About This Report
Message from the Chairman
Company Pro?le
ESG ManagementEvents of 2023Business Presence
About EVE
Sound Corporate GovernanceInformation SecurityBusiness Ethics
Corporate Governance
R&D InnovationCustomer ServiceProduct Safety and Quality
Products and Services
CONTENTS
SUSTAINABILITY REPORT
Supply Chain ManagementResponsible SourcingSustainable Supply Chain
Value Co-creationCommunity ParticipationGiving Back to Society
Employee Rights and Bene?tsOccupational Health and SafetyTalent Development and Retention
Caring for Employee
Response to Climate Change
Emissions and Environmental ImpactResource ManagementEnvironmental Management
Environmental Protection
Information of Entities within theScope of Reporting
Independent Assurance StatementGRI Standards IndexEnvironmental Emission and PermitInformation of Key Organizations un-der Environmental SupervisionKey Performance Table
Appendixes
2023 Sustainability Report03/
Reporting Framework
EVE upgrades its CSR Report to the Annual SustainabilityReport starting in 2023, comprehensively responding tothe expectations and concerns of its stakeholders regard-ing its sustainable development initiatives. The report isprepared in accordance withShenzhen Stock ExchangeSelf-Discipline Supervision Guide for Listed CompaniesNo. 2 - Standardized Operation of Companies
Listed on the ChiNext Market (revised in 2023)and basedon the particular situation of the Company and is also inaccordance with the Global Reporting Initiative's (GRI's)“Sustainability Reporting Standards” (2021), the UnitedNations' Sustainable Development Goals (SDGs) and oth-er reporting guidelines and standards.
Data SourceThe ?nancial data in the report is sourced from the 2023annual report of EVE, which has been audited by RSM(Special General Partnership). Other data is sourced fromthe statistical summary and public materials of our rele-vant departments. Unless otherwise speci?ed, the mon-etary amounts involved in the report are measured inRMB.
Reporting Period
The reporting period is from January 1, 2023 to Decem-ber 31, 2023. To make the report more comprehensive,the time frame of some content is properly extended.The reporting period and issuance of this report arealigned with the annual report.
Organizational Scope
Unless otherwise specified, the information disclosedin this report covers EVE Energy Co., Ltd. (hereinafter re-ferred to as “EVE”, the “Company” or “we”) and EVE-con-trolled subsidiaries, consistent with the scope of the con-solidated ?nancial statements of EVE (300014. SZ).
Reliability Commitment
We promise that there are no false records, misleadingstatements, or material omissions in the report.
Form of Release
Following the environment-friendly philosophy, the re-port is released in electronic version. Readers can down-load and read it on Company’s official website (www.evebattery.com) or relevant page of the Shenzhen StockExchange (SZSE). For more information, please contactus via the email address below. The report is publishedin both Chinese and English. In case of any discrepan-cies between the two language versions, the Chineseversion shall prevail.Contact DetailsEVE Sustainability CommitteeAddress: 38 Huifeng 7th Road, Zhongkai Hi-Tech District,HuizhouTel:+86-0752-5707101Email: Sustainability@evebattery.comThank you very much for taking the time to read the re-port. We welcome any opinions and suggestions by mail,email, or phone.
About This Report
SUSTAINABILITY REPORT
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SUSTAINABILITY REPORTMessage from the Chairman
At the end of 2023, the ?rst-ever agreement on transition from fossil fuels was reached and the Global DecarbonizationAccelerator (GDA) was launched at the United Nations Climate Change Conference (COP28). The COP28 made it clearthat by 2030, the transition to clean energy would be accelerated. Energy revolution and transition are speeding up quiet-ly. The global energy transition has shifted from a period of initial momentum accumulation to a period of comprehensiveacceleration, and a new global energy and industry system is also being restructured at an accelerated pace.The future is coming, and we are advancing towards our goals. In the new round of energy transition and green economicdevelopment, EVE has always been following its original aspiration to “make the best lithium batteries in the world” andhas truly “become an industry leader”. In 2023, EVE ranked third globally in terms of energy storage battery shipment andwas listed among the top 10 in power battery shipment. It has ranked ?rst in China in terms of sales and export volumeof primary lithium batteries for eight consecutive years since 2016. EVE has formed a business structure where consumerbatteries, power batteries, and energy storage batteries grow neck by neck, and has become a lithium battery platformcompany with competitive edges around the globe.EVE improves quality with innovation and promotes innovation with quality. EVE has never stopped innovating. We focuson technologies in developing large cylindrical batteries and large LFP batteries, insist on focusing our own R&D whileadopting technologies through multiple approaches. In 2023 alone, through technological innovation, we launched a newgeneration of MB-series energy storage products, achieved mass production and loading of 46-series EV-cylindrical batter-ies, and released seven major medical battery solutions to protect lives with technology. Besides, the implementation ofmany cutting-edge technologies such as solid-state batteries, sodium-ion batteries, and hydrogen, are being accelerated.Being reliable, EVE is growing green and pursuing excellence. EVE takes the initiative to promote carbon peaking and car-bon neutrality, and achieves continuous reduction of carbon intensity by means of increasing the proportion of renewableenergy use (green electricity traceability), ultimate manufacturing, and smart manufacturing. By pursuing extreme ecien-cy, our work eciency has increased by 30% after digital upgrade, compared with 2022. Through extreme management,our raw material loss per unit product has been reduced by 46%, material consumption loss by 29%, and comprehensiveenergy consumption per unit product by 9%. We are building a green, low-carbon and sustainable value chain by meansof green supply chain management, responsible sourcing, green transportation, and adjacent sources of supply. To pursueextreme carbon reduction throughout the product life cycle, EVE has also built a chain of circular economy consisting of“waste lithium batteries - chemical materials - battery materials - lithium batteries”, to create a “cradle-to-cradle” greenclosed-loop.There are only enterprises of the times, but there is no era of enterprises. EVE’s rapid growth cannot be achieved withoutthe historical opportunities brought by the times or without the trust and support from the society. Only by keeping cor-porate development in alignment with the trends of the times and integrating it with social responsibilities can sustain-able development be achieved. Therefore, we have always insisted that we should strive to do “things that the countryencourages, the society needs and help employees to grow”, including industry driving, social undertakings, communityservices, corporate governance, employee growth, humane care, etc.After 23 years of hard work, we become more determined in pursing our original aspiration. EVE’s vision is to “make out-standing contributions to sustainable development”. In the ?ght against global climate change, energy is the main battle-?eld where the battery industry must be a vanguard and a pivot industry for energy transition and green economic devel-opment. We will continue to adhere to the concept of sustainable development, work with eco-partners to help achievethe goal of carbon neutrality, and make contributions to the sustainable development.
Dr. Jincheng LiuChairman, EVE Energy Co., Ltd.
2023 Sustainability Report
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Company Pro?le
R&D team
members5,29
approximately
research institutes
230,000㎡
research institutes
research departments
applied for over
7,400
patents
To be the most creative Lithium battery company, and make outstanding con-tributions to sustainable development
Pursue Excellence, Create Value, Dependability, Teamwork, Respect Individuals
Reliable and harmonious development
Vision
Mission
Values
SUSTAINABILITY REPORT
About EVE
Founded in 2001, EVE was ?rst listed on Shenzhen GEM in 2009. EVE is now a globally leading high-qual-ity lithium battery company, covering four major business segments: consumer batteries, power batteries,energy storage batteries, and industrial chain strategic collaboration. Batteries are widely used in the ?eldsof the IoT and the Energy Internet. With more than 27,000 employees around the world and the ability of“global manufacturing, global delivery, global service”, EVE is committed to be the most creative lithiumbattery company, and make outstanding contributions to sustainable development. (Stock code: 300014)
EVE is committed to driving development through technological innovation, with approximately 230,000m
of researchinstitutes and a team with 5,291 international and interdisciplinary comprehensive R&D researchers. We has established6 research departments and 5 research institutes, covering a comprehensive battery R&D platform from lithium batteries,lithium-ion batteries, power batteries, module, equipment materials to mobile energy technology, etc.. Meanwhile, wehave applied for over 7,400 patents and established in-depth cooperation with Wuhan University, StoreDot and other insti-tutions of higher learning and research on new materials, pre-research technology and so on.
EVE insists to the concept of sustainable development and is committed to creating greener and more energy ecientproducts and solutions. We have been awarded as “National Green Factory”, and have built a circular economy greensupply chain of “Waste Lithium Batteries - Chemical Materials - Battery Materials - Lithium Batteries”. Based on the “fulllife cycle of lithium batteries”, EVE has implemented a comprehensive carbon reduction strategy. In the future, EVE willcontinue to take the “dual-carbon” goal as the lead ,explore technological innovation, energy management, and make out-standing contributions to sustainable development.
2023 Sustainability Report
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Honors and Achievements
China National Intellectual Property AdministrationChina Automobile Power Battery Industry
Innovation Alliance
National IP Demonstration EnterpriseChina Patent Excellence Award: a lithium battery positiveelectrode, a lithium battery and a preparation method thereof
Global Top 15 Enterprises of OutstandingContribution to Industry Development
Bloomberg New Energy Finance (BNEF)Bloomberg New Energy Finance Tier1 storagemanufacturers in the ?rst quarter of 2024
Gaogong Energy Storage2023 GGES Golden Globe Award—Enterpriseof the YearChina Energy Storage Network2023 Most In?uential Enterprise in China’sEnergy Storage Industry
EESA Energy Storage Leader Alliance
2023 Best Energy Storage Battery SupplierGoldenBee ThinkTank & China SustainabilityTribune
Impact · Pioneering Enterprise
The 8th International Summit on PowerBattery Application (CBIS2023)
Annual In?uential EnterpriseNo. 355 among China's top 500 private enterprises in 2023
All-China Federation of Industry and Commerce
Industrial Product Green Design Demonstration Enterprises
Ministry of Industry and Information Technology
An Enterprise with Outstanding Contribution to Reduction ofPollution and Carbon Emissions in Guangdong Province in 2022Department of Ecology and Environment of Guangdong Province
Quality Award of Huizhou Government
The People's Government of Huizhou City
IOTE 2023 “Gold Award” Innovative Product
Shenzhen Internet of Things Industry Association
2023 GGLB Golden Globe Award–Enterprise of the Year
Shenzhen Gaogong Consulting. Co., Ltd.The above list is not exhaustive, only including key honors andawards that the Company received in 2023 and the recent past.
The Company has established good cooperative relation-ships with a number of enterprises and is trusted andrecognized by customers. The Company won a numberof honorary titles and awards, such as Strategic Partner,Outstanding Supplier, and Partner Excellence Award.
The Company has signed strategic cooperationagreements with many government organiza-tions and enterprises.
China's Top 100 IoT Enterprises in 2022
Ulink Media
0403
Primary Lithium BatteriesLithium-ion BatteriesCylindrical Cell
CellModuleBMSSystem
Consumer BatteriesPower Batteries
Large LFP CellPrismatic LFP CellCylindrical LFP CellBMS, Pack, System
Nickel, Cobalt and LithiumBattery Core MaterialsEnergy Storage BatteriesSupply Chain Integration
BUSINESSSEGMENTS
2023 Sustainability Report
Market RecognitionStrategic Agreement
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Business Presence
Guangdong (Headquar-terd in Huizhou)Hubei (Jingmen, Wu-han)Sichuan (Chengdu)Yunnan (Qujing, Yuxi)Jiangsu (Qidong, Yan-cheng)Zhejiang (Ningbo)Liaoning (Shenyang)
-China
-USA
-Germany
-Hungary
-Singapore-Malaysia
Global Manufacturing Global Delivery Global Service
R&D centerHuizhou Guangdong, Jingmen,Wuhan Hubei, Shanghai, Cheng-du Sichuan
Sales Company and OceChina:Beijing, Changzhou Jiangsu,
Hongkong, Taipei
production Site
China:Huizhou Guangdong, Jingmen Hubei, Wuhan Hubei, Ningbo Zhejiang, Qidong &
Yancheng Jiangsu, Longquanyi & Jianyang Chengdu, Yuxi & Qujing Yunnan, Shen-yang Liaoning
Drawing approval number：
GS(2016) 1663Produced by the Bureau of Natural Resources
Oversea:Hungary, Malaysia, USAOversea:Germany, USA, Malaysia,
Singapore
2023 Sustainability Report
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21700 40PL Tabless Cell and 21700 58E HighCapacity Energy Cell were released.New LFP cell products for pas-senger car were launched.The building of “60GWh SuperFactory” commenced.
The mobilization meeting for the concentrated com-mencement of key projects of Liaoning Province in t-the first quarter of 2023 and the groundbreaking ce-remony for the EVE Energy Storage and Power Batt-ery Project were held in Shenyang.
EVE signed a strategic cooperation agreement with Powin andAmerican Battery Solutions (ABS), achieving strategic cooperationtotaling 23GWh.EVE formally established the Medical Battery Division.
EVE signed a memorandum of understanding with Li-Cycle to
jointly build a battery life cycle value chain.EVE successfully held Lithium Battery Industrial Study Conference.
China's first high-power new energy electric switch engine equipped withEVE's battery system rolled off the production line.Two electric vessels equipped with EVE batteries successfully set sail: “Huahang xin neng 1” and “Yuetong Pearl River 001”.
11th Energy StorageInternational Con-ference and Expo(ESIE2023)
Vapor Expo UKChina International
Battery Fair (CIBF2023) in Shenzhen
EUROBIKE 2023 inFrankfurt Germany
THE SMARTER EEUROPE 2023
EESA 2nd ChinaInternational Ener-gy Storage Exhibi-tion
IAA MOBILITY 20232023 China Smart
Ports Conferenceand Expo
Solar Power In-ternational 2023(RE+2023)
The Battery ShowNorth America
All Energy AustraliaChina Jiangsu Inter-
national New Ener-gy Electric Vehicleand Parts Fair
Enlit Asia 2023Enlit Europe 2023
EVE Singapore was ocially unveiled and established.EVE's “Linju” series of batteries were released.The unveiling ceremony of EVE's regional headquarters in East China washeld, marking the completion of EVE's ?rst regional headquarters.
The ?rst batch of equipment of the second phase ofthe 14th factory is ocially entered.EVE signed a tripartite cooperation agreement withElectrum and GWKC.
EVE signed an agreement with Electric Power, Daimler Truck and PACCAR to co-?nance ajoint venture in the United States.EVE was nominated as a designated 12V lithium battery supplier by General Motors Corpo-ration.EVE reached in-depth cooperation with W?rtsil?, and TAE Power Solutions in the ?eld of en-ergy storage batteries.
EVE's two-millionth 46-series NCM cell of high energy density rolled off the production line.EVE signed a memorandum of understanding with Rimac Technology to manufacture cut-ting-edge battery products in Europe and create a localized, sustainable EV supply chain.
EVE announced to build a battery factory in Debrecen, Hun-gary.EVE formally signed a Memorandum of Understanding forthe purchase of land for the factory in Malaysia.The 25.8MWh distributed energy storage operation project incooperation with Hisense Group was put into operation.
FebruaryMayJulyJuneApril
September
August
OctoberNovember
Events of 2023
Exhibition
December
March
EVE signed a memorandum of understanding with Energy Absolute, proposing thatAmita Technology, a subsidiary of the latter, and the Company jointly establish a jointventure in Thailand to build a battery production base with a capacity of 6 GWh at least.
EVE held Vaping BatteryIndustry Exchange Conference.
AprilMayJuneAugustSeptemberSeptemberOctoberNovember
2023 Sustainability Report
Employee Training Topics
Occupational health and safetySupply chain and business ethicsEnvironmental protection
PresidentVice President, responsible for EHSVice President, responsible for manufacturing
Vice President, responsible for human resourcesVice President, responsible for supply chainVice President, responsible for R&D
Vice President and Board Secretary, responsible for ?nanceand daily affairs of the Board of Directors
Member 1
Member 7Member 6Member 5Member 4Member 3Member 2
Board of DirectorsResponsibilities: Deliberating on the annual sustainability report and materialsustainable development matters of the Company.During the reporting period, the Chairman instructed to strengthen ESG man-agement and build a working platform for carbon reduction and zero carbonemissions to lay the foundation for the Company to foster outstanding sustain-able leadership.
/
Joint Conference for SustainabilityResponsibilities: Developing speci?c plans and taking actions to achieve theCompany's sustainability goals.During the reporting period, the conference held 2 company-level meetings toplan and implement action plans for ESG performance improvement.
Sustainability Committee
Director: Chairman
Responsibilities: Developing and reviewing the Company's sustainability goalsand roadmap, and reporting to the Board of Directors on sustainability mattersof signi?cant impacts.During the reporting period, the committee reviewed and released 3 ESG-re-lated policies of the Company.
Remarks: This section focuses on responding to material topic 20, namelysustainable development strategy.
Upholding our vision “To be the most creative Lithium battery company, and make outstanding contributions tosustainable development”, the Company responds to the global sustainable development goals and the needsof stakeholders for sustainability, and effectively runs management organizations, such as the SustainabilityCommittee, the Joint Conference for Sustainability, and relevant special committees, committed to integratingsustainable development philosophy into all of the company’s business management activities.During the reporting period, the Company continued to improve its sustainable development managementstructure and operation mechanism, fully listened to and responded to the opinions and suggestions of stake-holders, and improved its ESG management capability. In terms of ESG capacity building, the Company organ-ized ESG-themed sustainable business strategy training for vice presidents and general managers in charge ofproduction operation, ?nance, human resources, legal affairs, safety and environment protection, informationtechnology, infrastructure, and sales functions within the organization to promote the formation of a consensuson sustainable business and commit to building sustainable leadership. In response to speci?c topics, it heldspecial training sessions on environmental protection, occupational health and safety, supply chain and busi-ness ethics throughout the year for employees to popularize ESG policies and raise their awareness of sustaina-ble development.
ESG Management
ESG Training for the Management
2023 Sustainability Report
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EVE's focuses of sustainabledevelopment
Details avail-able in
Details avail-able in
Contributionsto SDGs
Contributionsto SDGs
Be committed toimplementing a sci-entific value chaincarbon reductionstrategy, providinggreen products tothe society, andhelping the globalgreen transforma-tion.
Build a responsi-ble and sustain-able product val-ue chain throughresponsible pro-curement,greensmart manufac-turing,green trans-portation, sustain-able managementand efficient useof resources.
With the goal ofcreating sharedvalue, we strive toseek developmentfor our employeesand contribute tosociety.
According to the United Nations Sustainable Development Goals (SDGs), the Company disclosed its actions for the threefocuses of sustainable development. In the future, the Company will pay more attention to the 17 SDGs and 169 targets,ful?ll the commitment of sustainable development, and integrate SDGs into the planning and actions of sustainabilitytopics of business activities.
Tackle theClimateCrisis
SustainableManufacturingOperations
Corporate So-cial Responsi-bilityProducts andServicesEnvironmentalProtection
Corporate Gov-ernanceProducts andServicesEnvironmentalProtection
SustainableSupply ChainEmployeeCareGiving Backto Society
Actions
EVE's actions in response to the SDGsEVE's actions in response to the SDGs
Increasing investment in R&D and innovation for cut-ting-edge technologies, establishing cooperation withprestigious universities and institutions, and improvinginnovation capabilitiesIntensifying energy management and energy conservationand carbon reduction measures at the manufacturing endto improve energy eciencyTaking environmental management and pollution and car-bon reduction measures for less wastewater, exhaust gas,noise and solid waste to protect the ecological environmentRecycling materials at the manufacturing end for higherutilization eciency
Strictly abiding by laws, regulations and business ethics,releasing theEVE Code of Business Conduct, and accept-ing the supervision of stakeholders
Engaging in waste battery recycling, and working withindustry partners to build a green supply chain for circulareconomy
Providing employees with competitive salary and bene-?ts, and establishing a fair and just performance appraisalmechanismProviding employees with a safe and healthy workingenvironment and carrying out EAP (Employee AssistanceProgram)Since 2012, launching EVE Scholarship in many univer-sities; making donations to the education foundation tosupport the cause of educationPublishing sustainability reports regularly, and communi-cating the progress of the Company's sustainable develop-ment actions with stakeholdersEmploying local people fairly and improving their well-be-ing
Creating jobs and providing employees with a platform forbroad growth
Training and career development for female employees
Protecting the legitimate rights and interests of employ-ees, explicitly prohibiting the child labor and forced labor,and opposing discrimination and harassment in workplace
Implementing responsible sourcing, integrating the sus-tainable development requirements for suppliers such asenvironmental protection and social responsibility intothe Company's supply chain management system, andstrengthening the sustainable development managementof mineral resources
Actions
Upholding the philosophy of green design, and developingnew technologies and productsProviding new energy application solutions and services toboost global green transitionCarrying out carbon emission management on all frontsand investigating the carbon emissions of the supply chainPlanning and building new factories with the goal of “zerocarbon”Investing more in building rooftop distributed PV in facto-ries and electrochemical energy storage and natural gasheating in parks to increase the use of clean energy
Establishing medium- and long-term carbon neutralizationgoals for production and operation and the value chain
In response to overseas new regulations such as the Regu-lation Concerning Batteries and Waste Batteries (EU), mov-ing faster to develop compliance capabilities, align R&Dand quality management systems with the internationalcommunity, and enhance the competitiveness of exportproducts
Basic principlesPublic policy
EVE Code of BusinessConduct
FieldResponsible supply chainmanagement
Environment, occupa-tional health and safetyProduct and quality
Labor and human rights
EVE's actions in response to the SDGsESG Policy
Due Diligence Mangement Policy for Responsible Mineral SupplyChainsSupply Chain Due Diligence Management Appeal SystemAnti-Fraud Policy, Whistleblowing PolicyLetter to Partners on Integrity Initiative
Labor Rights Protection Policy
Risk Disclosure of Lithium Battery and Recommendation for FireSafety
Environment Health Safety is our Priority and Unwavering PursuitEnvironment Health Safety is our Priority and Unwavering PursuitEnvironmental Management Policy and Commitment, OccupationalHealth and Safety Management Policy CommitmentLife-Saving Rules
Integrity and honesty
EVE's focuses of sustainabledevelopment
2023 Sustainability Report
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Assessment of Material Topics
Importance to the sustainable development of EVE
Importance to stakeholders
High
High
Moderate
Process for identi?cation and analysis of material topics
1 Resource recycling6 Product safety16 Corporate governance
18 Business ethics4 Pollutant management5 Biodiversity
11 Employee safety
19 Risk management
20Sustainable developmentstrategy
21 Information disclosure
3Carbon emission man-
agement
2Energy conservation and
consumption reduction
8Intellectual prop-erty protection9Responsible sourc-ing10Employee rightsand interests
15Public welfareprojects
13Employee con-cern
12Training anddevelopment
14Community ac-tivities
7R&D and innova-
tion
17 Compliance operation
EnvironmentSocietyCorporate governance
Stakeholder survey
Assessment of material topics
The Company conducts regular assessment of material topics. This will help not only better understand the focus ofstakeholders, but also improve the integration of sustainability management with the internal and external environmentand enable more pertinent actions and report disclosure. Therefore, based on the development strategy of EVE, industrytrends, expectations and needs of internal and external stakeholders, and referring to relevant sustainability standards andguidelines at home and abroad, the Company evaluated and analyzed the material topics in three stages, namely identi?-cation, stakeholder survey, and assessment.
Identi?cation of material topics
According to the UN SDGs and GRI sustainability reporting standards, the Company identi?ed the topics coveringenvironment, society and corporate governance by benchmarking the excellent sustainable development practic-es of the industry and regular communications with stakeholders. Compared with the previous report, the topicof “biodiversity” was added to respond to the concerns of stakeholders.
We distributed online questionnaires to government and regulatory agencies, investors and researchers, custom-ers, suppliers, partners, media associations, citizens in surrounding communities and internal employees at alllevels, scored the weight of topics with the rating scale, and received suggestions from all parties on improvingthe sustainability practices of the Company. A total of 436 valid questionnaires were collected in this survey, andthe original data of the questionnaires were classi?ed, counted and processed, and the score of each topic wasobtained as an important reference for the assessment of material topics.
According to the above survey results, we rated the topics from two dimensions: “Importance to the sustainabledevelopment of EVE” and “importance to stakeholders”, and formed a topic matrix, which was submitted to theSustainability Committee for examination and approval. In the end, a material topic matrix was formed in com-bination with the sustainable development goals of the Company, the focal points of stakeholders and the devel-opment trends of the industry. Material topics with two-dimensional signi?cant impact will be the priorities forresponse and disclosure in the report.
2023 Sustainability Report
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Communication with Stakeholders
Government and regulato-ry authorities
Suppliers and partners
Media and industryassociations
Surrounding communitiesand the public
Customers
Shareholders andinvestors
Employees
7 R&D and innovation16 Corporate governance17 Compliance operation18 Business ethics19 Risk management
11 Employee safety12 Training and development13 Employee concern
1 Resource recycling
21 Information disclosure
3 Carbon emission management4 Pollutant management6 Product safety8 Intellectual property protection11 Employee safety17 Compliance operation
8 Intellectual property protection9 Responsible sourcing11 Employee safety17 Compliance operation18 Business ethics
5 Biodiversity6 Product safety14 Community activities
4 Pollutant management
15 Public welfare projects
7 R&D and innovation
1 Resource recycling
21 Information disclosure
1 Resource recycling
18 Business ethics
Public welfare activitiesCommunity interactionOcial website and social media
Press conferencesIndustry forums and exhibitionsOcial website and social media
Supplier meetingSupplier trainingSupplier auditSurvey and evaluationSRM systemMail
3 Carbon emission management4 Pollutant management6 Product safety7 R&D and innovation
1 Resource recycling
9 Responsible sourcing
Visit and communicationCustomer survey and auditOcial website and social mediaMail
Shareholders' MeetingsInformation disclosureVisit, exchange and ?eld surveyInteraction via exchange platformRoadshowOcial website and social media
Employee satisfaction surveyTrade union and employee meetings10 Employee rights and Interests
Internal communication platforms
Information disclosureCorrespondenceOcial interview and surveyPolicy consulting and implementationLaw enforcement inspectionRegulatory information platform
Stakeholders
Stakeholders
Concerned topics
Concerned topics
Response and communi-cation channels
Response and communi-cation channels
The concerns and needs of stakeholders are helpful for the Company to effectively identify the risks and opportunities ofsustainable development and improve its management. In order to keep abreast of their expectations and suggestions onsustainability performance, EVE has built diversi?ed communication channels, and relevant business departments havemaintained communication with stakeholders through a regular communication mechanism to respond to their concernsin a timely manner.
Energy conservation and con-sumption reduction
Sustainable developmentstrategies
Energy conservation and con-sumption reduction
7 Scienti?c research and innovation
Sustainable development strat-egy
Sustainable development strat-egy
2023 Sustainability Report
CorporateGovernance
Effective corporate governance is the key to enhance the compet-itiveness and sustainability of an enterprise. EVE builds a soundgovernance structure, strictly observes business ethics, and keepsimproving compliance operation and risk management to reduceoperational risks and provide strong support for the high-qualityand sustainable development of the Company.
Contributions to SDGs
Sound Corporate GovernanceBusiness Ethics/Information Security/
Topics Disclosed
16 Corporate Governance-17 Compliance Operation-
18 Business Ethics-19 Risk Management-
21 Information Disclosure-
2023 Sustainability Report
Sound Corporate Governance
The Company actively builds a robust corporate governance model by enhancing the governance struc-ture, protection of investors' rights and interests, and information disclosure, improving the internal con-trol and risk management system, and re?ning other key elements.
The Company has built a corporate governance structure comprised of Shareholders' Meeting, Board of Di-rectors, Board of Supervisors, and the management in strict compliance with applicable laws, and regulationssuch as theCompany Law of the People's Republic of China, theSecurities Law of the People's Republic ofChina, theCode of Corporate Governance for Listed Companies, theRules Governing the Listing of Shares onthe ChiNext Market of Shenzhen Stock Exchange, and theShenzhen Stock Exchange Self-Discipline Supervi-sion Guide for Listed Companies No. 2–Standardized Operation of Companies Listed on the ChiNext Market.
Corporate Governance Structure
Strictly abiding by relevant laws, regulations, rules and theArticles of Association, the Company has established a soundsystem to protect investors' rights and interests, designated full-time employees to manage investor relations, and provid-ed diversi?ed communication channels to facilitate long-term, stable, and harmonious and interactions with our investors.When managing investor relations, the Company treats all investors equally, fairly, impartially and openly, and protect theirlawful rights and interests including their rights to be informed.Through designated channels includingSecurities Times, China Securities Journal, Shanghai Securities News, and www.cninfo.com.cn, the Company makes true, accurate, timely, fair and complete information disclosure to ensure that share-holders and other stakeholders have access to all information that may have a substantial impact on their decision-mak-ing. We appoint the Secretary of the Board of Directors to take charge of information disclosure, coordinate the relation-ships between the Company and investors, receive shareholders upon their visits, and answer their questions.The investor communication channels include announcements (including regular and interim reports), shareholders'meetings, performance brie?ngs, strategy meetings with securities companies, investor exchange, investor visits on recep-tion days, SZSE Easy IR, email, phone consultations, mailing, media coverage, other promotional materials, roadshow, ?eldvisits and surveys, ocial WeChat account and website, as well as other methods provided in relevant regulations.
Protection of Investor's Rights and Interests
Special Committees
The special committees are composed solely of directors. Independent directors, also acting as conveners, makeup the majority of the Remuneration and Appraisal Committee, the Audit Committee, and the Nomination Com-mittee. The convener of the Audit Committee must be an accounting professional. Except that the Chairmanacts as director of the Strategy Committee, the directors of all other committees are independent directors, whileindependent directors account for two thirds of the members in all other committees. The special committeesperform their duties in accordance with theArticles of Associationand authorization of the Board of Directors.Their proposals shall be submitted to the Board of Directors for deliberation and decision making. They provideprofessional opinions and advice on decision-making for the Board of Directors.
Shareholders' Meeting
The Company convenes and holds shareholders' meetings in strict accordance with relevant reg-ulations, treat all shareholders equally, and create favorable conditions for them to attend themeetings, ensuring that they can fully exercise their rights and protect their interests. During thereporting period, EVE held 10 shareholders' meetings, where online voting was combined withon-site voting, and engaged professional lawyers to witness the meetings to protect the legiti-mate rights and interests of the shareholders.
Board of Directors
It is composed of 7 directors, including 3 independent directors and 1 chairman, and it is indepen-dent from the controlling shareholders in terms of management, business operations and ?nancialaffairs. Members of the Board of Directors have profound industry expertise and managementexperience, and the resume of each director can be found in the annual report. Four special com-mittees, namely Strategy Committee, Remuneration and Appraisal Committee, Audit Committee,and Nomination Committee, have been set up under the Board of Directors to ensure the orderlyoperation of production and business activities. During the reporting period, the Board of Directorsconvened 21 meetings to review material matters of the Company.
Board of SupervisorsIt consists of 3 supervisors, including 1 employee supervisor. The Board of Supervisors operatesaround the central tasks of improving corporate governance structure and promoting law-basedand standardized operation. It effectively supervises the Company's business management, as wellas duties of the directors and management. It also fully supervises the Company's law-based oper-ations, ?nancial conditions, external guarantees and internal controls. During the reporting period,the Board of Supervisor held 20 meetings.
Shareholders' Meeting
Audit CommitteeManagement
Board of Directors
Nomination Committee
Board of Supervisors
Secretary of the Boardof DirectorsStrategy Committee
Remuneration andAppraisal Committee
/
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Business EthicsWhen carrying out business activities, the Company strictly abides by laws and regulations, observes socialmorality and business ethics, stays honest and trustworthy, remains subject to the supervision of stake-holders, and assumes social responsibilities.
As we move faster to go global, we are faced with multiple challenges such as meeting compliance requirements,resolving legislative con?icts, and observing multi-authority regulation. In this context, being risk-oriented and up-holding the management philosophy of “targeted compliance”, we follow external laws and regulations in time,adjust business development and compliance management strategies, and formulate pertinent compliance re-quirements. During the reporting period, the Company re?ned the compliance management in priority areas suchas export control and sanctions, outbound data transfer, personal privacy, and supply chain traceability, achievingecient synergy with business development.We set up a compliance management oce under the Legal Affairs Center, and issued theEVE Code of BusinessConductfrom the perspective of compliance according to external policies, regulations, standards, requirements ofstakeholders and our strategic needs to ensure that key compliance requirements are transparent and open to em-ployees and the public. In addition, in context of updated international business policies, we carried out compliancetraceability management for upstream suppliers, incorporated compliance with the EVE Supplier Code of Conductinto supplier management requirements, and implemented compliance due diligence procedures.For the suspected violations found during the compliance inspection, we will follow up and deal with them accord-ing to their types. For any potential risks, we will make further due diligence on the problem and take correctivemeasures. If appropriate actions are not taken, or there are serious risks involved in a matter, we will escalate thematter to a higher level of management, or the non-compliant business will be closed.
Internal Control and Risk Management
Compliance Management
A sound internal control management system can effectively improve the management performanceand risk prevention capabilities of an enterprise. We have built a risk management system according tothe Three Lines Model. Serving as the ?rst line of defense, the operation and management departmentsconstantly improve and re?ne internal control in accordance with the principle of “institutionalized man-agement, process-based institution and information-based process”, and incorporates internal control andrisk control into business processes. The risk protection departments such as safety, environmental protec-tion, quality, compliance, risk, legal affairs and ?nance, serving as the second line of defense, supervise andinspect the implementation of the Company's internal control. As the third line of defense, the audit andsupervisory departments independently and objectively con?rm and evaluate the overall internal controloperation and effect of the Company.Developing the annual audit plan based on the principle of risk orientation and focusing on businessareas involving major risks, important contracts, and key investment projects, the audit and supervisorydepartments audit procurement, sales, production, R&D, human resources, guarantee and investment, re-lated party transactions and information systems. With 26 types of audit items (including audits of subsid-iaries and important shareholding companies), they implement audits as planned, release audit reports,and follow up recti?cation.Every year, the Company evaluates the effectiveness of internal control, releases the
Annual Internal Con-trol Evaluation Report, and appoints a third-party accounting ?rm to verify the report. During the report-ing period, the Company maintained effective internal control in all major aspects in accordance with therequirements of theBasic Norms for the Internal Control of Enterprisesand relevant regulations.The Company has set up the Risk Management Department, developed theRisk Management Rules, andidenti?ed risks for all business departments through interviews, questionnaires and seminars. Accordingto the risk control measures of various departments, the Risk Management Department makes continu-ous tracking, evaluates existing control status and supervises the assessment.Based on risk tolerance and risk assessment standards, the Company identi?es risk sources with compa-ny-wide engagement on an annual basis. The Risk Management Department summarizes and classi?esrisk information, and organizes all functions to evaluate the identi?ed risks and formulate countermea-sures. High risks are put into the standing book for regular monitoring and management, and differentcountermeasures are taken for management and control according to the categories of inherent risks andresidual risks. It follows up the implementation of control measures for projects with high risks on a quar-terly basis to ensure their effectiveness. In addition, it supervises and evaluates risk control measures andreleases risk management evaluation reports. During the reporting period, the Company identi?ed 33 keyrisks and worked out countermeasures.
The Company earnestly fulfills its re-sponsibilities and obligations relatedto trade compliance in accordancewith applicable customs, export con-trol and economic sanctions laws andregulations. By analyzing industrycharacteristics and risk status, and tak-ing into account business stages, theCompany takes the procedures fea-turing advance prevention, in-processcontrol and post-processing for specif-ic matters. In addition, the compliancemanagement oce provides targetedtrade compliance training to the sales,procurement, and R&D departmentsto improve the Company's capabilitiesto resolve compliance risks.
We have established a sound intellectualproperty management system and strictintellectual property application manage-ment process, and got the certi?cation of GB/T29490 Enterprise Intellectual Property Com-pliance Management System. In the productdesign stage, we conduct a comprehensivestudy of existing technologies and relatedpatents, and make necessary modificationsaccording to compliance opinions. Beforethe products are launched on the market, wemake the free-to-operate analysis to ensurethat the products can be sold legally. We useand transfer intellectual property rights instrict accordance with relevant laws, regula-tions and industry standards to ensure thatusing and transferring intellectual propertyrights are legal, compliant and effective.
Trade Compliance
Data PrivacyCompliance
Intellectual Property ComplianceTaking the initiative topromote compliancein the field of privatedata, the Companyhas initiated priva-cy data protectioncompliance projectsin Germany and Ma-laysia, providing em-ployees with 149-hourinternal compliancetraining on GeneralData Protection Reg-ulation (GDPR) dataprivacy protection andemail use in Malaysia.
2023 Sustainability Report
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During the reporting period, the Company further expanded cooperation with the Enterprise Anti-fraud Alliance, studiedthe ocial courses of the alliance, and exchanged anti-fraud experiences, with a focus on improving the skills and profes-sionalism of auditors and supervisors. The Company regularly offers integrity and anti-corruption training for senior execu-tives, employees at high-risk positions and new employees, and makes integrity training available to all employees on theocial online learning platform. In addition, it regularly organizes professionals to teach legal knowledge and promote thephilosophy of integrity culture, and releases the requirements of honesty and self-discipline on holidays to ensure that ev-ery participant has a clear understanding of the Company's business ethics requirements and integrity philosophy, with aview to preventing and controlling corruption risks, and building a positive and honest corporate image.
Code of Business Conduct
Anti-fraud Management
During the reporting period, the Company formulated and released theEVE Code of Business Conduct(hereinafter re-ferred to as the Code), which provides business ethics, protection of rights and interests of labors and stakeholders, sus-tainable development, environmental protection, social responsibility, etc., clari?es the key areas of concern of internation-al trade and stakeholders, and gives business conduct guidance to all employees and relevant parties performing relevantduties of the Company. The Code stipulates ?ve basic principles and ?ve categories of guidelines for business conduct ofthe Company, and can be viewed and downloaded on the ocial website of EVE. As a tier-1 system document of theCompany, the Code requires that departments at all levels shall establish a compliance operation guarantee mechanismto help the timely publication and implementation of the Code. In addition, the Company set up a compliance consulta-tion mailbox to provide stakeholders with consulting services to prevent or avoid violations with the Code.The Company will regularly audit whether operations meet the business ethics, and conduct audits of business ethics atleast once every three years to ensure that all business activities are carried out in accordance with the business ethics.
Compliance withlaws, regulationsand rules
Market andcompetitionSocialresponsibility
Customers andbusiness partners
Protection ofemployees’rights andinterestsProtection ofthe rights andinterests of the
company
Transparentinteraction andcommunication
Environmentalsustainability
Human rights,health and safety,diversity and in-clusiveness
Businessintegrity
Basicprinciples
Code of con-duct (cate-gory)
In order to prevent and control potential fraud andensure compliance operation, the Company has keptimproving anti-corruption and anti-commercial brib-ery systems based on the business operation to ensurehigh-quality and high-standard supervision. During thereporting period, the Company formulated theEVE Codeof Business Conduct, revised theAnti-Fraud Policy, and
Whistleblowing Policy, etc., and publicized them on theocial website. Considering that con?icts of interest be-tween different stakeholders may harm the interests ofthe Company, it has formulated theSystem for ReportingCon?icts of Interestand launched the oce automation(OA) process. People who may have con?icts of interest
The Company set up the Auditing and Supervision De-partment, a standing anti-fraud function, and continuedto refine its organizational structure. In order to makeauditing in a rapid and regular manner, the departmenthas set up an oce in Huizhou and Jingmen respective-ly. During the reporting period, auditors and supervisorshave been designated for specific duties, and the skillsand performance of fraud investigation have seen furtherimprovement.
must report them in the OA process for effective controlof potential con?icts of interest.
The Company encourages all employees, partners and any other sources to report violations of laws and regula-tions and provide effective clues. Now, the Company has a complete complaint and whistleblowing system, andpublicizes the whistleblowing channels on its ocial website, and OA system. Relevant parties can report to theAuditing and Supervisory Department of the Company through email, letter, whistleblowing hotline, and ocialWeChat account.During the reporting period, the Company added reporting mailboxes in the new factories in Huizhou and Jing-men, with an integrated electronic information platform for whistleblowing and handling complaints underway.
During the reporting period, EVE received and investigated 46 complaints,including one involving serious fraud, for which it has started internal inves-tigation procedures. In the daily auditing and supervision, three supplierswhich were found to be dishonest were blacklisted according to the rele-vant regulations of the Company and will never be appointed.
Reporting Violations
EVE received and in-vestigated
complaints
2023 Sustainability Report
Valuing the protection of whistleblowers, the Company issues a new edition ofWhistleblowing Policy, whichspeci?es the policies for protection of whistleblowers. Complainants and whistleblowers are closely protected byEVE when providing assistance in investigation. The Company bans any forms of discrimination or retaliation, orhostile measures against employees involved in the investigation.
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Information Security
As an important asset of an enterprise, information is related to its existence and development.Attaching great importance to information security management, the Company strictly abidesby theCybersecurity Law of the People's Republic of China, theData Security Law of the Peo-ple's Republic of China, thePersonal Information Protection Law of the People's Republic ofChina, the GDPR of Europe Union, and other laws and regulations of relevant countries and re-gions.Following the information security guideline of “increasing consciousness of information se-curity protection for guaranteeing information con?dentiality, integrity and availability” and inline with the strategic objectives of the Company and international standards, we have formeda high-standard and all-encompassing information security management system that satis?esregulatory requirements.By the end of the reporting period, EVE has got the certi?cation of ISO/IEC 27001 informationsecurity management system, and both EVE and Huizhou EVE Power had passed AL3 (thehighest level) of Trusted Information Security Assessment Exchange (TISAX).In order to eciently support the operation of the information security management system,we have established the Organization Structure for Operation of Information Security Manage-ment System, and formed the Information Security Committee, under which two work groupshave been set up, responsible for the operation and planning of the information security systemrespectively. The work group responsible for the operation of the information security systemoperation implements the Company's resolutions on information security while the work groupresponsible for the planning of the information security system planning is in charge of devel-oping and maintaining manuals and procedure documents for the information security system,and planning the introduction, internal review and management review of the information se-curity system. In addition, the Human Resources Center has a security oce to jointly carry outinformation security management and keep improving the security operation capability of theCompany.
Institutional documents includingManagement Speci?cation for Data Security, Management Speci?cationfor Industrial Control Security, Management Speci?cation for Information Security Exceptions, Special Emer-gency Plan for Power Environment Accidents in Computer Rooms, Virtual Platform Emergency Plan, Manage-ment System for Server Security Baseline, andOperation and Maintenance System for Backup and DisasterRecovery SystemBastion host: Strictly restrict network connectivity from the oce environment to the production and testingenvironments, in order to ensure that related operations are effectively monitored and recorded.Trac analysis platform: Monitor the company-wide trac in real time, and intercept and handle malicioustrac.Data encryption system: Strengthen the security protection of con?dential data to prevent it from being ob-tained and accessed by unauthorized personnel.New employees are required to studyInformation Security, with a coverage rate of 100%Information Security is compulsory in training courses for the management, with a coverage rate of 100%Information security awareness is publicized online through E-learning platform of EVE and WeChat Work,with the company-wide coverage rate exceeding 95%.We make and implement an emergency drill plan every year, covering scenarios including failures of serverhardware, server operating system, Internet line, network equipment, storage equipment, database systemand information system.Minor security incidents: All incidents are recorded in detail. If they cannot be solved on time, they will betransferred to the handling process of general security incidents.General security incidents: All incidents are recorded in detail. Relevant internal personnel and service provid-ers are organized for in-depth analysis and treatment if necessary. If they cannot be solved on time, they willbe transferred to the handling process of major security incidents.Major security incidents: All incidents are reported to the information security director. The correspondingemergency plan is implemented, and the leadership, relevant departments and service providers are orga-nized to analyze and deal with them. The incident report is submitted to the president and relevant externalinstitutions as appropriate.
In the daily operation, the Company needs to collect and process personal information of employees and visitors for busi-ness purpose. During the reporting period, the Company was authorized by employees to use their personal information,and standardized the collection and use of employees' personal information in strict accordance with relevant laws andregulations. For visitors' personal information, the Company fully informed visitors of thePrivacy Protection Policythroughthe visitor system, clari?ed the information protection obligations, and obtained the information authorization required forpersonnel entering and leaving the company area.During the reporting period, the Company was not subject to punishment by relevant authorities for violation of laws andregulations related to information security and privacy protection, nor did it get involved in con?rmed complaints relatedto infringement of customer privacy.
Information security management system
Management
documents
Anomalymonitoringsystem
Information
security
awarenessEmergency
drill
Incident
responseprocess
WeChat Work, email, KK, OA, telephone
Feedback
channelsfor informa-tion securityissues
2023 Sustainability Report
Products & Services
Products are the carrier of corporate value. Upholding the corevalues of “pursuing excellence and creating value”, EVE takesproduct safety and quality as the cornerstone, and it is commit-ted to providing products beyond the expectations of society andcustomers.
Contribution to SDGs
R&D InnovationProduct Safety and QualityCustomer Service//
Topics Disclosed
6 Product Safety-
7 R&D and innovation-
8 Intellectual Property Protection-
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National platformsPost-doctoral research center, national and local joint engineering research center for key technologies and materials oflithium battery, and nationally recognized enterprise technology center
Provincial platformsHubei Provincial Key Laboratory of Energy Storage and Power Battery, Guangdong Provincial Lithium Battery EngineeringTechnology R&D Center, the 10th batch of Guangdong provincial enterprise technology center, Guangdong Provincial KeyEnterprise Laboratory for Research and Application of High-Energy Lithium Battery, and Guangdong Provincial DoctoralResearch CenterR&D cooperationWuhan University New Lithium Battery Engineering Center, safe ultra-fast charging battery of StoreDot, University of Mary-land, Wuhan University, and South China University of Technology
In addition, EVE actively participates in various academic seminars and technical exchange meetings in the industry,exchanging its R&D achievements with industry peers to promote industry cooperation and development.
Participation in the formulation of over
including
national standards
As of December 31, 2023, EVE saw:
R&D investment RMB
4.05
billion
R&D team
members
of research institute
230,000m
R&D laboratories and pilot lines
large-scale
Ratio of R&D investmentto revenue
5.88
%
Ratio of R&D personnel in theCompany’s total headcount
9.35
%
R&D InnovationInnovation is the driving force behind the sustainable development of the Company. Since its inception,EVE has been adhering to the strategy of taking scienti?c and technological innovation as its core com-petitiveness, attaching importance to R&D investment, and it has developed a lineup of lithium batteriesin all forms, providing customers with products and services of higher market competitiveness.
As a lithium battery technology company, EVE stays true to its original aspiration of making out-standing contributions to sustainable development. In response to the development trends of theindustry and social needs, the Company increases R&D investment to boost its own comprehensiveR&D strength, and puts in a great deal of effort in new product R&D and technological reserve. EVEhas established the Science and Technology Committee that is composed of six research depart-ments and a number of research institutes, and it is committed to building a comprehensive R&Dinstitution around electrochemical energy systems covering lithium battery, lithium-ion battery,power battery, battery system, equipment materials, and mobile energy technology.
R&D Strength
industry standards
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Relying on its advanced scienti?c research platforms andinternational and systematic technical teams, EVE has de-veloped a lineup of lithium batteries in all forms includ-ing primary lithium battery, pouch NCM cell, prismaticNCM cell, cylindrical NCM cell, and prismatic LFP cell, andhas taken the initiative in making foray into the 46 seriesof EV-cylindrical cells and EV-LFP cell. It has ramped upinvestments in the 12V/48V low-voltage power supply sys-tem in NEVs and the 12V/24V low-voltage power supplysystem in traditional gasoline-fueled vehicles, fully imple-mented the program of replacing lead acid batteries withlithium batteries, and developed a reliable intelligent bat-tery management system that matches the program. Inrecent years, the Company has also made breakthroughsin a number of core lithium battery technologies and ac-tively made a foray into new technologies and products.
Innovation Achievements
Processtechnology
Dry electrode: No solvent is added during the electrode preparation without generatingharmful gases like NMP. The preparation is more streamlined and ecient than traditionalprocesses, with energy consumption reduced by over 50% and carbon emissions by about27%, making it a safe and environment-friendly process.
Film formationRoller pressing
Realizing the cell design for No Thermal Propagation (NTP): The Mr. ?agship series designedbased on the electrochemical technology theory provides protection for the core of batterysafety. The use of a 14μm-thick separator and double-sided special coating is able to form anexcellent thermal shutdown effect on the battery anode and cathode. When the tempera-ture reaches the threshold, the coating particles will melt and cut off the lithium-ion reactionchannel, effectively blocking hidden dangers.
Safetytechnology
Realizing the “π” battery system design for NTP: With multi-sided cooling technology, a va-riety of composite cooling structures are adopted to build heat transfer channels, achievingmulti-directional heat transfer and thus solving the problem of excessive heat generationduring the fast charging process. The design to increase the size of the pressure relief valve atthe bottom of the pack enables it to eject 75% of the heat to the bottom within 5 secondswhen the cell fails. The millisecond-level valve opening and pressure relief function in concertwith the multi-directional cooling design of the “π” system can ensure can ensure no thermalpropagation and no ?re in full life cycle.
The Mr ?agship series released by EVE is a set of theworld's top energy storage products designed basedon electrochemical technology and theories. Throughthese products, EVE succeeded in rede?ning ESS, theoriginal abbreviation of the energy storage system, as"Ecient, Simple, and Safe". They are ecient, achiev-ing 1% increase in energy eciency for battery cellsand systems and enabling RMB 3.6 million improve-ment in customers' operating income during theentire lifecycle. They are simple, with 628Ah large bat-tery solution for minimalist integration, reducing thenumber of battery cells by 50% and realizing signi?-cant improvement in operation and maintenance ef-?ciency. These products are well-suited for a back-to-back layout, maximizing the value of land occupancy.They are safe, with upgraded 14-micrometer separa-tors which are covered by special coatings, achievingpack-level full-time thermal-sensitive rapid detection.Also, the product has a system-level integrated liquidcooling solution to provide multiple layers of protec-tion and safeguard safety.
Mr ?agship series
Sodium-ion battery: It uses fully organic anode andcathode materials and thus has the potential for nat-ural degradation free from recycling, which is in linewith the concept of green development. The electrodetechnology is solvent-free, thus reducing energy con-sumption and costs. The development of sodium-ionbatteries is conducive to balancing the pressure onlithium resources.Silicon-carbon material system technology: Siliconis an abundant element in the earth's crust. The useof low-carbon silicon-carbon materials can reducecarbon emissions by more than 20% comparedwith graphite. Based on the silicon-carbon cathodematerial with a high specific capacity of more than2000mAh/g, 15-min fast-charging and a long cycle lifeof 1,500 cycles are achieved.
Materials technology
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Green innovation boost the transition toward a low-carbon society
We adhere to the green design concept of being “lightweight, long lifespan, and recyclable,” stay at the forefront of devel-opment in electrochemical energy, and explore new systems, technologies and methods, to provide EVE with strategictechnical routes and solutions to emerging application scenarios and realize the industrialization of new technologies.We stick to the principle of simplicity in product design, insist on the practice of selecting raw materials that comply withdomestic and foreign environmental standards and customer’s requirements for environmental protection, and selectmaterials with low-carbon footprint and manufacturing process to ensure that products have a long service life and highreliability, and achieve green product design.
On November 16, 2023, China’s ?rst high-power electric new energy shunting locomotive equippedwith EVE’s battery system rolled off the production line in Zhuzhou. The locomotive was tailor-madeby CRRC Zhuzhou Locomotive Co., Ltd. (CRRC ZELC) for Lianyuan Iron & Steel Group and a large-ca-pacity LFP power battery was used as the only power source. As the largest newly-built pure electricshunting locomotive in China now, it can satisfy the demand for railroad transportation in metallurgy,port, electric power, petrochemical, mining and other industries.The locomotive is equipped with EVE's first 1,200kWh ultra-high-power liquid-cooled fast-chargingbattery system, which is independently researched and developed, designed and produced by EVEEnergy from the battery cell, BMS to the system as a whole, and it can realize the “super fast-charging“of “one charge per three seconds“, and it can haul 1,200 tons of cargo and run for 128 kilometers ona full charge. In terms of safety performance, a subcomponent-to-system 5-layer safety architecture,integrating technologies such as energy splitting, hierarchical protection, ?re detection and automatic?re extinguishing, forms a total of “13 layers of protection” from the physical layer to the system layer,which can ensure the safety and reliability of power batteries under high-temperature conditions andthroughout the entire lifecycle, and maintain a good cycle life under low-temperature conditions.It is estimated that the green and low-carbon technological advantages of such locomotives can en-sure that each unit can reduce carbon dioxide emissions by about 150 tons per year, which is equiv-alent to planting 8,200 trees. This is of positive signi?cance for the future development of green landtransportation, energy conservation and carbon reduction.
Case||
Case||
Case||
China’s first high-powerpure electric new ener-gy shunting locomotiverolled off the productionline in Zhuzhou
EVE’s marine batteries supportedgreen Asian Games
A distributed energy storage operation project ocially launched
First
ultra-high-power liquid-cooledfast-charging battery system
,200kWh
At the 19th Asian Games Hangzhou, twogreen new energy vessels “Enbo” and “WarmWave” carrying Chinese and foreign tour-ists set sail smoothly on the Grand Canalon September 23, 2023. Both of them wereequipped with EVE’s marine power bat-teries, which adopted LF280K long-cycleLFP cells and could effectively improve theships’ voyage ranges during their life cycle.The PACK box reached protection ratingof IP67 and the BMS safety redundancydesign was adopted, enabling the ships tomeets the CCS safety certification require-ments and ensuring the safe application oftheir power system under different com-plex working conditions. The whole-shiptotal lithium battery capacity was about
559.104kWh, which could drive two 55kW
propulsion motors. Meeting the demand fora long voyage range, both of them achievedthe goal of zero emissions, boosting positivesignificance for the promotion of environ-ment-friendly travel and intelligent trans-portation.
On May 23, 2023, the user-side energy storage power station jointly built by EVE EnergyStorage and Hisense Group was officially launched, which would contribute a lot to thelatter’s reduction of energy use and costs. Invested and constructed by EVE Energy Stor-age, The project, with a scale of 25.8MWh, is distributed in 4 parks of Qingdao HisenseGroup, namely: 8.6MWh for Hisense Refrigerator Co., Ltd., 4.3MWh for Hisense Air Con-ditioning Co., Ltd., 10.75MWh for Hisense Vision Technology Co., Ltd., and 2.15MWh forQingdao Hisense Mould Co., Ltd. With various functions such as power peak shaving, peakshaving and valley filling, demand-side response and demand management, it will playan active role in power guarantee and new energy consumption while effectively improv-ing the flexibility of power grid operation.The user-side energy storage power station jointly built by EVEEnergy Storage and Hisense Group was ocially launched. Thescale of the project is
25.8
MWh2023 Sustainability Report
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We put great emphasis on independent innovation and intellectual property protection, and strictly abide by thePatentLaw of the People's Republic of China,theEnterprise Intellectual Property Management Standardsand other applicablelaws and regulations. We take “protection of technological achievements” and “prevention and control of intellectual prop-erty risks” as its intellectual property strategies. EVE has formulated internal rules such asIntellectual
Property Manual,Intellectual Property Protection Management ProceduresandIntellectual Property Reward System,taking the initiative tocreate, use, protect and manage intellectual property rights.
EVE and its subsidiaries have a total of 7,430 domestic and foreign patents granted and applied, including 4,925 grantedones.
By identifying business processes and needs in a systematic manner, EVEhas integrated 12 international advanced management standards such asIATF16949 and QC080000 on the basis of ISO9001, and established an inte-grated management system covering all business processes. As of the end ofthe reporting period, 100% of EVE's certi?ed main companies with matureoperations have passed quality system certi?cation, and the quality systemcurrently in operation is adequate, appropriate and effective. The Companyregards “fully understanding and sensing user needs in advance, conductinghigh-level scenario application research, and striving to achieve 100% usersatisfaction with ppb-level consistent products” as its quality strategy, estab-lishing life-cycle quality management requirements for products.
Intellectual Property Protection
Number of PatentsGrantedTotal Number ofPatents Applied202120222023
1838
3420
3286
4627
4925
7430
yearyearyear
EVE remains to focus on customer needs, to be extremely serious, to achieve the highest industry stan-dards, and keeps improving the quality of products and services.Product Safety and Quality
Quality Management
EVE has created the iron triangle of “sales, quality, and R&D,” and has formulated theAssessment Measuresfor Customers’ Perception of Quality.EVE fully investigates customer needs, pays attention to customers’perception of quality, and con?rms demand input. In addition, EVE boasts strong R&D infrastructure andhas established a new product development process relying on the IATF16949 system to convert customerneeds into product needs. It initiates a project after passing project feasibility analysis and review and thencarries out comprehensive test veri?cation and product certi?cation to ensure the quality of developedproducts.
Product Development Stage
As of the end of the reporting period, EVE has passed GB/T29490 certi?cationfor enterprise intellectual property management system and been selectedinto the list of National IP Template Enterprises.
In 2023, the “Recognition of Key Enterprise for Intellectual Property Protec-tion” applied by the Company has been announced, with one invention pat-ent winning the “ China Excellent Patent Award.”
%
of EVE's certified maincompanies with matureoperations have passedquality system certi?ca-tion
2023 Sustainability Report
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Based on the requirements of “Quality 100” and adhering to the concept of common development with suppliers, wehave built a comprehensive supply chain quality collaboration model. The model speci?cally encompasses: the “Benchmark100” supplier catch-up management method, supplier quality synergy “1+2+3” management model and quality synergypath. Through the quality synergy path of supplier certi?cation, daily management and optimal control, the quality of in-coming materials can be effectively guaranteed to improve the supplier quality.
Supplier Quality Management
Centering on the seven elements of “manpower, machine, material, method, environment, testing, and management”on site, and following the “no unauthorized motion” management and control requirement, we have adopted lean man-agement requirements in all respects relying on the QMS quality information system, and built a comprehensive on-sitequality management system. We implement special audits, on-site audits, and cross-audits on the manufacturing site tomonitor the implementation of on-site management in an all-round manner. In addition, we seek opportunities for im-provement and carry out QCC (Quality Control Circle) activities based on the PDCA cycle. During the reporting period, EVEhas comprehensively improved cleanliness of workshops, upgraded the quality of product manufacturing processes, andimproved the K value (the voltage drop of lithium-ion batteries per unit time) by more than 50%, thus signi?cantly improv-ing product quality and safety performance of delivered batteries.
During the reporting period, the Company carried out the research of “Quality Prediction Model and Predictive EquipmentMaintenance” around 12 key processes and 13 key process quality attributes, achieved a number of digital technologybreakthroughs, and effectively improved the injection process with an yield of 99.999%.
We have established a sound three-party audit system and carry out ?rst-, second- and third-party audits according tohigh standards, strict requirements and “Quality 100” to ensure comprehensive and in-depth monitoring and review of themanagement system and guarantee the adequacy, effectiveness and continuous improvement during system operation.In 2023, we comprehensively carried out special activities for quality improvement, set a goal for comprehensive yieldimprovement, and mobilized all employees within the manufacturing system to tackle dicult tasks and take actions forimprovement, witnessing remarkable achievements.
On-site Quality Management
Continuous Improvement
Monitoring the environmental parameters of workshops in real time by com-bining sensors and the IoT technology. Predicting and evaluating the operatingstatus and potential problems of workshops through simulation in the virtual en-vironment.Realizing logistics and transportation data visualization through application of adigital logistics and warehousing collaboration system in concert with real-timepositioning, itinerary tracking, electronic fences and other logistics services.
WorkshopenvironmentmonitoringLogistics andwarehousing
In addition, we keep promoting digital and intelligent manufacturing upgrade to improve the eciency and effective-ness of manufacturing quality management, for instance:
Quality Synergy Path during the Whole Process of Supplier Management
SupplierCerti?cation
DailyManagement
Checklist
VDA
DFMPLM
ERP+WMS
checklist
System
SRMSystem
8D
Optimal Control
Cancel Quali?ca-tion
On-SiteMentoring
Controlled Supply
of Goods
SRMSystem
ERPSystem
On Site
Comprehensive
Application
Platform
On-Site
Portrait of benchmark suppliers
1+2+3 Management Model for Quality Synergy
Improving One TQM ofSuppliers
Enhancing Two MainOrganizational Modules
Upgrading Three Main Or-ganizational Capabilities(Total Quality Management ofSuppliers 2.0)
(IQC and SQE)(Equipment, Personnel and
Testing)
Quality Culture
EVE has established a quality academy to provide customized training for personnel within the quality system, coveringquality tools/methods, leadership and other modules, to improve the overall caliber and professional skills of the qualityteam in a systematic manner. During the reporting period, the Company conducted 195 quality management trainingsessions for over 600 participants. Such training activities lasted for more than 400 hours, covering topics such as qualityproduct awareness, on-site management, systems awareness, quality tools & methods, and process systems.
Productivity
5%Brand Effect5%
Service Mindset
0%Innovation and Reform
0%
System Operation20%Customers’ Perception20%
Technical Capability
5%Quality Culture5%
New SupplierOnboardingReview
PerformanceEvaluationMaterialRecognitionDesignatedSupplierEvaluation
ConformanceQuali?cation
New SupplierOnboarding
SystemIncoming MaterialInspection
AnomalyHandling andImprovemen
Routine SupplierReview
Quality ExchangeMeeting + Training
2023 Sustainability Report
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During the stage of new supplier onboarding, the Com-pany carries out comprehensive review & assessment ofproduct safety capability and tests product safety itemson incoming materials. In the design and developmentstage, the product design team identi?es product safe-ty attributes based on FMEA, customer needs, productapplication scenarios, and the legal requirements ofmanufacturing locations, places traversed during trans-portation, and sales destinations, and converts theminto design and process attributes to formulate the de-sign plan and veri?cation method that meet the safetyattributes.
EVE has built a quality infrastructure platform, whichrealizes the organic integration of R&D, measurement,inspection & testing, and product certification, to fullyensure product safety.
instruments, and gives priority to internal calibrationwhile using external calibration as a supplement to en-sure the accuracy of testing.
The Testing Center conducts testing in accordance withthe veri?cation standards for product safety attributes,encompassing four dimensions: materials, electrical per-formance, environmental performance, and safety per-formance. Relying on the QMS system, it implementsall-round IT-based management of measuring
EVE formulated theProduct Certi?cation ManagementRegulationsand established a full-process certi?cationmanagement system of review, certification, and caseclosure. The Company has passed more than 35 typesof product safety certifications in major countries orregions such as U.S., Canada, Japan, and South Korea,promoting quality upgrade in product design and de-velopment.In order to prevent environment-harmful substancesfrom entering products, EVE has established a manage-ment system for harmful substances and implementedtheOperational Control Procedure for Harmful Sub-stancesto ensure that products manufactured by theCompany comply with applicable laws, regulations andcustomer requirements. As required by customers, wecooperated with third-party organizations to certify thecorresponding products and obtained RoHS\REACH\HFand other test reports. During the reporting period,there was no case of exceeding the standards for themanagement and control of harmful substances atEVE, nor violation involving EVE’s products and serviceswhich had a negative impact on health and safety.
Product Safety
EVE has developed theProduct Recall Management Procedureto de?ne recall levels, the members and responsibilities ofthe recall team, and standardize the management process and methods for product recalls due to defects. As of the endof the reporting period, there has not been any recalls due to product defects at EVE.
Product Recall Management
EVE insists on implementing a market-oriented and customer-centric culture, and deliver high-qualityproducts and fast and professional services to customers, thus gaining a high level of customer trust.Customer Service
Customer Service ManagementEVE focuses on customer needs and continues to improve its customer service management institutionssuch as theKey Account Management Regulations, Customer Complaint Handling ProceduresandCus-tomer Satisfaction Survey Procedures, and maintains good customer relationships by various means in-cluding market surveys, customer visits, exhibitions, emails, customer meetings, and satisfaction surveys.In addition, the Company has established a digital customer relationship management system, whichenables integration of data and information and rationalized production capacity allocation to meet therequirements of customers.In terms of handling customer complaints, EVE keeps standardizing the process of handling customercomplaints and customer returns to improve the eciency of responding to appeals of customers. It im-plements the “three fast” actions concerning quality, establishes work processes of refunding fast, analyz-ing fast, and improving fast, and conducts timeliness management & control under the “2485 principle”to quickly identify problems, make improvement, and ensure high-quality delivery.
Make ?rst response withinTake urgent measures andmake the second responsewithinAnalyze causes, develop countermeasures,and make the third response withinImplement countermeasures, verifytheir effectiveness and make the fourthresponse within
2h24h
248548h
days
Refund fast · Analyze fast · Improve fast
principle
Collection of DefectInformation
DefectAssessment
Con?rmation of
Recall
Recall Plan
Issuanceof Recall
NoticeRecallEnding ofRecallRecall EffectAssessmentKeepingRecords
N
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In terms of after-sales service, EVE adheres to the tenet of “wholehearted service for global users to enjoy safe travel andgreen energy” and the concept of “professional and reliable personnel, considerate and meticulous service, and assuredand satis?ed users” to establish an after-sales service system. It has obtained the National Commodity After-sales ServiceCompliance Certi?cation Five-star Certi?cate (NECAS) and After-sales Service System Perfection Degree Certi?cation Eval-uation System Seven-star Certi?cate (CTEAS). During the reporting period, EVE obtained the Service Capability Continuousand Effective Veri?cation Twelve-star Certi?cate (CTEAS).EVE has a 7*24h toll-free service hotline (400-050-3628) and an after-sales service system (CSM), achieving integration offour platforms into one system. It is capable of quickly receiving and responding to customers’ after-sales service needsor problem feedback and complaints to continuously improve customer satisfaction. In addition, EVE has built a big dataplatform to keep strengthening data analysis, processing and application capabilities in respects of hidden danger identi?-cation and early warning and operating status monitoring. In addition, it continued to re?ne the strategy for remote mon-itoring of product operations, and has achieved early warning of battery safety abnormalities and proactive maintenance,thus effectively reducing after-sales problems. During the reporting period, the annual average score for after-sales servicefollow-up reached 98 points.EVE conducts customer satisfaction survey twice a year to keep abreast of the comments given by customers of consumer,power and energy storage batteries on our technology, business, delivery, quality, pre-sales and after-sales services. In re-sponse to customer feedback, the relevant responsible departments would complete cause analysis within one week andformulate corrective and preventive measures; for customers who give a positive response, we would identify opportunitiesfor continuous improvement, develop corresponding improvement measures and implement them.
customer satisfaction surveys every year
During the reporting period, the annual average scorefor after-sales service follow-up reached
pointsconducts
Delivery
Business
Technology
Pre-Sales
Service
After-SalesService
Quality
EVE strictly abides by theAdvertising Law of the People's Republic of Chinaand other applicable laws and regulations inthe places of business operation, adopts a scienti?c and rigorous attitude, and sticks to the principle of being honest andresponsible during the process of market promotion and marketing. The Company has established a complete promotionreview process and management system. Marketing materials and information may not be released to the outside untilthey are reviewed and approved by EVE's authorized executives to ensure that they are compliant, genuine and accurate.EVE carries out responsible marketing and promotion activities and implements the concept of responsible marketing byoptimizing compliance regulations and holding regular marketing training. A marketing academy has been set up at EVEResearch Institute to provide sales staff with regular training on business ethics, customer communication skills and otherrelated content, effectively improving their awareness of preventing marketing risks.
Responsible Marketing
Communicate the characteristics of prod-ucts or services to customers truly andaccurately, without exaggerated, false, ormisleading information, to avoid causingmisunderstanding or loss to customers.Follow the principle of fairness and jus-tice, do not discriminate or have a partial-ity for any customer, do not take advan-tage of information asymmetry or strongposition, do not manipulate the marketor price, and do not engage in unfaircompetition or commercial bribery.
Coordinate projectresources, superviseand inspect the prog-ress of the project,promptly identifyand resolve issues toensure the smoothaccomplishment ofproject objectives andprevent any negativeimpact on clients.
Fully understand customerneeds, provide professional,reliable, and competitive tech-nical solutions to enhanceproject acquisition opportuni-ties.Plan and forecast for differentmarket segments, uncovernew market opportunities,and convert them into salesachievements.
Sales teamProject teamPre-sales team
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EnvironmentalProtection
Upholding the sustainable development concept of “obeying the law, con-tinuous improvement, preventing and controlling pollution, energy savingand emission reduction, and providing green products with better energyutilization eciency,” EVE continuously innovates management and tech-nology, actively responds to risks and opportunities in areas such as envi-ronmental pollution, climate change and biodiversity, mitigates the impactof project construction, operations and products lifecycle on the environ-ment, and contributes to the coordinated development of environment,economy and society with high-quality development.
Contribution to the SDGs
Response to Climate ChangeEnvironmental ManagementResources Management
/Emissions and Environmental Impact/
Topics Disclosed
01 Resource Recycling-
02 Energy Conservation andConsumption Reduction-
03 Carbon Emission Management-
05 Biodiversity-
04 Pollutant Management-
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Response to Climate ChangeIt is an extensive and profound systemic reformfor the economy and society to peak carbonemissions and achieve carbon neutrality. We areconsistent in pursuing the development vision"To be the most creative lithium battery companyand make outstanding contributions to sustain-able development," and firm in contributing toChina's "3060" goals and global net-zero goals. Weregard the carbon peaking and carbon neutrali-ty as one of our key development strategies andhave set mid- and long-term goals to graduallyreduce carbon emissions in our own operationsand value chain. While promoting our own car-bon reduction, we will guide the industry to movetoward more sustainable development pathways.
sumption structure, establishing a green supplychain, and leveraging carbon removal measures,to reduce the need for carbon offsets and ulti-mately achieve the goal of carbon neutrality.
Therefore, EVE has made the following commit-ments to low-carbon development: to achievecarbon neutrality in operations by 2030 andacross the core value chain by 2040. Upholdingthe principle that carbon emission reduction sur-passes carbon offsets, the Company will reduceorganizational carbon footprint by saving energyand improving efficiency in production, devel-oping green products, adjusting the energy con-
Assessment & Analysis
Award Mechanisms
Awareness Cultivation
Advancement
CarbonFootprint
RecyclingEciencyAssuranceTechnologyEnergy
We comprehensively assess and analyze risks and opportunities inclimate governance, including carbon emissions inventory, carbonneutrality, sustainable supply chain, and climate-related markettrends and policy changes, to determine our current status and po-tential risks and opportunities on climate issues, which constitute abasis of strategy formulation.Referring to the requirements of IFRS S2 Climate-related Disclo-sures (IFRS S2) released by the International Sustainability Stan-dards Board (ISSB), we pay close attention to the “physical risks”arising from failure to address climate change and “transition risks”from social and economic changes that may occur in the processof implementing climate change countermeasures.
We raise the awareness of EVE’s management and employeeson climate change and related issues through training programs,workshops, and internal publicity, which helps them understandthe importance of climate-related risks and opportunities and facil-itate the realization of EVE’s climate goals.
We link the carbon performance indicators of each business de-partment with accountability-based assessment while setting an-nual goals to motivate employees to participate in climate gover-nance, promote employees’ involvement in projects through awardmechanisms, and advance the development of technology andcapabilities to facilitate the ful?llment of the goals.
Organizationalcarbon footprintProduct Carbonfootprint
Green supply chainmanagementTrack&trace across
the value chain
Renewable energyFacilitating energy
transitionProduct innovationTechnology innova-
tionEchelon utilization
Recycling andregeneration
DigitalizationMaximum ecien-
cy
We actively promote the advancement of climate-related technol-ogies and capabilities and boost the development of innovativeclimate solutions. We support the R&D of new low-carbon technol-ogies, and environment-friendly products using renewable energyto enhance our industry-leading position in technology.
In order to promote EVE's vision for sustainable development, we conduct continuous and effective man-agement of climate-related risks and opportunities, and strive to establish an ecient and transparentgovernance system for sustainability topics. We have established a governance body for climate risks andopportunities (Sustainability Committee) and a dedicated management organization (Carbon EmissionsManagement Committee), to ensure that EVE can make appropriate and agile decisions and actions frommanagement to execution in the face of climate change.
Climate Change Governance Structure
CREATE Carbon Neutrality Action Plan
On the topic of addressing climate change, the Sustainability Committee review the Company’s climatepolicies, goals and strategies. The Carbon Emissions Management Committee is responsible for imple-menting the Company’s climate governance strategy. Composed of members from relevant functionssuch as R&D, procurement, manufacturing, supply chain, energy and power, and infrastructure, it is re-sponsible for managing and supervising activities related to climate risk management and opportunitydevelopment, proposing countermeasures for climate-related risks and promoting advancement of strate-gic tasks.EVE ensures that the governance and management organizations possess or develop appropriate cli-mate-related technologies and capabilities through the “4A Management” system.
Climate CommitmentAchieve carbon neutralityin operations by 2030Achieve carbon neutralityacross the core value chainby 2040
4A
CREATE
Management”system.
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Risk or Oppor-tunity Descrip-
tion
Risk or OpportunityDescription
Speci?c Actions (including but not limited to)ActionCategories
GlobalDevelopment
StrategyProducts &
Services
Technology
SustainableDevelopment
Strategy
ClimateGovernanceStrategyReputation
GeopoliticalSituation
ExtremeClimate
Policies &Regulations
ResilientSupply Chain
Power and
Energy
Storage
Battery
Energy
Security
ComplianceRisk Control
Potential Impact
We lay great emphasis on the impact of climate change, makes comprehensive assessment of climate-related risks andopportunities, and analyzes and evaluates the impact these factors may have on our business operations, investment anddevelopment, to lay the foundation for our low-carbon transformation and sustainable development.
We are committed to building the capabilities of "global manufactur-ing, global delivery, and global service," and providing multi-scenario
and multi-?eld battery applications and solutions to facilitate the glob-al energy transition.
Existing technolo-gy or products arereplaced, resultingin a decline in salesrevenue.A higher carbonfootprint of prod-ucts cannot meetthe requirementsof customers andexports, resultingin revenue decline.It facilitates ouracquisition of re-newable energyresources and re-duction of energycosts.The scale of bat-tery recyclinggrows, achieving aneconomy of scale,which reduces ourdependence onraw natural resourc-es and improvesthe resilience of oursupply chain.
The market de-mand for EV andenergy storagebattery grows,generating morerevenue.
Failure to actively publishclimate goals and responseactions leads to falling shortof stakeholders’ expectationsClimate change and energycrises may further exacerbategeopolitical tensions and thesituation of regional con?icts.The escalation of regionalconflicts will have an impacton global energy markets andsupply chains. Internationaltrade evolves as countries seekcloser or more resilient region-al supply chains.
Damaged corporate im-age and reputation resultin a decline in marketshare and revenue.
Disclosure of goals and actions:
We publish our climate goals and the effect of our ac-tions, incorporate carbon reduction target into our dailywork, and identify values and new opportunities thathave a positive impact based on the value of our busi-ness and products to society.We improve the resilience and safety of the industrychain and ensure that the supply chain is independent,controllable, safe and reliable.The supply of raw mate-rials and energy is dis-rupted or prices ?uctuate,causing production coststo rise.
We strive to provide high-quality power and energy stor-age battery product solutions.The demand for energytransition and securedenergy supply systemsgrows, leading to growthof the power, industrial,and energy storage bat-tery markets.
Green trade barriers to exp-orts may result in a declinein EVE’s overseas revenue.
Rising compliance costsand fees.
Guaranteeing energy supply stability:
We promote energy allocation, higher energy eciencyand lower costs through smart grid, energy efficiencymanagement and control, the "solar PV, storage andbattery" integrated energy and other technologies, andenhance the ?exible load regulation of EVE’s factories.Compliance risk control:
We continuously pay attention to the dynamics ofexternal policies, regulations and standards, take theinitiative to communicate with stakeholders, interpretpromulgated regulations and formulate response plansto satisfy the requirements of applicable policies andregulations.
Management of Climate Change Risks and Opportunities
In the context of alow-carbon society, thedemand for clean andefficient technologiesgrows, and the tech-nological transforma-tion cannot succeed.The share of renew-able energy graduallyincreases with pricesdropping gradually.With the formation ofa value chain of circu-lar economy, recycledmaterials replace rawmaterials.
Green design:
Putting environmental sustainability at the core, we practice the de-sign concept of minimizing the negative impact on the environmentthroughout the entire life cycle of product. We have complete process-es and tools for ecological design, and carry out ecological design bytaking into full consideration product characteristics and market de-mand.Ultimate manufacturing:
The concept of lean production has become part of our core culture,facilitating the exploration of opportunities for cost reduction and e-ciency improvement. We promote transformation toward ecient pro-duction technologies, simplify processes, reduce energy consumptionand pollution during operations, and achieve green and low-carbonproduction like moving toward zero waste and zero emission.
Clean energy:
We have realized the substitution of green electricity (solar photovolta-ic, wind power, etc.) for part of the energy used in production, and arecontinuing to increase the share of green electricity used in the pro-duction process.
Digital manufacturing:
We realize the efficient operation of the value chain through digitalmanufacturing, and improve the overall eciency of the industry.
Existing technologiesor products are re-placed by innovativechanges.
Technology Innovation:
Focusing on the development direction of next-generation key materi-als and battery technologies, we strive to create leading core technol-ogies, and realize integrated, durable and safer battery products withhigh energy density, to provide technical support for global energytransition.
Green supply chain:
We promote actions along the value chain both upstream and down-stream to reduce carbon emissions with our in?uence in the industry.We actively make foray into the battery recycling business at home andabroad to promote sustainable development and resource utilization.
We promote cooperation on energy projects, to reduce green powercosts, and acquire green energy.
Extreme weather events (suchas heat waves, typhoons, hur-ricanes, ?oods, droughts, andextreme cold.)
Action Plan for Carbon Diox-ide Peaking before 2030Opinions on Promoting Grad-ual Shift from Dual Controlof Total Energy Consumptionand Energy Intensity to DualControl of Total Carbon Emis-sions and Intensity
The introduction of domesticand foreign climate-relatedpolicies and tightening ofregulations, including but notlimited to:
EU Batteries and Waste Bat-teries RegulationEU Green Deal
Reduction in or disruptionsto production capacity(such as production sus-pension, transportation dif-ficulties, and supply chaindisruptions), may result ininability to produce anddeliver goods.
Disruptions to infrastruc-ture services such aswater and power result indisruptions to deliveriesand increased operatingexpenses.
There are moregreen investmentand financingprojects and op-portunities to getpolicy support.
With an agreementreached at COP28,participating countriescommitted to gradual-ly reducing the use offossil energy. Their gov-ernments are formu-lating specific goals,incentives and condi-tions to accelerate theenergy transition.
We have established a digital monitoring system in oursupply chain to ensure the visibility and traceability ofmaterials throughout the supply chain and refine thesupply chain management.
Potential Impact
ActionCategories
Speci?c Actions (including but
not limited to)
/
Adhering to the principle of giving priority to energy conservation and emission reduction, EVE is committed to achievingcarbon neutrality through measures such as improving production eciency, adjusting energy consumption structure andestablishing a green supply chain to make contributions to society and the environment. In June 2023, EVE was honoredas an "Enterprise with Outstanding Contribution to Reduction of Pollution and Carbon Emissions in Guangdong Provincein 2022."
Carbon Reduction Strategies and Actions
Green Design
EVE integrates green concepts into the R&D process of products, and takes “lightweight, long lifespan, and recyclability” asits design concept. The Company strives to develop leading core technologies with a focus on next-generation key materi-als and battery technologies to provide technological support for global energy transition. See the R&D innovation sectionof the report for speci?c cases.Green Operation
Green Delivery
Circular EconomyIn recent years, with the rapid growth of the electric vehicle and electrochemical energy storage markets, the disposal ofused batteries has become one of the key issues for the sustainability of the industry. EVE sticks to promoting the devel-opment and implementation of battery recycling technologies to establish a complete closed-loop business ecosystemthrough the echelon use or reutilization of used batteries. We have built a green supply chain for the circular economy of"waste lithium batteries - chemical materials - battery materials - lithium batteries" joining hands with industry partners toprovide society with full life-cycle solutions.
Capacity buildingEVE plans to build plants for echelon use of batteries. The echelon use line can be automated and digitized throughoutthe entire process, enabling automatic feeding, automatic cutting, integrated freezing, automatic disassembly, automaticcapacity grading and testing, as well as ecient and accurate classi?cation and intelligent diagnosis. After sorting, the bat-teries are suitable for echelon use in communication and household energy storage products to maximize the economicand environmental value of retired batteries.Industry cooperationWe have signed a memorandum of cooperationwith Li-Cycle, a global leading lithium-ion batteryrecycling company, achieving close cooperation inresources, recycling, technology and market.
We explore green solutions to packagingand give priority to recyclable, degradableand lighter packaging materials. For specif-ic cases, see the Material Recycling sectionof the report.
EVE’s plant in Jingmen has implemented thestrategy of selecting adjacent sources of supplyby promoting suppliers of main structural com-ponents of cells, electrolytes and separators tobuild factories around the plant to reduce trans-portation distances and improve supply ecien-cy, which is helpful to reduce logistics costs andcarbon emissions from transportation, and im-prove supply chain responsiveness and ?exibility.
Integrated Supply ChainGreen packaging
The organizational boundary of carbon emission inventory and veri?cation is battery manufacturers with mature operations during the reporting period.
The auditing of the data on GHG emissions of 9 companies under EVE and on the carbon footprint of 4 products has been completed by the third-party professional organization.
Carbon data management
We implemented energy-saving and carbon-reducingmeasures in manufacturing phase. During the reportingperiod, we carried out 185 key energy-saving measures,saving energy amounting to 19,950 tons of coal equiva-lent (tce) and reducing carbon dioxide emissions totaling96,349 tons of carbon dioxide equivalents (tCO2e).
Energy-saving and carbon-reducing measures
we carried out
Factory designWith the EHS Technical Standards for Construction ofLithium-Ion Battery Factories formulated, we implement-ed energy-saving and carbon-reducing design standardsin the construction of new factories to reduce carbonemissions during the production and manufacturing pro-cess of production lines.
We increase the share of electricity generated from re-newable energy sources through purchasing green elec-tricity and building rooftop distributed solar PV to reducecarbon emissions. At the end of the reporting period,EVE’s cumulative solar photovoltaic capacity installedwas 66.7 MW, and a total of 35,802 MWh of power wasgenerated during the reporting year, which could avoidcarbon dioxide emissions of approximately 20,000 tCO2e.
Clean energy
key energy-saving measures
Under the guidance of our Carbon Emissions Management Committee, we have improved our carbon emission man-agement mechanism, releasing the "Management Regulations for Organizational GHG Inventory" and the "ManagementRegulations for Product Carbon Footprint Inventory." Through standardized carbon inventory work?ow and professionalsoftware for managing the whole life cycle of products, we made an inventory of organizational GHG emissions for ninecompanies under EVE
and carbon footprints for 26 products, and entrusted a third-party professional organization to au-dit the data to ensure its authenticity, comparability and effectiveness
.
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EVE carried out a total of
environment-related trainingsessions during the year
EVE has established two special committees, the Environmental Health and Safety Committee and theCarbon Emissions Management Committee, in the charge of the president, to lead the managementto promote action plans for environmental management and carbon emissions management, ensurethe effective implementation of various rules and regulations, and monitor and improve environmentalperformance. The Company has formulated the MBO Plan of Annual Sustainable Development to carryout management by objectives on the environmental compliance, pollutant emissions, resource use andother indicators of each production unit. In addition, EVE carried out a total of 73 environment-relatedtraining sessions during the year, with 100% coverage, effectively improving all employees’ environmentalmanagement awareness, and the capabilities for reduction of pollutants emissions, operation of environ-mental protection facilities and environmental emergency response.
EVE adheres to the environmental management policy of "obeying the law, continuous improvement,preventing and controlling pollution, energy saving and emission reduction," strictly abides by applicablelaws & regulations, establishes and improves environmental management systems and implements envi-ronmental management measures. During the reporting period, the Company was not subject to any ad-ministrative penalties for violating laws and regulations on eco-environmental protection, nor got involvedin any major environmental incidents or environmental problems. In September 2023, EVE released theEnvironmental Management Policy and Commitment on the ocial website for promotion to all employ-ees and advocated all of our business partners to ful?ll the environmental commitments together andjointly protect the eco-environment.
Environmental Management
In compliance with the Measures for the Administration of the Law-based Disclosure of Corporate Environmental Informa-tion and the internal Management Regulations on Environmental Information Disclosure, EVE voluntarily discloses pollu-tion discharge information, the construction and operation of pollution prevention & control facilities, and administrative li-censing information and other environmental protection administrative licensing information on its ocial website (https://www.evebattery.com/disclosure) on a regular basis. As of the release of the report, a total of 643 disclosures were made.EVE actively participates in various environmental protection activities organized by the ecology and the environment au-thorities and holds community open days to exchange with the general public our green and low-carbon environmentalprotection concepts and good practices.During the reporting period, as EVE's Xikeng factory and its subsidiaries, EVE Power, EUE, EVE Innovation Energy, andNingbo EVE were included in the key units under environmental supervision which were announced by the local gov-ernmental agencies of ecological and environmental supervision and protection, EVE has disclosed their pollutant dis-charge situation and eco-environment licensing information in 2023 in accordance with the requirements for disclosure ofeco-environmental protection information. Please see Appendix for details.
In accordance with applicable laws, regulations and environmental protection standards, EVE has formulated an annualenvironmental self-monitoring plan covering wastewater, waste gas, soil, groundwater, factory boundary noise, and wastegas in the surrounding environment, etc., carrying out environmental monitoring through self-testing, online testing andthird-party testing. EVE has built supporting online monitoring equipment for noise, waste gas and industrial wastewa-ter as well as wastewater testing laboratories to stay informed about the discharge of pollutants, and entrust quali?edthird-party agencies to conduct regular pollutant monitoring. During the reporting period, the monitoring frequency andresults of various pollutants were in compliance with relevant standards.
Environmental Monitoring and Information Disclosure
During the reporting period, all of EVE's construction projects have undergone environmental impact assessment andcompletion acceptance in accordance with the requirements of laws and regulations concerning eco-environmental pro-tection, with strict implementation of the “Triple-Simultaneous” environmental protection requirements and the pollutantdischarge permit system for construction projects.EVE conducts annual internal environmental system audits and management reviews on all sites with mature operations,and invites third-party certi?cation agencies to conduct supervisory audits every year, with full-coverage certi?cation re-newal audits conducted every three years. The audits are mainly focused on the suitability, adequacy and effectiveness ofmanagement review, internal audit, non-conformity handling, risk response, target planning and compliance to ensure theeffective operation of the system and improve environmental performance. EVE organized training for internal auditors ofthe environmental management system during its operation, and a total of 305 people were certi?ed. During the report-ing period, EVE carried out a total of 339 special environmental inspections, an increase of 34% from the previous year.
Environmental Audits
EVE regularly conducts environmental risk assessments based on the particular situation. Based on the assessment results,the Company has developed response plans for environmental emergencies and on-site emergency response cards, whichhave been ?led with the local authorities for eco-environmental protection and reviewed every three years. In addition,EVE has developed and implemented annual emergency drill plans for potential environmental emergencies and pur-chased environmental pollution liability insurance. During the reporting period, EVE conducted a total of 283 emergencydrills against environmental incidents, covering scenarios such as an abnormal condition in production wastewater treat-ment facilities, failure of waste gas treatment facilities, and leakage of hazardous waste.
Environmental Emergency ResponseSystem Development
EVE-Linyang plans to obtain ISO 14001 third-party certi?cation in 2024.
EVE has established and is operating an environmental management system 100% in compliance withthe requirements of ISO 14001. As of the release of the report, the third-party certi?cation of ISO 14001Environmental Management Systems has covered 88.9% of companies under EVE with mature opera-tions in the battery manufacturing sector, and EVE plans to increase the coverage rate to 100% in 2024
.All entities underway and newly established in the sector or those of other manufacturing segments willimprove their system maturity as soon as possible according to the group's environmental managementrequirements and pass third-party system certi?cation.
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EVE takes energy management as an important strategic task, and regards energy conservation, eciencyimprovement and renewable energy substitution as a key pathway toward carbon neutrality.Energy Management
EVE has carried out a total of 185 energy conservation and carbon reduction projects, saving 19,950 tce annually and re-ducing 96,349 tCO2e.
Energy Target Management
Energy-saving Projects
With the digital energy management system 2.0, EVE can use information and digital technology to collect and monitorenergy consumption data of the group, divisions, factories, processes and major energy-consuming equipment in realtime. The system achieves real-time online monitoring, digital analysis, prediction and early warning of energy consump-tion to maximize the space for energy conservation and carbon reduction in the manufacturing process and improve thelean energy management of the Company.
Energy Data Collection and Monitoring
Resource Management
EVE adopts measures for sustainable management and ecient utilization of resources to reduce thewaste of energy, water resources and raw materials, reduce the impact on the environment, and achievesustainable production and operations.
EVE's comprehensive energy consump-tion per unit product went down by
The water intake per unit product drop-ped by
%
Key ProjectProgress
Establishing anenergy-ecient
system
Operational optimiza-tion of the dehumidifi-cation system
Operational optimiza-tion of the refrigerationsystem
Optimization of lightingsystem management
Optimization of gas usein injection processHorizontal promotionof energy-saving andcarbon-reducing tech-nology case bank
Production pro-cess improvement
Support forenergy-savingprojects
By optimizing the supply-demand relationship between dehu-midi?ers and the manufacturing workshop, and standardizing thecontrol of the number and operating parameters of dehumidi?ersunder different operating conditions, a single plant in the Tonghubase can reduce 1,425-ton carbon dioxide emissions per year.Through the transformation of cooling water and chilled water con-nectivity, special improvement of cooling water quality, and opti-mized regulation of seasonal operating condition parameters of therefrigeration system, outdoor cold source resources are fully utilized,thus improving the operating energy eciency of the refrigerationsystem. EVE has optimized a total of 10 refrigeration machinerooms, which can reduce 4,633 tons of carbon dioxide emissions.By modifying the electricity lines, adding voice-activated switches,and optimizing the control mode to avoid abnormal lighting andexcessive use, the Tonghu base can reduce 653 tons of carbon diox-ide emissions every year.
EVE compiled its excellent energy-saving project cases and con-ducted horizontal promotion to various base factories, with a totalof 83 projects implemented.
By optimizing and adjusting the purity of nitrogen used in liquidinjection, baking and other processes, four base factories have com-pleted comprehensive technical transformation, enabling a cumu-lative reduction of 4,794-ton carbon dioxide emissions per year.
%
compared with 2022
compared with 2022
Awarded
2023 Guangdong Standardization Pilot Project
The main types of energy consumed during EVE's production and operations include electricity, naturalgas and steam. In order to improve energy eciency, EVE has formulated target indicators for reducingenergy consumption and incorporated the target into the performance appraisal system of each manu-facturing plant. EVE's comprehensive energy consumption per unit product went down by 9% comparedwith 2022, and the water intake per unit product dropped by 15% compared with 2022
.
EVE Innovation Energy, EVE Energy Storage, Fanso, Ningbo EVE and EVE-Linyang plan to obtain ISO 50001 third-party certi?cation in 2024.
EVE actively responds to China’s energy policies, abides by applicable laws, regulations and standards, andestablishes and improves various internal energy management regulations, processes and mechanisms.EVE establishes and operates of an energy management system 100% in compliance with the require-ments of ISO 50001: 2018. As of the end of the reporting period, the third-party certi?cation of ISO 50001Energy Management Systems has covered 44.4% of companies under EVE in the battery manufacturingsector with mature operations. We have a plan to add ?ve certi?ed new entities in 2024 to raise the cer-ti?cation coverage to 100%
. In June 2023, the "Energy Management Standardization Pilot for LithiumBattery Manufacturers in Guangdong Province" applied by EVE was awarded 2023 Guangdong Standard-ization Pilot Project.
2023 Sustainability Report
The statistical scope is EVE’s mass production factories with mature operations in the battery manufacturing sector.
/
EVE makes an active foray into the recycling of waste batteries and waste battery materials, building a green supply chainfor the circular economy of “waste lithium batteries-chemical materials-battery materials-lithium batteries” in partnershipwith industry partners.
In the production and operation stage, EVE takes “Ultimate Manufacturing” operation system as its goal, introducing pro-cess technology transformation and lean improvement methods to improve product yield and reduce material wasteduring the manufacturing process.
EVE organizes professional energy-related skills training every year, covering energy-saving design, energy conser-vation of heating systems, energy-saving technology, electricity trading, electrical safety, energy digitization andmanagement of carbon emissions during manufacturing and operations. In addition, the Company regularly holdsthe energy conservation publicity week to increase the participation of all employees in energy conservation andcarbon reduction.
Training and Culture Building
In addition to traditional energy, EVE actively promotes the use ofrenewable energy, such as promoting the construction of factoryrooftop PV power stations through investment and cooperation,outsourcing green power and green certificates, and continuouslyincreasing the use of renewable energy. During the reporting period,EVE's PV power stations generated 35,802MWh of electricity in totalthroughout the year, reducing 20,000 tCO2e.
Renewable Energy
Energy Conservation Publicity WeekElectrician Skills Competition
EVE puts great emphasis on the management of water resources,strictly abides by applicable local laws, regulations and standardswhen using water, and implements plans for water resources protec-tion and water quality monitoring and treatment to guarantee thesustainable use of water resources. During the reporting period, allthe water sources of EVE as well as its factories, branches and sub-sidiaries that have been put into operation are from the municipalwater supply system, involving no natural water bodies. EVE took theinitiative to adopt water-saving measures and carry out steam con-densate water recycling projects in 7 factories, which can reduce thedischarge of 11,400 tons of steam condensate per month. The Com-pany has promoted the practice in other factories.
Management of Water Resources
Material Recycling
In addition, EVE actively explores green packaging solutions, giving priority to recyclable, degradable and lighter packag-ing materials. For long-distance transportation, EVE adopts foldable designs to maximize the use of transportation capac-ity for less carbon emissions. During the reporting period, EVE reduced totally 1,266-ton wood consumption with greenpackaging solutions, and saw a reduction of around 225-ton carbon emissions at the transportation end through foldabledesign.reducing
The steam condensate water recyclingprojects can reduce
of steam condensate per month
,400
tons
EVE's PV power stations generated35,802MWhof electricity in total throughout the year
20,000
tCO2e
with a 5-year circular life cycle,capable of naturally degradation
EPP biodegradable packagingboxes for battery module
60% lighter than metal racks; a circular lifecycle≥3 years; standard size with more effi-cient cycling capability
Universal hoarding boxes
≥30% lighter than wooden boxes;capable of natural degradation orbeing recycled into pulp molding
Substitution of paperfor wood
a compatible design to meet thefast switching of different PACKs;a circular life cycle≥5 years; morethan 30 wooden boxes reducedfor a single PACK per year
Recyclable racks forbattery system
2023 Sustainability Report
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Emissions and Environmental Impact
EVE strictly abides by theEnvironmental Protection Law of the People's Republic of China, the Law ofthe People's Republic of China on the Prevention and Control of Water Pollution,theLaw of the People'sRepublic of China on the Prevention and Control of Air Pollution and other relevant environmental pro-tection laws and regulations and applicable environmental protection standards. EVE keeps improvingthe internal management system for wastewater, waste gas, noise and solid waste, sets pollutant emissionreduction targets, strictly treats and disposes pollutants, improves environmental performance, and mini-mizes the impact of manufacturing and operations on the eco-environment.
Case||
During the reporting period, EVE took actives measures such as equipment introduction andprocess optimization to reduce the emission of various pollutants and solid waste. The Companypromoted the upgrading and transformation of organic waste gas treatment facilities. For liquidinjection waste gas, it introduced activated carbon adsorption and catalytic combustion treat-ment processes at four bases including Huizhou Eve Power. Compared with photooxygen cataly-sis, activated carbon, water spray and other processes, the two treatment processes boast highereciency, signi?cantly reducing VOCs emissions.
The diesel-powered forklifts at EVE’s factories were upgraded and replaced with electric forklifts toreduce pollutant emissions at the source, reducing NO
xemission by 1.63 t/a and carbon dioxideemission by 32.38 t/a.
The introduction of low-nitrogen combustion boilers into newly-built factories enables the NOxemission limit for boilers to be equal to or less than 50 mg/m
.
Noise
Equivalent continuousA-weighted sound pres-
sure levelFactory boundary noise
Noise reduction and
isolation devicesEmission typePollution control facilitiesMonitoring indicator
Case||
EVE took a series of measures such as optimizing technical transformation, installing sound insu-lation and silencing devices for equipment noise from the surrounding ancillary facilities aroundEVE’s plants, environmental protection facilities, air compressor stations, and cooling towers, andmade a cumulative investment of approximately RMB960,000, effectively reducing factory bound-ary and environmental noise.
Emissions and Waste Management
Regulations on the Management of Environmental Protection Facilities, theRegulations on the Management of Rain, Sewage and Wastewater, Regula-tions on the Management of Waste Gas, Regulations on the Managementof Solid Waste, and Regulations on Noise Management.EVE’smanagement system
Waste Gas
Total non-methane hydrocarbons, nitrogen oxides, particulate matter, sulfurdioxide, ?uoride, odor concentration, ammonia, hydrogen sul?de, nickel andits compounds, hydrogen chloride, oil fume, etc.Monitoringindicators
Boiler waste gas, NMP waste gas, liquid injection waste gas, cooking oilfume, dust-laden waste gas, etc.Low-nitrogen burner, UV photolysis, activated carbon adsorption, spray tow-er, CO (catalytic combustion), bag dust collector, and dry ?lter
Emission typesPollution controlfacilities
During the reporting period, EVE set an air pollutant reduction target of "re-ducing nitrogen oxide emissions per unit of production capacity by 40% in2030 compared with 2021", and was proactive in introducing low-emissionfacilities in construction projects to support the achievement of the target.Emission
reduction target
Wastewater
Industrial wastewater and domestic sewageIndustrial wastewater treatment stations, third-level septic tanks, oil and slagseparation tanks, and integrated domestic sewage treatment facilities
Discharge typesPollution control
facilitiesMonitoringindicators
pH, chemical oxygen demand, five-day biochemical oxygen demand, sus-pended solids, total phosphorus, total nitrogen, ammonia nitrogen, andtotal nickel, total cobalt, total manganese, and total copper from specificemission sources
2023 Sustainability Report
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EVE lays great emphasis on the impact of the environmental fac-tors at each factory on air, soil, surface water, groundwater and sur-rounding biodiversity. During the reporting period, EVE's new proj-ects underwent strict investigation and assessments benchmarkedagainst theTechnical Guidelines for the Preparation of ReportForms of Environmental Impact for Construction Projects (PollutionImpact) (Interim) and the Technical Guidelines for EnvironmentalImpact Assessment—Ecological Impacts,and the scope of land useinvolved no ecologically sensitive regions and ecological protectiongoals. EVE strictly adhered to the ecological red line. None of itsproduction bases and operating locations was located in legal eco-logical protection zones and important ecosystem areas such aswater source conservation, soil conservation, biodiversity protection,and water loss and soil erosion areas. No production, constructionand operation activities caused signi?cant impacts on soil, surfacewater, groundwater and biodiversity.EVE gives priority to the use of mature industrial and commercialland and brown?eld land, without seeking to develop basic farm-land, forests, wetlands, oceans, ecological reserves and culturalreserves. During the site selection stage for a new factory, EVE con-ducts environmental due diligence and full analysis and evaluationof the air, soil, surface water, groundwater and biodiversity of theproposed site. During production and operations, EVE complieswith applicable laws, regulations and environmental protectionstandards, regularly monitors groundwater, downstream rivers, andsoil, conducts potential hazard identi?cation, and promptly followsup on the closed-loop management for hidden hazard recti?cationto reduce the risk of damage to the eco-environment such as soiland groundwater pollution.
Ecological Protection
Case||
On China’s Tree Planting Day, EVE organized employees to participate in tree planting and carbonreduction activities in the Huizhou Honghua Lake Scenic Area to enhance their understanding ofthe ecological value, boost their motivation for low-carbon actions.
Wastetypes
Pollution
controlfacilities
Disposalmethod
Management
target
Non-hazardous IndustrialSolid Waste
Hazardous WasteWaste organic solvents, waste electro-lytes, waste chemical contaminants,waste glue, laboratory waste, etc.Waste pole pieces, waste scraps, wastebatteries, recycled NMP condensationliquid, waste packaging materials, etc.
Hazardous waste storage roomsStorage rooms for non-hazardous indus-trial solid waste
Entrusting quali?ed hazardous waste
disposing agencies for disposalClassified collection and recycling andreuse through relevant solid waste recy-cling agencies entrusted
By 2026, the amount of hazardous
waste generated per unit product
in cell manufacturing plants will be
have been reduced by 8% compared
with 2023.
By 2026, the amount of non-hazardousindustrial solid waste generated per unitproduct in cell manufacturing plantswill be reduced by 15% compared with2023.
2023 Sustainability Report
Sustainable SupplyChain
Supply Chain ManagementResponsible Sourcing/
Disclosure Issues
9 Responsible Sourcing-
During the era of globalization, companies need to work closelywith their supply chain partners to jointly implement the goals ofenvironmental protection, social responsibility and economic pros-perity. EVE is committed to transmitting the values of sustainabledevelopment and practical experience to its supply chain partners,to jointly create a responsible supply chain ecosystem and build agreen high-level lithium battery industry chain.
Contribution to the SDGs
New Supplier Onboarding Process
EVE has built a complete supply chain management system and formulated relevant management rulesincluding the Supplier Management Program, theStrategic Supply Chain Management Procedures,the
Purchase Control Procedure, theManagement Regulations for Supplier Performance Appraisal,theMan-agement Rules for Auditing and Coaching Suppliers,andManagement Regulations for Supply ChainSustainability. The Company strictly controls the entire process covering supply source searching, supplierscreening, supplier onboarding certi?cation, designation, performance evaluation, and elimination, andit is committed to consistently improving the management performance of the supply chain, while fullyprotecting the legitimate rights and interests of suppliers and creating an open and transparent sourcingenvironment.
Supply Chain Management
/
Supplier Quality Management
Signing of Agreement
Potential Suppliers Audit
Before the formal cooperation with a supplier, the Supply Chain Management Center should complete thesigning of relevant agreements with the supplier, includingBusiness Cooperation Agreement, Quality AssuranceAgreement, Supplier Integrity Commitment Letter, Con?dentiality Agreement, Partner Commitment Letter forthe Ful?llment of Trade Security, Notice of the Requirements for Social Responsibility, Occupational Health &Safety, Environmental Protection and Business Ethics,andCommitment Letter for No Use of Environment-Haz-ardous Substances.
For a supplier who provides raw materials containing gold (Au), tantalum (Ta), tungsten (W), cobalt (Co), tin (Sn),manganese (Mn), lithium (Li), nickel (Ni), graphite (C), mica and other types of metals or minerals, the SupplyChain Management Center should sign theAgreement on Due Diligence Management for Responsible MineralSupply Chainswith it and conductDue Diligence for Responsible Mineral Supply Chains.After the supplier signs the aforesaid agreements, the Supply Chain Management Center should submit aNewSupplier Approval Form, and include the supplier in theList of Quali?ed Suppliers upon approval.
EVE regularly identi?es risks in supplier quality and develops corresponding audit plans based on their risk levels, and theaudits are performed by the team of supplier quality engineers. The auditing scope covers design, process, shipment, qual-ity system, warehousing, education & training, measurement & calibration, hazardous substance, and social responsibility.
Since its inception, EVE has been consistent in creating a fair, just, open, honest and clean business environment, andresisting all forms of commercial corruption affecting fair competition in the market. The Company has formulated theRegulations on the Management of Reporting of Trade Secretsto encourage employees through multiple channels tosupervise and report violations involving trade secrets. In addition, it has signed a number of agreements such asBusinessPartner Integrity Convention,EVE Supplier Code of ConductandCon?dentiality Agreementwith supply chain partners tojoin hands with them to create a clean business environment.
Investigation of Potential SuppliersThe Supply Chain Management Center collects supply sources through industry applicationsand networks or other information channels, and carries out investigation on a potential suppli-er regarding its basic information, quality system certi?cation, technical information, ?nancialinformation, quality control information, intellectual property rights, land certi?cate, real estatecerti?cate or lease contract, etc. An agent should provide proof of agency quali?cations.The Supply Chain Management Center conducts on-site inspection to quickly understand thegeneral situation of the potential supplier based on its operating status, project management,development process, plan management, production management, quality management, sup-plier management, etc., and prepares aPotential Supplier Comparison Form.After sorting and comparing gathered information about potential suppliers, the Supply ChainManagement Center will organize technical department and quality department to discuss anddetermine the list of recommended suppliers (list for onboarding), and notify relevant depart-ments of the evaluation results.After analyzing supplier information, supplier sourcing data, performance, costs, etc., the SupplyChain Management Center prepares aProcurement Strategy Planning Reportto determine thestrategies for the introduction, elimination, upgrading and improvement of suppliers.
For quali?ed suppliers, EVE formulates and implements monthly supplier performance evaluation and annualaudit plans, and provides them with more targeted follow-up guidance for improvement based on the audit re-sults.
If a quali?ed supplier fails to meet the audit and assessment standards, or acts in violation of laws, regulationsand policy frameworks, or has negative social evaluation and an adverse reputation, EVE will consider cancelingits certi?cation of conformance. If a decerti?ed supplier is to be re-activated, re-certi?cation is required accordingto the new supplier onboarding process.
For a supplier who has posed a se-curity threat or caused significanteconomic losses to the Company,the audits should be conducted atleast once every two years.
For a supplier who has causedmoderate economic losses tothe Company, the audits shouldbe conducted at least once everythree years.
For other suppliers, auditsshould be conducted at leastonce every 5 years.
The Supply Chain Management Center organizes the Technology Center, SQE, and PMC to re-view the quality system audits (QSA), hazardous substances management system (HSMS), socialand environmental responsibility (SER), environmental management system (EMS), and infor-mation security management system (ISMS) of potential suppliers based on the supplier auditchecklist, and prepares aSupplier Audit and Evaluation Report. In order to strengthen compli-ance and risk management, EVE adopts the practice of giving priority to suppliers with the IECQHSPM system certification, and conductingAssessment on the Environment-Hazardous Sub-stance Risk of Suppliers.
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Responsible Sourcing
Please see the Key Performance Table for details on description of data calculation.
Digital Supply Chain ManagementDuring the reporting period, EVE has developed a rapid quotation system for rawmaterials, which will enable online quotation and approval for suppliers regardingthe procurement of raw materials, and realizes complete and clear traceability of allquote records. The system will help promote fair competition in sourcing while im-proving the eciency of supply chain management. It is expected to be ocially putinto operation in the ?rst half of 2024. Furthermore, the Company will subsequentlyupgrade and improve the supplier performance evaluation system and re?ne func-tions of the performance evaluation system for the purpose of standardizing thetransmission of performance information, automatically generating multi-functionalcharts, and building a closed-loop tracking management system.
EVE lays great emphasis on the management of environmental and social risks of its supply chain, andincorporates environmental protection, social responsibility and other supplier sustainability requirementsinto its supply chain management system, to collaborate with partners to build a responsible and sustain-able product value chain.Supplier screening and onboardingEVE conducts information survey and on-site inspection over a potential supplier, then prepares aPotential Supplier Comparison Form, and determine the list of suppliers for onboarding upon re-view. Then, the Company reviews the quality system, hazardous substances management system,social and environmental responsibility, environmental management system, and information se-curity management system of the suppliers to be admitted. It sets up a de?nite threshold for on-boarding and scoring rules, prepares aSupplier Review and Evaluation Report, and conductAssess-ment on the Environment-Hazardous Substance Risk of Suppliers.
EVE signs necessary contracts and agreements, such asNotie of Social Responsibility, Occupation-al Health and Safety, Environmental Protection and Business Ethics Requirements, Agreement onDue Diligence Management for Responsible Mineral Supply Chains, Supplier Integrity CommitmentLetter, Agreement on Due Diligence Management for Responsible Mineral Supply Chains, QualityAssurance Agreement, EVE Supplier Code of Conduct,and Letter to Partners on Integrity Initiative.Assessment and review
EVE conducts monthly performance evaluations and annual audits of suppliers.The annual audits and evaluations of totally 231 suppliers were completed in 2023 (including envi-ronmental and social impact assessments).
Supply Chain StabilityIn order to ensure the stable supply of various resources in the supply chain, EVEhas formulated and implemented aContingency Plan for Raw Material Shortagesineach product line. By establishing a safety stock of raw materials, timely activatingdual suppliers, transferring goods from other product lines and updating arrival de-mand forecast for the next three months every month, EVE can effectively preventunexpected losses caused by unpredictable factors such as procurement shortagesor natural disasters to ensure a timely and orderly supply of materials with guaran-teed quality and quantity. EVE encourages all bases to promote localized sourcing.As of the end of the reporting period, the Company’s local suppliers of raw materialsaccounted for 21.59%
, effectively reducing material supply risks and supportinglocal economic development. In addition, EVE is accelerating the source searchingand layout of overseas supply chains to establish complete supply chains in overseasregions including Hungary and Malaysia.In addition, EVE requires all suppliers to establish corresponding inspection pro-cesses and analyze key process parameters before delivery. Currently, the suppliersbasically satisfy this requirement. Monitoring the process capability index (CPK) ofsuppliers has been included in the daily work of the quality center. and continuousmentoring and training will be carried out for suppliers with a low CPK, such as on-site mentoring and training on quality tools. For suppliers with a high CPK, the Com-pany will tighten the supplier evaluation criteria.In order to develop a more stable and powerful business partnership, EVE leveragesits own resources and experience in the industry to empower each partner. For allsuppliers especially those identi?ed as high-risk, we conduct annual quality improve-ment training on the use of quality tools and biannual training on environmentalmanagement. During the reporting period, EVE carried out the third round of envi-ronmental protection knowledge empowerment training for suppliers with mediumand high environmental protection risks, covering a total of 72 suppliers. The Compa-ny also conducted an online themed training session on carbon emission, involvingmore than 200 suppliers. In addition, it gained an initial understanding of the sup-pliers’ carbon management capabilities through the distribution of carbon emissionreduction questionnaires.
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Establish a soundenterprise risk man-agement system
Identify andassess supplychain risks
Develop and im-plement responsestrategies for iden-ti?ed risks
Conduct auditsPrepare and pub-
lish annual reports
02030405
Due diligence management process forresponsible mineral supply chains
Management Procedures for Responsible Miner-al Supply Chains
Agreement on Due Diligence Management forResponsible Mineral Supply Chains
Chinese Due Diligence Guidelines for MineralSupply ChainsOECD Due Diligence Guidance for ResponsibleSupply Chains of Minerals from Con?ict-Affectedand High-Risk Areas
Supplier Code of Conduct
Due Diligence Management Policy for Responsi-ble Mineral Supply Chains
Dodd-Frank Wall Street Reform and ConsumerProtection Act
Due Diligence Management for Responsible MineralsEVE has formulated theManagement Procedures for Re-sponsible Mineral Supply Chainsand published theDueDiligence Management Policy for Responsible MineralSupply Chainson its ocial website. For suppliers whoseraw materials contain metals or minerals such as gold,tantalum, tungsten, cobalt, tin, manganese, lithium, nickel,graphite, and mica, EVE has signed theAgreement on DueDiligence Management for Responsible Mineral SupplyChains with them and conducts due diligence for respon-sible minerals. In addition, EVE has signed theSupplierCode of Conductwith its suppliers, definitely requiringthem to formulate clear policies or establish complete pro-cesses to avoid intentionally purchasing con?ict minerals,and take reasonable measures to ensure that the metalssuch as tin, tantalum, tungsten, gold and cobalt containedin their products must not directly or indirectly ?nance orbene?t armed groups that commit serious human rightsabuses. The Company also requires its suppliers to conductin-depth due diligence on the sources of and the chainof custody for these minerals and provide necessary duediligence information.
According to theChinese Due Diligence Guidelines forMineral Supply Chainsissued by the China Chamber ofCommerce of Metals, Minerals & Chemicals Importers & Ex-porters (CCCMC), and the OECD Due Diligence Guidancefor Responsible Supply Chains of Minerals from Con?ict-Af-fected and High-Risk Areasissued by the Organization forEconomic Cooperation and Development (OECD), and thelegal requirements for responsible mineral supply chainsin Article 1502 of theDodd-Frank Wall Street Reform andConsumer Protection Act, EVE has formulated theDueDiligence Management Policy for Responsible MineralSupply Chainsand incorporated the above standards andrequirements into the contracts and agreements executedwith its suppliers. In addition, the Company incorporatesthe awareness of “responsible sourcing” into investigationof responsible minerals, communicate relevant knowledgeto suppliers, and urge their implementation.
EVE carries out due diligence management for responsible mineral supply chains in accordance with the "?ve-step meth-od", and lays down the requirements that should be met for selecting responsible suppliers of minerals, and conducts duediligence for responsible mineral supply chains on new on-board suppliers of materials containing tin, tantalum, tungsten,gold, and cobalt.
EVE communicates to all suppliers relevant policies & standards, including theOECD Due Diligence Guidance for Respon-sible Supply Chains of Minerals from Con?ict-Affected and High-Risk Areas, RMAP assessment standards, and the require-ments for transparency and responsible supply chains.
2023 Sustainability Report
Caring for Employees
/
Adhering to the talent strategy of "enthusiastic recruitment, dedicatedtraining, dedicated attention and bold promotion", EVE fulfills its re-sponsibilities as an employer, devotes itself to creating a healthy, safe,dynamic and caring working environment, and provides employeeswith broad career development prospects with employees for achievecommon growth together with them.
Occupational Health and Safety
Talent Development and RetentionEmployee Rights and Bene?ts
Topics Disclosed
10 Employee Rights and interests
-
11 Employee Safety-
12 Training and Development
-
13 Employee Concern-Contributions to SDGs
/
Employment-related awards
Employee Rights and Bene?ts
We provide employees with an equal and inclusive workplace, competitive remuneration and bene?ts,and enhance their sense of belonging to the Company and happiness.
We have established a sound human resourcessystem, strictly abide by theLabor Law of thePeople's Republic of Chinaand other relevantlabor laws and regulations of the countries andregions where our offices are located, and for-mulated institutions and management systemssuch asLabor Rights Protection Policy, SpecialRules on Protection of Female Employees, Spe-cial Rules on Protection of Juvenile Workers,andAdministrative Rules for Ending Child Labor andPromoting Children's Education,to fully protectthe legitimate rights and interests of employeesand support their development.We support and respect international laws andregulations related to human rights, assumeour responsibilities for human rights, and donot violate the human rights of others in ourbusiness activities. When there is a negative im-pact on human rights, we will take appropriateremedies. We have released theLabor RightsProtection Policyto protect and promote thedevelopment of human rights, and implement-ed human rights due diligence through theAn-ti-Discrimination Administrative Rules.We strictly abide by the laws and regulationsapplicable in the place where our offices arelocated, and standardize the recruitmentand dismissal procedures. Insisting on equalemployment, we ensure the consistency andobjectivity of recruitment process and selectioncriteria, prohibit forced labor and child labor,and oppose all forms of discrimination andharassment in workplace due to race, ethnicgroup, social class, citizenship, religion, disability,gender, age, educational background, maritalstatus or political relations. During the reportingperiod, we did not commit any illegal act suchas forced labor, child labor and employmentdiscrimination.
We have formulated theRules on AttendanceManagement,strictly implement theRules onWorking Hours of Employees,standardize themanagement of working hours and holidays,and clarify the situations where overtime can beorganized. Request for overtime work should bemade in advance, and the overtime should becontrolled to ensure employees get adequaterest. During the reporting period, the signingrate of employment contract with all regularemployees was 100%, and the payment rate ofsocial insurance premiums for employees whomet the insurance requirements was 100%. Wedid not employ any dispatched workers.
During the reporting period, we continued to improve the digital recruitment system and optimize the re-cruitment and employment process, and strictly checked the identity information of employees. In addi-tion, we promoted the development and progress of human resources with our actions to play an import-ant role in stabilizing and promoting employment. In July 2023, more than 900 fresh graduates joined theCompany through campus recruitment. After training, they have worked in various positions. In November2023, in response to the call of the People's Government of Huizhou City, we engaged in a series of lives-treaming employment activities, providing jobs in intelligent manufacturing, and R&D technology, whichgarnered over 300,000 views in total.Harmonious Workplace
During the reporting period,the signing rate of employmentcontract with all regular employeeswas
%
the payment rate of social insurancepremiums for employees who metthe insurance requirements was
%
Liepin: 2023 GuangdongExtraordinary Employer Awards
Digital HR Association: 2023 LeadingFigure of China's Digital Human ResourcesHaitou.cc: 2023 the Most In?uential Employer
51Job: 2023 Top Human ResourceManagement–Award
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Remuneration and Bene?ts
Incentive system
Happy workplace moments
Non-salary Bene?ts for Employees
Adhering to the principle of equal pay for equal work, EVE has a well-established remuneration incentive systemand provides employees with a competitive remuneration and bene?t system to fully mobilize them, attract, re-tain and motivate outstanding talents, and promote the sound and sustainable development of the Company.EVE's incentive system includes general incentive, special incentive and equity incentive. In 2023, the Companyset up process incentives covering all employees, which were distributed to departments at all levels, which madeoverall arrangements of the incentives in ?exible forms according to the particular situation.In recent years, EVE has kept deepening the equity incentive system, established a multi-level incentive structure,and built up the cohesion of employees and the competitiveness of the Company. During the reporting period,EVE implemented the tenth employee stock ownership plan and the ?fth stock option to attract and retain out-standing talents and executives. Meanwhile, the performance appraisal requirements were 100% met in the sec-ond exercise period of the third restricted stock option, which motivated key and core talents effectively in termsof enthusiasm and creativity. Through various equity incentives, talents align their goals with the Company's devel-opment goals for shared bene?ts.
Always upholding the philosophy of "living and working happily" and "being a decent EVE member", the Companyattaches great importance to employees’ wellbeing, and provide them with bene?ts in various ways to enhancetheir sense of belonging and happiness. EVE has set up special funds to support team building, festival activities,friendship activities, parent-child activities, formed regular activities such as employee birthday party, annual con-ference and factory celebration day, and invested to build and support ten employee interest associations, regu-larly holding cultural and sports activities to enrich the healthy spare life of employees.EVE kept following the needs of female employees, retired employees and employees in ?nancial diculty. Duringthe reporting period, the Company re?ned theSpecial Rules on Protection of Female Employees,strengthenedthe labor protection for female employees, set up baby care rooms infactories,and provided them with paidleave such as maternity leave, breastfeeding leave and parental leave. In 2023, more than 2,500 employees tookparental leave, totaling more than 14,700 days. In order to give full play to the vanguard and exemplary role offemale employees for their dedication, EVE granted more than 90 female employees the honorary title of "March8th Red-banner Pacesetter", and set outstanding female role models for “self-respect, self-con?dence, self-relianceand self-empowerment.” EVE holds retirement ceremony and provides gifts for retirees. The retirees can establishlabor relationship with the Company after going through retirement formalities according to the needs of theCompany and their own will to ensure the supply of talents. The Company has set up the "EVE Family – EmployeeMutual Assistance Fund" to aid employees in ?nancial diculty.
Employee bene?ts
Talent allowance,social insurance,housing providentfund, paid leave(paid holidays suchas national publicholidays accordingto law)
Employee birthdaygifts, group dining,annual physicalexamination, EAPservices, factorycelebration activi-ties, association ac-tivities, and child-care services insummer vacation
Gifts for SpringFestival, Interna-tional Women'sDay, Dragon BoatFestival, CPCFounding Day (July1st), Army Day (Au-gust 1st), Mid-Au-tumn Festival, etc.
Free commuter ve-hicles, transportationallowance, fuel allow-ance, hairdressingservice, cafe (100 cupsof free coffee/drinkper day), library, gym,talent apartment, em-ployee mutual assis-tance fund, exclusivegroup purchase dis-count of all kinds foremployees
Maternity leave,pregnancy check-up leave, breast-feeding leave, andpaternity leave;baby care roomsin every factory
Statutory bene?tsRoutine bene?tsFestival bene?tsLiving supportFertility support
CafeLibraryPsychological counseling room
Open day for parent-childactivitiesFactory celebration footballmatchEmployee dormitory
2023 Sustainability Report
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Democratic CommunicationEVE is proactive to build an open, transparent and democratic communication mechanism, formulate theRules on theManagement of Employee Voice Services,and establish a communication and feedback mechanism through multiple openchannels such as EVE Life APP, employee service center, employee seminar and Chairman's mailbox. EVE respects theemployees' freedom of association and rights to equal consultation. It has organizations that can represent and safeguardthe legitimate rights and interests of employees and independently carry out activities according to law. Employees havethe right to participate in democratic management and equal negotiation through staff meetings, staff representatives orother forms according to law, and the Company ensures that no retaliatory action will be taken against any employees forthe aforementioned actions. On November 29, 2023, EVE completed the general election of the fourth Trade Union Com-mittee. A factory liaison mechanism was added in the new trade union organization structure, and a sub-union directorwas appointed in each factory to collect employees' voices in time. In terms of many systems involving the vital interestsof employees, including the employee stock ownership plan, EVE has extensively solicited opinions and suggestions fromemployees, and guaranteed their right to know and rights of participation, expression, and supervision. During the report-ing period, the Company solicited 2,031 employees' opinions, with a response rate of 100%, answered the questions raisedand publicized the handling results.
EVE conducts employee satisfaction survey on a regular basis every year, covering all employees. In 2023, the employeesatisfaction scored 84.9 points, going up for six consecutive years. In March 2023, the Company carried out Gallup Q12 em-ployee engagement survey over 19,000 employees. According to the survey results of Gallup Q12, EVE analyzed the orga-nizational atmosphere of each department, put forward suggestions based on the analysis of organizational developmentperformance indicators, and took targeted improvement measures.
During the reporting period,the Company solicited
employees' opinions2,03
860,260
95.53
.5
with a response rate of
%
The talent development and retention strategy is the key to maintain competitive advantages and sus-tainable development. The Company has formulated the talent strategy of "enthusiastic recruitment, ded-icated training, dedicated attention and bold promotion", established a complete training and promotionmechanism, and been dedicated to growing with employees.
Talent Development and Retention
During the reporting period,the Company conducted training for
hoursand that of all employees at
%
with the coverage rate of new employees at
%The per capita training duration is up to
hours
The Company has set up the EVE Research Institute which offers onboarding training, professional train-ing and leadership training programs and three brand courses, namely, general series, management se-ries and professional series, with a total of 29 sub-courses to accurately meet the needs of employees andpass down and share internal knowledge.
Talent Training
New employee orientation
New employees will receive training on corporate culture, safety education, rules and regulations, and em-ployee bene?ts to allow them to understand EVE culture, get familiar with the working environment andoce processes, quickly adapt to their jobs, and work in a correct and standardized manner. Employeeswho do not receive or fail the work safety education or training are not allowed to work on their posts.
2023 Sustainability Report
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The Management School of the EVE Research Institute develops leadership training courses for junior and intermediateand managers to help them improve their business management ability and motivate teams. Such courses integrate mul-tiple training methods such as teaching and seminar, consultation and mentoring, and analyze practical managementproblems. After being trained, the participants can use the "531 Action Plan Form" to customize the personal improve-ment plan, and plan the department strategy with business thinking for management empowerment and knowledgetransfer.
At the same time, EVE encourages and assists employees to improve their academic quali?cations, and organizes aca-demic quali?cation improvement programs through university-enterprise cooperation. The Company has laid down theRules on the Management of Talent Selection and Training to create a platform of win-win development for employees.
oine leadership courses weredelivered across the Company
During the reporting period,
totaling
hours
and the teaching lasted
class hours in total.9,04
Eight Schools of the EVE Research InstituteNameTargetDetails
Rookie School
Participants: Newmembers em-ployed throughopen recruitmentand campus re-cruitment
Through the onboarding training, we help new employees understand EVE culture,learn and understand the processes and systems, understand the job responsibilitiesand skill requirements, quickly adapt to their jobs, and work in a correct and stan-dardized manner.
Excellence School
Participants: Tech-nicians above Lev-el 4
Through training in such forms as case and practical operation, technicians learn tocombine theory with practice, form methodology, workshops and case library, andgive full play to personal ability showing the value of the position.the role of technician system and expert system of the Company.
Innovation School
Participants: R&Dengineers
Through regular training, R&D personnel deeply understand the quality system re-quirements, grasp the R&D process, use quality tools and R&D system skillfully, anddevelop high-quality, best-selling products to meet and go beyond customer expec-tations.
Project School
Participants: Proj-ect managers andproject-relatedpersonnel
Giving full play to the role of the Management System for Major Projects, it trainscompetent project managers with the mindset of implementing processes strictlyand the ability of ecient and collaborative team cooperation, to ensure the highquality completion of projects.
Marketing School
Participants: New& key sales force
It provides regular training courses at levels of non-commissioned ocer, junior of-?cer, commander and general. By implementing the marketing knowledge system,strengthening team cooperation, and enhancing comprehensive strength, it trainssales elite and marketing management talents to build a top sales force.
ManagementSchool
Participants: In-cumbent and can-didate managersand managementtrainees
Based on study and practice through courses like Leadership Improvement in theschool, we can improve the competence of incumbent managers, help candidatemanagers and management trainees switch their roles, improve their ability to per-form their duties, and promote the selection and development of managers.
Dayu School
Participants: Fac-tory directors andsuccessors
Based on study and practice through production technology and operation man-agement courses in the school, we can improve the competence of manufacturingsystem managers, and train factory directors and successors who have advancedmanagement skills and can achieve business objectives.
Dapeng School
Participants: In-cumbent, candi-date and alternativegeneral managers
It trains competent general manager candidates with international competitivenessand vision to respond to the requirements of the strategy of “global manufacturing,global delivery and global service” for executives.
Group photo of the training of Empowering Leadership
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Promotion and Development
Upholding the philosophy of "giving full play to people’s talents, and training outstanding experts," EVE established threetypes of career development channels to provide suitable development and growth paths for different types of talents.Employees can choose their career development paths according to their interests and plans to achieve career values andgoals.We have released and implemented theRules on the Management of Company Techniciansand theRules on the Man-agement of Wage-based Post Standards to standardize the post setting and promotion of technicians and ensure techni-cians have reasonable and fair opportunities for promotion. After one-month employment, technicians will be assigned totheir posts according to the actual work, and will receive post allowances according to their post levels. They can be pro-moted through technician training and assessment organized by the corresponding department.
Diverse career development paths
The Company has formulated theRules on Management of Organizational Performance,theRules on Management ofClerk Performance,theRules on Management of Graded Technician Performance,and theRules on Management ofEmployee Performance,establishing a performance appraisal mechanism covering all levels of personnel. Centering onstrategic objectives, the Company adopts the Balanced Score Card (BSC), formulates results-oriented performance objec-tives from ?nance, customers, internal process, and learning & growth, and provides performance-based salary incentivesfor all employees. Departments at all levels sign contracts on performance objectives with employees. The performance ofdepartments and employees is assessed quarterly, while that of graded technicians is assessed monthly. The results of de-partment performance assessment will affect the proportion of people at each level of individual performance assessmentin the corresponding department. The results of individual performance assessment will be used as the basis of ?uctuationfor monthly performance salary.
Sound performance appraisal mechanism
Growth Path of Employees
Engineer/Assistant Engineer
Project ChannelProfessional ChannelManagement Channel
Project VPScientistVice President
General ManagerDirectorManagerSupervisor
Chief ExpertPrincipal Engineer
Senior Engineer
Engineer
Project Director
Project Manager
Assessment content
Incentive form
Departmentperformance
Frequency ofassessment
Proportion ofperformanceassessmentaccepted
Organizational performance related indicators,post key performance indicators, post key tasks,and growth & learning indicators
Performance results are related to monthly per-formance pay, year-end bonus, promotion andcareer development
Assessment is organized quarterly, and the performance results affect the proportion of people at eachlevel of individual performance evaluation in the corresponding department
Quarterly assessment
100%
Production tasks, product quality, operationstandardization, attendance, and rewards andpunishments
Performance results are related to monthlyperformance pay, year-end bonus, and pro-motion
Monthly assessment
100%
EmployeeGraded technician
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Attaching great importance to the selection and training of internal talents, EVE has formulated theRules on the Manage-ment of Executives,which covers the entire process of manager selection and appointment, training and development,inspection and evaluation, successor management and lawful operation. At the same time, the Company values the selec-tion and training of successors for managers at all levels. It has formulated theRules on the Management of Successors,requiring all executives above the manager level to identify and train successors. The successor appointment has becomean important indicator for departmental performance appraisal. By combining succession management with perfor-mance appraisals, the Company avoids talent shortages and ensures the steady supply of talents for leadership positions.During the reporting period, the Company trained a total of 1,464 executives (including management trainees), of which
81.6% were promoted from within and 84.6% held a bachelor's degree.
EVE GlobalLeadership Model
Occupational Health and Safety
Attaching great importance to employee safety and occupational health, EVE is committed to providingemployees with a safe, healthy and reliable working environment. During the reporting period, the Com-pany didn't have serious accidents such as serious injuries and work-related deaths.
Safety system building
EVE-Linyang plans to obtain ISO 45001 third-party certi?cation in 2024.
EVE establishes a sound and professional orga-nizational network at every level to facilitate theimprovement of safety performance. Chairmanand President of EVE promised and signed thepolicy documentEnvironment Health Safety isour Priority and Unwaveringto provide resourcesand organizational guarantee for the continuousimprovement of EHS performance. The Compa-ny has established the Work Safety Committeeheaded by the President, and each division hasset up a work safety sub-committee, responsiblefor leading its occupational health and safetymanagement, making decisions on risk controlplans, and providing resources and funds. EVEhas set up the EHS Center headed by a Vice Pres-ident. EHS departments have been established inall business groups (BG), production bases, divi-sions and factories, with assigned part-time EHScoordinators in workshops and departments tomanage occupational health and safety affairs.Strictly observing the relevant laws, regulationsand standards of the places where EVE operatesand its products are used, the Company adoptsthe initiatives and requirements for occupationalsafety of relevant organizations that have an im-pact on its operation, and establishes standardsthat are stricter than those given by laws and reg-ulations.
Fully following the requirements of ISO 45001and GB/T 33000, the Company has established anoccupational health and safety management sys-tem, requiring each controlling company put intooperation to improve the maturity of the man-agement system as soon as possible, get the cer-ti?cation of relevant third-party systems, and passthe appraisal on work safety standardization. As ofthe release of the report, the third-party certi?ca-tion of ISO 45001 Occupational Health and SafetyManagement Systems has covered 88.9% of com-panies under EVE with mature operations in thebattery manufacturing sector, and EVE plans toincrease the coverage rate to 100% in 2024
.According to the changes of risks and capabilities,EVE formulates and updates the medium- andlong-term and annual occupational health andsafety objectives, as well as the management planto achieve the objectives. The Company managesobjectives of incident improvement, safety invest-ment, risk and safety leadership covering minorinjury rate in 200,000 working hours, injury sever-ity, near miss, serious injury, work-related death,and occupational diseases, analyzes the perfor-mance change trend on a regular basis, and takessystematic methods to improve the performancecontinuously.
All-round leadership development
Paying great attention to the development of leadership, EVE has established a global leadership model based on strate-gy, organizational culture and management ideas and clari?ed the structure, connotation and speci?c behavior descrip-tion of the leadership of managers. By evaluating the leadership of managers, the Company can develop targeted devel-opment plans to effectively improve the organizational leadership.
Being bold to tackle dicult problems, speak-ing what must be spoken, recovering quicklyfrom difficult situations, and being good atlearning ?exibly under various challenges.
CourageBeing ResilientNimble Learnings
Ecient
Making contributions to mankind, offeringhigh-quality solutions centering on customers,thinking systematically about problems andmaking quality decisions in time.
Being results-oriented, consistently achievinghigh performance goals, taking actions vigor-ously and enthusiastically, providing direction,empowerment and removing obstacles for oth-ers.
Drives ResultsAction OrientedDirects Work
Customer FocusSystematic MindsetDecision Quality
Motivating others to work for the organizationalvisions, training team members and choosingsuitable ones for particular activities, and build-ing partnership to achieve common goals.Drives Vision and PurposeBuilds Effective TeamsBuild Collaboration
With the safety vision of "zero injuries and zero ?res", EVE follows the occupational health and safety poli-cy of "Safety ?rst, focusing on prevention, integrated control, people centered, and total health”, and keepsrefining the occupational health and safety management system. The Company takes the health andsafety of employees as a top priority.
focusing onpreventionSafety ?rst
integratedcontrol
peoplecentered
totalhealth
Work Safety
Empower
ExecuteEnergetic
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EVE has established a "1-3-5 min" three-level rescue mechanism. During the reporting period, it has formed 4 full-timeemergency security teams, 42 part-time ?re brigades, and 681 primary emergency teams, achieving 100% coverage of theemergency rescue organization network. Moreover, the Company has built 2 smoke and hot ?re training grounds to en-hance scienti?c rescue capabilities through emergency simulation and real-life training.
Emergency managementEVE keeps improving the emergency plan system, and explores and reforms the response mechanism. It has set up anemergency organization structure composed of CMT/IMT/ERT to enhance its emergency command and rescue capabili-ties. The Company organized emergency drills as planned, and completed 4,712 emergency drills of various types in 2023.
During the reporting period
reported and mitigated
,33
49,
hidden dangers
SIF (serious injuries and fatalities) risks
EVE, its subsidiaries and divisions investi-gated and recti?ed
Safety management
EVE promotes the development of a dual-prevention mechanismcombining safety risk classification and control with screening andelimination of hidden risks, updates and releasesthe Mobilization Or-der for Prevention of Fire and Explosion Risks,andMobilization Orderfor Guard Against SIF Risks and Dual-Preventionat company level inaccordance with the requirements of laws, regulations and industrynorms. During the reporting period, EVE, its subsidiaries and divisionsinvestigated and recti?ed 49,177 hidden dangers, and reported andmitigated 1,331 SIF (serious injuries and fatalities) risks.EVE takes strict construction safety management measures at theproject sites. Every employee and relevant parties entering the work-place must understand and abide by theSafety Prohibition Order.During the reporting period, the Company launched special safetycampaign for on-site construction, covering hoisting, temporary pow-er supply, mezzanine ceiling and hot work, and formulated and im-plemented a safety signage acceptance system to protect the occu-pational health and safety of operators in an effective way. Focusingon re?ning the chemical management mechanism, the Company hasdeveloped information-based management means to manage everylink related to chemicals including warehousing, storage, use andscrapping, and strengthened the management of relevant parties toensure the safe use of chemicals.Based on independent research, the Company has developed EHSDigital Management System 2.0, which leverages AI, sensors, and in-telligent linkage to collect data such as temperature, concentration,water pressure and operations in real time for timely analysis, warningand intervention to prevent accidents.
"1-3-5" rescue and responseResponse levels
The primary-level emergency team arrives in 1min
Part-time ?re brigade arrives in 3min
The full-time ?re team arrives in 5min
Company crisis emergency
Companylevel
Base/BG accident emergencyLevel I
Product line/factory accident emergencyLevel II
Workshop/department accident emergencyLevel III
Primary-level accident emergencyLevel IVSmoke and hot ?re training
Formation Ceremony of Emergency Security Team
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Trac safety governance action
With the theme that "I can contribute to traffic safety", the Company recruited volunteersin each base to carry out a two-month traffic safety management campaign outside thefactory. Taking Zhongkai District where Huizhou Base is located as an example, EVE re-cruited 26 volunteers, who distributed more than 1,300 leaflets and corrected 113 trafficviolations during the campaign. The base saw all of its employees sign the traffic safetycommitment letter, and the traffic policedetachment of Huizhou Public Security Bu-reau was invited to provide a traffic safetytraining session, which significantly reducedits employees' traffic violations. On Decem-ber 2, 2023, Huizhou Eve Power won thehonorary title of “Traffic Safety Model Enter-prise of Guangdong Province.”
Work Safety Month–SafetyKnowledge CompetitionIn June 2023, to implement the policy that"everyone cares about safety and has emer-gency response skills", the Company organizedthe Work Safety Month campaign, including aseries of special cultural activities, such as hid-den danger and risk identification competition,emergency drill on the safety education day,emergency management training for seniormanagers, and safety knowledge competition.Each EVE base held safety knowledge conteststo further popularize work safety knowledgeand raise the safety awareness of employees.
Work safety education and trainingEVE takes the initiative to organize work safety education and training in various fields, atall levels and with a full coverage. It carries out three-level safety education for new em-ployees, safety education, education on safety knowledge of new processes, equipment,materials and products operation methods, and occupational health education and train-ing for employees who have transitioned to new positions and returned to work, and gen-eral safety knowledge education, fire safety education, and practical training on initial fireextinguishing methods for onboarding employees, and safety management knowledgetraining at all levels.
The Safety and Environment Center has set up an independent safety and environmentschool. In 2023, the school organized the heads of various production and divisions andfunctional departments to carry out special training on the “First Lesson of Work Safety”and emergency management training. Two sessions of "Dagger Class" for safety officersand part-time EHS coordinators have been held, with a total of 12 courses, and 168 par-ticipants (inclusive) from 17 organizations participated in the training and completed theexamination.
All-staff engagementWe adopt an all-sta? work safety responsibility system, ensuring that all employees understand and sign letters of re-sponsibility for work safety, and implement quarterly and annual assessment over the work safety responsibility sys-tem. We advocate a transparent culture, engage all employees in occupational health and safety management, andestablish an employee reward mechanism. Any employee can be rewarded by reporting hidden dangers, risks, andnear miss incidents and giving improvement suggestions through various channels. Through the reward mechanism,we motivate all employees to create a good culture of safety. Every year, we carry out distinctive occupational healthand safety activities such as ?re sports games, 119 open day for ?re safety, 100-day safety, tra?c safety, electriciancompetition, forklift skill competition and safety knowledge competition, attracting a total of 14,627 participants.
We require managers at all levels to have safety leadership, implement the "Safety 100" program, and take100 safety management actions and 100% participation as the appraisal indicators of each organization. In2023, managers at all levels carried out 131 safety-related management tasks, engaged in visible, percep-tible and colorful safety management actions, set an example for employees, and directly conveyed safetyrequirements and expectations to employees.
119 Open Day for Fire Safety
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2023 Sustainability Report
In strict accordance with theLaw of the People's Republic of China on Prevention and Control of Occupational Diseases
and other relevant occupational health-related laws, regulations and standards, we have established a sound occupationalhealth management system, identi?ed post occupational hazard factors and risks regularly for comprehensive protectionof employees’ occupational health. In 2023, the Healthy Huizhou Promotion Committee conferred the title of "Healthy En-terprise" on the Company.
Occupational Health
EVE has laid down internal occupational health-related systems such asManagement Rules for Occupational Health,Management Rules for Occupational Health Physical Examination, Management Rules for Occupational Health Files, Man-agement Rules for First Aids,andManagement Rules for Personal Protective Equipment.
Occupational health management system
We have formulated aList of Prohibited Substances for materials containing high-risk substanc-es, take non-use as the highest principle, strengthen engineering protection measures for high-risk materials that cannot be eliminated and replaced, and provide effective labor protectionsupplies for operators.
We guarantee investment of sucient funds in preventing and controlling occupational dis-eases, and maintaining their year-on-year increase. We have constantly improved facilities forprotection against occupational diseases and provide workers with suitable labor protectionsupplies.
The head of the Company is fully responsible for the prevention and control of occupation-al diseases. We have set up a special employee health committee with the vice president incharge of human resources serving as director and HR managers and EHS managers as mem-bers to coordinate the prevention and control of work-related injuries and occupational diseas-es.
Occupational health management measures
We organize all workers who are exposed to occupational hazards to receive occupationalhealth examination before, during and after their service, and inform them of the examinationresults in writing. During the reporting period, there were 8,362 persons registered in exposureto occupational hazard factors, and 10,063 workers had physical examination in 2023, with nooccupational disease cases found.
We create working environment and conditions that meet the national occupational healthstandards and hygiene requirements for workers. Our workplaces and workshops are allequipped with facilities for preventing occupational diseases in line with requirements for pro-tection against occupational hazard factors. We also carry out routine inspection and mainte-nance of these facilities.
We strictly control hazardous substances, review materials and test reports for newly introducedchemical materials, and regularly entrust quali?ed third-party agencies to detect hazardouscomponents for raw and auxiliary chemical materials. In 2023, we sent a total of 66 samples forinspection to eliminate and replace harmful substances from the sources.
Employee assistance program
In order to help employees relieve work pressure and improve their physical and mental health, EVE has launched theEmployee Assistance Program (EAP), set up the "EVE Sunshine", online EAP platform, and built psychological counselingrooms at factories. The platform provides services such as psychological counseling appointment, psychological hotline,psychological science popularization, online psychological course, psychological evaluation, and psychological Q&A, andpushes psychological knowledge multiple times a month.During the reporting period, the Company carried out 2 oine psychological carnivals, 6 activities of "mental health for de-partments", 2 online psychological courses, and conducted mental health examinations for all employees, with more than20,000 participants.
We regularly entrust quali?ed institution offering occupational health technical services to de-tect occupational hazard factors and evaluate the current situation of occupational hazards,take improvement measures according to the detection conclusions and suggestions, makeinformation disclosure in places where occupational hazards exist, inform workers exposed tooccupational hazards, and regularly carry out training on prevention and control of occupation-al diseases.
EVE can assume the responsibilities of giving back to the societywith actions, and help talents pursue their dreams with education;safeguard the harmony and tranquility of the community with safety;build a bond with communities through good communication; leadthe common development of the industry; write a beautiful chapterfor society in the new era with warmth and strength.
Value Co-creationCommunity Participation/
Topics Disclosed
14 Community ActivitiesContribution to the SDGs
-15 Public Welfare Projects-
Giving Back toSociety
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Value Co-creation
We are proactive in responding to the government's call, promoted the high-quality development of lith-ium battery industry in different regions, upgraded regional supporting facilities, and boosted the green,sustainable development of new energy economy and ecological environment.
Development of Regional IndustriesCase||
Case||
On March 17, 2023, the Site Meeting of Huizhou City forPromotion of High-quality Development (Zhongkai) and theCommissioning Ceremony of the 30th and 31st Factories of EVEwere successfully held. At the meeting, EVE signed a StrategicCooperation Framework Agreement with the AdministrativeCommittee of Zhongkai High-tech Zone. Huizhou New EnergyIndustry Alliance was officially inaugurated, and EVE served asa chairman member. The Alliance will unite all forces of thenew energy industry to promote innovation in new energytechnologies, industry application and industry development,facilitating the city to build a more comprehensive all-industry-chain ecosystem of new energy so as to improve technologicallevel and core competitiveness of its new energy businesses.
2023年可持续发展报告
On January 31, 2023, the People's Government of Jingmen Citysigned a strategic cooperation agreement on International EnergyValley–Lithium Battery Town with EVE and other enterprises.According to the agreement, Jingmen draws up a city–industryintegration plan of lithium battery town, and plans to investRMB 8.2 billion to build a demonstration zone for city-industryintegration, which is suitable to live and work in, around EVEand other enterprises in three years. Covering an area of 26.53km
, the town will attract 50,000 people, feature the functionsof industry, ecology and community, and integrate enterpriseproduction, scientific research and training, life services, andculture and leisure. In the future, EVE will closely collaborate withindustrial chain enterprises, and improve industrial cluster effect,supporting the building of a "Lithium Battery Capital in CentralChina."
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On March 20, 2023, EVE Energy Storage and Power Battery Project with an investment of aboutRMB 10 billion commenced construction in Shenyang, Liaoning Province. Aiming to produce en-ergy storage and power batteries with low temperature resistance, high energy density and highreliability, the project is scheduled to be put into production in 2025. In the future, it is expectedto attract and drive enterprises engaging in anode and cathode, electrolyte, separator, copper foiland equipment in its upstream and downstream industrial chains, form a new energy batteryindustrial base in Shenyang, and build a 100-billion-level industrial cluster of energy storage andpower batteries, which will play an important strategic role in supporting the development of NEVindustry in Liaoning and even Northeast China.
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In January 2023, the demonstration project of EVE Mobile Fast-Charging Station was put intooperation in Lilin North Service Area, Huicheng District, Huizhou, Guangdong Province. The ener-gy storage cabinet uses the electricity stored during idle hours at night for charging during peakhours in daytime, which not only improves the utilization rate of electricity, but also contributesto the power grid balancing. Boasting a fast-charging power of 160kW, the charging pile is 50%faster than ordinary charging piles, saving about 15 minutes per vehicle on average, and it is es-timated that 50-60 vehicles can be charged every day, increasing the charging service capacityby 100%. EVE mobile fast-charging stations are designed as a solution to the charging dicul-ty during peak hours in expressway service areas during holidays. EVE makes its effort to escortSpring Festival travel season. The application responded in advance to the call of the National De-velopment and Reform Commission in June 2023 for "providing mobile charging infrastructure inareas with high trac volume on public holidays."
Investment in Jingmen Lithium Battery Town to build atop demonstration zone for city–industry integration
EVE Energy Storage and Power Battery Project commenced con-struction in Shenyang
Advance presence in the integrated application of energy storageand charging in response to the call of the state
Facilitating the high-quality development of Huizhou's newenergy industry
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Contribution to Education
EVE supports education with actions, share high-quality resources and train new talents of lithium batterytechnology by making donations, offering scholarships and conducting university-enterprise cooperation.
Case||
Liu Jincheng, Chairman of EVE, and Xu Kaihua, Chairman of GEM, together with others, foundedJiuyuan Education Foundation, which offers scholarships for teachers and students to support thedevelopment of Jingmen education. On October 21, 2023, Chairman of EVE donated RMB 1 mil-lion to the foundation, giving back to his hometown with solid actions and showing the exemplaryrole of an entrepreneur to assume social responsibilities.
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In November 2023, EVE cooperated with the City College of Huizhou to establish EVE New EnergyIndustry College to deepen the industry-education integration and train innovation talents. Provid-ing high-quality resources, EVE works with the college to develop training programs, build a newcurriculum system, and formulate quality assurance mechanisms, with a view to training high-lev-el, top-notch talents for the country and society and supporting the Company to develop its talentteam.In December 2023, EVE and Huizhou University jointly established the "EVE Innovation Class" tooffer students practical courses, job skills training, probation and onboarding training, so as to en-hance their post competence and train talents to meet market demand together with the school.
Community ParticipationIn the process of globalization, EVE is proactive to establish good cooperation and communicate with lo-cal communities for fostering a virtuous circle of sustainable development and sharing a better life withthe communities.
Domestic Communities
Through on-site lectures, seminars and surveys, we make proactiveefforts to popularize new energy knowledge, covering market dy-namics, cutting-edge technological achievements and applications.In 2023, we held 120 events for teachers, students and social orga-nizations in Huizhou, Guangdong, Hong Kong and Macao to culti-vate young people's awareness of sustainable development, providepolicy suggestions to society and the government, and support thecountry's sustainable development and ecological development.
Employees active in public welfare activities
EVE formed a volunteer service team in 2018. Since that, the team launched many volunteer service activ-ities for poverty alleviation, donation, education aid, trash running for environmental protection, and roadcivility, etc.
Volunteer activities of "Promoting Road Civility" are carried out everyMonday, Wednesday and Friday to guide the travel of residents in sur-rounding communities and factory workers.Through "Sunshine Action", the trade union of the Company visited the surroundingcommunities by establishing a regular contact mechanism and helped 15 families in?nancial diculties.
Volunteer activities of EVE Trash Running Team on the theme of "Bending down
for Environment and Trash Running Together" are carried out on every Thursday
for a clean and beautiful community environment.
Caring for education and promoting the growth of talents
Deepening the industry-education integration and training inno-vation talents
Popularization of cutting-edge technologies tocreate a sustainable development ecosystem
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All responsible for ensuring a safe community
By promoting ?re protection knowledge, improving the emergency rescue capability of its ?re brigade and assisting incommunity ?re rescue, EVE joins hands with communities for ?re safety and disaster prevention to ensure a harmoniousand safe living environment.
Community support
In 2023, our ?re brigade supported ?ghting two community ?res. On January 21 (Chinese New Year's Eve), ourfull-time ?re brigade at Jingmen Base received the call from the ?re rescue squadron under the local govern-ment and helped extinguish the forest ?re east of EVE Power Zone 3. On July 4, the municipal generator aroundTonghu Base in Huizhou caught ?re, and the part-time ?rst squadron of Huizhou EVE Power quickly arrived atthe scene and extinguished the ?re.
Parent-child activities on ?re safetyWe organized community parent-child activities in the Fire Safety Publicity Month in November, and invited 64families to visit our factory and experience ?re safety skills under the instruction of ?re?ghters.
In building overseas bases, we value communication and interaction with local communities, and promote mutual under-standing and respect between employees and community members by holding regular community meetings, setting upfeedback channels and organizing cultural exchange activities in cooperation with local cultural organizations. In addition,we have prepared theHandbook of Overseas Cultures and Customs, which helps domestic employees understand localcultural environment and form good communication and understanding with the local people.
Overseas Communities
In May 2023, EVE ocially announced the construction of factories in Hungary and Malaysia respectively, markinga new journey of “global manufacturing, global service, and global cooperation.”During the preparation for the factory in Hungary, EVE focused on matters such as resources, environment, labor,safety and social governance, and gave open and transparent responses to issues of public concern. Once the fac-tory is built and put into production, it will provide over 1,000 jobs for local people, and work with local partnersto promote the sustainable development of the electric vehicle industry.When building the factory in Malaysia, EVE consulted with community representatives many times, and adoptedadvanced environmental protection technologies and sustainable building techniques to ensure that the projectrespects local culture, has a positive impact on the local environment and community, and promotes communitygrowth. After the Malaysian factory is built, it is expected to employ about 600 local people.
Sharing and building a sustainable future
Football, as a global sport, enjoys great popularity among local people in Hun-gary. As one of the most popular and globalized sports, football is a languageacross borders and cultures, and can be a bridge for cultural exchanges. InSeptember 2023, EVE signed a cooperation agreement with Debreceni Va-sutas Sport Club (DVSC), a local professional football club, with a total invest-ment of EUR300,000 for sponsorship of its football team activities. Upholdingthe philosophy of "Making outstanding contributions to sustainable develop-ment", the Company spread the philosophy of sustainable development tolocal residents through display on the sites of football matches and media in-terviews, hoping to create a healthy and beautiful life with local communities.
Blending into local culture and living a healthy and better life together
Enterprise-university cooperation achieves mutual bene?t and win-win results and injects new vitality into thegreen energy industry. In Hungary, EVE held a job fair and a celebration of the Department of Chinese Studiesat E?tv?s Loránd University in Hungary to search for both Chinese and Hungarian talents and promote technicalexchanges. In Malaysia, we cooperated with Xiamen University Malaysia to drive the development of innovationtalents through conducting joint research on technology and providing internship opportunities.
Training talents for mutual bene?t and win-win results
2023 Sustainability Report
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IndicatorUnit20222023
Violation of environmental laws and regulationsIncident00Green plantPlant22Self-built PV power generationMWh14,66035,802Total water withdrawal
(third party–urban waterworks)t4,792,0576,805,098Scope 1 GHG emissions
tCO
e/102,
Scope 2 GHG emissions
tCO
e/1,363,741NOx emissions
t18.1416.04Wastewater discharge
t45,733.9546,484.86Non-hazardous industrial solid wastes produced
t16,585.66112,988.10
Principal place of businessEntityAbbreviationBusiness type
China
Huizhou, Guangdong
EVE Energy Co., Ltd. (Headquarters)EVE
ManufacturingindustryHuizhou EVE Power Co., Ltd.Huizhou EVE Power
ManufacturingindustryEVE Hyperpower Batteries Inc.EVE Hyperpower
ManufacturingindustryHuizhou EVE United Energy Co., Ltd.EUE
ManufacturingindustryHuizhou Jinyuan Precision Automation Equipment Co., Ltd.Jinyuan Automation
ManufacturingindustryGuangdong EVCENS New Energy System Co., Ltd.EVCENS
ManufacturingindustryJingmen, Hubei
EVE Power Co., Ltd.EVE Power
ManufacturingindustryEVE Innovation Energy Co., Ltd.EVE Innovation Energy
ManufacturingindustryWuhan, Hubei
Wuhan Fanso Technology Co., Ltd.Fanso
ManufacturingindustryEVE Energy Storage Co., Ltd.EVE Energy Storage
ManufacturingindustryChengdu, Sichuan
Chengdu EVE Energy Co., Ltd.Chengdu EVE
ManufacturingindustryChengdu EVE Power Co., Ltd.Chengdu EVE Power
ManufacturingindustryQujing, YunnanQujing EVE Energy Co., Ltd.Qujing EVE
ManufacturingindustryYuxi, Yunnan
Yuxi EVE Energy Co., Ltd.Yuxi EVE
ManufacturingindustryYunnan Yijie Lithium Co., Ltd.Yijie Lithium
ManufacturingindustryQidong, JiangsuEVE-Linyang Energy Storage Technology Company LimitedEVE-Linyang
ManufacturingindustryNingbo, ZhejiangNingbo EVE Hyperpower Batteries Co., Ltd.Ningbo EVE
ManufacturingindustryShenyang, LiaoningShenyang EVE Energy Co., Ltd.Shenyang EVE
ManufacturingindustryHaixi, Qinghai
Qinghai EVE Energy Co., Ltd.Qinghai EVE
ManufacturingindustryJinhai Lithium (Qinghai) Co., Ltd.Jinhai Lithium
Manufacturingindustry
AppendixesInformation of Entities within the Scope of Reporting
ChinaHong Kong
EVE ASIA CO., LIMITEDEVE Asia
Commerce and tradeindustryEVE POWER HONGKONG CO., LIMITEDEVE Power Hong Kong
Commerce and tradeindustry
Overseas
MalaysiaEVE Energy Malaysia Sdn. Bhd.EVE Malaysia
ManufacturingindustryHungaryEVE Power Hungary Kft.EVE Hungary
ManufacturingindustryGermanyEVE Germany GmbHEVE Germany
Commerce and tradeindustrySingaporeEVE ENERGY PTE. LTD.EVE Singapore
Commerce and tradeindustryIrelandEVE ENERGY IRELAND HOLDING LIMITEDEVE Ireland
Commerce and tradeindustryUnited States
EVE ENERGY US HOLDING LLCEVE United States
Commerce and tradeindustryEVE Worldwide Industry INCEVE Worldwide
Commerce and tradeindustryBritish Virgin IslandsEVE BATTERY INVESTMENT LTDEBIL
Commerce and tradeindustryNote: Compared with the previous reporting year, Chengdu EVE Power, Yunnan Yijie and overseas holding companies were added.
Principal place of businessEntityAbbreviation Business type
Key Performance Table
?Environmental performance
2023 Sustainability Report
/
IndicatorsUnit20222023
Headcount Person27,42727,339
Number of employees (by age)Under 30Person10,76811,75730–50 years oldPerson16,40515,232Above 50Person254350Number of employees (by gender)MalePerson18,89618,930FemalePerson8,5318,409
?Social performance
Number of employees (by education)
High school and belowPerson/14,094Junior collegePerson/4,162BachelorPerson/6,956Master or abovePerson/2,127Number of part-time or temporary workersPerson00Number of managersPerson/2,693
Number of managers
(by gender)MalePerson/2,076FemalePerson/617Number of managers
(by age)
Under 30Person/58230–50 years oldPerson/2,058Above 50Person/53Share of female employees in revenue-generating departments
%/42Share of female employees in STEM related positions
%/20Number of new employees (by gender)
MalePerson
13,942
4,650
FemalePerson1,765Share of employees subject to regular performance and careerdevelopment evaluations
%100100
IndicatorsUnit20222023
Non-hazardous industrial solid wastes recycled
t16,499.91 112,070.41Non-hazardous industrial solid wastes disposed
t0917.68Hazardous wastes produced
t1,859.223,117.88Hazardous wastes recycled
t849.301,986.41Hazardous wastes disposed
t1,016.571,131.47Explanation on statistical scope and calculation methods:
The water resources data comes from companies under EVE with mature operations in the battery manufacturing sector;
The GHG emission data comes from the companies under EVE with mature operations in the battery manufacturing sector. The GHG emission data covers 7types of GHGs (CO
, CH
, N
O, HFCs, PFCs, SF
, and NF
). Their data is consolidated through the operation control method and calculated in the method basedon ISO 14064-1: 2018 and GHG Protocol. The emission factors are selected from: (1) Calculation of fuel and fugitive source emission factors referring to2006IPCC Guidelines for National Greenhouse Gas Inventories, with the calori?c value of fuel obtained based on GB/T2589-2020General Rules for Calculation ofthe Comprehensive Energy Consumption, of which the calori?c value of natural gas is from parameters of the suppliers; (2) For outsourced electricity, the av-erage emission factor of Chinese grid in 2023 is used, and it is from theNotice of the Administration of GHG Emission Reports of Electricity-generating Enter-prises 2023–2025; (3) For steam, the default value of thermal emission factor in theGuidelines on the GHG Emission Accounting and Reporting for MachineryManufacturing Enterprises (Interim) is adopted.
The emission and waste data comes from companies under EVE with mature operations in the battery manufacturing sector. Compared with 2022, thescope waste data in 2023 was extended to cover recycled NMP solution and non-raw and non-auxiliary materials waste products (such as packaging paper,wood, and steel scrap). The wastewater discharge data only covers industrial wastewater, which is treated in the Company’s self-built wastewater treatmentstations in line with given standards for water replenishment of the cooling system or discharged into the industrial sewage treatment works via the munici-pal sewage pipeline network.
In 2022, the co-processing of general industrial solid wastes in cement kiln was counted as recycling, so the general industrial solid wastes were recycled100% in that year, with 0 disposed.
IndicatorUnit20222023
2023 Sustainability Report
/
IndicatorsUnit20222023
IndicatorsUnit20222023
Operating revenueRMB 100 million363.04487.84Net pro?t attributable to shareholders of the listed companyRMB 100 million35.0940.50Shareholders' Meeting Meeting710Board of Directors meetingMeeting1921Board of Supervisors meetingMeeting1920Number of directorsPerson77Number of independent directorsPerson33Number of female directorsPerson22Corruption cases occurred during the yearIncident 21Coverage of anti-corruption training for employees%100100Number of anti-corruption training sessions for managementTraining/7
?Economic and governance performance
Number of employees using parental leave (by gender)
TotalPerson1,3252,564MalePerson/1,775FemalePerson/789Total number of employees returning to work after the end of parentalleave
Person/2,242Employment contract signing rate%100100Coverage of employee training (by gender)Total coverage%/95.52Male%/98.60Female%/93.34Average training hours of employees (by gender)Total average hoursHour/31.5MaleHour/31.0FemaleHour/32.6Work safety inputRMB 10,0004,6935,155Number of safety drills
Drill 5,5654,712Number of major safety accidents and environmental pollution incidentsAccident/incident00Mortality rate
millions of working
hours
Number of deaths of employees and contractorsPerson00Proportion of sourcing from local suppliers
%30.2421.59Number of suppliers carrying out environmental and social impactassessments
Supplier150231Percentage of products to be withdrawn and recalled for health andsafety concerns
%00
Explanation on statistical scope and calculation methods:
The employee data and safety data come from domestic holding companies (including subsidiaries in Hong Kong).
The "management" counted covers personnel at management positions.
"Revenue-generating departments" refer to the departments that promote the Company's revenue. The statistical scope in this year covers the salespersonnel of the Company.
"STEM related positions" refer to positions related to science, technology, engineering and mathematics, and the statistical scope in this year covers thetechnicians of the Company.
"Total number of employees returning to work after the end of parental leave" is the total number of employees who are still in service during the reportingperiod after taking parental leave.
The mark "/" indicates the data not counted in the previous year.
In 2023, we refined the formulation principle of the drill plan, and planned level-based drills according to the risks of accident scenes to reduce thefrequency of emergency drills for low-risk scenes, focus on the prevention and control and emergency response capabilities of medium- and high-risk scenes,and improve the risk and emergency response capabilities of key sites effectively.
The proportion of sourcing from local suppliers is calculated as the proportion of raw material purchased from suppliers in Guangdong Province to total rawmaterial purchased from January to December 2023. The companies covered by the data are EVE, EVE Power, Huizhou EVE Power, EVE Innovation Energy,EVE Energy Storage, Ningbo EVE and EVE Linyang.
2023 Sustainability Report
/
Entity
Category ofmain andcharacteristic
pollutants
Descriptionof main and
characterpolluters
Dischargemethod
Number ofdischargeoutlets
Distribution
ofdischarge
outlets
Emissionconcentration/intensity
Implementation ofpollutant dischargestandards
Totalemissions(t/a)
Approvedtotalemissions(t/a)
Excessemissions
EVE
Atmosphericpollutants
Non-meth-ane hydrocar-
bon
Organized2
Xikengfactory
2.145 mg/m
Standard for lith-ium-ion/lithiumbatteries in Table 5 ofEmission Standard ofPollutants for Battery
Industry (GB30484-
2013): 50 mg/m
0.0221.164None
Water pollut-ants
Chemical
oxygen de-mand
Intermittent1
Xikengfactory
37.5 mg/L
Industrial wastewater:
Standards for indirectemissions in Table 3
of Emission Stan-dards of Pollutantsfor Battery Industry(GB30484-2013): 70mg/L
0.51533.15None
Water pollut-ants
Ammonianitrogen
Intermittent1
Xikengfactory
0.2485 mg/L
Industrial wastewater:
Standards for indirectemissions in Table 3of Emission Stan-dards of Pollutantsfor Battery Industry(GB30484-2013): 10mg/L
0.00340.048None
Ningbo
EVE
Atmospheric
pollutants
Non-meth-ane hydrocar-bon
Organized4
Ningbofactory
4.1538 mg/m
Standard for lith-ium-ion/lithiumbatteries in Table 5 ofEmission Standard ofPollutants for BatteryIndustry (GB30484-2013): 50 mg/m
0.45814.18None
Water pollut-ants
Chemical
oxygen de-mand
Intermittent1
Ningbofactory
111 mg/L
Industrial wastewater:
Standard for indirectemissions in Table 2ofEmission Standard ofPollutants for BatteryIndustry (GB30484-2013): 150 mg/L
0.74831.196None
Water pollut-ants
Ammonianitrogen
Intermittent1
Ningbofactory
0.8685 mg/L
Industrial wastewater:
Standard for indirectemissions in Table 2ofEmission Standard ofPollutants for BatteryIndustry (GB30484-2013): 30 mg/L
0.00620.239None
EVEInnovationEnergy
Atmosphericpollutants
Non-meth-ane hydrocar-bon
Organized7
The fourth,?fth andthirteenthfactories
6.01 mg/m
Standard for lith-ium-ion/lithiumbatteries in Table 5 ofEmission Standard ofPollutants for BatteryIndustry (GB30484-2013): 50 mg/m
8.603830.0563None
EVE Power
Atmosphericpollutants
Non-meth-ane hydrocar-bon
Organized43
Zone 1,Zone 2,Zone 3,Zone 4,Zone 6,Zone 7,Zone 8 andZone 9
7.053 mg/m
Standard for lith-ium-ion/lithiumbatteries in Table 5 ofEmission Standard ofPollutants for BatteryIndustry (GB30484-2013): 50 mg/m
22.2825289.772None
Entity
Category ofmain andcharacteristicpollutants
Descriptionof main and
character
polluters
Dischargemethod
Number ofdischarge
outlets
Distributionofdischarge
outlets
Emissionconcentration/intensity
Implementation ofpollutant discharge
standards
Totalemissions
(t/a)
Approved
totalemissions
(t/a)
Excessemissions
Environmental Emission and Permit Information of KeyOrganizations under Environmental Supervision
IndicatorsUnit20222023Number of lawsuits involving unfair competition and violation of antitrustand anti-monopoly laws
Lawsuit00R&D investmentRMB 100 million22.6128.71Ratio of R&D investment to revenue%6.235.88Explanation on statistical scope and calculation methods:
The statistical scope of the Company's economic and governance data is consistent with the scope of its consolidated ?nancial statements.
2023 Sustainability Report
/
EVE Power
Atmospheric
pollutants
Sulfur dioxideOrganized1Zone 26.82 mg/m
Standard for gas-?redboilers in Table 3 ofEmission Standardof Air Pollutants for
Boiler(GB13271-2014): 50
mg/m
0.3523.55None
Atmospheric
pollutants
Nitrogen
oxides
Organized1Zone 281.27 mg/m
Standard for gas-?redboilers in Table 3 ofEmission Standardof Air Pollutants for
Boiler(GB13271-2014): 150
mg/m
3.95616.60None
Atmosphericpollutants
ParticlesOrganized1Zone 23.77 mg/m
Standard for gas-?redboilers in Table 3 ofEmission Standardof Air Pollutants for
Boiler(GB13271-2014): 20
mg/m
0.16951.9931None
Waterpollutants
Chemicaloxygendemand
Intermittent6
Zone 2,Zone 4,Zone 6,Zone 7,Zone 8 andZone 9
34.02 mg/L
Industrial wastewater:
Standard for indirectemissions in Table 2of Emission Standardof Pollutants forBattery Industry(GB30484-2013): 150mg/L
1.2450.338None
Waterpollutants
Ammonianitrogen
Intermittent6
Zone 2,Zone 4,Zone 6,Zone 7,Zone 8 andZone 9
3.44 mg/L
Industrial wastewater:
Standard for indirectemissions in Table 2of Emission Standardof Pollutants forBattery Industry(GB30484-2013): 30mg/L
0.15434.471None
EUE
Atmosphericpollutants
Non-methanehydrocarbon
Organized8
Zone B,Zone C
3.42 mg/m
Requirements forair pollutant limitsof new facilities inEmission Standard ofPollutants for BatteryIndustry (GB 30484-2013): 50 mg/m
3.637120.0562None
Entity
Category ofmain andcharacteristicpollutants
Descriptionof main andcharacterpolluters
Dischargemethod
Number ofdischarge
outlets
Distributionofdischargeoutlets
Emissionconcentration/intensity
Implementation ofpollutant dischargestandards
Totalemissions(t/a)
Approvedtotalemissions(t/a)
Excessemissions
EUE
Atmosphericpollutants
Nitrogenoxides
Organized2
Zone B,Zone C
32 mg/m
Special emissionlimits in Table 3 ofEmission Standard ofAir Pollutants for Boil-er (DB 44/765-2019):
50 mg/m
5.720326.89None
Water pollut-ants
Chemicaloxygen de-mand
Intermittent2
Zone B,Zone C
16.45 mg/L
Category IV standardin the EnvironmentalQuality Standards forSurface Water (GB3838-2002) and labellimit of supplement-ing water for opencirculating coolingwater system inThe Reuse of UrbanRecycling water–Wa-ter Quality Standardfor Industrial Uses(GB/T 19923-2005)(whichever is stricter):
30 mg/L
0.11220.3862None
Water pollut-ants
Ammonianitrogen
Intermittent2
Zone B,Zone C
0.407 mg/L
Category IV standardin the EnvironmentalQuality Standards forSurface Water (GB3838-2002) and labellimit of supplement-ing water for opencirculating coolingwater system inThe Reuse of UrbanRecycling Water–Wa-ter Quality Standardfor Industrial Uses(GB/T 19923-2005)(whichever is stricter):
1.5 mg/L
0.00670.0193None
Entity
Category ofmain andcharacteristic
pollutants
Descriptionof main andcharacterpolluters
Dischargemethod
Number ofdischarge
outlets
Distributionofdischarge
outlets
Emissionconcentration/
intensity
Implementation ofpollutant discharge
standards
Totalemissions
(t/a)
Approved
totalemissions
(t/a)
Excessemissions
2023 Sustainability Report
/
EVE Power
Two New Industrial X-ray CT Projects in 8J9J Facto-ry of Zone2 of EVE Power Co., Ltd.
Independent acceptanceDecember 5, 2023/EVE Power No. 3 Industrial Park (Change) Phase IIIndependent acceptanceFebruary 10, 2023/Environmental Protection Acceptance for theCompletion of HBF16GWh Passenger Car Lithi-um-ion Power Battery Project of EVE Power Co.,Ltd.
Independent acceptanceDecember 29, 2023/
Sewage discharge permit (re-application) 914208000500011598001QApril 25, 2023April 24, 2028
EUE
Report Form of Environmental Impact of NewConcentrated Water Complexation ExperimentProject in IQC Laboratory of Huizhou EVE UnitedEnergy Co., Ltd.
H. S. H. (Zhongkai) J. [2023] No. 84May 24, 2023/
Environmental Protection Acceptance for theCompletion of Natural Gas-?red Boiler Reconstruc-tion and Expansion Project of Huizhou EVE UnitedEnergy Co., Ltd.
Independent acceptanceSeptember 13, 2023/
Environmental Protection Acceptance for theCompletion of Production Equipment, AuxiliaryEquipment and Supporting Pollution PreventionFacilities of the Production Line of 84 Million Pris-matic Lithium-ion Batteries (279 Million Ah/a) ofHuizhou EVE United Energy Co., Ltd.
Independent acceptanceSeptember 13, 2023/
Sewage discharge permit (re-application) 91441300MA51W6K13R001UApril 10, 2023April 9, 2028
Company nameApproval documentDocument No.Issuing dateExpiration date
EVE
Reply on the Capacity Expansion and EfficiencyImprovement of Automatic Production Line ofGreen High-energy Lithium Thionyl Chloride andLithium Manganese Batteries for Internet of Things
H. S. H. (Zhongkai) J. [2023] No. 4February 7, 2023/
Ningbo EVEPollutant discharge permit (change)91330283MA2J42GE1D001QMarch 2, 2023October 19, 2026
EVE InnovationEnergy
Acceptance of New Industrial X-ray CT Project ofEVE Innovation Energy Co., Ltd.
Independent acceptanceFebruary 27, 2023/Pollutant discharge permit (change)91420800MA491GF58H001VDecember 11, 2023November 14, 2027
EVE Power
Approval Opinions on the Report Form of Envi-ronmental Impact of Logistics Integration Plant ofEVE Power Co., Ltd.
J. H. D. S. [2023] No. 26May 9, 2023/
Reply on the Report Form of Environmental Im-pact of Two New Industrial X-ray CT Machines in14th Factory of Zone 7 of EVE Power Co., Ltd.
J. H. S. [2023] No. 76October 23, 2023/
Environmental Protection Acceptance for theCompletion of 20GWh High-Energy-Density LFPEnergy Storage Power Battery Project of EVE Pow-er Co., Ltd.
Independent acceptanceNovember 1, 2023/
Environmental Protection Acceptance for theCompletion of Three New Industrial X-ray CT Ma-chines in HBF16GWh Passenger Car Lithium-ionPower Battery Project of EVE Power Co., Ltd.
Independent acceptanceDecember 5, 2023/
Three New Industrial X-ray CT Projects in 12J Fac-tory of EVE Power Co., Ltd.
Independent acceptanceSeptember 5, 2023/
2023 Sustainability Report
Company nameApproval documentDocument No.Issuing dateExpiration date
/
No industry standards in use
GRI 2: GeneralDisclosures 2021
2-2 Entities included in the or-ganization’ssustainability reporting2-3 Reporting period, frequen-cy and contact point
Company Pro?leBusiness Presence
About This ReportKey Performance TableThird-partyAuthentication ReportAbout EVEKey Performance TableRights and Bene?ts of EmployeesSound Corporate Governance
ESG Management
2-4 Restatements of infor-mation2-5 External assurance
2-7 Employees2-8 Workers who are not em-ployees2-9 Governance structure andcomposition2-10 Nomination and selectionof the highestgovernance body2-11 Chair of the highest gov-ernance body
2-6 Activities, value chain andother businessrelationships
2-1 Organizational details
2-12 Role of the highest gover-nance body in overseeing themanagement of impacts
ESG ManagementPlease refer to the EVE 2023 AnnualReport for details
Sound Corporate GovernancePlease refer to the EVE 2023 AnnualReport for details
Please refer to the Articles of Associa-tion for detailsSound Corporate Governance
About This ReportStatistical coverage of informationand datain the report
Not applicable “Omission”
General disclosures
Statement of useGRI 1 usedApplicable GRI SectorStandard(s)
EVE has reported in accordance with the GRI Standards for the period from January 1 to December 31, 2023.GRI 1: Foundation 2021
GRI Standards Index
GRI 2: GeneralDisclosures 2021
ESG ManagementESG Management
ESG ManagementESG Management
2-14 Role of the highestgovernance body in sus-tainability reporting
2-18 Evaluation of theperformance of the high-est governance body
2-22 Statement on sus-tainable developmentstrategy
2-24 Embedding policycommitments
2-23 Policy commitments
2-20 Process to determineremuneration2-21 Annual total com-pensation ratio
ESG ManagementMessage from the ChairmanOmission
2-19 Remuneration poli-cies
Due to the Company's information con-fidentiality requirements, 2-18-c is notyet available for disclosure
Please refer to the Remunerationand Evaluation Plan 2023 for Direc-tors and Senior Executive Ocers fordetails
Due to the Company's informationcon?dentiality requirements, 2-21-a/b/c is not yet available for disclosure
ESG Management
Rights and Bene?ts of Employees
2-13 Delegation of re-sponsibility for managingimpacts
ESG Management
Rights and Bene?ts of Employees
Responsible Sourcing
Responsible Sourcing
Business Ethics
Business Ethics
2-17 Collective knowledgeof the highest governancebody
2-16 Communication ofcritical concerns
Sound Corporate GovernancePlease refer to the EVE 2023 AnnualReport for details
Con?dentialityconstraints
Con?dentialityconstraints
Please refer to the EVE 2023 AnnualReport for detailsPlease refer to the Remunerationand Evaluation Plan 2023 for Direc-tors and Senior Executive Ocers fordetailsSound Corporate Governance
2-15 Con?icts of interestGRI StandardsDisclosure
Reference chapter/Website
reference/Remarks
OmissionsExplanations
GRI StandardsDisclosure
Reference chapter/Website
reference/Remarks
OmissionsExplanations
2023 Sustainability Report
/
Indirect Economic Impacts
Procurement Practices
Anti-corruption
Anti-competitive Behavior
GRI 3：
MaterialTopics 2021GRI 203：
IndirectEconomic Impacts
2016
GRI 3：
Material Topics2021GRI 204: ProcurementPractices 2016
GRI 205: Anti-corruption2016
GRI 3: Material Topics2021
GRI 3:Material Topics2021GRI 206: Anti-competitive Behavior2016
3-3 Management ofmaterial topics
Value Co-creationValue Co-creationValue Co-creation
204-1 Proportion of spend-ing on local suppliers
205-2 Communicationand training about an-ti-corruption policiesand procedures
206-1 Legal actions foranti-competitive behav-ior, anti-trust, and mo-nopoly practices
205-1 Operations as-sessed for risks relatedto corruption
205-3 Confirmed inci-dents of corruption andactions taken
3-3 Management ofmaterial topics
3-3 Management ofmaterial topics
Business EthicsBusiness Ethics
Business Ethics
Business Ethics
203-1 Infrastructureinvestments and servicessupported203-2 Signi?cant indirecteconomic impacts
3-3 Management ofmaterial topics
Supply Chain ManagementKey Performance Table
Business EthicsKey Performance Table
Key Performance Table
InformationincompleteInformationincomplete
Such information is not complete yetand 205-1-b is not available to fullydisclose.Such information is not complete yetand 205-1-a/c/d is not available tofully disclose.
GRI 201：
EconomicPerformance2016
Economic Performance
GRI 2: GeneralDisclosures 2021
GRI 3: MaterialTopics 2021
GRI 3: MaterialTopics 2021
ESG Management
ESG ManagementESG Management
Omission
Omission
Omission
2-26 Mechanisms forseeking advice and rais-ing concerns
2-29 Approach to stake-holder engagement
3-1 Process to determinematerial topics3-2 List of material topics
2-30 Collective bargain-ing agreements
3-3Management ofmaterial topics
Please refer to the sections of thereport for detailsEvents of 20232-27 Compliance withlaws and regulations2-28 Membership associ-ations
Due to the Company's information con-fidentiality requirements, this data isnot yet available for disclosureSuch information is not counted yetand is not available for disclosure.Such information is not counted yetand is not available for disclosure.
201-2 Financial impli-cations and other risksand opportunities dueto climate change
201-1 Direct economicvalue generated anddistributed
201-4 Financial assis-tance received fromgovernment
201-3 Defined benefitplan obligations andother retirement plans
Key Performance TablePlease refer to the EVE 2023 AnnualReport for detailsKey Performance TablePlease refer to the EVE 2023 AnnualReport for detailsResponse to Climate Change
Not applicable "omission"
2-25 Processes to reme-diate negative impacts
Due to the Company's informationcon?dentiality requirements, 2-30-a/b isnot yet available for disclosure
ESG ManagementRights and Bene?ts of EmployeesResponsible SourcingBusiness Ethics
Business Ethics
Con?dentialityconstraints
Con?dentialityconstraintsInformationunavailableInformationunavailable
GRI StandardsGRI StandardsDisclosureDisclosure
Reference chapter/Websitereference/RemarksReference chapter/Websitereference/Remarks
OmissionsOmissionsExplanationsExplanations
2023 Sustainability Report
/1202023 Sustainability Report
Water and Euents
EnergyGRI 3: Material Topics
2021
GRI 3: Material Topics
2021
GRI 302: Energy 2016
GRI 303: Water and
Effluents 2018
3-3 Management ofmaterial topics
3-3 Management ofmaterial topics
Resource Management
Resource Management
Informationunavailable
informationincomplete
informationincomplete
302-2 Energy consump-tion outside of the organi-zation302-3 Energy intensity
302-1 Energy consump-tion within the organiza-tion
302-4 Reduction of en-ergy consumption
OmissionOmissionOmission
Omission
Con?dentialityconstraints
Due to the Company's information con-fidentiality requirements, this informa-tion is not yet available for disclosure
Our products involve consumer batter-ies, power batteries and energy storagebatteries, and there are many producttypes and application scenarios. There-fore, the calculation of product energydemand is complex and affected bymany factors, and no standard statisticalmethod has been formed, so it is di-cult to be counted and disclosed.
303-3-b/c cannot be fully disclosed.During the reporting period, the drewwater from municipal water supply sys-tems (third parties),the amount of waterwithdrawal categorized by source (fresh-water or other sources), and the amountof water withdrawal in areas with waterstress have not been accurately quanti-?ed.303-4-b/c cannot be fully disclosed,the amount of water withdrawal cate-gorized by source (freshwater or othersources), and the amount of water with-drawal in areas with water stress havenot been accurately quanti?ed.
302-5 Reductions inenergy requirements ofproducts and services
303-1 Interactions withwater as a shared re-source303-2 Management ofwater discharge-relatedimpacts
303-3 Water withdrawal
303-4 Water discharge
Resource ManagementEmissions and EnvironmentalImpact
Emissions and EnvironmentalImpact
Key Performance Table
Resource ManagementEmissions and EnvironmentalImpact
Environmental emission and permitinformation of key units under envi-ronmental supervision
Emissions and EnvironmentalImpactKey Performance Table
GRI 303: Water and
Effluents 2018
GRI 3:Material Topics2021
GRI 304:Biodiversity2016
GRI 3:Material Topics2021
303-5 Waterconsumption
3-3 Management ofmaterial topics
3-3 Management ofmaterial topics
304-2 Signi?cant impactsof activities, products andservices on biodiversity304-3 Habitats protectedor restored
304-1 Operational sitesowned, leased, managedin, or adjacent to, pro-tected areas and areasof high biodiversity valueoutside protected areas
304-4 IUCN Red Listspecies and nationalconservation list specieswith habitats in areasaffected by operations
Omission
Emissions and Environmental Impact
Emissions and Environmental ImpactNone of the Company's operationsare located in legally protectedecological areas or other importantareas for ecosystems, and its pro-duction and operational activitiesdo not have a signi?cant impact onbiodiversity.
Response to Climate ChangeEmissions and Environmental Impact
Due to the Company's informationcon?dentiality requirements, this datais not yet available for disclosure
GRI 305:Emissions
2016
305-2 Energy indirect(Scope 2) GHG emissions
305-1 Direct (Scope 1)GHG emissions
Key Performance TableKey Performance Table
Biodiversity
Emissions
Confidentialityconstraints
GRI StandardsDisclosure
Reference chapter/Websitereference/Remarks
OmissionsExplanationsGRI StandardsDisclosureReference chapter/Website
reference/Remarks
OmissionsExplanations
/1222023 Sustainability Report
Supplier Environmental AssessmentGRI 3:Material
Topics 2021
3-3 Management of materi-al topics
Supply Chain Management
Responsible Sourcing
GRI 308: SupplierEnvironmentalAssessment 2016
308-1 New suppliers thatwere screened using envi-ronmental criteria 8
Supply Chain Management
Information incom-plete
Such information is not com-plete yet and 308-1-a is notavailable to fully disclose.
308-2 Negative environmen-tal impacts in the supplychain and actions taken
Responsible Sourcing
Key Performance Table
Confidentiality con-straints
Due to the Company's infor-mation confidentiality require-ments, 308-2-b/c/d/e is not yetavailable for disclosure.
Informationincomplete
Data is not disaggregated bydisposal operation and 306-5-b/c/d is not yet available to befully disclosed.306-5 Waste directedto disposal
GRI 306: Waste 2020
Total weight of non-hazardousindustrial solid waste and haz-ardous waste directed to dis-posal have been disclosed, andthe company's waste directed todisposal is disposed of by thirdparties.
Key Performance Table
Total weight of non-hazardousindustrial solid waste (non-haz-ardous waste) and hazardouswaste recycled has been dis-closed, of which part of thenon-hazardous industrial solidwaste is recycled internally bythe company, but it accountsfor a small percentage and doesnot have a signi?cant impact, soit is not included in the scope ofstatistics.
Key Performance Table
306-4 Waste divertedfrom disposal
305-3 Other indirect(Scope 3) GHG emis-sions
Scope 3 GHG emissions data are sub-ject to annual verification results andare not yet disclosedInformation in-completeOmission
GRI 305:Emissions
2016
Due to the Company's informationcon?dentiality requirements, this datais not yet available for disclosure.ConfidentialityconstraintsOmission
305-5 Reduction ofGHG emissions
Response to Climate ChangeResource Management
GRI 3:Material Topics
2021
GRI 306: Waste2020
3-3 Management ofmaterial topics
Emissions and EnvironmentalImpact
305-6 Emissions ofozone-depleting sub-stances (ODS)
During the reporting period, thecompany was not involved in signif-icant emissions of ozone-depletingsubstances (ODS), so this data is notavailable.Not applicableOmission
305-4 GHG emissionsintensity
305-7 Nitrogen oxides(NOx), sulfur oxides(SOx), and other signi?-cant air emissions
Emissions and Environmental ImpactKey Performance Table
Information in-complete
Due to SOx, VOC, PM data is to becompleted, 306-7-a cannot be fullydisclosed.Due to lack of uniform standardsfor statistics, POP and HAP data notquanti?ed.
Emissions and Environmental Im-pactDuring the reporting period, thecompany's waste was disposed ofin a compliant manner and did notinvolve any signi?cant actual or po-tential impacts306-2 Management ofsignificant waste-relat-ed impacts
306-1 Waste gener-ation and significantwaste-related impacts
Resource ManagementEmissions and Environmental Impact306-3 Waste generatedKey Performance Table
Waste
GRI StandardsDisclosure
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OmissionsExplanations
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GRI 403:
OccupationalHealth and Safety2018
403-4 Worker participation,consultation, and commu-nication on occupationalhealth and safety
Occupational Health and Safty403-5 Worker training onoccupationalhealth and safety
Occupational Health and Safty403-6 Promotion of workerhealth
Employee Rights and Bene?ts
Occupational Health and Safty403-7 Prevention and mit-igation of occupationalhealth and safety impactsdirectly linked by businessrelationships
Occupational Health and Safty
403-8 Workers covered byan occupational health andsafety management system
Occupational Health and Safty
GRI 403:
OccupationalHealth and Safety2018
403-9 Work-related injuries
Occupational Health and SaftyKey Performance
Confidentiality con-straints
Due to the Company's infor-mation confidentiality require-ments, 403-9-a-ii/iii/iv/v, 403-9-b, 403-9-c is not yet available fordisclosure.403-10 Work-related illhealth
Occupational Health and Safty
Confidentiality con-straints
Due to the Company's infor-mation confidentiality require-ments, 403-10-a/b/c is not yetavailable for disclosure.Training and Education
GRI 3:Material
Topics 2021
3-3 Management of materi-al topics
Talent Development and Re-tention
GRI 404: Training
and Education2016
404-1 Average hours oftraining per year per em-ployee
Key Performance404-2 Programs for upgrad-ing employee skills and tran-sition assistance programs
Talent Development and Re-
tention
EmploymentGRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Employee Rights and Bene?ts
GRI 401:
Employment 2016
401-1 New employee hiresand employee turnover
Key Performance
Confidentiality con-straints
Due to the Company's infor-mation confidentiality require-ments, 401-1-b is not yet avail-able for disclosure.401-2 Benefits provided tofull-time employees that arenot provided to temporaryor part-time employees
Employee Rights and Bene?ts
401-3 Parental leave
Employee Rights and Bene?tsKey Performance
Information incom-plete
The total number of returns hasbeen disclosed.401-3-c is not yet disaggregatedby sex, so it is not available to befully disclosed.Due to the Company's infor-mation confidentiality require-ments, 401-3-d/e is not yet avail-able for disclosure.Labor/Management RelationsGRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Employee Rights and Bene?tsGRI 402: Labor/ManagementRelations 2016
402-1 Minimum notice pe-riods regarding operationalchanges
Omission
Information unavail-able
Such information is not countedyet and is not available for dis-closure.
Occupational Health and SafetyGRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Occupational Health and Safty
GRI 403:
OccupationalHealth and Safety2018
403-1 Occupational healthand safety managementsystem
Occupational Health and Safty403-2 Hazard identi?cation,risk assessment, and inci-dent investigation
Occupational Health and Safty403-3 Occupational healthservices
Occupational Health and Safty
GRI StandardsDisclosure
Reference chapter/Website
reference/Remarks
OmissionsExplanationsGRI StandardsDisclosureReference chapter/Website
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Local CommunitiesGRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
ESG Management/ValueCo-creation
GRI 413: LocalCommunities 2016
413-1 Operations with localcommunity engagement,impact assessments, anddevelopment programs
Environmental Management
413-2 Operations with sig-ni?cant actual and potentialnegative impacts on localcommunities
Environmental ManagementEmissions and EnvironmentalImpactDuring the reporting period,the Company's constructionprojects all complied withthe requirements of laws andregulations related to ecolog-ical environmental protection,and there were no operatingpoints with significant nega-tive impactsSupplier Social Assessment
GRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Supply Chain ManagementResponsible Sourcing
GRI 414: SupplierSocial Assessment2016
414-1 New suppliers thatwere screened using socialcriteria
Supply Chain Management
Information incom-plete
Such information is not com-plete yet and 414-1-a is notavailable to be fully disclosed.414-2 Negative social im-pacts in the supply chainand actions taken
Responsible SourcingKey Performance
Confidentiality con-straints
Due to the Company's infor-mation confidentiality require-ments, 414-2-b/c/d/e is not yetavailable for disclosure.Customer Health and Safety
GRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Product Safety and Quality
GRI 416: CustomerHealth and Safety2016
416-1 Assessment of thehealth and safety impacts ofproduct and service catego-ries
Product Safety and Quality416-2 Incidents of non-com-pliance concerning thehealth and safety impacts ofproducts and services
Product Safety and Quality
GRI 404: Training
and Education
2016
404-3 Percentage of em-ployees receiving regularperformance and careerdevelopment reviews
Talent Development and Re-tentionDiversity and Equal OpportunityGRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Employee Rights and Bene?ts
GRI 405: Diversityand EqualOpportunity 2016
405-1 Diversity of gover-nance bodies and employ-ees
Key Performance405-2 Ratio of basic salaryandremuneration of women tomen
Omission
Confidentiality con-straints
Due to the Company's infor-mation confidentiality require-ments, this data is not yet avail-able for disclosure.Non-discriminationGRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Employee Rights and Bene?tsGRI 406: Non-discrimination 2016
406-1 Incidents of discrim-ination and corrective ac-tions taken
Employee Rights and Bene?ts
Child LaborGRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Employee Rights and Bene?tsGRI 408: ChildLabor 2016
408-1 Operations and sup-pliers at significant risk forincidents of child labor
Employee Rights and Bene?ts
Forced or Compulsory LaborGRI 3:MaterialTopics 2021
3-3 Management of materi-al topics
Employee Rights and Bene?ts
GRI 409: Forced orCompulsory Labor2016
409-1 Operations and sup-pliers at significant risk forincidents of forced or com-pulsory labor
Employee Rights and Bene?ts
GRI StandardsDisclosure
Reference chapter/Website
reference/Remarks
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Independent Assurance StatementIntroduction
T?V Rheinland (Shanghai) Co., Ltd., member of T?V Rheinland Group, Germany (hereinafter “T?V Rheinland”, “We”) has been entrusted bythe management of EVE Energy Co., Ltd. (hereinafter “EVE”, “the Company”) to conduct independent assurance of 2023 EVE SustainabilityReport (hereinafter “the Report”). All contractual contents for this assurance engagement rest entirely within the responsibility of EVE. Ourtask was to give a fair and adequate judgment on the Report.The intended users of this assurance statement are stakeholders who haverelevance to EVE’s overall Sustainability Performance and impacts of its business activities during year 2023 (1 January 2023 ~ 31 Decem-ber 2023). T?V Rheinland is a global service provider of Corporate Social Responsibility (CSR) & Sustainability Services in over 65 countries,having quali?ed professionals in the ?eld of Corporate Sustainability Assurance, Environment, Social and Stakeholder Engagement. We havemaintained complete impartiality and independence during the assurance engagement, and we were not involved in the preparation ofthe Report contents.Assurance StandardT?V Rheinland undertook the assurance work in accordance with the AA1000 Assurance Standard v3 (AA1000ASv3) Moderate level of as-surance.
Assurance MethodologyOur assurance activities included:
Reviewing the company’s management practices and processes to evaluate the sustainability management system, including thesustainability policy, corporate governance, compliance management, risk management, stakeholder communication, material issueanalysis, and key performance indicators.
T?V Rheinland performed the assurance based on the scope of de?ned engagement agreement, and on a moderate level assurance underthe AA1000AS for engagement. Information and performance data subject to assurance is limited to the contents of the Report.Our assurance work did not cover ?nancial report and its ?nancial data, and other information not related to sustainability.limited to the contents of the Report.
Reviewing and examining sustainability management practices and performance information and data to test the accuracy of suchinformation and data based on a sample basis and applied analytical procedures.Conducting interviews with company management and managers responsible for gathering and analyzing information on sustain-ability performance.Collecting documentary evidence and assessing management representations to support adherence to the AccountAbility Principles.
Scope & Type of Assurance
Our assurance engagement was carried out in accordance with the AA1000AS v3, Type 1, Moderate level on EVE’ssustainability performance information and data disclosed in the Report. The following assurance criteria were used in performing the as-surance work:
In accordance with GRI Sustainability Reporting Standards (GRI Standards)Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 2 - Standardized Operation of Listed Compa-nies on the Growth Enterprise Market (Revised in 2023)The United Nations Sustainable Development Goals (UN SDGs)Adherence to the AA1000 AccountAbility Principles of Inclusivity, Materiality, Responsiveness, and Impact.
Limitations
Conclusions
Based on our methodology and activities performed within the scope of this assurance, we can reach a conclusionthat no instances or information came to our attention that would be to the contrary of the statement made as below:
：
EVE Sustainability report (2023) and its contents adhere to the AA1000 AccountAbility Principles and align with GRI SustainabilityReporting Standards (GRI Standards).EVE has implemented management processes to collect and aggregate key performance data related to material issues within thereporting boundary, while the company identi?es, evaluates, de?nes and manages material issues.
Adherence to the AA1000 AccountAbility Principles
Daniel Pan
Inclusivity：
EVE’s identi?ed key stakeholders include governments and regulators, shareholders and investors, employees,customers, suppliers and partners, media and industry associations, as well as the public and the community. The company’s relevant busi-ness units continue to communicate and exchange with various stakeholders through diversi?ed communication channels to respond toconcerns in a timely manner. Supporting evidence shows that EVE conducted an online questionnaire survey of these stakeholders in 2023to understand their views and expectations on the current status and future of the company’s sustainable development practices, includingsuggestions for improvement. This report discloses information on the content of stakeholder communications, including issues of concern.Materiality：
EVE regularly conducts materiality assessments. Supporting evidence demonstrates that in 2023, based on the results of thestakeholder questionnaire survey to understand their hot spots, and combined with the company’s sustainable development goals, industrydevelopment trends, and domestic and foreign sustainability-related standards, the company analyzed, evaluated and prioritized the topicsfrom the two dimensions of “importance to the company’ssustainable development” and “importance to stakeholders”, and formed a matrix of material issues. As shown in the matrix diagram, thematerial topics disclosed in this report include, but are not limited to, employee safety, product safety, compliance operations, employeerights, carbon emission management, and energy conservation and consumption reduction, etc., in order to focus on responding to theconcerns of key stakeholders. The results of the analysis of the above material issues and the topic matrix have been reviewed and approvedby the company’s sustainability committee.Responsiveness：
EVE has established a regular communication mechanism to conduct regular exchanges and interactions with key stake-holders on the company’s sustainability issues and expectations and provide timely and appropriate responses. These interactions includepublic disclosure to meet regulatory compliance requirements, customer research, internal information platforms, employee training,supplier audits and training, industry forums, and community events. Supporting evidence shows that in 2023, the company has set up anew compliance consultation mailbox to provide stakeholders with reporting services to prevent or avoid violations of the Code of BusinessConduct. In addition to the disclosure of information in regular social responsibility reports, in 2023, the company also launched or updatedrelevant policies on sustainable development, including labor rights protection, business conduct standards, and environmental manage-ment policies, etc., and published them on the company’s ocial website in a timely manner. This report discloses key performance indica-tor data, which covers greenhouse gas emissions, other signi?cant emissions and waste, employee management, health and safety, supplychain management, and environmental emissions and permits of key environmental regulatory units, and these data disclosures are com-parable. In addition, in 2023, EVE launched the Energy Digital Management 2.0 system, which provides a basis for real-time monitoring,collection and analysis of energy data.
The sustainability information and performance indicators disclosed in this report have been evaluated and supported by documen-tary evidence to re?ect EVE’s sustainability management and practices.
Corporate Sustainability Service Technical ManagerT?V Rheinland (Shanghai) Co., LtdShanghai, China, 3 April 2024
T?V Rheinland shall not bear any liability or responsibility to a third party for perception and decision on EVE based on this AssuranceStatement.
Impact：
EVE Sustainability Committee regularly reviews the SDGs and roadmap and aligns them with the United Nations SustainableDevelopment Goals (SDGs). The company focuses on sustainable development areas that have a signi?cant impact on its business opera-tions and combines risk management and compliance management to implement environmental impact assessment of new constructionprojects, identi?cation and management of occupational health and safety risks, labor and human rights management in accordance withthe law, and analysis of the potential impact of climate change. This report discloses speci?c actions in the areas of company’s three majorsustainable development goals. Supporting evidence shows that the company has conducted due diligence covering compliance, environ-ment, human rights, and supply chain environmental and social impacts in 2023. The company also takes into account the impact of sus-tainability in its analysis of material issues.collection and analysis of energy data.
Company address: 38 Huifeng 7th Road, Zhongkai Hi-Tech District, HuizhouWebsite: www.evebattery.comTel: +86-0752-5707101