ENVIRONMENTAL SOCIAL
AND GOVERNANCE
INTCO RECYCLING RENEWING THE WORLD
2023
ESG REPORT
CONTENTS
About this RepoCompany Oveiew
Message from the Chairman04ESG Highlights Peormance
ESG Ranking06
ESG Management112023 KPI Tables68GRI Standards Index
INNOVATIVE INTELLIGENTMANUFACTURING, SHAPING AN
Leaning Research to Reshape New MaterialsPursuing Excellent QualityINFINITE FUTURE
DETERMINED EFFORT, BUILDINGAN EXCELLENT WORKPLACE
Improving the Governance Structure 6Empowering Employee DevelopmentConveying Employee Care
Ensuring Commercial Compliance
Comprehensive risk management 64
COMPLIANCE GOVERNANCE,MAKING
Information Security Management
A SOLID FOUNDATION
GREEN AND SAFE, BUILDING APURIFIED AND SPLENDID
ENVIRONMENT
Developing Green EnvironmentStrengthening Safety Management
WORKING TOGETHER, BUILDINGA PROSPEROUS SOCIETY
Promoting a Responsible Supply Chain 51Promoting Indust DevelopmentBuilding a Harmonious Community
ABOUT THIS REPORT
INTCO RECYCLING — 2023 ESG REPORTINTCO / 03
This repo is the second environmental, social and governance repo (referred to as "this Repo" or the "ESG Repo") issuedby INTCO Recycling Resources Co., Ltd (referred to as "INTCO Recycling", "we" or "the Company"), which aims to truthfullydisclose the institutional construction and work peormance of INTCO Recycling in 2023 in terms of environmental, social andgovernance (referred to as "ESG") matters, as well as its responsibility fulllment practices for impoant stakeholders such asshareholders, customers, paners, employees, environment, and communities. This repo focuses on the ESG managementand achievements about the Company from Janua 1st to December 31st 2023 (referred to as the "repoing period"). Unlessotherwise specied, information references data dating back or beyond the repoing period.
INTRODUCTION
BASIS OF REPORTINGThis Report is in accordance with the GRI Sustainability Reporting Standards issued by the Global Sustainability StandardsBoard (GSSB) (referred to as the GRI Standards), and the Shanghai Stock Exchange Self-Regulatory Guidelines forListedCompanies No. 14 - Sustainability Reporting (Trial) (Draft for Comment).
REPORTING SCOPEUnless otherwise stated, the scope of this Repo is aligned with that of the annual nancial repo.This Repo has not sought external verication. And the data and cases of this Repo are mainly from the Company'sstatistical repos and relevant documents. The Company's board of directors commits that this Repo contains no falserecords, misleading statements, and takes responsibility for the truthfulness, accuracy, and completeness of the contents.
DATA SOURCES AND RELIABILITY STATEMENT
CONFIRMATION AND APPROVAL
After conrmation by management, this Repo was approved by the Board of Directors on April 15, 2024.
REPORT ACCESS AND CONTACTThis Repo is distributed in the form of an electronic document. Readers can visit the Shanghai Stock Exchange (www.sse.com.cn)and the website of the Company (https://www.intco.com.cn). If you have any comments or suggestions on the Company'senvironmental, social and governance disclosures and peormance, please contact us in the following ways:
E-mail: Board@intco.com.cnTel: 0533-6097778
Strivers’ INTCOMESSAGE FROM THE CHAIRMAN
INTCO RECYCLING — 2023 ESG REPORTINTCO / 04
In terms of green and safe production, we deeply understand theprofound impact of climate change and safe production on societyand the environment. We continuously improve the managementsystem, builds a green operating model, strengthens resourceusage and emission management, and is committed to reducingour carbon footprint emissions, internalizing green and safe productioninto its core values.In terms of talent development and community contribution, we aimto create a high-performance talent-dense organization, improve ourmanagement system, and establish a world-class manufacturingenterprise as our goal for organizational development. In addition,we are actively involved in public welfare undertakings and activelyfulfill our corporate social responsibilities through the INTCO Foundation,spreading love to society through our actions.Look forward to the future, as INTCO Recycling steps into thesystematic growth stage of "INTCO 3.0", we will continue to leverageour advantages in the entire industrial chain of resource recyclingand reuse, conform to the global trend of sustainable development,continuously improve the ESG management level, and makecontributions to achieving carbon neutrality and sustainabledevelopment of the earth through technological innovation,partnership collaboration, and talent team building!
For INTCO Recycling, the ESG philosophy has been integrated intoour long-term development strategy. Since the establishment, wehave always adhered to the concept of "sustainable development"and actively practiced the values of "loving, being kind, and seekingtruth" around our three main businesses of recycling, regeneration,and utilization. We have worked hand in hand with stakeholders tocreate sustainable value for society.In terms of corporate governance, we have established a soundmodern governance system, strengthened board diversity, standardizedbusiness ethics construction, solidified risk management and controlprocesses, and built a systematic, scientific, and efficient moderncorporate governance mechanism to ensure our sustained andhealthy development.In terms of product innovation, we have deeply developed therecycling of various types of plastics such as PS, PET, and PE. Drivenby independent innovation and combined with intelligent and digitalupgrades. We have continuously improved our lean managementsystem to achieve a high-value transformation journey for recyclableplastics, serving human needs with the crystallization of human wisdom.
ChairmanFrank Liu
In 2023, I have chosen the theme of the INTCO Annual Meetingas " Strivers’ INTCO". Internally, I have repeatedly shared with ourpartners that the future is full of challenges, and we must facethem head-on and strive together to have a chance to breakthrough the encirclement and overcome difficulties. None of thiscan be achieved without the efforts of every INTCO partner! Inthe field of ESG governance, I still take "Strivers’ INTCO" as theopening words of our journey, and I am willing to share this with you!
ESG HIGHLIGHTS PERFORMANCE
INTCO RECYCLING — 2023 ESG REPORTINTCO / 05
Renewable Resources Use
Energy Intensity
0.37
51.5
%
Percentage of Female Directors
%
Share of Women inTop Management Positions
66.67
%Business Ethics and Anti-corruptionTraining Coverage
%
Renewable Energy Use
2.48
MWh/ten thousand yuanIntensity of Own-operationGHG Emissions
0.18
Environmental
Environmental Education Bases
Strategy and ESGCommittee Meetings
Volunteer Activities
Charity DonationsCustomer Satisfaction Score
102.5
Employee Paicipants2,238
Employee Training Investment
341.3
Total Training Time206,352ten thousandyuan
ten thousandyuan
hours
points
98.7
SocialGovernance
tons CO?e/ten thousand yuan
million kWh
ESG RANKING
INTCO RECYCLING — 2023 ESG REPORTINTCO / 06
52 Points, Ranking in the Top 9%
of the Indust
S&P Global ESG Score
Awarded B-, Reaching the
"Management" Level
CDP Climate Change Rating
Awarded ExcellentSustainable FitchBlue Loan
IFC
Selected for theBloomberg ESG ScoresBloomberg
Score A, ranking in the top 2%
of the industWind ESG
CAPCO ESG
Rating Awarded A-, the RatingOutlook was StableCCXI ESGEcoVadis
Golden Bull Scienceand Innovation AwardChina SecuritiesJournal
Honored as theProject of the YearBloombergGreen GoldESG 50
IinternationalGreen Zero
Pioneer Gold AwardZ-Carbon
the Best ESGPractice AwardE-board
Best PracticesCase Award
Zhiyuan AwardCailian Association
Carbon FestivalESG Model Company
HONORS
INTCO RECYCLING — 2023 ESG REPORTINTCO / 07
Demonstration Enterprise for theIntegrated Development ofNew-generation Information Technologyand Manufacturing in 2023
Depament of Indust and Information
Technology of Shandong Province
Demonstration Enterprise to
Improve the InternationalCompetitiveness of Shanghai Key
Industries
Yangtze River Delta Industrial
International Competitiveness
Cooperation Alliance
Zibo “Intermediate Talent”Independent Evaluation EnterpriseThe Organization Depament ofMunicipal Pay committee of Zibo
Leading Enterprise of Seice
Trade in 2022Shandong Provincial Trade in Seices
Association
Top 100 Enterprises and Top 100Manufacture Enterprises in Zibo
in 2023
Zibo City Bureau of Indust andInformation Technology, etc.
The First Batch of DigitalTransformation DemonstrationApplication Scenarios in Shanghai’s
Energy Dual-carbon Field
Shanghai Municipal Commission of
Economy and Informatization
Shanghai's Advanced Collectivein Labor Meritorious SeiceCompetition in Greening CityAppearance IndustShanghai Municipal Bureau ofUrban Greening and Sanitation
Administration
The Second Batch of DigitalEconomy "Morning Star Facto"
Incubation ProjectDepament of Indust and Information
Technology of Shandong Province
Shanghai Youth May Fouh
Medal in 2022Shanghai Youth May 4th MedalSelection and Recognition WorkLeadership Group
COMPANY OVERVIEW
INTCO RECYCLING — 2023 ESG REPORTINTCO / 08Vietnam INTCO, Thanh Hoa2022
Anhui INTCO2010
Shanghai INTCO2002Jiangsu INTCO2010
Malaysia INTCO2018
Shandong INTCO 2005
3 Business Units
Business in 120+ countries
12,000+ Customers
20+ Years
3,500+ Employees6 R&D Bases
Vietnam INTCO, Quang Ninh2023
INTCO RECYCLING — 2023 ESG REPORTINTCO / 09
Environmental Contribution
+150,000Tons/Year
-300,000Tons/Year
-450,000
Tons/Year
+1.6 Million
Boxes/Year
-2.7 MillionTrees/Yearr-PS r-PETCO?OilPS MouldingsTrees Were Protected
Million TonsMillion TonsMillion Tons
CO?
OilTrees5103,300Cumulative Savings
Since establishment, INTCO Recycling has reduced carbon emissions by about 3.4 million tons, saved about 5.1 milliontons of crude oil resources and about 33 million trees, contributing its value and power to achieve carbon neutralityand about development of the eah.
Corporate CultureCorporate Values
INTCO RECYCLING — 2023 ESG REPORTINTCO / 10
ValuesMissionLove Goodness Truth
The Duty to Our EmployeesMaximize the Individual Potential of Each Employee
·Recruiting and Promoting the Right People·Coaching and Encouraging the ProfessionalDevelopment of Individual Capabilities·Provide Continuing Peormance Evaluation·Encourage Employee Innovation and ChangeThe Duty to Our TeamCreate a Positive Working Environment
·Encourage Teamwork·Recognizing and Rewarding Excellence·Providing Competitive Pay and Benets·Fostering Continuous Two-Way Communication
The Duty to Our EnterpriseGrowing Our Business·Increasing Long Term Protability·Expanding Business and Customer Base·Reinvesting in New Products, Seices,
and SuppoThe Duty to SocietyPracticing Ethical Behavior
·Peorming Our Duties with Honesty and Integrity·Embracing Mutual Trust and Respect·Promoting Workforce Diversity and CultureSensitivity·Protecting and Caring for the Needs of the
Community and the Environment
The Duty to Our CustomersSatisfy Our Customers
·Understanding the Customer's Vision and Strategies·Continuing Improvement of Products, Seice, and Value·Anticipating and Meeting Customer Needs·Building Eective Customer and Supplier Alliances
Becoming The Global Leader InHigh-tech Manufacturing ThroughRecycled Materials
With the Human Wisdom Seingthe Human Needs
Focus on the Recycling Resources,for the Sustainable Development ofthe Eah
Honesty & Integrity, Diligence &Hardworking, Professionalism,Teamwork, Customer First
Eve Suggestion will be Cherished;Eve Improvement will be Awarded.
Objective
VisionSpirit
Improvement andInnovation
INTCO Recycling has been practicing the values of " Love Goodness Truth" to multi-responsibiity,and continuously promotingthe development of the plastic recycling economy with thepower of scientic and technological innovation
ESG MANAGEMENT
ESG Governance Framework
INTCO Recycling believes that business success should not only a sustainable business model, but also environmental and social sustainability to achieve harmonious development. With the vision of " becominga global leader in high-tech recycled resource manufacturing ", the Company takes the initiative to practice the ESG concept while developing itself, leading business innovation, promoting indust progressand seing social development.
The Company has established the Strategy and ESG Committee of the Board ofDirectors and formulated the Implementation Rules of the Strategy and ESGCommittee of the Board of Directors, with the Chairman as director of the Committee,and under which there is an ESG team composed of relevant internal depamentsto suppo the decision making and implementation of the ESG strategy.
Sharing of ESG Management Optimization Path by External Expes
INTCO RECYCLING — 2023 ESG REPORTINTCO / 11
Strategy andESG Committeeof the Boardof Directors
Develop corporate ESG strategy, monitor ESGimplementation and assess ESG peormance.
ESG Team
RelatedFunctionalDepartmentsand BusinessUnits
Prepare ESG policies, identify ESG risks andcoordinate ESG efforts.
Implement the ESG action plans.
Stakeholder Engagement
To promptly understand the expectations and demands of various stakeholders on the Company's operation and development, the Company has established a normalized anddiversied communication mechanism to ensure that the demands of all paies are fully understood and eectively responded to. The Company integrates these demands andexpectations into operations and decision-making to achieve a win-win situation. During the repoing period, the Company has soed out and identied the following keystakeholders who have signicant inuence on the Company's decision-making and operational management.
INTCO RECYCLING — 2023 ESG REPORTINTCO / 12
Government andRegulato Agencies
Shareholders andInvestors
Clients / ConsumersEmployeesPaners
(Suppliers and Other Paners)
CommunityMedia
·Compliance Operation·Drive Social Employment·Product Quality and Safety
·Reduce Business OperationalRisk·Regulate Corporate
Governance·Capital Appreciation·Protect Rights and Interestsof Investors·Promote Technology Innovation·Comply with Laws and
Regulations·Implement Regulato
Requirements·Assist Local Economic
Development·Improve Product Quality
·Research Reception·Daily Conference·Thematic Meetings·Information Repoing
·Enhance Risk Control·Improve Corporate Protability·Improve the Corporate
Governance System·Disclose Information According
to the Law·Protect Rights and Interests of
Small and Medium-sized
Investors·Shareholder Meetings·Earnings Release·Press Releases, Information
Disclosures·Roadshows and Reverse
Roadshows
·Ensure Product and SeiceQuality·Customer Relationship
Management
·Protect Basic Rights·Provide a Good Career Path·Provide a Healthy, Safe and
Comfoable Work Environment·Compensation and Benets
·Conduct Fair Trade·Promote Indust Progress
·Suppo Community
Construction·Paicipate in Community
Charity Activities·Suppo Disaster Relief
·Daily Communication·Information Disclosure·Provide Specialized
Inteiews and OtherCommunication
·Paicipate in Volunta
Activities·Responding to Rural
Revitalization·Suppoing Education and
Elderly Care
·Information Disclosure·Media Inteiews and
Communication·Establish and Follow Open
and Transparent ProcurementPrinciples and CooperationMechanisms·Pursue Mutually Benecial
Cooperation·Responsible Sourcing·Paicipation in Formulating
the Indust Standards
·Protect Basic Rights·Provide a Good Career Path·Provide a Healthy, Safe and
Comfoable Work Environment·Compensation and Benets·Provide High-qualityProducts and Seices·Strictly Fulll the ContractObligations
·Customer Satisfaction Suey·Customer Communication
and Visit·Online Communication
(APP, Ocial Website, 400
Consumer Seice Hotline, etc.)
·Sta Congress·Employee Communications·Employee Training and Career
Development Planning·Employee Care Activities
·Paicipate in Indust and
Business Associations·Indust Exhibition·Open and Transparent
Bidding Process·Indust Chain Paner Training
and Management
·Charity Activities·Volunta Seice
·Press Releases·Media Inteiews
Stakeholdes
Expectationsand Demands
Our Response
CommunicationChannels
Materiality Assessment
INTCO RECYCLING — 2023 ESG REPORTINTCO / 13
The management of the Company, through benchmarking analysis and internal and externalstakeholder communication, combined with its own strategic development direction and stakeholderdemands, and based on the principle of dual materiality, identied and assessed 18 material issuesthat have signicant impacts on the society and the environment. This Repo will provide informationdisclosure and resources to various material issues.
Through analysis of regulato agenciesrequirements, peer benchmarking, policyanalysis, and considering the concerns inthe capital market, materiality issues wereidentied and formed a list of the ESG
All materiality issues were assessed andranked in terms of impoance to theCompany and impoance to stakeholdersand formed a materiality issue matrix ofthe Company
The results of the materiality matrix weresubmitted to management to conrm themateriality of the identied issues andtheir impact. We will faithfully reect theCompany’s peormance on the relevanttopics in our repo
Conducted internal inteiews of theCompany and questionnaires suey onESG materiality issues to shareholdersand investors, employees, paners,government and regulato agencies,community,media, to understand theconcerns of stakeholders
Identication of ESGPotential Materiality Issues
Prioritization ofMateriality Issues
StakeholderEngagement
Conrmation ofMateriality Issues
Influence of Stakeholders’ Interest
Inuence to the Sustainable Development of INTCO Recycling
Codes of Business ConductCompliance OperationsTalent Attrcation and Retention
Pccupational Health and SafetyProduct Lifecycle ManagementResponding to Climate ChangeCorporate GovermanceIntelligent ManufacturingEnergy ManagementWater Resource Management
Circular Economic Development
R&D Innovation
Diversity and EquitySupplier Management
Community Contribution and DevelopmentPollution Prevention
EnvironmentalCompliance
CustomerRelationshipManagement
ESG Materiality Matrix of INTCO Recycling
Materiality Identication and Assessment Process
Extremely Impoant
Extremely ImpoantImpoant
Our Actions:
Innovative circular economy models.Establishment of a sound and complete product quality supeision system standards.Upgrading enterprise equipment and information automation to anchor new quality productive forces.Focusing on client and customer experience to manage and improve customer feedback.
Corresponding to the SDGs
INNOVATIVE INTELLIGENTMANUFACTURING,SHAPING AN INFINITE FUTURE
INTCO RECYCLING — 2023 ESG REPORTINTCO / 14
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
LEANING RESEARCH TO RESHAPE NEW MATERIALS
INTCO RECYCLING — 2023 ESG REPORTINTCO / 15
PE Wall Panel
~70%
PS Photo Frame
~84%
PS Art Frame
~84%
PS Mirror Frame
~84%
PS Skirting Board
~84%
PE DIY Tile
~70%
PET Acoustic Panel
~60%
PS Wall Panel
~84%
GHG EmissionReduction:
GHG EmissionReduction:
PS Photo Frame
GHG EmissionReduction:
~84%
One-stop solutions forinterior & exterior decorative Materialsand home decors.These figures are based on the use of recycled materials compared to virgin materials
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
GHG EmissionReduction:
GHG EmissionReduction:
GHG EmissionReduction:
GHG EmissionReduction:
GHG EmissionReduction:
GHG EmissionReduction:
Core Technology Advantages
INTCO RECYCLING — 2023 ESG REPORTINTCO / 16
Soing, Washing, Modicationand GranulationReduced Volume ofCompressed Plastics
ReduceRecycle
Reuse
Recycled PlasticMaterials
Recycled PlasticProductsInitialScreening
Sell Directly
Processing
Domestic andOverseas MarketDomestic andOverseas Recycling PointsIncineration & Landll
Currently not InvolvedPlastic Recycling BusinessPlastic Regenerating BusinessPlastic Reuse Business
Volume Reduction Compressionby Recycling Equipment
Photo FrameMirror FrameA FrameWall Panel
Wall MouldingOutdoor DeckingPreformsPackaging Boxes
By virtue of the advantages of the entire industrial chainof plastics recycling, the Company continues to ploughdeeply into the three major fields of plastics recycling,regenerating and reusing, and expands horizontally themulti-wheel drive of PS, PET and PE, successfully realizingthe perfect grafting of plastics recycling and the applicationof fashionable consumer products.
Note:
1.The amount of recycled plastic waste is collected by the
Company from around the world and recycled for granulation.
2.The amount of landfill avoided is the Company's recycled
granulation and trade procurement of recycled plastic particlesor semi-finished products.
3.Calculation sources: TUV certification, American Plastics
Recycling Association (APR)
PS
PET
PE
Total Amount of RecycledtonstonstonsCO?etonstonstonsCO?etonstonstonsCO?e
39,821Landll Avoidance64,873126,233Reduce Carbon EmissionTotal Amount of Recycled
Landll AvoidanceReduce Carbon EmissionTotal Amount of Recycled
Landll AvoidanceReduce Carbon Emission
24,63544,68032,518
8,57033,47811,398
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
Innovate and Optimize ProductsRecycle
M Series Hot Melt Machine
H Series Hydraulic Press
In the contempora pursuit of sustainable development, GreenMax upholds its commitmentto environmental protection and signicantly increased its inuence in the plastics recyclingindust through technological innovation and continuous improvement.Since its launch in 2015, it has provided solutionsfor the recove of EPS, EPE, EPP, etc., and hasachieved a leading position in the Noh Americanand Australian markets, demonstrating GreenMax'soutstanding ability in technological innovationand market expansion.
EPE Recycling ModelsGreenMax launched its rst high-capacity EPErecycling model in 2023, designed to meet thespecial needs of the high-tech indust. It hassuccessfully seed dozens of customers andassisted 10 million pounds of EPE packagingplastic, signicantly improving the recycling rateof local waste EPE.
GreenMax's high-capacity H-C300 model launchedin 2022 and the small and medium-sized hydraulicpress (H-C100/C200) developed in 2023 fuherenhance the Company's inuence in the Australianand Noh American markets, provide customerswith more packaging plastic recycling solutions.
INTCO RECYCLING — 2023 ESG REPORTINTCO / 17
The Company successfully upgraded the operating system of GreenMax's core productfrom version 3.0 to version 4.0.This not only highlights INTCO's deep experience in the eld of plastic recycling, but alsosignicantly improves the intelligence and exibility of the system by embedding advancedadaptive parameter adjustment functions.Combined with PLC and HMI touch screen technology of Siemens and the use of newlydeveloped Internet of things technology IoT technology, GreenMax can achievecontinuously monitoring of equipment operation status and provide customers with earlywarning seices in case of emergency, ensuring the stability and continuity of theproduction process.
Intelligent Operating System
Innovating Products
90:1Compressibility
70:1Compressibility
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
r-PS Pellets
r-PET Pellets
r-PE Pellets
Recycled plastics are purchased and used plastics are made into high-quality recycled plastic paicles using recycled pelletizing technology.
INTCO RECYCLING — 2023 ESG REPORTINTCO / 18
Regeneration
Different grades of pellets
Traceability Information System
Modication of Recycled Plastics
The r-PS pellets, benchmarked against the EU ROHS standards,are controlled for heavy metals, polybrominated compounds,and phthalate substances substances to ensure the environmentalattributes of the products. At the same time, combined with keyindicator parameters such as melt ow index, limiting oxygenindex, moisture content, paicle size and tensile strength, areaccurately connect downstream customers and enhance productadded value.
From front-end waste recycling to internal production and manufacturing, therecycled pellets can be traced, controlled and tracked through the entire process.The Company's laboratories and downstream application depaments built aninternal database together to eectively expand and accurately docking downstreamapplication market.The R&D team eectively improves the material's peormance indexes such astensile, bending, impact resistance, heat resistance, corrosion resistance, weatherresistance and so on by lling, reinforcing, blending and other physical modicationmethods for thermoplastics such as PS, PE, PP, etc.
The r-PE pellets are produced through the following process ow.Removing metal impurities, crushing, rinsing, oating, soing,ding, melting, plasticizing, high-precision ltration, devolatilizationand exhaustiom, pelletizing, removing the low molecular weightof degradable plastics, modication etc.
The r-PET pellets are eectively dierentiated by grade based onintrinsic viscosity data, and are classied into food grade, bergrade and industrial grade by combining key indicator parameterssuch as melting point, cstallinity, moisture content , acetaldehydecontent, titanium content and others.
Innovation Point
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
With advanced plastic multi-layer co-extrusion process, the recycled plastic paicles are made into recycled plastic products to achieve the same level or even upgraded utilization.
INTCO RECYCLING — 2023 ESG REPORTINTCO / 19
Reuse
Large-sized PS Decorative MaterialsRecycled PET Acoustic PanelRecycled HDPE Wood Mosaic Floor
Through embossing, thermal transfer printing and other processes,we gradually expand the conventional small size wall panel to30, 60, 120 and other large product sizes. Larger panels give morespace for process design, meet the end-consumer aistic pursuitsbetter and install more ecient and convenient , the overall costcan be reduced by 15-20%.
The Company applies recycled PET to polyester ber sound-absorbing cotton innovatively, which is combined with MDF coatingstrip to make the product more decorative with sound absorptionfunction. In the second half of 2023, we developed DIY acousticpanels to meet the dierentiated needs of consumers, which werepopular with European and American consumers.
The Company innovated the combination of recycled wood plasticslats and injection lock base to expand the application directionof recycled HDPE, so that it not only has excellent durability andweather resistance, but also has a unique splicing design, whichmakes the installation fast and easy, and can meet the outdoorlandscape, leisure area, commercial space and multiple applicationscenarios.
Innovation Point
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
Innovative Measures to Energize the Organization
Leaning Management System
INTCO RECYCLING — 2023 ESG REPORTINTCO / 20
INTCO Business System
IBS DiagnosticsImprove System
ProjectManagementQCC AcitivitySelf Improvement5S & VisualStandard Work/TPMProblem Solving Process
Basic Training
ManagerStandardOperationPeormanceVisualization
HierarchicalMeetingQuickResponseIBS TrainingBand LevelKPI Management
Lean TalentDaily ManagementVision
Path
Base
5,382
Improvement and Innovation Proposals
Generate Benets
million
In order to promote the Company's innovation, we continuously stimulate the sta's innovation impetusand develop their innovation potential through the internal lean management mechanism, advocatethe paicipation of all sta, take the initiative to identify and solve problems, so as to enhance ourcore competitiveness, and achieve sustainable development better.
The Company continues to promote lean operation, empower employees, enhance ability ofimprovement and innovation, and promote common progress of the enterprise and employees. Leantraining camps and lean improvement week activities are carried out to let all employees to deeplyunderstand the concepts and methods of lean production and master advanced production technologyand management experience. Horse-racing incentive mechanism, with the facto operation indexas traction, realizes the horizontal competition between the same depament and the same position,to fully stimulate the potential of your employees.
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
Full Automatic Intelligent Operation —— Reduce Cost, Improve Efficiency and Promote Production
Full Automatic Metering and Feeding System
Automatic Loading System
Automatic Feeding System
Equipment Automation to Build Sma FactoriesThe Company improves production eciency and reduces labor costs, by actively impoing sma devices, in order to manipulate the production process more accurately and improve the quality of products.With a more ecient and intelligent production system, we can inject impetus for the development of high-quality enterprise.
The Company developed and impoed a fully automatic intelligent operating system, which saves the labour force required for machine operation and greatly improves the production eciency, escoing theecient production.
INTCO RECYCLING — 2023 ESG REPORTINTCO / 21
Improve Process
Improve ProcessImprove Process
plc+ touch screen control automatic feedingand weighing
Increase productivity by about50%, reduce sta by1 person/unit
Benets
BenetsBenets
increase in productivity30%
Manual loading →Automatic loading
Integrated operation of automatic feeding, palletizing and breakage
Increase productivity by about30% and reduce sta by 1 person/unit.
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
INTCO RECYCLING — 2023 ESG REPORTINTCO / 22
R&D Management MechanismThe Company compiled the R&D Project Management System Manual to clarify the management process of R&D projects and provide good environment for R&D, so as to continuously break through thetechnical bottlenecks, and to realize the goal of technological transformation.
R&D Expenditures
(Millions RMB)
R&D Positions(Person)
R&D Investment Propoion
of Total Sales(%)
4.86%
4.41%
4.28%
96.68
90.72
105.02
202120222023202120222023202120222023
Intellectual Propey Rights
Total
Scientic Research Projects
Utility Model PatentsInvention Patents
Design Patents
Screen Copyrights and Domain Names, etc.
Software Copyrights
2,469
2,338
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
Strengthening Quality Management
PURSUING EXCELLENT QUALITY
INTCO RECYCLING — 2023 ESG REPORTINTCO / 23
1.FDA ：Food and Frug Administration
3.GRS ：
Global Recycled Standard
7.EUTR ：
European Union Timber Regulation
4.CE ：
EUROPEAN COMMUNITY
2.ESFA ：
European Food Safety Authority
5.FSC ：Forest Stewardship Council
6.Reach ：Registration，Evaluation，Authorization and Restriction
of Chemicals
4567
The Company adheres to the "Prior Quality, Impoant Prevention" management policyand the "Customer-oriented Focus" management concept, strictly controls the quality ofproducts and seices, creates high-quality products and ultimate seices, thus providinga solid foundation for the long-term development of the Company.
In order to strengthen the quality management ability of products and seices, the Company carried out a seriesof quality management system ceication work. By the end of the repoing period, the Company's productionbases and products obtained multiple ceications, including ISO 9001 quality management ceication and GRSceication. The relevant ceications are as follows:
The Company complies with the Law of the People’s Republic of China on Product Qualityand the Foreign Trade Law of the People's Republic of China. Apa from compiling aQuality Manual following the requirements of the ISO 9001 2015 Quality ManagementSystem and other laws and regulations, we developed detailed implementation standardssuch as Identication and Traceability Control Procedure, Product Safety ManagementControl Procedure and Nonconforming Product Control Procedure. We use them as guidingand regulato documents for quality management system activities.The Company has detailed the quality control measures and processes step by step, builta quality management system, and implemented top-down quality managementresponsibilities under the overall coordination of the general manager. Managementrepresentatives have been appointed to supeise and communicate internally andexternally.
Mechanism Construction toStandardize Quality Management
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
INTCO /INTCO RECYCLING — 2023 ESG REPORT24
Cultural Construction to Enhance the Quality Awareness
Rened Management to Achieve Quality Control of the Whole Process
QualityManagementSchemeQualityControlQualityAssurance
QualityImprovement
Product DesignMarket Demand Management
R&D Project ManagementMan / Machines / Material / Method /Environment / MeasurementControl Plan
PreventativeCorrective
Improvement WeekQCCProduct Introduction Control Process ImprovementProcess Change Control Process ImprovementNoncomforming Product Control Process Improvement
IT Application
Process DevelopmentStability ControlQuality Internal AuditTraining PlanData AnalysisEcient QualityProblem SolvingPFMEA & Basic ErrorPrevention ApplicationsCore ManagementProcess Improvement
In 2023, the Company revised the quality policy as " Prior Quality, Impoant Prevention ", andadded "Zero Defect - Doing the Right Thing for the First Time" and "the Cost of Not Meeting theRequirements" to the quality policy documents. We conducted advocacy and training for allsta and determined the zero-defect improvement paths at the physical level, the theoreticallevel and the human level.
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN
The Company has formatted the standardized inspection andmeasurement of products, covering raw materials, productionprocess and delive, and strictly implement product monitoringand measurement. During the repoing period, the Companydid not have any recall events due to product delive quality.
Quality Management System
INFINITE FUTURE
Ensuring High-quality SeiceResponsible Marketing
INTCO RECYCLING — 2023 ESG REPORTINTCO / 25
The Company attaches great impoance to customer experience and feedback, establishesan accurate and eective customer seice management system and regularly communicateswith customers by video calls, on-site visits, etc. We meet customer's one-stop productsolution needs and comprehensively improve customer experience and satisfaction.
As a responsible enterprise, the Company follows the true and accurate principle of product marketing andconducts responsible marketing activities from multiple aspects such as product packaging, publicity, andafter-sales. We strictly abide by relevant laws and regulations, such as the Adveising Law of the People'sRepublic of China and the Law of the People's Republic of China on Protection of Consumer Rights andInterests. We strengthen the review of marketing and publicity copy to prevent excessive publicity andconsumer fraud.Meanwhile, the Company makes full use of digital technology to enable marketing eos, thus identifyingpotential customers, achieving customer conversion, and retaining loyal customers. In terms of the overseasmarketing in 2023, the Company strengthened brand building and focused on showing consumers the productselling points, qualications and ceications through media and websites. We successfully established areliable brand image and won customer trust, promoting the sustainable development of the Company.
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
Customer Complaint ManagementThe Company actively improves quality management according to the suggestions feedbacked by customers,timely communicates with customers about solutions. By coping with quality problems and implementingthe product control, the Company has achieved continuous improvement of quality management capabilitiesand product quality.
INTCO RECYCLING — 2023 ESG REPORTINTCO / 26
Feishu Customer Complaint ManagementSales DepamentQuality Depament with Other Relevant Depaments
QualityDepamentReceive Customer
Complaints
Organize CustomerComplaint Meeting
Develop and ValidateImprovements
Prevent Recurrence
and Standardize
SubmitImprovement Repo·Clarify Order Information·Identify Production Information·Verify Production Samples·On-site Investigation
·Brain-storming·5-WHY Analysis·Fishbone Diagram·Customer Complaint Meeting Record
·Temporary Measures·Long-term Measures·Production & Outflow Control·Person in Chargeand Improvement Date·Scheme Verification
·Revision Control Plan·Improve FMEA·Revise Process Flow and SOP·Improve Inspection Standards
·Submit within 7 Days·Collect Customer Facebook·Report Archiving
Customer Satisfaction Management
Quality Depament ImprovesManagement and Tracks Implementation
Customer Satisfaction is Improved
Marketing DepamentSummarizes Problems
Relevant depaments ImplementImprovement Measures
Satisfaction SueySatisfaction Score
Customer Complaint Closure RateSatisfaction Score
100%98.7
Customer Satisfaction Suey Management
Adhering to the working principle of "Responding to All Complaints", theCompany formulated the Customer Complaint Control Procedures, whichspecied the complaint handling process and time limit in detail and denedthe Quality Depament as the overall management depament to supeiseand analyse the handling of customer complaints. Based on the cooperationof various functional depaments, the entire complaint assignment,processing, follow-up, and ling process is completed to ensure thatcustomer demands are completed through the complaint managementmodule of Feishu. The Company pays attention to customer suggestions,comments, and complaints to ensure adequate response to customerdemands and guarantee customer rights and interests. During the repoingperiod, the customer complaint closure rate reached 100%.
The Company established Customer Satisfaction Control Procedures. We conduct customersatisfaction suey eve year and feedback customer concerns and problems to relevantdepaments for timely processing.
During theReporting Period
INNOVATIVE INTELLIGENT MANUFACTURING, SHAPING AN INFINITE FUTURE
Establishing a sound environmental management systemActively addressing climate changePromoting the use of green energyImplementing occupational health and safety management for employees
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GREEN AND SAFE, BUILDING APURIFIED AND SPLENDID ENVIRONMENT
CORRESPONDING TO THE SDGS
OUR ACTIONS
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
INTCO RECYCLING — 2023 ESG REPORT
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DEVELOPING GREEN ENVIRONMENTThe Company attaches great impoance to environmental management, continuously improvesenvironmental management and energy eciency, optimizes the environmental management system,implements initiatives to respond to climate change, and ensures that all environmental protectionmeasures are eectively implemented. The Company practices the 3R "Reduce, Recycle, Reuse" principleto realize waste classication and reduction, improve resource utilization eciency, reduce pollutionemissions, and promote sustainable development.
Consolidating Environmental ManagementThe Company abides by the Environmental Protection Law of the People'sRepublic of China, the Energy Conseation Law of the People's Republic ofChina, the Law of the People's Republic of China on Prevention and Control ofWater Pollution, and other environmental protection laws and regulations.We formulate the Environmental Protection Management Policy, whichapplies to all the depaments of the Company as well as the foreigners andinterns. We have also set up an EHS Committee, led by the Company's generalmanager, with the paicipation of each division and depament manager, tocar out environmental management and collaborate to build a matureenvironment management system. The Company has maintained a high levelof environmental and ecological protection responsibility. In the past fouryears, we have not paid any signicant penalties and nes related to theenvironment or ecology*.
During the repoing period,Shanghai INTCO and Lu’anINTCO successfully passed thereassessment of ISO 14001Environmental ManagementSystem, which implemented aneective environmentalmanagement system to ensurethat the Company complied withthe requirements of relevantregulations and standards.
Environmental Management System Ceication
Note: Signicant penalties and nes refer to penalties above $10,000
Shanghai INTCOISO 14001 Ceication
Lu’an INTCOISO 14001 Ceication
Greenhouse Gas Emissions during the Repoing Period
Total GHG emissions: 584,797.21 tons CO?e
Scope I: 2,295.12 tons of CO?eScope II:
47,568.53 tons of CO?e
Partial Scope III:
534,933.56 tons of CO?e
INTCO Recycling invested7,185,100 RMBas environmental protection funds to manageenvironmental protection.DURING THE REPORTING PERIOD
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
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Responding to Climate Change
The Company follows the lead of national green and low-carbon strategy, strengthens the ability to adapt to and respond to climate change, reduces greenhouse gas emissions, and continues to practice the"Dual-carbon" path to promote sustainable development.The Company sets up a strategic ESG committee to identify risks and oppounities related to climate change, optimizes the climate risk management mechanism, identies physical hazards such as typhoons andseasonal heavy rainfall, and standardizes the emergency response process to ensure prompt and eective control in the event of emergencies, enhancing the Company's overall risk response capability.
The Company carries out carbon footprint assessment ceication, real-time detection and monitoring ofenergy consumption, transpoation, water consumption, waste disposal, and other data to improveand optimize environmentally friendly processes and production procedures, reducing carbonemissions during operations.Malaysia INTCO formulated a detailed emergency plan for ooding, claried employees' dutiesthrough regular training and drills, explained emergency handling procedures such as equipmentprotection and materials reseation, and formed a complete response procedure for extremeweather to reduce the safety hazards and economic losses caused by ooding.Moreover, Malaysia INTCO regularly inspects and maintains the facto's drainage system andestablishes links with local governments, rescue organizations, and related depaments toobtain timely disaster warnings and rescue suppo to prevent ooding risks.
Preparing Contingency Plans to Prevent Extreme Weather Risks
Visit from The Malaysian Environmental Protection Agency
Reduce Carbon Emissions
In 2023, INTCO Recycling completedthe PS EcoFrame Carbon FootprintCeication, which deeply andaccurately explored the product lifecycle, capturing product’s carbonemissionsat all stages. Based on /SO14067:2018 Green house GasesCarbon Footprint of ProductsRequirements and Guidelines forQuantication, following 100-yeartime horizon global warmingpotentials (IPCC 2013 GWP 100a),EcoFrame’scarbon footprint wasceied as 0.74 kg CO?e perproduct unit.
Product Carbon Footprint Ceication
Raw MaterialAcquisition
0.18
Phase
GHG Emission(kg CO?e/pc)
Raw materialTranspoation
0.08
0.48
0.74
ProductManufacturingTotal
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
INTCO RECYCLING — 2023 ESG REPORT
The Company's commitment to reducing the negative environmental impact of logistics activities is not just a corporate responsibilitybut a contribution to society's green transformation. We achieve this by implementing modern green logistics and warehousingmanagement concepts and practices, fullling our obligation to environmental protection, resource conseation, and sustainabledevelopment in logistics and transpoation. Our eos are making signicant contributions to society's green transformation, acause we are deeply invested in.To fuher reduce carbon emissions from logistics operations, the Company prohibits using vehicles with National IV or loweremissions, increases the propoion of new energy vehicles in the eet, and adopts recyclable load-caring devices. In addition, theCompany installs shuttle racks and adjusts loading container locations to shoen the logistics path and improve transpoationeciency.
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The Company optimized the transpoation mode, changing the originalroad transpo to sea-rail transpo and using desulphurization towerships that can eectively remove suldes from ship emissions,reducing the pollution of the atmospheric environment.The fuel consumption of road transpo is about 38 liters percontainer of goods. The energy consumption of sea-rail transpois 40% of that of road transpo mode, saving 23 liters of fuelconsumption per container of goods.In addition, the Company pays close attention to Scope 3 emissionsin the value chain. Through third-pay website inquiries, we countand monitor the total amount of carbon emissions generated byseice providers in maritime transpo, thereby realizing the precisecontrol of carbon emissions and promoting the construction of greenlogistics.
Optimizing Transpo Routes and Promoting Green Transpoation
Lu'an INTCO AEO Ceicate
During the repoing period2,555 containers were transpoed by sea rail at the
Shandong, Shanghai, and Lu'an factories, reducingcarbon emissions by approximately 140.52 tons.
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Conseing Use of Resources
The Company complies with relevant national policies and regulations, formulates standardized internalresource management process, establishes energy use targets, and implements rened energy and resourcemanagement to improve overall operational eciency.The Company strictly controls the power, water, compressed air, and integrated vacuum data of equipment,forming detailed monthly repos to provide comprehensive feedback on energy and resource utilization. Inaddition, the Company sets a pre-set value for daily energy consumption. When the actual consumptionexceeds the pre-set value, the system will immediately push an alarm so that the relevant employees caninteene and take measures on time to ensure that the energy and resource consumption of the productionprocess is well controlled within a reasonable range.
The Company actively explores low-carbon packaging, optimizes the design of packagingcaons for products, reduces the number of caon layers, and adopts tray packaging forproducts that cannot be eliminated from caon packaging, minimizing the use of caons.Meanwhile, the Company approves recyclable EPE cushioning package material to replacethe original EPS material, extend the life cycle of packaging products, and reduce theconsumption of packaging materials.
ResourceConseation Targets2024 Per Box EnergyConsumption Target:
3% reduction compared to 2023.
2024 Per Ton Water Use Target:
3% compared to 2023.
Resources Use during the Repoing Period
Energy UsePackaging Material
Water ResourcesPurchased ElectricityComprehensiveEnergy Consumption
Plastic (Bubble Pad/EPE/Tape/Film)Foam PlatesCaonsPaper palletsOther (Wrapping Corner, GreyBoard Paper, Kraft paper)
The Company's use of renewable resources amounted to
51.50%.
Waterworks/municipal waterWater reuse
92,677.52 MWh103,042.70 MWh
1,215.94 tons
60 tons11,776.08 tons
175.07 tons
125 tons311,111 tons
5,498 tons
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
INTCO RECYCLING — 2023 ESG REPORT
PVC Online Coating EquipmentPlastic Sealing Equipment
INTCO / 32
Upgrading Craft Equipment to Promote Ecient DevelopmentThe Company systematically carries out the green concept and actively adopts technological transformation to continuously improve energy eciency and realize high-eciency, high-quality, and low-carbonoperations.
We introduced 11 high-speed PS online plastic sealing equipment and 6 PVC online coating equipmentin line with new-generation energy-saving standards. The PS online plastic sealing eectively providedonline extrusion and plastic sealing for the PS construction products without the need for separateoine turnover, shoening the delive time of the products in a single line by more than three days.The PVC online coating equipment unied coating standards, achieving a zero defective rate of theproducts and eectively reducing the energy consumption of single-line equipment by more than 22%.
Green Production
Malaysia INTCO introduced a highly automated hot washing system with automatic dosing,replenishment, and heating functions in the PET washing line. The system enhances the quality ofr-PET net akes to food-grade standards, which signicantly reduces energy consumption in thewashing process.
Optimizing Process Technology to Manager Energy Consumption Precisely
Hot Washing System
The water consumption per ton is reduced by
13.71%,
and the electricity consumption per ton is reduced by
16.30%.
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Setting up Bottle-brick RecyclingStation to Promote Green Concept
Bottle-brick recycling stations had been set up in Malaysian factories tomotivate employees to paicipate in recycling activities for discarded waterbottles. We worked together to reduce waste, create a sustainable workenvironment, and convey a positive sustainable corporate culture.
We were committed to improving the organization's eciency. Therefore, we applied the Feishu enterprise collaborationplatform and suppoing components. With the application of Feishu, we achieved eective project management,document sharing and collaboration, and paperless OA system working mode. At the same time, we achieved transparencyand high-eciency workow, practicing the regeneration of ingenuity and commitment to green and digital oces.We have strengthened the cultivation of green concepts among our employees and encouraged them to take action toprotect the eah. We put up posters and signs to promote water, electricity, and energy conseation, set up ESG andenvironmental product promotion corners in the oce reception area, and use business cards made of recycled paper. Wealso customize INTCO's eco-bags with recyclable materials such as linen, caring out the green concept. In addition, weconducted employee training to promote environmental protection.
Green Oce
Implementing Information Technology Transformation and Green Oce Practices
INTCO Eco-peripheral products
The Company conducted 18 green oce training, totaling5,926 attendances, covering 100% of all employees, with
an average per capita training duration of
2.73 hours.
During the repoing period
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
INTCO RECYCLING — 2023 ESG REPORT
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Developing InformationTechnology Management to ImproveWarehouse Eciency
We have promoted the application of information technology,fully upgraded Material Requirement Planning (MRP) andTranspoation Management System (TMS), and utilizedlogistics crate calculation software. At the same time, we haveintroduced RPA (Robotic Process Automation) robot technology torealize the ecient operation of autonomous customs clearance.We optimized our warehouse management processes andrealized ecient and environmentally friendly managementwithin all the information technology initiatives taken.
The Company implemented ecient, accurate, real-timeinformation warehouse management to raise operationaleciency and reduce operating costs. We have independentlydeveloped the "tonnage" and "data information" and othermanagement programs and introduced industrial-grade PDAscanners and warehousing operations.
Green Warehousing
The Company actively responds to the critical initiatives of global sustainable development and response to climate change,promotes sustainable building, and helps the sustainable development of the Company. We use an automatic temperature controlsystem to adjust the valve energy according to the indoor temperature to reduce the waste of energy consumption. We alsomanage the lighting equipment through centralized control to lower the consumption of electricity and incorporate the design ofbalancing valves to control the ow of water to avoid excessive water accurately. Fuhermore, we design a natural exhaust systemto provide a more comfoable environment for our employees. In addition, we insist on entirely using the Company's environmentallyfriendly recycled materials when selecting decorative materials, such as PS 3D wall panels and recycled polyester acoustic panels,to promote green building practices.
Green Building
Acoustic Panels,
used in INTCO Lecture Hall
PS 3D Wall Panels ，usedin INTCO Meeting Room
2,524 square meters of recycled plastic
building materials were used at theCompany's bases.During the repoing period
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Applying Green Energy Strategy to PromoteLow-carbon Transition and Development
The Company has formulated the Operating Procedures of Waste Gas AbsorptionPolicy to regulate the operation of waste gas absorption facilities and waste gastreatment systems in each workshop. We optimize the treatment equipment andprocess ow and monitor the environmental protection equipment regularly to ensurethat the waste gas emission meets the national standards and the ecological assessmentand emission permit requirements.To productively reduce VOC emissions from the source, we transformed electrostaticspraying equipment in the paint spraying workshop. The transformation successfullytransferred the coating line from "oil-based paint" to "water-based paint," eectivelyavoiding the release of benzene, toluene, xylene, formaldehyde, and other harmful gases.
Exhaust Emission
The Company actively applies renewable energy by laying solar photovoltaic roofs in its plants to becomeindependent of traditional energy sources.
Fuhermore, we introduced an energy storage system with an installed capacity of 510kwh and an annual dischargecapacity of about 270,000 kWh. The system not only eectively balances the power load but also signicantly reducesgreenhouse gas emissions, making a great contribution to the enterprise's green development.
Reducing Environmental Pollution
The Company regulates the emission and disposal of waste gas, wastewater, andwaste generated during operations. Moreover, we establish a sound emissionmanagement system, committing to reducing the environmental impact of emissions.
Total NOx emissionsTotal SOx emissionsTotal VOCs emissions
0 tons0 tons
7.02 tons
PhotovoltaicEnergy Storage
The Company's 4.0MW photovoltaic solar project operated stably, with an annual power generationcapacity of approximately
4.32 million kWh, accounting for 60.4% of self-consumption and
39.6% of reverse transmission power.
During the repoing period
During the repoing period
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
INTCO RECYCLING — 2023 ESG REPORT
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The Company follows the Law of the People's Republic of China on the Prevention and Control of EnvironmentalPollution Caused by Solid Waste and other national laws and regulations. We formulate internalmanagement guidelines to standardize the management process of various types of waste generatedduring operation. For general industrial solid waste, the Company has formulated an ecient recyclingmechanism to reuse most solid waste fully. We transpoed the pa we could not directly utilize to thedesignated stockpile for centralized treatment. The Company entrusts third-pay institutions withtreatment qualications for hazardous waste to car out professional treatment. Moreover, we activelyreplace raw materials from the source to reduce the generation of hazardous wastes and minimize thepotential impacts of waste on the environment. We take distinct actions to reduce the possible eectson the environment.
The Company’s wastewater mainly comes from domestic sewage from the cafeteria, apaments,and oce areas. We install oil-water separators to eectively prevent oil and grease from owinginto the sewage system and reduce the burden of sewage treatment. We adopt cooling waterrecycling in the production process to improve the reuse rate of water resources.
Waste EmissionsWastewater Discharge
BODCODAmmonia
Total general waste emissionsTotal general waste recycledTotal hazardous waste emissions
5,311.08 tons3,738.53 tons
529.48 tons
0 tons0 tons0 tons
The Company incorporated electrochemical water treatment equipment into the workshop'scooling circulating water system to remove the incrustation and heat exchange equipment generatedby the circulating water system. The equipment guaranteed that the system eectively dissolvedthe di that had become solid in the water circulating pipeline and reduced the amount ofsewage water and environmental pollution.
Electrochemical Water Treatment Equipment
Waste Heat Recove from Air Compressors
We utilize the waste heat from the air compressor to d the sludge generated from the PET cleaningproject, which reduces the amount of sludge discharged by about 20% and lowers the treatmentcost by about 54%.
During the repoing period
During the repoing period
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STRENGTHENING SAFETY MANAGEMENTThe Company puts employees' occupational health and safety rst and strictly abides by the Labor Law of the People's Republic of China, the Law of the People's Republic of China on Prevention and Control ofOccupational Diseases, and the Law of the People's Republic of China on Safety in Production. The Company builds an occupational health and safety management system, which promotes the popularization ofawareness and skills in occupational health and safety to cover all employees, oering a solid guarantee for the health and safety of our employees.
Safety ManagementMechanisms
The Company has set up the Occupational Health andSafety Management Committee as the group with thehighest recognition and decision-making for implementingoccupational health and safety policies. The Company’sgeneral manager takes the position of the top leader and appointssafety ocer representatives from various depaments to carout daily occupational health and safety inspections andprovide timely feedback and rectication of problems foundon site.The Company has formulated the Production SafetyCommitment Institutional Policy covering all employees'implementation of safety responsibilities, ensuring theCompany's safe production.
ISO 45001 System Ceication
Safety ProductionStandardization Ceication
During the repoing period
50% of the Company's operating sites passedISO 45001 and other occupational health andsafety management systems and productionsafety standardization ceications.
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
INTCO RECYCLING — 2023 ESG REPORT
The Company sets annualobjectives based on the SafetyPolicy Objectives to ensure theprecise orientation of the work. Webreak down and implement theobjectives to each level, conductsafety construction on aplant-by-plant basis, and continu-ously promote new achievements inoccupational health and safetymanagement.
Note: Signicant direct economic lossproduction and safety accidents refer toproduction and safety accidents with aone-time direct economic loss exceedingone million dollars.
INTCO / 38
Production SafetyObjectives
?Zero major mechanical equipment accidents?Zero fire and explosion accidents?Zero serious injuries?Zero occupational diseases?Less than five accidents with minor injuries?100% safety education compliance?100% of special operators are trained and certified
?Zero major mechanical equipment accidents?Zero fire and explosion accidents?Zero serious injuries?Zero occupational diseases?Less than five accidents with minor injuries?100% safety education compliance?100% of special operators are trained and certified
?100% licensed to work?0 unplanned security incidents, including radiation exposure of personnel?0 environmental pollution accidents?0 significant environmental incidents by contractors?Facilities and equipment integrity rate greater than 95%?100% of security installations are in good condition?Suspension/reorganization of business and above 0 penalties?0 production safety accidents with significant direct economic losses*
?100% licensed to work?0 unplanned security incidents, including radiation exposure of personnel?0 environmental pollution accidents?0 significant environmental incidents by contractors?Facilities and equipment integrity rate greater than 95%?100% of security installations are in good condition?Suspension/reorganization of business and above 0 penalties?0 production safety accidents with significant direct economic losses*
TARGETS 2024
TARGETS ANDPROCESS OF 2023
PRODUCTION SAFETY OBJECTIVES
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
INTCO RECYCLING — 2023 ESG REPORT
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Occupational Health and Safety Initiatives Safety Culture Training
The Company actively promotes occupational health and safetytraining, propagates the concept of work safety in daily morningmeetings, and conducts regular exercises to improve employees'occupational health and safety protection ability.The Company conducted special training for new employees andforeign construction workers to clarify production risks and operationnorms and ensure a safe production process.
During the repoing periodThe Company conducted 117 occupational healthand safety training sessions, covering7,077people and
330.26 hours of training.
The Company prepares internal management systems, standardizes the emergency plan process for hazardous accidents,and sets up an Emergency Rescue Group to car out appropriate rescue work based on the type and degree of hazards ofproduction safety accidents and occupational disease hazards. Meanwhile, the Company conducts a risk assessment ofoccupational health and safety, investigates according to the degree of hidden danger, renes the risk at each management level,equips with countermeasures and regulations, and raises the safety management level. During the repoing period, the Companyconducted weekly inspections of hidden dangers of the forklift. Fuhermore, we peormed comprehensive medical check-ups for 336newly recruited and depaed employees. We also provide medical examinations for employees exposed to occupational disease factorsto prevent production safety and occupational health risks.In addition, the Company requires foreign construction workers to sign the Notice to Foreigners, Construction Safety ManagementAgreement, Safety Management Agreement for Foreigners, and Individual Physical Health Commitment to clearly state the safetyresponsibilities and obligations of both paies, cultivate construction workers' safety awareness, and ensure safe production.
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
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The Company carried out drills for re accidents, mechanical injuries, dust explosion prevention, high temperature, andtyphoon emergencies to strengthen employees' vigilance against emergencies.
Organizing "Safety Month" to Consolidate the Safety ConceptThe Company has carried out the "Safety Month" and "FirePrevention Month" activities, successively enhancing the sta'sability to deal with emergencies and providing a safe and stableproduction environment.The Company carried out the "Safety Month" activity with thetheme of "Eveone Knows and Eveone Does." We launched theemergency plan for re accidents and disposal on-site drills.Fuhermore, we organized the "Holding the Concept of Safety"speech contest, investigated potential safety hazards, strictlymanaged and executed special operations, implemented ourresponsibility for production safety, and promoted a safetyculture.
GREEN AND SAFE, BUILDING A PURIFIED AND SPLENDID ENVIRONMENT
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CORRESPONDING TO THE SDGS
DETERMINED EFFORT,BUILDING AN EXCELLENT WORKPLACE
Enhancing employee motivation by protecting their compensation and benetsBroadening sta development channels to encourage more talents to become professional leaders.Recruiting global talent and creating a diverse work environmentOrganizing various employee activities to enhance employee happiness.
OUR ACTIONS
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
INTCO RECYCLING — 2023 ESG REPORT
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EMPOWERING EMPLOYEE DEVELOPMENTThe Company helps eve employee fully contribute to the Company's value and realize their career development. Therefore, the Company optimizes the employee compensation and welfare system and developscareer development paths and training mechanisms. Fuhermore, we provide diversied learning oppounities and resources to help employees explore their potential.
Employee Remuneration and Benets
The Company has formulated the Sala Management Policy to provide employees with sala levels thatmatch indust standards. To evaluate employees' peormances, we conduct regular monthly KPIpeormance evaluations, semi-annual 360 peormance evaluations, and annual IBS peormanceevaluations for all employees to stimulate their work motivation and creativity. We utilize the OKRevaluation system. To fuher enhance the eciency of peormance management, we conductbottom-up, layer-by-layer calibration, and horizontal cross-team comparison in the form of peormancecalibration meetings to ensure the fairness and accuracy of the evaluation and to provide strong suppo foremployees' career development.The Company introduces “the Talent Review”, which evaluates and positions talents in the peormanceand competency dimensions in a nine-box matrix to improve the match between employees andpositions.
The Company has deeply integrated ESG concepts into the peormance appraisal system atthe supeisor level and elevated the assessment weights of quality, safety, and environmentalprotection. We explicitly stipulate the one-vote veto system for supeisors who have sueredfrom safety and environmental protection accidents. At the same time, to ensure the assessment'sfairness and eectiveness, the supeisors will work closely with the safety and environmentalprotection depaments to jointly study, formulate, and implement the corresponding incentivesand assessment measures and jointly promote the Company's sustainable development.
Optimizing the Evaluation System to Promote Synergistic Development
High
High
Employees whosePeormanceNeeded to beQualication Mid
Improved
CoreEmployees
StarEmployees
CoreEmployeesAverageEmployees
Employees whoseQualication and
PeormanceNeeded to be
Improved
Employees whoseQualication Needed
to be lmproved
Mid
Mid
Low
Low
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
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The Company purchases commercial insurance for employees and providesdiversied benets such as equity incentives, improvement, and innovation rewards.To enhance employee motivation, the Company designs retired sta rewards andin-seice old sta rewards. In addition, the Company provides exible workinghours, creating an autonomous and free working environment.We always pay excellent attention to the needs of female employees. We equipmother and baby rooms for working mothers. Based on the national statuto leave,for the bih of a child, two days of paid vacation per year; for a second child, vedays of paid vacation per year; for a third child, six days of paid vacation per year.
Employee Development Channels
The Company standardizes the promotion and assessment procedures for employees, providing clear promotionchannels and standards and ensuring the fairness and transparency in the promotion process. To give a broadergrowth platform for employees with outstanding management and technical peormance, the Company hasalso set up a dual career development channel.During the repoing period, the Company organized a comprehensive re-competition for managementpositions, adopting the mechanism of joint voting by employees and judges to conduct a thorough and objectiveassessment of the contestants. In addition, the Company added an internal competition link to broaden thetalent selection channels fuher and stimulate the enthusiasm of employees to paicipate.
Employee Rest Area
GeneralManager-DDirector-DManager-MgrSUPERVISOR-SUPSta-T Intern-T
PeormanceEvaluation
ConditionIndicatorsPeormance Results
Professional Development ChanneL
Management Development Channel
Employee Development Channel
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
INTCO RECYCLING — 2023 ESG REPORT
The Company has set up a training system and an online learning platform, called "INTCO Academy," to improve employees' leadership, professional skills and generalknowedge, and enhance their competence in the workplace.
INTCO / 44
The Company suppos and attaches impoance to the development of the talent team. We enhance our employees' comprehensive quality and professional ability through diversied training content and formsto provide a solid talent guarantee for overall development. During the repoing period, the Company was equipped with a corresponding feedback mechanism and result evaluation. The Company also set theindicator of the achievement rate of training to continuously motivate employees to improve their professionalism and skill level in their careers.
Employee Training System
Total Hours of Employee TrainingEmployee Training InvestmentEmployee Training Coverage
100%341.26
Average Training Hours Per Employee
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
INTCO RECYCLING — 2023 ESG REPORT
During the repoing period
tenthousand
INTCO / 45
CONVEYING EMPLOYEE CARE
The Company adheres to the concept of "Prioritizing human capital", protects the rights and interests of employees, pays attention to the needs of employees, cares about their lives, and conveys the care of INTCOto create a positive and warm working environment for employees, enhance their sense of belonging and happiness, and promote the sustainable development of the enterprise.Protecting Employees’ Rightsand Interests
Human Rights Policy
The Company regards employees' rights andinterests as the basis for building an excellentworkplace, protects human rights, equalizesrecruitment and employment, to create anequal, healthy and inclusive work environmentfor employees. During the repoing period, weconducted satisfaction sueys on all employees,including work atmosphere, happiness and jobsatisfaction. Among them, The company regardsemployee rights as the foundation for buildingan excellent workplace, protects human rights,promotes equal recruitment and employment,and creates an equal, healthy, and inclusive workenvironment for employees. During the repoingperiod, we conducted a satisfaction suey on allemployees, including work atmosphere, happiness,and job satisfaction.
Employee Recruitment and Employment
The Company strictly abides by the International Labor Organization Convention(ILO Convention) and continuously completes its internal systems, and formulatessystems applicable to its management, suppliers, security personnel and otherpaners, such as the Management Control Procedures for Prohibition of ForcedLabor , Management Procedures for Labor Protection of Female Employees,Anti-Discrimination Management Control Procedures, and Anti-HarassmentControl Procedures, which explicitly prohibit human tracking, forced labor, childlabor, violence and harassment. In addition, recruitment and employment policiesexplicitly guarantee that employees will not be discriminated against or treateddierently because of gender, age, nationality, race, religious beliefs, family andhealth status and so on. Meanwhile, we are also committed to freedom ofassociation and collective bargaining rights. At the end of the repoing period,the Company's collective agreement coverage rate reached 100%, and therewere no human rights violations such as child labor or forced labor.The Company adopts a zero-tolerance attitude towards discrimination andharassment. We formulated the Employee Handbook to clarify the rules ofpunishment and disposal methods, improve supeision mechanisms, andeectively strengthen the protection of the legitimate rights and interests ofemployees. In daily training, we strengthen the awareness of all employees, andset up repoing mailboxes, telephone hotlines throughout the Company toencourage employees to repo relevant matters. After receiving relevantrepos, we also formulated a clear level-by-level repoing process andresponse procedures to properly deal with relevant incidents and publiclydisclose the number of repos, inappropriate behaviors, and handlingmeasures. We established a comprehensive protection system forwhistleblowers as well. In addition, we pay attention to the human rightspolicies of our suppliers and paners, conduct human rights assessments ofour employees and impoant suppliers. During the repoing period, the Companydid not receive any repos of employee discrimination or harassment.
In the process of recruitment and employment, the Companystrictly complies with the Labor Law of the People's Republicof China, the Labor Contract Law of the People's Republic ofChina and other laws and regulations of the place whereoperates, and revises and improves internal EmployeeHandbook, Administrative Management System and otherrules and regulations constantly. Meanwhile, we practice therecruitment philosophy of "hiring and promoting the rightemployees". The Company attracts talents and builds up thetalent team through campus recruitment, social recruitment,internal promotion and other diversied recruitmentchannels.In the eld of talent cultivation,sta can paicipate in talentcultivation after being ceiedas Gold Medal Inteiewers., 93employees have passed therelevant ceication at the endof the repoing period.
New Appointmentand Promotion
Cumulative InternalPromotionThe highest propoion ofemployee satisfaction is95%.
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
INTCO RECYCLING — 2023 ESG REPORT
Management
MalaysiaVietnam
INTCO / 46
Employee Turnover in 2023Total Employee Turnover 21.47 % Volunta Employee Turnover 21.47 %GenderAgeJob GradeLocation
MaleFemaleBelow 3031 to 5050 and above (exclude 50)ManagementNon-managementVietnamMalaysiaDomestic (including Hong Kong,Macao and Taiwan)
22.03
20.69
29.59
15.16
15.52
8.79
21.98
23.33
16.67
11.72
%Catego
2023 Total number of employees
2023 Number of new employees
Gender
Gender
Job Grade
Job Grade
Location
Location
TypeAGE
AGE
1,500Female
Female
Male
Male
2,0361,387
Below 30
50 and above(exclude 50)
50 and above (exclude 50)
1,850
31 to 50
3,536
Full-time
3,357Non-managementDomestic (including Hong Kong,
Macao and Taiwan)
Management -female
Management -male
2,805
Vietnam
Malaysia
Below 30Non-management111931 to 50445641
Domestic (including
Hong Kong,Macao and Taiwan)
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
INTCO RECYCLING — 2023 ESG REPORT
WorkingEnvironment
IncentiveMechanism
PromotingChannel
EnterpriseCulture
BasicNecessitiesof Life
Satisfaction
Suey
INTCO / 47
Employee Communication
The Company enhances communication with employees continuously and listens to their voices throughemployee labor unions, employee mailboxes, and employee seminars.Sparkling "Her" Power
20232030
0.00%
10.00%
20.00%
60.00%
70.00%
80.00%
30.00%
40.00%
50.00%
Share of womenin top managementpositions
Share of womenin junior managementpositions
Share of women inmanagement positionsin revenue-generating
functions
Share of womenin STEM-relatedpositions
68%
70%
68%61%
25%30%
67%
68%
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
INTCO RECYCLING — 2023 ESG REPORT
INTCO / 48
In order to enhance happiness and sense of belonging of the employees, andconvey the care of the enterprise, the Company actively carries out variousactivities and pays attention to the daily life of employees, make them feel thewarmth of the Company and enhance the sense of corporate culture identity.
The Company pays attention to the physical and mental health of its employees and delivers employees care by providingthem with a better working and living environment and organizing health lectures.Enriching Employees’ Life
Employee Care
Cozy Dormito
Leisure Places
Health Lectures
Cozy Dormito
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
INTCO RECYCLING — 2023 ESG REPORT
INTCO / 49
In order to enrich the employees’ life, theCompany organized a variety of activitiesto enhance the cohesion of employeesand improve their cooperation ability.Meanwhile, these activities can stimulateemployees' enthusiasm for work, andinject new vitality into the developmentof the Company.
Employee Activities
Team-building Activities?Team-building activity atred leaf persimmon rock?June 17th, Zhujiajiaoone-day trip?August 22nd,INTCOYoung first anniversary?August-September,Thailand overseas tour.?Malaysian employeesorganized Semporna tour.?Held Tug-of-War
Volunteer Activities?Learn from Lei Feng volunteer activities.?Community 5S cleaning activities?Arbor Day planting activities?June 5th, Environment Day activities
Annual Meeting of IntcoJune, the Dragon Boat FestivalJune, Children's Day "INTCO happy"
children "trip" activities
DETERMINED EFFORT, BUILDING AN EXCELLENT WORKPLACE
INTCO RECYCLING — 2023 ESG REPORT
INTCO / 50
CORRESPONDING TO THE SDGS
OUR ACTIONS
WORKING TOGETHER,BUILDING A PROSPEROUS SOCIETY
Establish a sound supplier selection, access, and assessment mechanism to build aresponsible supply chain.Pay attention to supplier peormance and actively empower suppliers to achievesustainable development of the supply chain.Promote the establishment of indust standards and the joint progress of the indust.Car out charitable activities and paicipate in community construction.
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
PROMOTING A RESPONSIBLE SUPPLY CHAIN
INTCO / 51
The Company carries out standardized management for suppliers and formulates theSupplier Code of Conduct, which sets out clear requirements on suppliers' peormancein human rights and labor, environment, business ethics, etc. We integrated thesecontents into the supplier access assessment and regular evaluation process, with theStrategy and ESG Committee seing as the supreme decision-making and supeisobody. In the selection of suppliers, suppliers with outstanding ESG peormance areprioritized as paners. Meanwhile, we provided relevant training for supplier managerand procurement personnel to increase their understanding of the contents of supplierESG management.
In the process of screening key suppliers, the Company not only takes into account of the supplier's scale,business relevance and procurement amount, but also takes ESG factors such as the supplier's environmentalmanagement peormance, occupational health and safety, business ethics and compliance as plus points toidentify key suppliers with comprehensive consideration. In addition, we also pay attention to the specic risks ofthe countries and industries and conduct rigorous investigations of suppliers that apply for Admission. If there areany signicant risks, we will avoid cooperating with them, until rectifying the risks, so as to enhance the supplychain resilience. During the repoing period, the "Enterprise Risk Monitoring" section was added to theCompany's online information oce platform to monitor the scores of suppliers in terms of their business status,qualications and commercial compliance.
Regulating Supplier Management
Total number
of suppliers
Total number
of suppliers
1,166
841Total number ofoverseas suppliers 325
INTCO RecyclingSupplier Access Process
Supply improvementPropram
Submit MaterlalsSite VisitSuppller List
Applicationfor Admission
General Suppliers
Signicant Suppliers
Information RewiewInspection RepoSample Verifcation
AlternativeSuppliers
Noncooperative
SuppliersTotal number of tier 1 suppliers1,166
Total number ofsignicant suppliers
in Tier-1
Total number of signicantsuppliers in non-tier 1Total number of signicantsuppliers (tier-1 and non-tier 1)
33.88%
Percentage of totalspend on signicant
suppliers in Tier 1
3,265
Note: Tier 1 suppliers are suppliers that directlysupply goods, materials or seices (includingintellectual propey (IP) / patents) to us.Non-tier 1 suppliers are suppliers that provide theirproducts and seices through tier 1 suppliers to us.
In order to establish a sustainable and responsible supply chain, the Company strictlycomplies with relevant laws and regulations on supply chain management, activelyimproves its supplier management strategy, and carries out specialized control over allaspects of the supply chain.
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
During the repoing period
The Company combines daily project assessment with regular assessment to evaluatesuppliers, and the procurement sta carries out on-site assessment of suppliers, recordsthe assessment results in the supplier management system clearly. Target suppliers withproblems identied in the assessment, the Company suspends cooperation with themand issues Corrective and Preventive Measures, assists them in the formulation of correctivemeasures and provides relevant guidance, tracks the completion of the correctivemeasures as well. We resume cooperation with them after completing the correctivemeasures on schedule and cancel cooperation with them if they fail to meet the company'sminimum ESG requirements on time.
During the repoing period, we carried out desk or on-site assessmentsof 468 suppliers, of which 9.40% were signicant suppliers.Meanwhile, we identied 11 suppliers with risks or potential risks,all of which have been rectied, but 7 suppliers failed to meet therectication requirements on time, so we terminated our cooperationwith them. The Company suppoed 11 suppliers in the implementationof corrective action, which covered 100% of suppliers with signicantactual/potential negative impact on our business. In addition, theCompany actively cooperates with suppliers and provides capacitybuilding programs for suppliers.
In 2023, INTCO PET recycling team traveled all over the world, from front-end scavengers to professionalbottle brick processing points, INTCO has always practiced the principle of people-oriented and harmoniouscoexistence, empowering local suppliers to deal with local plastic recycling more eciently and economically.
Assessing Supplier Peormance
INTCO / 52
Select supplier
Evaluate supplierpeormance
Authority toreview approve
Send improvementrepos to suppliersMalke improvementplan by supplier and
give feedbackSupplier implements
improvement plan
Review supplierimprovement results
The companyprovides405 supplierswith capacity building programs.Covering 100% ofsignicant suppliers
In 2023
Supplier Peormance evaluation and improvement process
Collaborative Empowerment
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
Inform suppliers ofpeormanceassessment resultsand le peormanceassessment data
Procurement responsible
person follows up andconrms the completion
of the improvementaction plan
PROMOTING INDUSTRY DEVELOPMENT
Healthy indust ecology promotes the long-term and sustainable development of enterprises. The Company closely follows the indust developmenttrend and market demand, paicipates in domestic and foreign indust exchange activities, builds an expanded exchange platform, actively carriesout enterprise cooperation, co-builds and shares standards and results, works with multiple paies to promote indust development andtechnological progress.
INTCO / 53
Paicipating in 44 Exhibitionand Grasping Indust DynamicsThe Company paicipated in indust exhibitions including DOMOTEX,AMBIENTE, CHINAPLAS, and N-EXPO, sharing indust frontier information,developing overseas market awareness, and enhancing brand inuence onthe global stage.
The fees paid for the membership in the industassociations are145,000 yuan in 2023.
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
Cooperating with OutstandingEnterprises to Achieve Win-win ResultsThe Company provided product life cycle solutions for an American retail giant based inNoh Carolina. We compressed the waste foam generated by the customer's sales endthrough a cold pressure reduction machine. The compressed foam was transpoed to theMalaysian plant for granulating and nally made into recycled nished frames.
NTCO Recycling collaborated with universities overseas such as Tunku Abdul RahmanUniversity and Xiamen University (Malaysia), as well as domestic universities such as ChinaUniversity of Petroleum and Anhui University. The Company promoted cooperation amongindust, academia, and research, and established the Employment Internship Practice Basewith universities and research institutes. The Company promoted the research on physicalfoaming of recycled PS, which signicantly improved peormance indicators such as framedensity and nail holding force.
INTCO / 54
School-enterprise cooperation withTunku Abdul Rahman University
Anhui University Employmentand Practice BaseChina University of PetroleumEmployment and Practice Base
School-enterprise Cooperation Buildinga New Benchmark for Indust Cooperation
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
In the past ve years, the Companysolved1,100 thousand pounds of
waste and made740,000
pieces of exquisite home consumergoods which are sold in various countries
and regions around the
BUILDING A HARMONIOUSCOMMUNITYThe Company closely links its own development with social progress,the Company provide suppo and assistance for developing socialcommunities and make eos in environmental protection andpublic welfare. We full social responsibilities through activities suchas love assistance, rural revitalization, and charity donations, abideby the core values, and contribute to the sustainable developmentof society.
INTCO / 55
Since the establishment of Establishment of Shanghai INTCO Public Welfare Foundation inNovember 2022, the Company conducted multiple projects, including “Group PublicBenet Event”, “Framing a Better Life” and “Rural Revitalization - Cooperation betweenShanghai and Yunnan”, to achieve assistance to the elderly, disabled and poor. We activelypromote the harmonious development of social communities by making eos in poveyalleviation, community harmony, education povey alleviation, epidemic relief, etc.
Establishing Public Welfare Foundation
Public Welfare Activities Conducted by INTCO |Since the Establishment of Shanghai INTCO Public Welfare Foundation
In November 2022. the Shanghai INTCO PublicWelfare Foundation was established.
In April 2023, the“Cooperation betweenShanghai and Yunnan” was conducted
In June 2023,“Framing a BetterLife” Project was carried out.
In October 2023, “Firey Project”and “Group Public Benet Event” were conducted.
The Company and the foundationdonated a total of
1.0251 million yuan.
a total of294 volunta activities were
organized, with2238 employees paicipating
and a total duration of732 hours.
During the repoing period
DURING THE REPORTING PERIOD
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
INTCO / 56
INTCO Foundation carried outthe “Framing a Better Life”Project with “Picking up Light”Team, which focused onharmonious communities andconveyed warmth, love, andpositive energy. The project usedframes to capture beautifulmoments for eveone whoneeded them.
INTCO Public Welfare Foundation urgently sent supplies, 103,000 yuan woh of dailynecessities and food, to the eahquake stricken areas in Gansu, contributing "INTCOPower" to post disaster rescue and reconstruction.
Donation Activity in Zhelin Town, Shanghai
Funding Nanjian County toImprove Local Medical Conditions
Building a Better Life andBeneting Diverse Masses
Charity Donation | Aid GansuEahquake Aected Areas
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
INTCO / 57
In 2023, Anhui Jinzhai Red Cuckoo Choir suppoed by INTCOcarried out singing training and learning for one year and rankedsecond in the count.
In 2023, INTCO Recycling collaborated with Zibo education system anddonated 500,000 educational funds to improve rural education.
INTCO Recycling paid attention to the employment and development of personswith disabilities. In addition to the creating internal positions for the disabled,the Company entrusted the handmade products in the production process tothe disabled through the cooperation with the local disabled federation "RukangHome", expanding the employment skills of the disabled.
Firey Project | Engagingin rural education
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
the Company was awarded the title of "Shanghai
Environmental Education Base".The Company actively propagates the environmental protectionconcept of resource regeneration and recycling by onlinepromotion, posters and paicipation in environmental protectionactivities, and carries out public welfare activities such as community5S and Blue Vest, guiding the public to paicipate in environmentalprotection and enhance environmental awareness.
Developing Environmental Protection Activities
INTCO / 58
World Environment Day | Paicipating in environmentalprotection activities with INTCO RecyclingINTCO Recycling paicipated in the "World EnvironmentDay" theme publicity activities to popularize ecological andenvironmental protection knowledge for the public andpromote the concept of green production and healthy life.We called on the public to paicipate in environmentalprotection and maintain a green and harmonious livingenvironment with INTCO.
During the repoing period
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
INTCO / 59
Through its own inuence and channels, INTCO Recycling actively transmits the concept of environmental protection and sustainabledevelopment to the general population at the social level. The Company realizes the exposure and promotion of the sustainable developmentconcept through the we-media matrix and external media repos, eectively stimulating the public's awareness of environmental protection.
Sustainability Promotion | EnhancingEnvironmental Awareness with INTCO Recycling
WORKING TOGETHER, BUILDING A PROSPEROUS SOCIETY
INTCO RECYCLING — 2023 ESG REPORT
COMPLIANCE GOVERNANCE , MAKING A SOLID FOUNDATION
OUR ACTIONS
CORRESPONDING TO THE SDGS
INTCO / 60
COMPLIANCEGOVERNANCE , MAKINGA SOLID FOUNDATION
Enhance the eectiveness and diversity of governance structures to strengthencorporate governance.Improve business ethics and risk management to ensure compliant operations.
INTCO RECYCLING — 2023 ESG REPORT
IMPROVING THEGOVERNANCE STRUCTUREThe standardization level of the Board of Directors directly aects the operational eciency of acompany. The Company strictly follows laws and regulations such as the Company Law and theAicles of Association as well as policy documents, to promote the modernization of itscorporate governance system and capabilities. The board of directors established four specializedcommittees: the Strategy and ESG Committee, the Audit Committee, the Remuneration andAppraisal Committee, and the Nomination Committee. These committees ensure the quality anddecision-making by the Board of Directors.
Board DiversityThe Company believes that a diversied governance system can stimulate internal vitality and help theCompany make decisions that better see the interests of all stakeholders. When selecting candidatesfor directors, the Company not only considers their experience, skills, professional knowledge, andpersonal integrity, but also pays attention to comprehensive evaluation from a diversied perspective,including but not limited to gender, nationality, ethnicity, race, religion, and cultural background. In 2023,the Company elected its fouh Board of Directors, consisting of ve members, including two independentdirectors and 40% of the board members are women.
INTCO / 61
Shareholder
Supeiso BoardStrategy andESG CommitteeAudit CommitteeRemuneration andAppraisal CommitteeNominating Committee
Board of Directors
Senior Executives
Executive DirectorIndependent Non-executive DirectorNon-executive Director
BORADDIRECTORS'GENDERDISTRIBUTION
MaleFemale
Board OveiewINTCO Recycling Governance Structure
BOARDDIRECTORS' TYPEDISTRIBUTION
INTCO RECYCLING — 2023 ESG REPORT
COMPLIANCE GOVERNANCE , MAKING A SOLID FOUNDATION
INTCO / 62
ENSURING COMMERCIALCOMPLIANCEIntegrity is an integral pa of INTCO Recycling's corporate culture.The Company continuously improves business ethics managementmechanisms, strictly prohibits acts such as bribe, corruption,and unfair competition that violate business ethics and conductcode, and severely forbids employees from paicipating inactivities that harm the interests of the Company, or its customers.At the same time, the Company establishes a sound repoingmechanism, conducts business ethics compliance training, andenhances employees' awareness of compliance.
The Company thoroughly implements national laws and regulations such as the Company Law of the People's Republic of China and theAnti-Unfair Competition Law of the People's Republic of China to establishes a sound business ethics and anti-corruption managementsystem, which is under the overall supeision of the Audit Committee of the Board of Directors of the Company, and formulates a Codeof Conduct to regulate the compliance of the business behaviors of all sta members, suppliers and other paners. Additionally, theCompany conducts internal audits and risk assessments on business ethics across all operational sites, and integrates the peormanceof business ethics incidents with employee peormance, continuously strengthening internal business ethics management. while theCompany's anti-corruption and bribe policy applies to charitable donations and political donation activities.Fuhermore, to prevent violations of business ethics and supplier corruption in the procurement process, the Company requiressuppliers to sign a "Supplier Anti-Bribe Commitment" in contracts, strictly adhering to the Company's business ethics policies. Duringthe repoing period, all major suppliers have signed the "Supplier Anti-Bribe Commitment".
Business Ethics Management Mechanisms
In 2023, the Company did not experience anyincidents related to corruption and bribe, conictsof interest, discrimination or harassment, customerprivacy data, money laundering, or insider trading.
INTCO RECYCLING — 2023 ESG REPORT
COMPLIANCE GOVERNANCE , MAKING A SOLID FOUNDATION
During the repoing period
A transparent whistleblowing mechanism is an impoant pa of theCompany's internal control and compliance management. The Company hasformulated and publicized the Code of Conduct, Anti-Bribe ManagementSystem, Whistleblower Protection Policy, etc., which systematically stipulatesthe responsibilities and repoing mechanism of depaments and theCompany, claries the repoing procedures, encourages the employees andstakeholders to repo any violation of business ethics or non-compliancebehaviors of the Company through the repoing hotline, e-mail, ethics andcompliance hotline card, etc. At the same time, the Company strictly keeps thewhistleblower information condential to prevent malicious accusations andprotects the whistleblower from retaliation so as to build a workingatmosphere of integrity, righteousness and fairness within the Company.
Whistleblowing Mechanism andWhistleblower
The Company conducts various forms of integrity awarenessactivities and training for all employees eve year and plans tomake the Business Ethics Commitment cover all employees. Inaddition, the Company places integrity awareness signs in theworkshop and holds weekly meetings to emphasize the businessrisk points in the operation process, so as to continuously strengthenemployees' awareness of compliance and business ethics.
Enhancing Awareness of Business Ethics
INTCO / 63
Conducting integrity training and anti-corruptionawareness-raising activitiesThe Company conducted business ethics training
times with about 300 paicipants
INTCO RECYCLING — 2023 ESG REPORT
COMPLIANCE GOVERNANCE , MAKING A SOLID FOUNDATION
COMPREHENSIVE RISKMANAGEMENTIn order to eectively prevent various risk events in business management, INTCORecycling strengthened internal comprehensive risk management and control system,improved risk management and control mechanisms and processes, and establisheda sound risk management organizational structure. The Company carries out theidentication, assessment and daily tracking of relevant risks around the wholeprocess of operation and management eve year, and adopts corresponding riskmanagement and control measures, so as to eectively prevent various types of riskevents in the operation and management.
The Company conducted 1 trainingon risk identication managementwith about 200 paicipants
The Company established a risk governance structure, claried the division ofresponsibilities at all levels, and ensured that the risk management and internalcontrol system operates in a sound and proper manner.
Risk Management Structure
The Company revised the risk management system, optimized the internal control system, strengthened risk identication,enhanced process eciency, continuously explored ways to improve the level of risk prediction and analysis and riskresolution and disposal capabilities. The Company also promoted the organic integration of risk management withbusiness decision-making and operation management, and facilitated the eective implementation of risk managementand control processes in business and management systems.
Risk Management Process
The Company is committed to creating a risk management cultureand training all employees in risk management principles toenhance their overall awareness of risk management and controland risk identication. In addition, in order to enhance the Board ofDirectors' ability to assess and respond to risks, the Company regularlyengages external organizations to conduct risk managementtraining for all directors of the Company.
Risk Awareness Promotion
INTCO / 64
Regularly identify the risks of businessactivities in each sector on an annualbasis and integrate risk managementinto the product and seice developmentprocess
Assess and identify risks, identify risklevels, and repo them in writing tomanagement, including: the palce andcause risk occurred, potential impactand proposed measures
Implement the risk responseplan after approval, and timelyfeedback the risk response andresolution results
Monitor and identify risks, reassessthem when they change, and actaccordingly based on the risk levelof the newly identied assessment
Summarize and so out the workof risk assessment managementThe Companymanagment owerseesthe implementation ofrisk managementstandardsHeads of business andfunctional depamentsare responsible foridentifying,evaluating,implementing andrectifying risks relatedto their depaments,aswell as preventing andresolving potential riskpoints
Operation Risk
Risk and complianceOversightFirst Lineof Defense
Second Lineof Defense
Third Lineof Defense
Extemal Audit
IndependentInternal AuditThe internal AuditDepament isresponsible forconducting regularinternal audits of theeectiveness of therisk management andcomoliance processesand repoing theresults to the highestmanagement level ofthe Company
During the repoing period
INTCO RECYCLING — 2023 ESG REPORT
COMPLIANCE GOVERNANCE , MAKING A SOLID FOUNDATION
INFORMATION SECURITYMANAGEMENT
The Company pays attention to information security and privacy protection, strictlyabides by the Network Security Law of the People's Republic of China, the PersonalInformation Protection Law of the People's Republic of China, the Data Security Lawof the People's Republic of China and other relevant laws and regulations. TheCompany improves its own information security management mechanism, optimizesthe information security management process, and raises the awareness of informationsecurity among its employees.
INTCO / 65
The Company continuously improves the information security management organization, formulates and revises internalsystems such as Information Security Management Policy, Data Center Backup Management Policy, Information SystemDevelopment Management Policy, IT Equipment Maintenance Management Policy and other internal systems to clarify theinformation security management norms and to reduce the relevant risks in the operation process. The Company retestedthe information security management system in accordance with the latest national regulations and ceied the informationsecurity system based on GB/T 22080. Supeisor Han Xuebin is responsible for overseeing the Company's cybersecuritystrategy, building an information security management system covering all aspects of operations by caring out riskmonitoring, responding to security incidents and other initiatives to ensure the safety of the Company's information anddata.
Securing Data and Information
Secure physical
environment
Securecommunicationsnetworks
Secure areaboundaries
Secure computing
environment
Security operation
and maintenance
management
INFORMATIONSECURITY LEVEL
Securitymanagement center
During the repoing periodThe Company experienced no information security breaches orother cybersecurity incidents, with a total of zero informationsecurity breaches and zero customers, clients and employeesaected by the breaches.
INTCO RECYCLING — 2023 ESG REPORT
COMPLIANCE GOVERNANCE , MAKING A SOLID FOUNDATION
Information Security Risk ManagementInformation Security Training
INTCO / 66
The Company has set up a multi-level and multi-dimensional security risk management system, coveringfunctions such as network rewall, intrusion detection, security intelligence platform, terminal antivirus, userbehavior detection, etc. At the same time, information security emergencies are graded according to their leveland corresponding resolution procedures are adopted. The Company conducts quaerly domain-widescanning, especially monitoring and analyzing the information system infrastructure, application programs,network environment, etc., and improves the contingency plan and response procedures for incidents to ensurethat the above security system can be carried out in a prompt, ecient and orderly manner.In addition, the Company publicizes information security repoing methods and encourages employees andexternal stakeholders to repo information security incidents discovered. The Company investigates andhandles repoed incidents in accordance with relevant policies and processes, and employees involved will besubject to relevant penalties, including termination of employment.
In order to enable employees to fully understand and integrate the Company's informationmanagement policies, procedures, best practices, and response process in the event of aninformation security incident, the Company carries out information security educationactivities on a regular basis eve year, with training covering key areas such as dataencption, access control, personal privacy protection, network security protection andso on to ensure that each employee is able to properly manage and protect sensitive datain their daily work. The content of training covers data encption, access control, personalprivacy protection, network security protection and other key areas.
The Company is committed to enhancing information security. Through the Feishu approval process,which ensures the security of sensitive data while strengthening the monitoring and auditing capabilities ofsta operations. The Company not only enhanced the eciency of internal processes, but also provideda safer and more trustwohy seice environment for customers and paners, which fuher strengthenedthe Company's leading position in the indust.
Enhancing the Quality and Eciency of InformationSecurity Management by Feishu Approval
During the repoing periodThe Company conducted 24 relevant trainings.
INTCO RECYCLING — 2023 ESG REPORT
COMPLIANCE GOVERNANCE , MAKING A SOLID FOUNDATION
The Company attaches impoance to the protection of customer information, and in accordance with the Law of the People's Republic of China on the Protection of Personal Information to formulate relevantpolicies, improve the management mechanism. The Company managed the overall information security through access control, the establishment of an internal secure network and architecture, and by strengtheningemployee training to prevent the occurrence of information leaks.Focusing on Customer Privacy Protection
INTCO / 67
Customer Privacy Breach Response Process
Immediately contact the digital automation depament after the incident
Assess risks and priorities, and respond based on the results of the assessment
Check the device related to the incident to nd out the cause of the data breach
Block and deactivate the incident deviceEstablish incident response les, analyze the causes, strengthen relevant protection.and car out detailed investigations at each base
INTCO RECYCLING — 2023 ESG REPORT
COMPLIANCE GOVERNANCE , MAKING A SOLID FOUNDATION
Key Environmental PeormanceEnergy UseGasolineDieselNatural gasPurchased electricity
Energy ConsumptionDirect energy consumptionIndirect energy consumptionTotal energy consumptionEnergy intensity
103,252106,41676,77659,774,785
98,011159,181407,08070,023,245
117,159225,651743,05892,677,5152,735.0659,774.7962,509.84
0.31
6,481.5070,023.2476,504.74
0.37
10,365.1892,677.52103,042.70
0.37
LiterLiterCubic MeterkWhMWhMWhMWhMWh/ten thousand yuan
Water Resources
Total water withdrawalTotal water dischargeTotal water consumption
156,27283,61672,656
224,287150,13474,153
311,111261,43644,177
TonTonTon
Waste Water
BODCOD
0.34
1.00
TonTon
Greenhouse Gas EmissionsDirect emissions (Scope 1)Direct GHG emissions intensityIndirect emissions (Scope 2)Indirect GHG emissions intensityPaial other indirect GHG missions (Scope 3)Paial other indirect GHG emissions intensityTotal GHG emissions (Scope 1 + Scope 2+Paial Scope 3)*Intensity of own-operation GHG emissions
671.51
0.003
32,149.55
0.16
--32,821.05
0.16
1442.49
0.007
36,517.70
0.18
--37,960.19
0.18
2,295.12
0.01
47,568.53
0.17
534,933.56
1.93
584,797.21
0.18
tons of CO?etCO?e/ten thousand yuantons of CO?etCO?e/ten thousand yuantons of CO?etCO?e/ten thousand yuantons of CO?etCO?e/ten thousand yuan
APPENDIX 1: 2023 KPI TABLES
APPENDIX 1
KPI
Key Economic PeormanceRevenueNet Prot
199,005.4123,077.09
205,605.5623,977.58
245,507.7019,565.37
Ten thousand yuanTen thousand yuan
2021 20222023Unit
INTCO / 68INTCO RECYCLING — 2023 ESG REPORT
Waste
Total non-hazardous wasteRecycling of non-hazardous wasteTotal hazardous waste
Waste Gas
Nitrogen oxide emissionsSulfur oxide emissionsVOCs
11,027.6310,253.42
55.38
10,444.769,612.65
81.98
5,311.083,738.53
529.48
6.16
3.83
7.02
TonTonTonTonTonTon
Employment
Total number of employees
Full-time and pa-time employeesFull-timePa-time
2,8142,9863,536
3,536
PersonPersonPerson
Packaging MaterialsTotal packaging materialTotal plastic usage (bubble pad/EPE/tape/lm)Foam platesCaonsPaper palletsOthers (corner protector, grey board paper, kraft paper)
9,526.501,350.50
273.00
7,693.90
95.10
114.00
2,813
2,985
Employees CompositionMaleFemaleAged 30 and underAged 31 to 50Aged 51 and aboveChinese employeesOverseas employees
Management diversity
Number of senior management-maleNumber of senior management-female
2,0361,5001,3781,850
2,805
PersonPersonPersonPersonPersonPersonPersonPersonPerson
1,6011,213
1,537
2,614
1,7391,2471,1031,585
2,458
9,077.701,269.70
236.00
7,217.90
189.10
165.00
13,352.061,215.94
60.00
11,776.08
175.07
125.00
TonTonTonTonTonTon
NH3-N 000Ton
Key Social Peormance
INTCO / 69
KPI2021 20222023Unit
INTCO RECYCLING — 2023 ESG REPORT
APPENDIX 1
New Employees Oveiew
Total number of new employeesMaleFemaleAged 30 and underAged 31 to 50Aged 51 and aboveChinese employeesOverseas employees
1,122
PersonPersonPersonPersonPersonPersonPersonPerson
Employees TurnoverTotal number of employee turnoverEmployee turnover rateMaleFemaleAged 30 and underAged 31 to 50Aged 51 and aboveChinese employeesOverseas employeesOccupational health and safety
Number of EHS training sessionsEHS training coverage rateInvestment in EHSNumber of work-related accidentsNumber of deaths due to work-related incidents
25.50
24.70
26.12
33.12
19.46
24.37
26.25
10.99
21.09
21.03
21.28
25.99
16.20
23.65
22.81
11.82
1,000
21.47
22.03
20.69
29.59
15.16
15.52
23.33
13.78
718.51
Event%Ten thousand yuanCasePerson
Person%%%%%%%%
1,703.94
923.05
Employee Training
Total hours of employee trainingEmployee training coverageAverage training hours per employee
Hour%Hour117,123
41.62
206,352
58.35
134,508
45.05
Supply chain management
Number of suppliersChinese supplierOverseas supplier
UnitUnitUnit1,0641,039
1,166
1,2141075
INTCO / 70INTCO RECYCLING — 2023 ESG REPORT
KPI2021 20222023UnitKPI2021 20222023Unit
APPENDIX 1
2-12-2
Organizational detailsEntities included in the organization’s
APPENDIX 2: GRI STANDARDS INDEXUsage Instruction: INTCO Recycling has repoed the information for the period from Janua 1, 2023 to December 31, 2023 in accordance with the GRI StandardsGRI 1：Foundation 2021GRI 2: General Disclosures 2021The organization and its repoing practices
Activities and workers
Governance
Strategy, policies and practicesCompany OveiewAbout this Repo
GRI Standard
Company Oveiew
DisclosureChapter/Notes
07-10
07-1051-5245-4968-70
68-70
62-63
PageGRI StandardDisclosureChapter/NotesPage
2-22
2-23
2-24
2-25
2-26
2-27
2-28
Statement on sustainable development strategyPolicy commitments
Embedding policy commitments
Processes to remediate negative impactsMechanisms for seeking advice and raising concernsCompliance with laws and regulationsMembership of associations
Message from the ChairmanPursuing Excellent QualityDeveloping Green EnvironmentStrengthening Safety ManagementEmpowering Employee DevelopmentConveying Employee CareBuilding a Harmonious CommunityImproving the Governance StructureEnsuring Commercial ComplianceInformation Security ManagementPursuing Excellent QualityDeveloping Green EnvironmentStrengthening Safety ManagementEmpowering Employee DevelopmentConveying Employee CareBuilding a Harmonious CommunityImproving the Governance StructureEnsuring Commercial ComplianceInformation Security ManagementPursuing Excellent QualityStrengthening Safety ManagementConveying Employee CareInformation Security ManagementEnsuring Commercial ComplianceEnsuring Commercial ComplianceLeading Indust Development
23-2628-3637-4042-4445-4955-59
62-6365-6723-2628-3637-4042-4445-4955-59
62-6365-6723-2637-4045-4965-6762-6362-6353-54
Promoting a Responsible
INTCO / 71
Supply ChainConveying EmployeeCare 2023 KPI Tables2023 KPI TablesImproving the Governance StructureImproving the Governance StructureImproving the Governance StructureESG Governance FrameworkESG Governance FrameworkAbout this RepoEnsuring Commercial ComplianceStakeholder EngagementESG Governance Framework
Repoing period, frequency and contact point
ESG Governance Framework
sustainability repoingRestatements of informationExternal assuranceActivities, value chain and otherbusiness relationshipsEmployeesWorkers who are not employeesGovernance structure and compositionNomination and selection of the highest governance bodyChair of the highest governance bodyDelegation of responsibility for managing impacts
Remuneration policiesProcess to determine remunerationAnnual total compensation ratio
No restatements of informationNo external assurance
2-42-52-62-72-82-92-102-112-122-132-142-152-162-172-182-192-202-21
About this Repo
2-3
Disclosures are omitted due tocommercial condentiality restrictionsDisclosures are omitted due tocommercial condentiality restrictions
Role of the highest governance body in overseeing
Disclosures are omitted due tocommercial condentiality restrictions
the management of impactsRole of the highest governance bodyin sustainability repoingConicts of interestCommunication of critical concernsCollective knowledge of the highest governance bodyEvaluation of the peormance of thehighest governance body
INTCO RECYCLING — 2023 ESG REPORT
APPENDIX 2
GRI StandardDisclosureChapter/NotesPageGRI StandardDisclosureChapter/NotesPage
2-292-30
Approach to stakeholder engagementCollective bargaining agreements
Stakeholder engagement
Economics
Stakeholder EngagementConveying Employee Care
Promoting a Responsible Supply ChainDisclosures are omitted due tocommercial condentiality restrictions
3-13-23-3201-1201-2201-3201-4
Process to determine material topicsList of material topicsManagement of material topicsDirect economic value generated and distributed
Materiality AssessmentMateriality AssessmentMateriality AssessmentCompany OveiewDeveloping Green EnvironmentConveying Employee Care
45-49
08-1028-36
53-5455-5953-5455-5953-5455-59
45-4908-10
51-5262-6362-6362-6362-63
3-3301-1301-2301-3
Management of material topicsWeight or volume of materials usedRecycled input materials usedReclaimed products and their packaging materials
GRI 301: Materials 2016
GRI 302: Energy 2016
Developing Green EnvironmentDeveloping Green Environment2023 KPI TablesDeveloping Green EnvironmentDeveloping Green Environment3-3302-1302-2302-3302-4302-5
Management of material topicsEnergy consumption within the organizationEnergy consumption outside of the organizationEnergy intensityReduction of energy consumption
Developing Green EnvironmentDeveloping Green Environment2023 KPI Tables2023 KPI Tables2023 KPI TablesDeveloping Green EnvironmentReductions in energy requirements of products and seicesDeveloping Green EnvironmentGRI 303: Water and Euents 20183-3303-1303-2303-3303-4303-5
Management of material topicsInteractions with water as a shared resourceManagement of water discharge-related impactsWater withdrawalWater dischargeWater consumption
Developing Green EnvironmentDeveloping Green EnvironmentDeveloping Green EnvironmentDeveloping Green Environment2023 KPI TablesDeveloping Green Environment2023 KPI TablesDeveloping Green Environment2023 KPI Tables
GRI 305: Emissions 20163-3305-1305-2
Management of material topicsDirect (Scope 1) GHG emissionsEnergy indirect (Scope 2) GHG emissions
Developing Green EnvironmentDeveloping Green Environment2023 KPI Tables
62-63
Developing Green Environment2023 KPI Tables
62-6328-3628-3668-7028-3628-3628-3628-3668-7068-7068-7028-3628-3628-3628-3628-3628-3668-7028-3668-7028-3668-7028-3628-3668-70
2022
28-3668-70
年
GRI 3: Material Topics 2021GRI 201： Economic Peormance 2016
GRI 203: Indirect Economic Impacts 2016
GRI 202: Market Presence 2016
Ensuring Commercial ComplianceEnsuring Commercial Compliance
3-3204-1
Management of material topicsPropoion of spending on local suppliers
GRI 204: Procurement Practices 2016
GRI 206: Anti-competitive Behavior 2016
3-3205-1205-2205-3
Management of material topicsOperations assessed for risks related to corruptionEnsuring Commercial Compliance
Conrmed incidents of corruption and actions takenEnsuring Commercial Compliance
GRI 205: Anti-corruption 2016
Environment3-3Management of material topicsEnsuring Commercial ComplianceEnsuring Commercial Compliance
Promoting Indust DevelopmentManagement of material topics
Building a Harmonious Community
Promoting Indust Development
Building a Harmonious Community
Promoting Indust Development
Building a Harmonious Community
3-3202-1202-2
Management of material topicsRatios of standard ent level wage by gendercompared to local minimum wage
Company Oveiew
Disclosures are omitted due to
commercial condentiality restrictions
Financial implications and other risks
INTCO / 72
and oppounities due to climate changeDened benet plan obligations andother retirement plans
Legal actions for anti-competitive behavior,
Disclosures are omitted due to commercial
Propoion of senior management hiredfrom the local community
condentiality restrictions
anti-trust, and monopoly practices
Financial assistance received from government
Disclosures are omitted due to
commercial condentiality restrictionsInfrastructure investments and seices suppoedSignicant indirect economic impacts203-23-3203-1
Communication and training aboutanti-corruption policies and procedures
206-1
INTCO RECYCLING — 2023 ESG REPORT
APPENDIX 2
GRI StandardDisclosurePageGRI StandardDisclosureChapter/NotesPage
Emissions of ozone-depleting substances (ODS)3-3306-1306-2306-3306-4306-5
Management of material topics
Management of signicant waste-related impacts
Waste generated
Waste diveed from disposal
Waste directed to disposal
Developing Green Environment
Waste generation and signicant waste-related impactsDeveloping Green EnvironmentDeveloping Green EnvironmentDeveloping Green Environment2023 KPI TablesDeveloping Green Environment2023 KPI TablesDeveloping Green Environment
3-3401-1401-2401-3
Management of material topics
New employee hires and employee turnover
Empowering Employee Development
Parental leave
Conveying Employee Care2023 KPI TablesConveying Employee Care
28-36
Conveying Employee Care
68-7068-7028-36
28-3628-3628-3628-3668-7028-3668-70
28-36
28-36
68-70
51-5251-5242-4445-4968-7045-4945-4942-4445-4945-49
2022
37-40
年
403-1403-2403-3403-4403-5403-6403-7403-8403-9403-10
Occupational health and safety management systemOccupational health seicesEmployees' training in occupational health and safetyPromotion of employees' healthWork-related injuriesWork-related ill health
Strengthening Safety ManagementStrengthening Safety ManagementStrengthening Safety ManagementStrengthening Safety ManagementStrengthening Safety ManagementStrengthening Safety ManagementStrengthening Safety ManagementStrengthening Safety ManagementStrengthening Safety ManagementStrengthening Safety Management3-3404-1404-2404-3
Management of material topicsAverage hours of training per year per employee
Empowering Employee DevelopmentEmpowering Employee Development2023 KPI TablesEmpowering Employee DevelopmentEmpowering Employee Development
GRI 405: Diversity and Equal Oppounity 2016
GRI 404: Training and Education 2016
3-3405-1405-2
Management of material topicsDiversity of governance bodies and employeesThe ratio of basic sala and remunerationof women to men
Conveying Employee CareConveying Employee CareDisclosures are omitted due to comm-ercial condentiality restrictions
GRI 406: Non-discrimination 20163-3406-1
Management of material topicsIncidents of discrimination and corrective actions taken
Conveying Employee CareConveying Employee Care
GRI 407: Freedom of Association and Collective Bargaining 20163-3407-1
Management of material topicsOperations and suppliers in which the right tofreedom of association and collective bargainingmay be at risk
Conveying Employee CareConveying Employee Care
GRI 408: Child Labor 20163-3408-1
Management of material topicsConveying Employee CareConveying Employee Care
37-4037-4037-4037-4037-4037-40
42-4442-4468-70
45-4945-4945-4945-4945-4945-4945-4945-49
37-4037-4037-40
2022
37-40
年
GRI 306: Waste 2020
3-3308-1
Management of material topicsPromoting a Responsible Supply ChainPromoting a Responsible Supply ChainGRI 308: Supplier Environmental Assessment 2016
GRI 401: Employment relationship 2016
3-3402-1
Management of material topicsEmpower Employee Development
Minimum notice periods regarding operational changes
Conveying Employee CareConveying Employee CareGRI 402: Labor/Management Relations 2016
3-3Management of material topicsStrengthening Safety Management
GRI 403: Occupational Health and Safety 2018
305-3305-4305-5
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Chapter/Notes
Developing Green Environment
Reduction of GHG emissions
2023 KPI Tables2023 KPI TablesDeveloping Green Environment
Hazard identication, risk assessment,No ODS emissions during companyoperations and production processesDeveloping Green Environment2023 KPI Tables
and incident investigation
Employees' paicipation, consultation, and
communication on occupational health and safety
Employees covered by an occupational health
and safety management system
Programs for upgrading employee skills and
transition assistance programs
Percentage of employees receiving regular
peormance and career development reviews
Operations and suppliers at signicant risk
for incidents of child labor
Prevention and mitigation of occupational health and
safety impacts directly linked by business relationships
New suppliers that were screenedusing environmental criteriaNegative environmental impacts in the supplychain and actions taken
Disclosures are omitted due to
Benets provided to full-time employees that arenot provided to tempora or pa-time employees
Insucient information
305-6
Nitrogen oxides (NOx), sulfur oxides (SOx),
INTCO / 73
and other signicant air emissions305-7
308-2
Social
42-4442-44
INTCO RECYCLING — 2023 ESG REPORT
APPENDIX 2
3-3409-1
Management of material topicsOperations and suppliers at signicant riskfor incidents of forced or compulso labor
Conveying Employee CareConveying Employee Care
3-3413-1413-2
Management of material topicsOperations with local community engagement,impact assessments, and development programsOperations with signicant actual and potentialnegative impacts on local communities
Building a Harmonious CommunityBuilding a Harmonious CommunityNot applicable
3-3410-1
Management of material topicsSecurity personnel trained in human rights policies or procedures
Conveying Employee CareConveying Employee Care
3-3414-1414-2
Management of material topicsNew suppliers that were screened using social criteriaNegative social impacts in the supply chain and actions taken
Promoting a Responsible Supply ChainDisclosures are omitted due to Insucient informationPromoting a Responsible Supply Chain
45-4945-49GRI 410: Security Practices 2016GRI 413: Local Communities 2016
GRI 414: Supplier Social Assessment 2016
3-3416-1416-2
Management of material topicsAssessment of the health and safety impacts of product and seice categoriesIncidents of non-compliance concerning the healthand safety impacts of products and seices
Pursuing Excellent QualityPursuing Excellent QualityNot occurred during the repoing period
GRI 416: Customer Health and Safety 2016
3-3417-1417-2417-3
Management of material topicsRequirements for product and seice information and labelingIncidents of non-compliance concerning product and seice information and labelingIncidents of Non-compliance Involving Marketing Communications
Pursuing Excellent QualityPursuing Excellent QualityPursuing Excellent QualityNot occurred during the repoing period
GRI 417: Marketing and Labeling 2016
3-3418-1
Management of material topicsSubstantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Information Security ManagementNot occurred during the repoing period
GRI 418: Customer Privacy 2016
GRI 409: Forced or Compulso Labor 2016
45-4945-4955-5955-5951-5251-5223-2623-2623-2623-2623-2665-67
GRI Standard
INTCO / 74
DisclosureChapter/NotesPage
INTCO RECYCLING — 2023 ESG REPORT
APPENDIX 2