 + Scope 2)Ton of carbon dioxide equivalent146,550.54,471.86,857.05,153.9142,078.7150,764.0154,300.2
1.92
1,276,066.11,730,970.82,336,502.71,272,248.01,721,527.72,326,204.7
3,816.19,443.010,298.0
17.82
0.05
21.26
0.00
1,991,264.4276,319.6
28.09
2.311.94
157,621.0159,454.1
Packaging materials
39,667.554,950.443,857.46,000.731,571.438,477.433,164.0
7,893.17,471.41,982.72,916.43,035.3
0.620.67
112.8166.5186.7
0.53
--
--
KPIUnit202020212022
Ton of carbon dioxide equivalentScope 1Ton of carbon dioxide equivalentScope 2Ton of carbon dioxide equivalentper million revenue (RMB)Emission intensity
TonTotal withdrawalTonMunicipal waterTonUnderground water (overseas operations only)
TonSurface water (overseas operations only)TonTotal dischargeTonTotal consumption
Ton per million revenue (RMB)Water withdrawal intensity
TonTotal useTonPlasticsTonCartonsTonWoodTonMetal boxes
Ton per million revenue (RMB)Packaging material use intensity
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Recyclable waste
Non-recyclable waste
Hazardous waste
Exhaust emissions
0.21
0.09
0.22
0.08
0.28
0.11
513.1761.5723.1
0.009
0.33
2.93
0.0080.009
17,986.218,129.417,708.4
3,295.33,865.53,764.21,271.71,342.31,506.69,432.710,093.610,053.02,640.72,226.82,629.71,067.9
601.2
32.7
7,546.06,323.17,019.1
2,362.41,668.51,686.3
3,141.32,083.13,215.5
2,042.32,571.52,117.3
------
KPIUnit202020212022TonPlasticsTonWoodTonPaperTonMetalTonOthers (wiring harness, oiled paper, etc.)
TonTotalTon per million revenue (RMB)Intensity
TonKitchen waste
TonOffice waste
TonGeneral industrial waste
TonTotalTon per million revenue (RMB)Intensity
TonTotal wasteTon per million revenue (RMB)Waste intensity
TonNOx
TonSOx
TonPM
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Notes on Key Environmental Performance:
The time scope of environmental data is from January 1st 2022 to December 31st2022; the organizational scope of environmental data includes Hikvision's domes-tic research institutes, Binjiang Phase I, Phase II, Phase III and Phase IV (includingBinjiang manufacturing base and office areas), Tonglu manufacturing base,Chongqing manufacturing base, India manufacturing base, Brazil manufacturingbase, all domestic marketing centers (covering 31 provinces, autonomousregions and municipalities) and all international marketing centers overseas(covering 54 countries and regions); by use scope, environmental data is roughlydivided into two categories: office operation and manufacturing.Intensity is calculated using the total amount in 2022 divided by the Company'srevenue for the year, in millions of RMB.Direct Greenhouse gas emissions (Scope 1) are from the use of unleaded gasoline,diesel and natural gas. The calculation of Hikvision's domestic direct greenhousegas emissions refers to the Guidelines for Accounting Methods and Reporting ofGreenhouse Gas Emissions from Industrial Enterprises and Other Industries (Trial)by the National Development and Reform Commission of the People's Republic ofChina; and the calculation of direct greenhouse gas emissions overseas refers tothe WRI/WBCSD GHG Protocol.
Indirect Greenhouse gas emissions (Scope 2) are from the use of purchasedelectricity. The calculation of Hikvision's domestic indirect greenhouse gasemissions refers to the Average Carbon Dioxide Emission Factors of China Region-al Power Grid 2012 by the National Development and Reform Commission of thePeople's Republic of China; and the calculation of indirect greenhouse gasemissions overseas refers to the EIB Project Carbon Footprint Methodologies.Total energy consumption is calculated in tons of standard coal, with referenceto the National Standard of the People's Republic of China GB/T 2589-2020 Gener-al Principles for Calculation of the Comprehensive Energy Consumption.The data on total water discharge and total water consumption only coverdomestic and overseas production bases and domestic research institutes.In 2022, the Company re-calculated the environmental data for 2020 and 2021,which results in changes in data compared with preceding reports.
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Key Social Performance
Number of employees worldwide/42,68552,75258,284
1,722.60
32.11
2,194
82,991
1,781.19
34.24
8,2529,8141,507
120,240
621.97
44.0
6,3791,270
14,000+-
%//RMB 10,000hour/personRMB 1,000,000///%%/
EmploymentOccupational health and safetyCoverage rate of safety educationNumber of occupational diseasesNumber of work-related fatalitiesTraining and education
Total investment in employee training
Training hours per employeeInnovation and R&D
Investment in R&DNumber of new patentsNumber of new software copyrights
Number of new trademarks
Supply chain managementNew suppliers selected using
environmental criteriaNew suppliers selected usingsecurity criteria
Distributors' training
KPIUnit202020212022
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Appendix 2: GRI Content IndexStatement of use
Hikvision has reported the information cited in this GRI content index for the period from January 1st,2022 to December 31st, 2022 with reference to the GRI Standards.GRI 1 used
GRI 2: General Disclosures 2021
GRI 1: Foundation 2021
GRIStandard
DisclosureChapter Index
Page NumberIndex
86-8942-4477-7879-81
67-68
2-12-22-32-4
2-62-72-92-102-122-132-14
The organization and its reporting practices
Activities and workers
Governance
Coverage rate of safety educationEntities included in the organization’s sustainability reportingReporting period, frequency and contact point
Restatements of information
About HikvisionAbout This ReportAbout This ReportKey Environmental Performance
Activities, value chain and other business relationships
Employees
Driving Technological InnovationBuilding a Responsible Supply ChainDriving Coordinated Industry DevelopmentRespecting Diversity and InclusionKey Social PerformanceGovernance structure and compositionNomination and selection of the highest governance bodyRole of the highest governance body in overseeing
the management of impactsDelegation of responsibility for managing impacts
Steadily Advancing Corporate GovernanceSteadily Advancing Corporate GovernanceSteadily Advancing Corporate GovernanceSteadily Advancing Corporate Governance
Role of the highest governance body in sustainability reportingAbout This Report
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2-22
2-23
Strategy, policies and practices
Stakeholder engagement
2-242-252-26
2-292-303-13-2
2-27
35-3839-4067-6877-78
35-3839-4067-6877-7835-3835-38
29-3067-6831-3231-32GRI 3: Material Topics 2021
GRIStandard
DisclosureChapter Index
Page NumberIndexStatement on sustainable development strategy
Message from the ManagementESG Management Philosophy and Framework
Policy commitments
Steadily Advancing Corporate GovernanceEstablishing Compliance EcosystemEnsuring Business ContinuityRespecting Diversity and InclusionBuilding a Responsible Supply ChainEmbedding policy commitments
Steadily Advancing Corporate Governance
Establishing Compliance Ecosystem
Ensuring Business ContinuityRespecting Diversity and InclusionBuilding a Responsible Supply Chain
Compliance with laws and regulations
Hikvision had no significant non-compliance during the reporting
period and did not result in fines or non-financial penalties.
Processes to remediate negative impactsMechanisms for seeking advice and raising concerns
Establishing Compliance EcosystemEstablishing Compliance Ecosystem
Approach to stakeholder engagement
Collective bargaining agreements
Stakeholder EngagementRespecting Diversity and InclusionProcess to determine material topics
List of material topics
Identification of Material IssuesIdentification of Material Issues
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03-2582-8503-2582-8503-2582-85
3-3203-1203-2
GRI 203: Indirect Economic Impacts 2016
Economic
33-40
3-3GRI 201: Economic Performance 2016201-1201-3
3-3
GRI 204: Procurement Practices 2016
77-78
3-3GRI 206: Anti-competitive Behavior 2016
35-38
GRI 205: Anti-corruption 2016
35-3835-38
3-3205-2
GRI 207: Tax 2019
35-3835-3835-3835-38
3-3207-1207-2207-4
GRIStandard
DisclosureChapter Index
Page NumberIndex
Management of material topics
Optimized Governance and Robust Operations
Safeguarding Employee Rights and BenefitsDirect economic value generated and distributedDefined benefit plan obligations and other retirement plans
Key Operating Performance
Safeguarding Employee Rights and BenefitsManagement of material topics
Technology for Goodwill, Creating Social Value as a Business
Public Welfare and Social Good
Infrastructure investments and
services supported
Technology for Goodwill, Creating Social Value as a Business
Public Welfare and Social Good
Management of material topicsBuilding a Responsible Supply ChainManagement of material topicsEstablishing Compliance EcosystemCommunication and training about anti-corruption
policies and procedures
Establishing Compliance EcosystemManagement of material topicsEstablishing Compliance EcosystemManagement of material topicsEstablishing Compliance EcosystemApproach to taxEstablishing Compliance EcosystemTax governance, control, and risk managementEstablishing Compliance EcosystemCountry-by-country reportingEstablishing Compliance Ecosystem
Significant indirect economic impacts
Technology for Goodwill, Creating Social Value as a Business
Public Welfare and Social Good
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EnvironmentalGRI 301: Materials 20163-3301-1
86-89
302-561-62
GRI 302: Energy 2016
3-3302-1302-3
86-8986-89302-4
54-5859-6061-6263-64
54-5859-6054-5859-6054-5859-60
3-3303-1303-2
GRI 303: Water and Effluents 2018
86-8986-8986-89303-3303-4303-5
GRIStandard
DisclosureChapter Index
Page NumberIndex
Management of material topicsMaterials used by weight or volume
Optimizing Environmental Management System
Key Environmental Performance
Management of material topicsOptimizing Environmental Management SystemEnergy consumption within the organizationKey Environmental PerformanceEnergy intensityKey Environmental Performance
Reduction of energy consumption
Promoting Green and Low-carbon ProductionAdvocating Green and Low-carbon OperationsEmpowering Products with Green Technology
Taking Environmental ActionsReductions in energy requirements of products and servicesEmpowering Products with Green Technology
Water withdrawalKey Environmental PerformanceWater dischargeKey Environmental PerformanceWater consumptionKey Environmental Performance
Management of material topicsInteractions with water as a shared resourceManagement of water discharge-related impacts
Promoting Green and Low-carbon ProductionAdvocating Green and Low-carbon OperationsPromoting Green and Low-carbon ProductionAdvocating Green and Low-carbon OperationsPromoting Green and Low-carbon ProductionAdvocating Green and Low-carbon Operations
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GRI 304: Biodiversity 2016
21-2582-8521-2582-853-3
305-5
GRI 305: Emissions 20163-3305-1305-2305-4
86-8986-8986-89
86-8954-5859-60GRI 306: Effluents and Waste 2020
3-353
54-5859-6063-64306-1
54-5859-6063-64306-2306-3306-5
86-8986-89
GRIStandard
DisclosureChapter Index
Page NumberIndexManagement of material topics
Good PlanetPublic Welfare and Social GoodSignificant impacts of activities,products and services on biodiversity
Good PlanetPublic Welfare and Social Good
Reduction of GHG emissions
Promoting Green and Low-carbon ProductionAdvocating Green and Low-carbon Operations
Promoting Green and Low-carbon ProductionAdvocating Green and Low-carbon Operations
Taking Environmental ActionsPromoting Green and Low-carbon ProductionAdvocating Green and Low-carbon Operations
Taking Environmental Actions
GHG emissions intensityEnergy indirect (Scope 2) GHG emissions
Direct (Scope 1) GHG emissionsManagement of material topics
Nitrogen oxides (NOx), sulfur oxides(SOx), and other significant air emissions
Waste generation and significant waste-related impacts
Optimizing Environmental Management System
Key Environmental PerformanceKey Environmental PerformanceKey Environmental Performance
Key Environmental PerformanceManagement of material topicsOptimizing Environmental Management System
Management of significant waste-related impacts
Waste generatedKey Environmental PerformanceWaste directed to disposalKey Environmental Performance
304-2
305-7
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GRI 308: Supplier Environmental Assessment 20163-377-78
77-7877-78
308-1308-2
GRI 403: Occupational Health and Safety 2018GRI 402: Labor/Management Relations 2016
3-367-68
SocialGRI 401: Employment 2016
67-68
3-3
403-4
401-2
69401-3401-167-68
71-7271-7271-7271-7271-72
3-3403-1403-2403-3
71-7271-7271-72403-5403-6403-7
71-72403-8
GRIStandard
DisclosureChapter Index
Page NumberIndexManagement of material topicsBuilding a Responsible Supply ChainNew suppliers that were screened using
environmental criteria
Building a Responsible Supply ChainKey Social PerformanceNegative environmental impacts in thesupply chain and actions taken
Building a Responsible Supply Chain
Management of material topics
Respecting Diversity and InclusionSafeguarding Employee Rights and Benefits
New employee hires and employee turnoverRespecting Diversity and Inclusion
Benefits provided to full-timeemployees that are not provided to temporary or part-time employees
Safeguarding Employee Rights and BenefitsParental leaveSafeguarding Employee Rights and BenefitsManagement of material topicsRespecting Diversity and InclusionManagement of material topicsProtecting Employees’ Health and Safety
Occupational health and safety
management system
Protecting Employees’ Health and Safety
Hazard identification, riskassessment, and incident investigation
Protecting Employees’ Health and SafetyOccupational health servicesProtecting Employees’ Health and Safety
Worker participation, consultation, and communication
on occupational health and safety
Protecting Employees’ Health and Safety
Worker training on occupational
health and safety
Protecting Employees’ Health and SafetyPromotion of worker healthProtecting Employees’ Health and Safety
Prevention and mitigation ofoccupational health and safety impacts directly linked by
business relationships
Protecting Employees’ Health and Safety
Workers covered by an occupationalhealth and safety management system
Protecting Employees’ Health and Safety
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GRI 404: Training and Education 20163-3
404-1404-2
70404-3
GRI 406: Non-discrimination 2016
GRI 405: Diversity and Equal Opportunity 2016
67-683-3
67-68405-1
67-683-3GRI 407: Freedom of Association and Collective Bargaining 2016
67-683-3GRI 408: Child Labor 2016
67-683-3GRI 409: Forced or Compulsory Labor 2016
67-683-3
71-72
403-9
71-72
403-10
GRIStandard
DisclosureChapter Index
Page NumberIndexProtecting Employees’ Health and Safety
Key Social PerformanceProtecting Employees’ Health and Safety
Key Social PerformanceWork-related injuriesWork-related ill healthManagement of material topicsGrowing Together with Employees
Growing Together with Employees
Key Social PerformanceAverage hours of training per year
per employeePrograms for upgrading employeeskills and transition assistance programsPercentage of employees receivingregular performance and career development reviews
Growing Together with EmployeesGrowing Together with EmployeesSteadily Advancing Corporate Governance
Respecting Diversity and InclusionSteadily Advancing Corporate Governance
Respecting Diversity and InclusionManagement of material topicsDiversity of governance bodies and employees
Management of material topicsRespecting Diversity and InclusionManagement of material topicsRespecting Diversity and InclusionManagement of material topicsRespecting Diversity and InclusionManagement of material topicsRespecting Diversity and Inclusion
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GRI 417: Marketing and Labeling 2016
35-3835-3835-3835-38
3-3417-1417-2417-3
GRI 418: Customer Privacy 2016
49-513-3
GRI 414: Supplier Social Assessment 2016
3-377-78
77-7877-78
414-1414-2GRI 416: Customer Health and Safety 2016
45-4647-4849-51
3-3
45-4647-4849-51416-1
GRI 413: Local Communities 2016
03-2582-8503-2582-85
3-3GRIStandard
DisclosureChapter Index
Page NumberIndexTechnology for Goodwill, Creating Social Value as a Business
Public Welfare and Social GoodManagement of material topics
Technology for Goodwill, Creating Social Value as a Business
Public Welfare and Social GoodOperations with local communityengagement, impact assessments, and development programs
Building a Responsible Supply ChainKey Social PerformanceNew suppliers that were screenedusing social criteriaManagement of material topicsBuilding a Responsible Supply ChainNegative social impacts in the supplychain and actions taken
Building a Responsible Supply Chain
Assuring Product Quality
Delivering Quality ServicesCybersecurity Propositions and ActionsManagement of material topics
Assuring Product Quality
Delivering Quality ServicesCybersecurity Propositions and ActionsAssessment of the health and safetyimpacts of product and service categoriesManagement of material topicsEstablishing Compliance EcosystemRequirements for product and service information and labelingEstablishing Compliance EcosystemIncidents of non-complianceconcerning product and service information and labeling
Establishing Compliance Ecosystem
Incidents of non-complianceconcerning marketing communications
Establishing Compliance EcosystemManagement of material topicsCybersecurity Propositions and Actions
413-1
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About This ReportOverview
This Report offers comprehensive exposition into Hangzhou Hikvision Digital Technol-ogy Co., Ltd.'s (referred to as "Hikvision", "we" or the "Company") performance andmanagement measures in environmental, social and governance (referred to as "ESG")matters in 2022, with particular focus on stakeholder concerns.Reporting ScopeThis Report covers data and information about the Company from January 1, 2022 toDecember 31, 2022 (referred to as the "reporting period"). Of note some informationreferences data dating back to 2021 or before, or looks forward into 2023. This Reportcovers Hikvision and its subsidiaries.Basis of ReportingThis Report is in accordance with the GRI Sustainability Reporting Standards issued bythe Global Sustainability Standards Board (GSSB) (referred to as the "GRI Standards"),and the Shenzhen Stock Exchange Social Responsibility Instructions to Listed Compa-nies.Further, this Report is prepared in accordance with a set of established procedures,including key stakeholders identification, material ESG issues identification andranking, reporting scope determination, data collection, report preparation and reportreview, etc.
Data SourceThe financial data included in this Report comes from the 2022 Annual Report, whichhas been independently audited by Deloitte Touche Tohmatsu Certified PublicAccountants LLP. Other information and data mainly come from the internal statisticalreports or documents of the Company. The monetary amounts herein are denoted inRMB.
Confirmation and Approval
After confirmation by the management, this Report was approved by the Board ofDirectors on April 13, 2023.Access and Feedback
This independent ESG Report is available in both Simplified Chinese and English. Toview online or download, please visit www.cninfo.com.cn or https://www.hikvi-sion.com/en/about-us/sustainability/.We highly value stakeholder and reader feedback, as your suggestions andcomments will help us further improve this Report and our ESG performance. Feel freeto contact us, our contact information is below:
Contact: 0571-88075998Website: https://www.hikvision.com/en/Email: ESG@hikvision.comAddress: No. 518 WuLianWang Street, Binjiang District, Hangzhou
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