Midea Group Environmental,Social and Governance Report
Stock code: 000333
0102
Build a Harmonious CommunityProtect the Blue PlanetStrive to Nurture Talents at MideaWork Together to Build a Harmonious Society
Efforts to Address Climate ChangePromote Environmental FriendlinessAim to Hold the Ecological Red LineMake Sustained Efforts for Green and Low-Carbon Development
Sustainable Development Strategy & ConceptStakeholder EngagementCompliance Governance
Reinforce Sustainable Development
About this ReportMessage from the ManagementAbout Midea Group
Digital Midea, Smart Industry27
Appendix
Appendix I: Environmental DataAppendix II: Social DataAppendix III: GRI Index
Table of Contents
Jointly Create theProsperous EcologyPractice “Bring Great
Innovations to Life”
Promote Smart TransformationJointly Create Sustainable ValueContribute to Industry Development
Aspire to Drive Innovation and R&DEndeavor to Standardize Product ManagementPursue High-Quality Customer Experience
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About this Report
This report is the third Environmental, Social and Governance ("ESG") Report issued by Midea Group Co., Ltd. (hereafterreferred to as "Midea Group", "Midea" or "the Company"). Based on the principles of objectivity, transparency,standardization and comprehensiveness, the report details the sustainability management efforts and highlights ofinitiatives undertaken by Midea Group and its subsidiaries ("the Group" or "we") in 2023. We hope this report will providean opportunity to promote communication with our stakeholders so that we can promote sustainable developmenttogether.
Scope of the ReportThis is an annual report covering the period from 1 January 2023 to 31 December 2023 (thereinafter referred to as"the Year" or "the Reporting Period"). Moreover, certain content mentioned in this report, whether before or after theReporting period, are included for the sake of completness.Unless otherwise stated, the scope of disclosure in this report is consistent with the Midea Group 2023 Annual Report,with Midea Group as the subject of disclosure, covering all subsidiaries of the listed entity.
Sources of Information
The information and data contained in this report are mainly derived from the official documents and reports of MideaGroup, including internal statistics and publicly available information. The Board of Directors of Midea Group undertakesthat there is no false record, misleading statement or material omission in this report, and is liable for the authenticity,accuracy and completeness of this report. Unless otherwise stated, all amounts disclosed in this report are denominatedin RMB.
Basis of Preparation
This report has been prepared in accordance with the Sustainability Reporting Standards (hereinafter referred as the "GRIStandards") issued by the Global Reporting Initiative (GRI). In preparing this report, we referred to principles of "accuracy", "balance", "clarity", "comparability", "completeness", "the context of sustainable development", "timeliness" and"verifiability", so as to determine what should be included in this report and how the information should be presented.
Access to the Report
This report is prepared in both Simplified Chinese and English and is released electronically. In case of any inconsistencybetween the two versions, the Chinese version shall prevail. If you have any questions or comments regarding thisreport, please feel free to email us at ir@midea.com.
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Message from the Management
In 2023, amidst the ongoing challenges of sluggish growth in the new economic cycle, technological competition, andglobal trade barriers, Midea Group standing at the historical milestone of its 55th anniversary, continues to confrontthese challenges with wisdom and courage. Adhering to the principle of "Stabilize Profit and Drive Growth", we furtheroptimize our "1+3+N" business reach and corporate governance mechanisms, achieving historic breakthroughs in ourdevelopment journey. Specifically, we have maintained stable performance in the Fortune Global 500, Forbes Global2000, and Brand Finance Global Top 100 Tech Brands.Guided by the three pillars of sustainable development: "the advanced nature of corporate governance, the continuousevolution of value concepts, and the spiritual growth of management", Midea Group upholds the vision of "creating agreen global supply chain, providing green products and services, and building a green and better home for mankind,"continuously improves the ESG system construction. Building upon the foundation of the ESG Committee, we havefurther established ESG sub-committees to comprehensively promote sustainable development work across all levels ofthe Group, relentlessly propose new ESG development goals, systematically conduct ESG training, and deeply integrateESG into our corporate strategy and daily operations, thereby achieving high-quality development of ESG work.Based on the three pillars, Midea focuses on four dimensions of ESG work: "Protect the Blue Planet, Build a HarmoniousCommunity, Practice ‘Bring Great Innovations to Life', and Jointly Create the Prosperous Ecology". We constantlyadvance our green strategy, optimize the global green industrial chain, enhance EHS management systems, and thusproviding green and high-quality products and services to global users. We also advocate for diverse and inclusivecultural and talent values, strengthen employee care, enhance employee rights and interests, continually give back tothe community, and thus promoting the development of harmonious communities. Moreover, we remain committed tothe vision of "Bring Great Innovations to Life," steadfast in R&D investment, optimize R&D layout and talent structure,
develop smarter, healthier, and low-carbon products. And we respond to national policies while actively implementingrecycling of waste products and green energy initiatives, vigorously promoting the transformation of brand-to-consumersales and using the power of technology to make life better for hundreds of millions of users. We continue to collaboratewith business partners to expand the radius of green development, grow together with suppliers in ESG management,and promote industrial transformation through proposing solutions such as green energy, making more contributions toChina and global dual carbon goals.Sustained high-quality development requires corporate to an entrepreneurial mindset and spirit of innovation. For over adecade, Midea has been continuously promoting digital transformation. Guided by the "Digital Midea 2025" strategy, weconstantly achieve self-innovation and external empowerment through digital, intelligent, and green and smart industrialsolutions., which is transforming from the ToC oriented business to the equal balanced development of both ToC andToB businesses. This equips more enterprises with the capabilities of future transformation, while upgrading fromtraditional manufacturing to intelligent manufacturing.Green and sustainable development has become a global consensus. Through the 2023 ESG report, we aim to deepenmutual understanding with all stakeholders, work together, and we welcome supervision and guidance from all sectors ofsociety.Looking ahead, Midea Group will continue to closely follow national strategies and international trends. True to thedevelopment vision of "Bring Great Innovations to Life", we will continuously enhance green development capabilities,create more green solutions, and embrace a greener and brighter future together with all of our employees, customers,shareholders, and partners!
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About Midea Group
Introduction to Business
Upon 55 years of development since it was foundedin 1968, Midea Group (listed on the Main Board ofShenzhen Stock Exchange in China, stock code:
000333) has grown into a global tech-leading companycomprising five businesses—Smart Home Solutions,Energy Solutions & Industrial Technology, IntelligentBuilding Technology, Robotics & Automation, andInnovation Business.Midea Group has boasted adiversified brand portfolio including Midea, LittleSwan, Toshiba, WAHIN, COLMO, Clivet, Eureka, GMCC,Welling, Servotronix, Hiconics, CLOU, Winone Elevator,KUKA, Annto and WDM. By the end of the ReportingPeriod, Midea Group had 33 R&D centers, and 40 majormanufacturing bases worldwide. Midea Group has morethan 190 thousand employees around the world, ofwhich more than 30,000 are based overseas. Our storesare distributed in more than 200 countries and regions,providing products and services for more than 400million users.Under the background of double circulations,domestic substitution and industrial upgrading, MideaGroup adheres to the strategic axis of "TechnologyLeadership, Direct To Customer, Digital IntelligenceDrive, Global Breakthroughs". Following the operatingphilosophy of "creating a better life for everyonein the world", Midea Group continues to expand itssmart home business. Meanwhile, Midea Group hastaken active steps to develop and invest in cutting-edge technologies to fully promote its commercial andindustrial solutions business. Meanwhile, Midea Groupactively assumes responsibility for the environment,society and governance in the course of business, andpractices the philosophy of sustainable developmentin business expansion. In this way, Midea Group aimsto contribute to the sustainable development of thesociety through its unique and innovative products andservices.
Corporate Culture
Philosophy of Midea
Businesses covering over
countries and regions
# 278
on the 2023 Fortune Global 500
# 82
on the Fortune China 500 list
# 199
on the 2023 Forbes Global 2000
# 36
on the Brand Finance Tech 100 Rankings 2023
Credit Ratings
Standard & Poor's A / Moody's A3 / Fitch A
Bring Great Innovations
to LifeVision
Integrate with the World, to
Inspire Your FutureMissionValue
Embrace what's next
Aiming HighCustomer FirstTransformationand Innovation
Tolerance and
PartnershipDedication and Commitment
0910
The three major business groups/divisions of Smart Home Solutions, Energy Solutions & Industrial Technology, andIntelligent Building Technology obtained ISO 37301 Compliance Management System CertificationThe integrity culture and anti-corruption education covers 100% employeesRequiring our business partners, such as customers and suppliers, have signed the Integrity Cooperation Agreement
Accumulation in 2023Reinforce Sustainable Development
Selected as one of Forbes World's Top Female-Friendly
Companies in 2023Launched the long-term incentive mechanism for 10consecutive years, benefiting over 15,000 people-timesInvested RMB 2.4 billion in employee care, including theconstruction of employee dormitories, meal subsidiesand othersPlanned to donate RMB 140 million to support theeducation development of local community
Build a Harmonious Community
Invested over RMB 132 million in energy saving andemission reduction, promoting 1,875 energy-savingprojectsThe installed capacity of distributed photovoltaic powergeneration systems reached 280 MW, generating morethan 220 million kWh of electricity, with the greenelectricity purchase of 7.439 million kWh
28 factories certified with the National Green FactoryCertification; 35 factories certified with ISO 50001Energy Management System Certification; 37 factoriescertified with ISO 14001 Environmental ManagementSystem Certification
Protect the Blue Planet
R&D investment exceeded 14.5 billion, winning 10national patent awards
Recycling services comprehensively covered Chinesedistricts and counties as well as key township-level markets, with a total of 3.098 million discardedhousehold appliances recycled
Launched strategic and technological researchcooperation with 124 domestic and overseas colleges
Conducted surveys on approximately 8 million users,achieving a user satisfaction rate of 98.56%
Practice “Bring Great Innovations to Life”
9 factories certified with National Green Supply ChainManagement EnterprisesA total of 9 core bulk raw material suppliers, includinghot-dip galvanized, aluminized zinc, stainless steel,aluminum ingots, etc., disclosed their product carbonemission data with the Group
Participated in the formulation and revision of 235external technical standards, including 5 internationalstandards, 70 national standards, 28 industry standardsand 132 local and group standards
Joined the United Nations Global Compact (UNGC)
Jointly Create the Prosperous Ecology
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Shareholder InterestsProtecting the rights and interests of shareholders and debtholders is the obligation of listed companies. Midea Groupalways follows the principles of compliance, equality and honesty, and takes the initiative to improve informationdisclosure and communication with investors. Besides, Midea Group provides timely and accurate information to thepublic, providing investors with a reliable basis for decision making.Information DisclosureMidea Group strictly regulates its own information disclosure behavior. Specifically, Midea Group regulates the principlesof information disclosure, content, responsibilities for information disclosure and confidentiality, and the process ofassessment and disclosure in accordance with the Company Law of the People's Republic of China, the Securities Law ofthe People's Republic of China, the Rules Governing the Listing of Shares on Shenzhen Stock Exchange, Regulations onInformation Disclosure of Listed Companies and other relevant laws and regulations, as well as the Articles of Associationof Midea Group, the Regulations on Information Disclosure of Midea Group and other internal rules. This ensures thetruthfulness, accuracy, completeness, timeliness and fairness of the information disclosed by Midea. The Group'sinformation disclosure has obtained an evaluation result of A by Shenzhen Stock Exchange for four consecutive years.Investor CommunicationAt Midea Group, under the premise of complying with the information disclosure requirements, we strengthencommunication with investors through multiple channels and answer the questions of the investors to the best of ourabilities. We help minority investors strengthen their understanding of Midea Group through the investor relationssection on the Company's website, the EasyIR platform of Shenzhen Stock Exchange, telephone hotlines, and emails.We set up an investor relations department, where dedicated personnel are assigned to handle investor relations-related affairs. Besides, we make full use of the characteristics of network technology to shortly, plainly and conciselydisseminate the Group's information. Through online performance presentations, mini-videos of WeChat official account,easy-to-understand image combined with explanatory text, and online Reception Day for the investors, we help investorskeep abreast of Midea Group's development and operational highlights. In 2023, we held a total of 4 General Meetings ofShareholders and 2 online performance presentations.
Returns to ShareholdersSince its listing in 2013, Midea Group has insisted on giving back to its shareholders by developing a profit distributionpolicy. Midea Group promises to review its shareholder return plan at least every three years in light of the marketsituation, so as to ensure that the policy can provide reasonable, consistent and stable returns to shareholders. In payingboth cash dividends and stock dividends while adhering to the principle of stable growth, we prioritize the distribution ofcash dividends and specify that the cumulative profit distributed in cash shall not be less than 30% of the average annualdistributable profit realized in the past three years. By the end of 2023, Midea Group had distributed cumulative cashdividends of over RMB 86 billion.
2022 Shareholder Return Plan
The cash dividend per 10 shares was RMB
. The total cash dividend amount was approximatelyRMB
17.2
billion, accounting for over
58%
of the net profit attributable to the parent company for the year.
2023 Proposed Shareholder Return Plan
A cash dividend of RMB
is proposed to be distributed per 10 shares, accounting for more than
61.6%
ofthe net profit attributable to the parent company for the year.
As of 2023
The total amount of Midea's repurchase had exceeded RMB
billion.
By the end of 2023
We had launched
Stock Option Incentive Schemes,
Restricted Share Incentive Schemes,
Global Partner Stock Ownership Schemes,
Business Partner Stock Ownership Schemes, and
Core PersonnelStock Ownership Scheme.In doing so, we have effectively built an equity structure that aligns the interests of the operating management, keypersonnel and all shareholders, and an incentive mechanism that balances long-term and short-term incentives andconstraints.Midea Group has continued to implement a series of share repurchase programs. The Company has launched sevenrepurchase programs since 2015, which were used for repurchasing and cancellation to improve earnings per share aswell as the implementation of the Company's equity incentive plan and employee stock ownership plan, as a way tomaintain the stability of the Company's market value and the interests of all shareholders.
While stabilizing its dividend payout, we have continued to apply a series of stock option incentive instruments since2014, to ensure that the interests of the Group, the shareholders, and the employees are well aligned.
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Sustainable Development Strategy&ConceptMidea Group attaches great importance to sustainable development and actively manages the environmental and socialimpacts of its manufacturing and operating activities. We are committed to becoming a world's leader in smart homeand an enabler of smart manufacturing. We also strive to integrate the concept of sustainable development into ourcorporate strategy, daily management and work, to achieve long-term and high-quality sustainable development.Statement by the Board
The Board of Directors of Midea Group assumes overall responsibility for sustainable development strategy andinformation disclosure. Our Board of Directors has set up an Environmental, Social, and Governance Committee ("ESGCommittee"), which holds meetings on quarterly and as-needed basis to oversee, guide, and implement the Group'ssustainable development work (including strategic planning, management structure, rules and implementation details,and performance). Additionally, an ESG Execution Group and an ESG Secretariat Group under the ESG committee wereestablished to execute our sustainable development work in support of ESG strategies and goals. In September 2023,we developed and publicly released the Work Rules of the Environmental, Social, and Governance (ESG) Committee ofMidea Group Co., Ltd., outlining the composition requirements, responsibilities, decision-making procedures, and rulesof consensus of the ESG Committee, aimed at further enhancing the construction of Midea Group's ESG system.Eight ESG sub-committees were established in January 2024 to ensure the top-down implementation of the sustainabledevelopment concept and integrate sustainable development factors into the Group's daily management and operations.These sub-committees are responsible for comprehensively promoting sustainable development of the Group's units atall levels. The ESG sub-committees meet quarterly to ensure the continued progress on ESG strategies and goals.
Reinforce SustainableDevelopment
The ESG Governance Structure of Midea Group
An ESG committee is established by theBoard of Directors, who is responsible forimplementing and regularly reviewing ESGvision, target indicators, core issue practicemanagement, risk management, etc.Frequency：quarterlyESG Committee
ManagementLevel
The Board of Directors bears overallresponsibility for sustainable developmentstrategy and information disclosure, andsupervises and guides the sustainabledevelopment related work of the groupwith the assistance of the ESG Committee.
Board of DirectorsStrategyLevel
Frequency：quarterly and as-needed basisAn ESG Execution Group and an ESGSecretariat Group were established by theESG Committee, who are responsible forexecuting sustainable development workin support of ESG strategies and goals.ESG Execution GroupESG Secretariat GroupExecutionLevel
Green Design &Product Carbon
FootprintSub-committee
Green Supply &Conflict MineralsSub-committee
Green Recycling
& ProductServicesSub-committee
Green Logistics
& PackagingSub-committee
Community Welfare &
DisclosureSub-committee
Employee Development &
EthicsSub-committee
Digital Midea·Smart IndustrySub-committee
GreenManufacturing& CarbonManagementSub-committee
Eight ESG sub-committees areresponsible for fully implementing thesustainable development, integratingsustainable development elements intodaily management and operation.Frequency：quarterly
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With the authorization of the Board of Directors, the ESG Committee continues to improve the effectiveness of ESGstrategies and goals on the basis of scientific assessments and rational planning. Combining market focus and hotspots,our own development strategy, and the results of stakeholder communication, the ESG Committee prudently assessesthe potential ESG risks and opportunities faced by the Group and their potential impacts on the Group's long-termoperations. On this basis, the ESG Committee prioritizes ESG issues and identifies our ESG management and reportingpriorities for the Reporting Period.The Group has established ESG management goals and performance indicators. Additionally, the management prioritiesand follow-up frequency of each sub-committee are determined according to the nature of the ESG issues. As thehighest decision-making body for sustainable development management, the Board of Directors regularly reviews ESGperformance and goals to ensure that appropriate and effective management policies are in place.To strengthen the ESG capacity building of the Board of Directors and members of the sustainable developmentmanagement structure, we conduct ESG training from time to time. During the Reporting Period, external expertswere invited to conduct training on ESG development trends, ESG practices of listed companies, and suggestions onESG planning, and more than 200 people participated in the training. Going forward, we will continue to strengthenthe dissemination of ESG concepts, effectively integrating the principles of sustainable development into the Group'sstrategic planning and daily operations.We have established a performance evaluation mechanism of sustainable development, incorporating sustainabledevelopment indicators into the performance evaluation of senior executives, including environmental, health andsafety (EHS) management, compliance management, ESG thematic activities, quality management, and others. Wecontinuously optimize the setting and evaluation mechanism of these sustainable development indicators in thecompensation assessment, well aligning it with the Group's sustainable development strategy, so as to reinforce theimplementation of sustainable development management.Sustainable Development GoalsMidea Group takes "the advanced nature of corporate governance, the advancement of value concepts, and the spiritualgrowth of management" as the three major cornerstones of sustainable development.. Starting from "Protect the BluePlanet, Build a Harmonious Community, Practice ‘Bring Great Innovations to Life', and Jointly Create the ProsperousEcology", we are building a green, safe, and stable supply chain for the world. Aiming to provide global users withgreen, intelligent, and easy-to-use products and services, Midea Group strives to promote the maintenance of a green,ecological, and sustainable community environment, and to work together with global users for building a green andbeautiful home.
Build a Harmonious CommunityProtect the Blue Planet
Practice "Bring Great Innovations to Life"Jointly Create the Prosperous Ecology
As a global tech-leading company, we adhere to the concept of sustainable development. While supporting the UnitedNations Sustainable Development Goals (SDGs), we set the Midea Group 2030 Sustainable Development Goals, aimingto continuously improve the Group's ESG performance and respond to stakeholders' expectation while responding toglobal challenges and effectively support the long-term development of business operations. Midea also included thediscussion on ESG issues and the progress of the following goals into the agenda of the monthly management meeting,with a view to the steady progress of the 2030 goal.
Midea Group 2030 Sustainable Development Goals
Jointly Create theProsperous Ecology
Coverage rate of sustainability performanceassessment for new suppliers (%)
Number of suppliers for SSC supplierempowerment (units)
1,000Due Diligence Rate of supplier controversialsourcing (%)
SustainableDevelopment Vision
Goal DescriptionProgress of the yearGoals for 2030
Protect the BluePlanet
GHG emission Intensity in Scopes 1 and 2(tCO
e / per RMB 10,000 of output value)
0.040
Number of factories cerificated with EnergyManagement System Certification (units)
Installed capacity of photovoltaic powergeneration system (MW)
The Compliance Rate of wastewater, exhaustgas and waste emission (%)
0.061
Build a HarmoniousCommunity
Number of training courses on "M-Learning"platform (units)
64,399Cumulative amount of "Employee Support Fund"(RMB million)
148.7
LTIR per 200,000 hours0.030Cumulative number of employees involved in theMidea Series of Public Welfare Activities Program(times)
10,000
28,874
64.7
0.063
Practice"BringGreat Innovationsto Life"
Accumulated R&D investment since 2020(RMB billion)
The number of products for CO
emissionaccounting in product use stage (units)
100% coverageof major MideaSmart HomeSolution categoriesCumulative number of recycled products('000 units)
50,000
49.3
4,150
1718
Sustainable Development Milestone
Stakeholder Engagement
Communication with Stakeholders
Midea Group attaches great importance to the expectations and demands of stakeholders. By establishing diversifiedcommunication channels with various stakeholders, we respond timely and improve relevant management, creatingvalue for all parties actively.StakeholdersDemands and ExpectationsCommunication and Response
◎Green development
◎Corporate governance
◎Compliant operation
◎Information disclosure
◎Shareholders' interests
◎Promote green strategies
◎Optimize governance structure
◎Improve risk management and performance appraisalmechanisms
◎ Publish periodic reports and company announcements
◎ Provide reasonable returns on investment
Investors andshareholders
Customers
◎Product innovation and development
◎Information security and privacyprotection
◎Product quality and safety
◎Product services and experiences
◎Product accessibility
◎Enhance technological innovation
◎ Establish systems and processes to protect customer privacy
◎Optimize business processes
◎Create intelligent and proactive services
◎Improve product sales channels
Employees
◎Employee training and development
◎Health and safety of employees
◎Legitimate rights and interests ofemployees
◎Diversity and equal opportunities
◎Employee remuneration and benefits
◎Build a perfect career progression channel
◎Promote measures to ensure the occupational health andsafety of employees
◎Protect the rights and interests of employees
◎Respect the diversity of the workplace
◎Provide competitive remuneration and benefits
Governmentsand regulators
◎Climate change
◎Business ethics and anti-corruption
◎Employment security
◎Address climate change
◎Abide by business ethics
◎Create job opportunities
Suppliers
◎Supply chain management
◎Fair procurement
◎Co-development
◎Improve the supplier admission review mechanism
◎Review and empower supplier ESG management
◎Strengthen cooperation and communication
Partners
◎Industry development
◎Mutual benefits and win-winoutcomes
◎Long-term and stable cooperation
◎Participate in the development of industry standards
◎Promote Midea's smart industry
◎Share development achievements
Midea founded the ESG Committee.Midea coordinated and promoted environmental, social and corporate governanceefforts to strengthen the sustainability of the Group.2022
In 2023, Midea passed the UN Global Compact audit and formally joined it.Midea was selected on the 2023 Fortune China ESG Impact ListMidea established the position of Chief Sustainability Officer.
2023
Midea established ESG sub-committees.Midea Building Technologies announced its commitment of the Science-Based TargetsInitiative (SBTi).Midea released Sustainability Development Vision.
◎Protect the Blue Planet
◎Build a Harmonious Community
◎Practice "Bring Great Innovations to Life"
◎Jointly Create the Prosperous Ecology
2024
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Materiality Assessment
To fully understand the concerns of stakeholders and better respond to their actual demands in our operation anddevelopment, Midea Group conducts a materiality assessment, taking into account multiple influencing factorscomprehensively. This assessment aims to continuously improve the effectiveness of ESG management.
The Year, Midea Group has identified 23 ESG issues that have significant impact on Midea Group and stakeholders fromenvironmental, social and governance aspects. These issues are classified as “very important”, “important” and “lessimportant” according to their impacts.
Process of Materiality Assessment
Identification
Analysis
Confirmation
Following the international sustainable development goals and frameworks (GRI, HKEX,SDGs, UNGC), we identify key internal and external stakeholder groups' focus for the Year,considering our geographical location, industry background, business activities, businessrelationships and strategic development direction.We understand the concerns and actual demands of various stakeholders in a timely mannerthrough various forms of communication, including written correspondence, phone calls,meetings, general meeting of shareholders, and questionnaires. We also define each ESGissue, taking into account the requirements of local regulators, best management practicesof domestic and foreign peers, and insights from third-party experts. And we analyze andprioritize the impact of these ESG issues on both Midea Group and the stakeholders, andconclude with a materiality matrix.The results of the materiality assessment are reviewed and confirmed by top-down, multi-level bodies such as the Board of Directors and the ESG Committee, and are served asthe basis for the Group's ESG management and planning, as well as information disclosurepriorities.
Compliance Governance
Compliance with the law is essential for the stable operation of enterprises, and good business conduct and code ofethics are the foundation for the long-term development of enterprises. Midea Group spares no effort to promotethe establishment of compliance management systems and cultural systems, continuously improves anti-corruptionand reporting mechanisms, and focuses on maintaining a positive and sound corporate image for setting an actionbenchmark for the industry.Corporate GovernanceThe advanced nature of corporate governance is one of the three cornerstones of Midea Group's sustainabledevelopment. The Group adheres to self-examination of corporate governance mechanisms from various perspectives,continuously improves these mechanisms, and promotes the transformation and innovation of corporate governance.We set up decentralized management policies in our functional departments, business groups, and divisions, andcontinually strengthen the regulatory framework for the group level companies and their subsidiaries.Decentralized GovernanceTo fully unleash organizational vitality and entrepreneurial spirit, the Group follows the principle of "delegating operationalmatters while controlling risks hierarchically." We formulate decentralization manuals at the primary level structure (suchas functional departments, business groups, and divisions), and require operating units at the secondary level structure(such as product companies, operating bodies, domestic and overseas sales, etc.) to formulate decentralization manualsas needed. The decentralization manuals standardize the processes that require review, joint review, approval, andfiling by superior departments, and clarify the management responsibilities of the chairman, vice presidents in charge,presidents of operating units, functional presidents, and heads of primary departments of operating units and above,aiming to achieve clear responsibilities and orderly decentralization. Relevant departments regularly conduct surveys onthe actual operation of decentralization and revise the decentralization manuals accordingly.Group Company and Subsidiary Company GovernanceThe Group owns multiple types of subsidiary companies, located in different countries and regions, subject to differentlegal jurisdictions. Depending on the business or corporate governance relationships of different companies, we classifysubsidiary companies into first-class companies, second-class companies, innovative platform companies, overseascompanies, special purpose companies, joint ventures, and equity companies. On the one hand, the Group regulatesthe corporate governance structure, management responsibilities, management content, management requirements,and accountability of group companies and their subsidiaries by formulating a series of Midea Group enterprisestandards to achieve the management goal of "legal compliance, pragmatic efficiency, clear rights and responsibilities,and complete records". On the other hand, while adhering to universal provisions and minimum requirements, theGroup implements different governance management requirements for its subsidiary companies. At the same time, weformulate corresponding management methods for matters such as the appointment of directors, supervisors, legalrepresentatives, and general managers of group companies and their subsidiaries, company secretary management,board meeting management, company property management, and archives management, further strengthening thedaily management of group companies and their subsidiaries without violating local laws and regulations where weoperate.
Midea Group's ESG Materiality Matrix
EnvironmentalSocialGovernance
Importance to Midea Group
Importance to Stakeholders
Sub-importantImportantVery ImportantWater Resource UseUse of Water Resources
BiodiversityIntellectual PropertyProtection
Corporate Governance
Green Supply ChainUse of Energy
Employee Rights &DiversityBusiness Ethics &Anti-corruptionResponsible Marketingand Communications
Climate Change
Shareholder RightsGreen ProductsCustomer ExperienceEmployee Developmentand TrainingManagement of ConflictMineralsPromoting IndustryDevelopment
Carbon EmissionsProduct Innovation and ResearchProduct Quality and SafetyWaste ManagementEmployee Health and Safety
Social ResponsibilityManagement of Supply ChainInformation Security andPrivacy Protection
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Compliance with the LawMidea Group attaches great importance to compliance risk prevention and control and other management. Following theconcept of "Midea's Development, Compliance Together", we continue to establish a sound compliance managementsystem from three aspects, namely management structure, management system and operation mechanism, and culturalconstruction.
Management StructureBy developing our compliance system through the three lines of defense, we continuously strengthen our effortsto implement our compliance risk identification, assessment, prevention and control and other related work. In thisway, we strive to successively improve our compliance governance capabilities. In terms of specialized complianceorganizations as the second line of defense, we have established Midea Group Legal Compliance Center, which isresponsible for coordinating the development of group compliance management rules, mechanisms, and capabilities.Additionally, compliance task groups, such as Trade Compliance Task Group, Data Compliance Task Group, CompetitionCompliance Task Group, Product Compliance Task Group, and Anti-bribery Compliance Task Group have beenestablished under the Compliance Center to improve our compliance system. To effectively implement the day-to-day compliance management, we have gradually established an integrated compliance management organization thatcombines functional compliance, national and regional compliance, and business group/division compliance. We havealso appointed compliance officers at the business group/division and regional levels, and compliance representativesin business departments, branches and subsidiaries, and factories. These compliance officers and representatives areresponsible for implementing the Group's compliance policies, reporting on material compliance risks, and conductingcompliance training and education.
Midea Group's Three Lines of Compliance Management Defense
The First Line of DefenseThe Second Line of DefenseThe Third Line of DefenseManagers and EmployeesCompliance risk ownersand managers: responsiblefor identifying, assessing,and addressing compliancerisks within their respectivebusiness departments
Audit, Investigation andInspectionMonitor and continuouslyimproveCompliance OrganizationsCoordinating, promoting,and supervising theimplementation
TradeCompliance
DataCompliance
CompetitionCompliance
ProductComplianceAnti-briberyCompliance
S
p
e
ci
a
l
i
z
a
t
i
o
n
,
g
lo
b
alization
and
digital
intelligenceObjectives
Mission & Vision
Risk insightsProcess-based operationMechanism-based operationProduct operation
Data operationRule-based operation
Compliance Management System
OrganizationCulture
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In terms of trade compliance, Midea Group issued the Management Statement on Compliance with Sanctions andExport Control Regulations and implemented trade compliance risk governance projects based on actual businessneeds. In the areas of competition compliance and anti-bribery compliance, we further refined the Midea Group AntitrustCompliance Management Measures and the Midea Group Anti-Bribery Compliance Norms, provided specific complianceoperation guidelines for different business scenarios based on business process optimization, so as to promote theimplementation of compliance management work. For data compliance, we have set up a data protection office. Inaccordance with the internal rules already released, such as the Data Safety Management Measures and the PersonalInformation Protection Management Measures, the team set up several data approval processes, and conductedprivacy compliance assessments in Europe, the United States, Vietnam, and other countries and regions. In addition, wecontinuously conduct data compliance self-inspection and audit of overseas official websites, IT systems, and apps aswell as applets, complete data export security assessment declarations, and thus further strengthen and optimize theprotection of relevant intelligent product data and personal privacy.
ISO 37301 Compliance Management
System Certification
Management Policies and Operating MechanismsAdhering to integrity in business operations, abiding by business ethics andcomplying with all applicable laws and regulations are the core conceptsthat Midea Group has always upheld. We have established and continuouslyimproved internal systems to effectively implement internal compliance work.In 2023, we have closely followed domestic and international regulatorytrends, benchmarked industry compliance standards, and in line with theglobal business development of Midea Group, collaborated closely withvarious functional departments, regions, business groups/divisions, and otherstakeholders to continuously optimize the construction and implementationof the compliance system. Among them, the Smart Home, IndustrialTechnologies, and Building Technologies have obtained ISO 37301 ComplianceManagement System Certification in the field of anti-monopoly and dataprotection.
Build a Compliance Culture
Midea Group is actively building a compliance culture. Our employees areoffered law updates, case analysis, compliance tips, and policy analysisthrough the publicity service account "Midea Compliance", the Group'scommunication platform. This is to improve employees' compliance awarenessand risk prevention capabilities. In addition, Midea Group also enhancescompliance awareness through comprehensive and multiple channels suchas regulatory updates and newsletters, special training, video courses, etc.,to create a sound corporate compliance culture. In 2023, nearly 45 trainingsessions were conducted, covering various areas such as trade compliance,data compliance, anti-bribery, anti-monopoly, and foreign-related contracts toempower compliance professionals.
"Mideas Development, Compliance
Together"
Business Ethics
To promote a clean and upright corporate culture, Midea Group adheres to the highest ethical standards andprofessional ethics for compliant operations, and continuously improves systems, management measures, and culturalawareness concerning integrity in business practices. We firmly oppose any forms of commercial bribery, corruption,fraud, and other violations of business ethics, regularly conduct business ethics audits, and strictly control integrity risks.In order to construct clean and honest business civilizations, Midea Group participates in the formation of the CorporateAnti-Corruption Alliance and the Sunshine Integrity Alliance, and probes into the governance of internal corruption withmore than 1,000 alliance members, thus jointly promoting the construction of a clean society.
Management PoliciesAdhering to the philosophy of honesty and integrity, the Group strictly follows the laws and regulations such as the Anti-Unfair Competition Law of the People's Republic of China. In addition, we have formulated the Midea Group BusinessCode of Conduct, which clearly defines norms such as fair competition, conflict of interest management, anti-corruption,anti-money laundering, insider trading, etc. And we consistently improve the Declaration and Disposal of Gifts Received,and the Management Measures for Accountability to guide and regulate employee behavior and implement the Group'sintegrity requirements.To further strengthen the standardization and effectiveness of anti-corruption efforts, the Group has formulated theManagement Measures for Integrity Reporting and improved the hierarchical reporting and investigation mechanismto ensure that the investigation is independent, objective, fair, and impartial. This will contribute to building a simple,transparent, fair, and just business ecosystem. In 2023, Midea Group did not receive any concluded bribery, fraud,corruption, or other lawsuits against the Group or employees.
Business Ethics Audit
The Group attaches great importance to the internal control system and risk control. We address high-risk areas, identifyand eliminate corruption and fraud risks based on annual audits covering all operations, thus firmly building a line ofintegrity prevention and control. During the Reporting Period, we conducted a survey on the integrity index involving allemployees, who were asked to rate the Group's business integrity, institutional development, and the effects of anti-corruption practices. This survey helped us identify gaps in our integrity efforts, while showing an enhanced awareness ofintegrity and compliance among our employees, who actively monitor issues such as information falsification and fraudin the workplace and take initiative to stop and report such problems. In response to this survey, the Group has takena series of special tasks, for emphasizing on the key role of Management in integrity practice. Any form of unethicalbehavior is prohibited under the principle of "zero tolerance". Through these efforts, we look forward to building aworkplace that is open, transparent, full of integrity and honesty.
2526
In January 2023, the Group conducted a training with the theme of "Navigating Infinite Possibilities". Caseinterpretation, fraud risk warnings throughout the business process, and Midea Group's self-statement andreaffirmation of exemption system were used to encourage employees to maintain their integrity and conductlegal and compliant business. The training covered front-line sales employees, key personnel, and managementfrom the kitchen and water heater divisions, with more than 500 participants.
Training with the Theme of "Navigating Infinite Possibilities"
Training with the Theme of "Navigating Infinite Possibilities"
In July 2023, the Group's audit department conducted integrity training for all management. Through theanalysis of recent typical corruption cases, complaint hotspots, and the disclosure of the Midea Group'sSemi-Annual Integrity Governance Report, the business risks of the Group were highlighted. Additionally,management was asked to take the lead in advocating a culture of integrity and set an example by abiding bythe Group's integrity requirements, so as to create a clean and upright workplace.
Integrity Training
Reporting MechanismMidea Group has established a sound complaint and reporting mechanismto encourage employees, suppliers and other stakeholders to report anyunethical behavior that may occur or has occurred via various reportingchannels, including the hotline, e-mail, letters, and online complaint platforms.We give top priority to the confidentiality of the whistleblowers' identitiesand the contents reported, and resolutely crack down on any form of threator retaliation, so as to effectively provide whistleblowers with protection fromretaliation . Independent investigations are conducted in a strictly confidentialmanner. Those who are found to have violated regulations and discipline uponinvestigation will be disclosed, demoted or dismissed. Those who may haveviolated the law will be handed over to the Public Security Bureau according tothe law.
Building Integrity Culture
Midea is committed to strengthening the collaboration with internal and external stakeholders, actively implementinganti-corruption requirements, and raising anti-corruption awareness and vigilance among all parties through variousmeasures. All of our employees, including part-time, contractors and suppliers are required to participate in businessethics training and promotion. Online and offline training, as well as diversified publicity and education activities, areconducted regularly on business code of conduct, employee code of ethics, supervision and reporting systems, andcorruption cases. These activities aim to ensure that all relevant parties understand and comply with the Group'srequirements and regulations regarding business ethics. Additionally, we require external partners such as customersand suppliers who engage in business and economic transactions with the Company to sign the Integrity CooperationAgreement to build an anti-corruption partnership and jointly create an honest business environment.
(86) 757 2660 5599
Hotline
tousu@midea.comcompliance@midea.com
Reporting Channels
2728
Product
Solution
Innovativeorganization
Infrastructure
IntelligentManufacturingLighthouse/
Factory
Smartworkshopsupplychain
SmartLogistics
andlogistics
Sharedinventory
Integrationofdeliveryandinstallation
IntelligentBuildingsIndustrialenergyefficiency
industrialparkGeenservicesGreenEnergyPhotovoltaicpowersupply
IndustrialandcommercialenergystorageSmartgrid
Frequencyconversion
energysaving
Energymanagement
platform
Mideaindustrialinternet
Logisticscloudplatform
iBUILDING
SoftwareProductss
HardwareProducts
ManagementAccumulationDigitalInfrastructureCoreTechnology
CorporateResearchCenterIndustrialTechnology
ResearchInstitute
SoftwareEngineeringInstitute
IntelligentManufacturingResearch
Institute
AnntoTechnologyCenterMideaCloudR&DCenterKUKAR&D?Center
Digital Midea, Smart Industry
Facing the new trends and strategic directions in global and national industrial development, Midea Grouphas bravely embarked on a transformative journey. Building upon years of experience in digitalization andtechnological capabilities, we have innovatively unveiled the "Digital Midea 2025" strategy, which aims toempower other enterprises and industries to improve their quality and performance by providing digital,intelligent, and green solutions and services.
Under the guidance of the "Digital Midea 2025" strategy, Midea Group is restructuring its value chain and business models based onnearly a decade of industrial practice experience and technological capabilities. Transitioning from our traditional role as a product andhardware vendor, we are now positioning ourselves as a provider of integrated smart industrial solutions. This strategic shift aims to leadand empower the global transformation towards intelligent industrialization.Midea Group's smart industrial solutions are mainly divided into four modules according to service scenarios: green energy, intelligentmanufacturing, smart logistics, and intelligent buildings. We provide industrial enterprises/parks and other organizations with integratedsolutions and services tailored to their needs. These solutions and services include green energy production configuration, digitalizationupgrade for manufacturing, efficient logistics and supporting services, and smart green low-carbon production, office, and livingenvironments. At the same time, the Group provides strong support for continuous innovation, development, and iterative upgrades ofsmart industrial solutions through hardware and software products, digital infrastructure, and innovative organizational structures.
"Digital Midea 2025" strategy
DTC Digital Platform100% digitalization in every
aspect of our value chainBusiness Digitalization
Guided by user insights and a
data-driven approachKeep pace with high-tech
industry standards
Data Operationalization
Develop essential digitalcapabilities to maintainthe leading position in the
industry
Digital Technology
Establish ourselves as thepremier choice globally in
the smart home market
Smart Home
Integrate digital technologies inproducts and services and facilitate
innovation in business models
Digital Innovation
Midea Group · 2023 ESG Report
Midea Group's Smart Industrial Solutions
KUKA R&D Center
2930
Protect the Blue Planet
Pursuing the vision of a community with a shared future for mankind, Midea Group continues to strengthen the greenmanagement work, and work with stakeholders to address climate and environmental challenges with the influence ofMidea Group on promoting green development. Through these joint efforts, we are contributing to the protection of theblue planet, and moving towards a greener and more sustainable future.To achieve the vision of "creating a green global supply chain, and providing green products and services to build a greenand better home for mankind", and to respond to the national "3060" strategy, we have released the "Green Strategy" forMidea Group, with "green design, green purchase, green manufacturing, green logistics, green recycling, green services"as the six pillars, to promote green transformation within the industry. During the Reporting Period, we continued to takestrategic actions, and made remarkable progress in the six pillars.
Protect the Blue Planet
Build a HarmoniousCommunity
Practice “Bring GreatInnovations to Life”
Jointly Create theProsperous Ecology
Appendix
GHG emission Intensityin Scopes 1 and 2(tCO
e / per RMB 10,000of output value)
0.040
0.061
The Compliance Rate ofwastewater, exhaust gasand waste emission (%)
Number of factories cerificated
with Energy ManagementSystem Certification (units)
Installed capacity ofphotovoltaic powergeneration system (MW)
Midea Group 2030 Sustainable Development Goals and Progress
3132
Efforts to Address Climate Change
Climate change is a common challenge facing the world. Addressing climate change and promoting the global transitionto green development have built the broadest global consensus. Governments, enterprises and social organizations aretaking positive actions. Midea Group continues to contribute to global climate governance, and will actively respondto climate change as an inherent requirement for the realization of sustainable development and a responsibility topromote the human community with a shared future.Midea Group refers to the disclosure recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)to further identify climate change risks and opportunities related to our own operations. We implement measures torespond to climate change, contribute to global climate change governance, and comprehensively promote the Group'ssustainable development.Midea Group manages climate change issues through our ESG governance structure and management procedures.The Board of Directors established processes and mechanisms for climate-related risk management, clarifyingthe responsibilities of management in assessing and managing climate risks and strengthening climate changemanagement. At the same time, the Board of Directors takes climate issues as a specific topic to regularly discuss andreview the work related to climate risks and opportunities in the Group.In addition to requiring the ESG Committee to report regularly to the Board on ESG issues, we have established aGreen Manufacturing and Carbon Management Sub-committee under the ESG Committee. The sub-committeemanages and implements regular climate change-related work and urges all departments to identify relevant risks, takecountermeasures, and include these tasks into their key annual work plans.The Group continues to pay attention to the impact of climate change on our business operations. We identify climatechange risks relevant to the Group and track the impact of these risks on corporate financing capacity and cash flow. Wealso formulate countermeasures to improve our ability to adapt to climate change.Our climate change risks are mainly divided into physical risks from extreme weather events and transition risks to a low-carbon economy. The related impacts and countermeasures are as follows:
The GRS is an international, voluntary, full product standard that sets out requirements for third-party certification ofrecycled content, chain of custody, social and environmental practices and chemical restrictions. The goal of the GRS isto increase use of recycled materials in products and reduce/eliminate the harm caused by its production.
Six Pillars
Six Pillars
Midea Group's
"GreenStrategy"
Vision
Create a greenglobal supplychain, andprovide greenproducts andservices to builda green andbetter home for
mankind
Objectives
Achieve carbon
peak by 2030and carbonneutrality by2060
Green LogisticsWe remain committed to the green intelligentlogistics strategy, and have established a greenintelligent logistics system integrating greentransportation, green storage and green packaging,helping the whole industry chain improve qualityand efficiency and reduce carbon emissions.In 2023, Midea Group applied automation andother technological tools to build the intelligentproduction logistics system, which enablesstandardized, intelligent and automatic processin each logistics scenario. The Household AirConditioner Division of Midea Group upgradedthe packaging materials by developing packagingmaterials such as high density polyethylene (HDPE)and expanded polypropylene (EPP) that can beeasily recycled. For communities without recyclingand disposal facilities, Midea Group also developedcompostable biodegradable packaging materialsbased on polybutylene adipate terephthalate(PBAT) as the substrate.
Green Recycling
We are building the digital green recycling systemfor the entire supply chain network and activelypursuing the national recycling target arising fromextended producer responsibility.In 2023, we completed the recycling of 2.6 millionwaste appliances ahead of schedule, representingan increase of 151% from 2022.
Green ServicesWe have launched the intelligent industrial solutionsto lead and empower the digital and intelligenttransformation of upstream and downstreamindustries and partners, thus promoting the carbonreduction and digital empowerment in the wholevalue chain.In 2023, with the strength of Midea Group's digitalefforts and technical capabilities, we launched ourintelligent industrial solutions.
Protect the Blue Planet
Build a Harmonious
Community
Practice “Bring GreatInnovations to Life”
Jointly Create theProsperous Ecology
Appendix
Green Design
We continue to invest in the research anddevelopment of the most energy efficient andenvironmentally friendly refrigerant products.In 2023, Midea Air Conditioner made newbreakthroughs in R290, with the new productEfficlima having an energy efficiency far higherthan the highest energy efficiency grade A+++. Webuild the carbon parameter database covering thewhole lifecycle to provide underlying data supportfor the low-carbon transformation of products, andactively conduct product carbon audits, trying toindependently build a Midea internal accountingplatform for product carbon footprints.
Green Purchase
We work with a number of industry leaders todevelop and apply green and low-carbon materials.In 2023, we made breakthroughs in the maincomponents of air conditioner external units, withultra-low carbon household appliances featuringhot-dip galvanized products. The LaundryAppliance Division established a traceable, closed-loop supply chain network, which significantlyreduced carbon emissions. Additionally, wecompleted the research on detergent box partswith 50% recycled materials and achieved theGlobal Recycled Standard (GRS) certification
.
Green Manufacturing
We incorporate green concept into the medium-and long-term plans for sustainable developmenton a progressive basis, and continue to improvethe green manufacturing system based on theorganizational plan for green manufacturing, so asto improve our green manufacturing capacities.In 2023, Midea RAC Factory in Thailand wasawarded the Thailand National Green FactoryStatus; the installed capacity of distributedphotovoltaic power generation systems in HefeiFactory of the Laundry Appliance Division reached
22.83 MW, generating 23.18 million kWh of
electricity per year, using 30.42% of the greenpower, and achieved the National Green Factoryand Anhui Green Factory Certifications. As of theend of the Reporting Period, Midea Group hadpossessed 28 national green factories.
See Section Strive to Standardize ProductManagement for detailSee Section Strive to Standardize ProductManagement for detail
See Section Strive to Standardize ProductManagement for detailSee Section Strive to Standardize ProductManagement for detail
See Section Strive to Standardize ProductManagement for detailSee Section Jointly Create Sustainable Value fordetail
See Section Jointly Create Sustainable Value fordetailSee Section Promote Environmental Friendlinessfor detail
See Section Promote Environmental Friendlinessfor detailSee Section Promote Smart Transformation fordetail
3334
Climate Change Risks
◎Energy shortages: Resource shortages caused by climate change may disrupt energy supplies, affecting theproduction and business continuity of the Group.
◎Health and safety risks: Changes in weather patterns lead to extreme heat, which can negatively affect thehealth of workers who work in high temperature continuously.
◎Tightened policy: As the globe vigorously develops a circular economy, certain countries and regions areimposing increasingly strict requirements on product packaging, such as restricting plastic packaging orlevying taxes on disposable plastic packaging. This may increase the Group's costs of product packaging andexport.
Climate Change Opportunities
◎Continue to develop and/or expand low-emission products and services to gain more market share andconsumer favor; gain more investment opportunities in the capital market to generate more revenue.Midea's Grasp of Opportunities
◎Continue to refine Midea's green services to provide green solutions for internal and customer needs.
◎Stick with the "Green Strategy", promote green design, and develop green and low-carbon technologies andproducts to meet the expectations of the market and consumers.
Midea's Countermeasures
◎Implement energy management: Pay continuous attention to the energy structure of business operationareas, promote electricity saving measures, attach importance to the development and application of energysaving and emission-reduction technologies, improve energy efficiency, and reduce operating costs.
◎Develop emergency response plans: In response to extreme weather events, the Group has formulatedextreme weather emergency response plans according to actual operating conditions, and regularly organizeemergency drills for personnel.
◎Track the policies and regulations: Continuously pay attention to the policies and regulations related toclimate change and dual carbon goals, and promptly adjust the operation plan according to the latest policiesand development trends.
We integrate the concept of addressing climate change into the Group's "Green Strategy". Under the managementrequirements of "checking our emission status, formulating standards, reviewing results, conducting strict appraisals,and ensuring goal achievement," we have formulated the action plan and divided our path to carbon neutrality into fourstages so that we can gradually advance our work toward dual carbon goals.
Source control is an important part of Midea Group's move towards carbon neutrality. We continuously improveour carbon management system. And we standardize our carbon management by formulating corporate carbonmanagement policies. Through comprehensive carbon audits, we aim to understand the current status of the Group'scarbon emissions. Adhering to the principle of "prioritizing green power generation while cutting emissions with carbonoffset as supplement", we continuously promote the use of green power, and comprehensively reduce GHG emissionsin Scopes 1 and 2 through energy conservation, consumption reduction, and carbon reduction in processes. We alsocontinuously promote the use of environmentally friendly refrigerants and the R&D of high-efficiency products. Inaddition, we comprehensively reduce GHG emissions in Scope 3 through measures such as developing high-efficiencyproducts, recycling green power, using green materials, and promoting GHG emission reductions in our supply chain. Atthe same time, we will gradually promote the use of the Science Based Targets initiative (SBTi) tools to comprehensivelyevaluate and verify the rationality of our carbon management targets.Midea Group Business Groups / Divisions
The GHS Emissions in 2023
(tCO
e)Scope 1Scope 2Scope 3Smart Home Solutions903,338856,0854,015,000
Midea Residential Air Conditioner Division672,762241,7113,060,000Midea Refrigerator Division143,847202,017274,000Midea Laundry Appliance Division9,03380,026681,000Midea Kitchen and Water Heater Appliances Division 37,446112,304/Midea Microwave and Cleaning Appliances Division26,911122,297/Midea Home Appliances Division 13,33997,730/Energy Solutions & Industrial Technology56,603379,534/Intelligent Building Technology57,66545,086945,000Total Emissions1,017,6061,280,7054,960,000
"Green Strategy" Action PlanStage 1Early planning for steady peaking
◎Early planning of green energy and other measures forsteady peaking by 2030.Stage 2
Initial replacement with green power forcarbon emission reduction step by step
◎Gradual increase of green power usage and decrease ofGHG emissions for carbon emission reduction by 2040.
◎Wide use of green power for significant carbon emissionreduction by 2050.
Stage 3
Wide use of green power for significantcarbon emission reduction
◎Make joint efforts to achieve carbon neutrality by 2060.
Stage 4Making joint efforts to achieve carbonneutrality
The Scope 1 and Scope 2 GHG emissions boundary includes Midea's 8 business divisions and 48 factories. The Scope 3
GHG emissions boundary includes 4 phases of product use for typical domestic sales.
Protect the Blue Planet
Build a HarmoniousCommunity
Practice “Bring GreatInnovations to Life”
Jointly Create theProsperous Ecology
Appendix
3536
GD Midea Heating & Ventilating Equipment Co., Ltd. of MBT, officially announced its signing of the BusinessAmbition for 1.5 °C Commitment Letter issued by SBTi. In regard to this, MBT continues to promote sustainabledevelopment:
◎In response to climate change, MBT will continue to use green and recycled materials and refrigerants withlow global warming potential (GWP), and develop a green supply chain system;
◎In terms of the efficient use of resources, MBT will (1) promote a circular economy and recycle productionwastewater; (2) recycle the refrigerant of products returned for repair; (3) build zero-waste workshops; and (4)reduce the use of plastic packaging;
◎In terms of equal development, MBT will strengthen the supply chain by providing green services(development and certification consulting of carbon management platform and green supply chain system),and encourage key suppliers to achieve national-level green supply chain certification;
◎In terms of green design, MBT will establish the green and sustainability review for new products. Thecompany will conduct a comprehensive review of all products during their design to ensure that they complywith environmental regulations and meet the requirements of being green and low carbon, energy efficientand environmentally friendly.In the future, Midea Group will continue to promote efforts to address climate change, save energy, andreduce emissions. Based on MBTs experience in setting practical emission reduction targets and implementingemission reduction plans, we will comprehensively promote the sustainable development of the Group.
MBT Division Joins the SBTi
Midea Building Technologies (“MBT”) Division Joins the SBTi
Promote Environmental Friendliness
Midea Group works hard to reduce consumption and promote resource efficiency. Besides perfecting and upgradingenvironment management system, we continue to strengthen waste and emission management, and actively undertakethe corporate mission of green and low-carbon development, thus continuously contributing to the construction of abeautiful China. As of the end of the Reporting Period, Midea Group had possessed 28 national green factories.
Energy ManagementThe Group strictly abides by the Energy Conservation Law of the People's Republic of China and other laws andregulations of the countries and regions where we operate. We have formulated and implemented the EnergyManagement Measures of Midea Group and other relevant systems. We continuously standardize energy management,and make unremitting efforts to maximize energy efficiency.Energy Management SystemAdhering to the energy management policy of "compliance, energy conservation, wisdom and de-carbonization",we continue to build and certificate energy management system, optimize Midea energy and carbon platforms, andimplement energy saving and emission reduction measures. At the same time, we have improved the organizationalstructure to fulfill our responsibilities. We continue to monitor energy-related indicators and follow up on abnormalsituations in a timely manner to support the Group's energy-efficient operations. By the end of the Reporting Period, atotal of 35 factories of Midea Group had obtained ISO 50001 Energy Management System Certification.Energy compliance is the foundation of Midea Group's energy management. We continue to implement compliancemanagement requirements through initiatives such as motor management, power quality assurance, and energymetering. Moreover, we regularly carry out internal and external energy audits, actively assess energy managementand consumption, and conduct targeted energy improvement work to fully safeguard the Group's energy compliancemanagement.Strengthening Energy ManagementMidea Group strengthens energy saving management with technology. Focusing on energy saving in process,equipment, power and digitization, we continue to accelerate process breakthrough in various fields, including injectionmoulding, sheet metal, spraying, electronic and compressed air for energy saving, gas-to-electricity conversion, andphotovoltaic energy storage. Through specific benchmarking cases of technical practice, we are able to empower ourGroup. In addition, we have set up a technical expert group, carried out cross-departmental collaboration and adoptedenabling management to ensure the effective implementation of energy-saving technologies while achieving innovativebreakthroughs.During the Reporting PeriodWe implemented
1,875
energy conservation projects and invested more than RMB
million in energysaving and emission reduction.
Protect the Blue Planet
Build a HarmoniousCommunity
Practice “Bring GreatInnovations to Life”
Jointly Create theProsperous Ecology
Appendix
3738
To address the issue of high pollution and high energy consumption during the spraying process, we carriedout the“Spraying Cancellation to Color Plate Project”in the laundry appliance factories in Wuxi and Hefei,replacing the ordinary galvanized plates used in the product shells with coated color steel plates. This ensuresthat products do not require re-spraying upon leaving the factory, which fundamentally eliminates the energyconsumption caused by the spraying process. It is equivalent to reducing carbon emissions by more than 8,200tons per year.
Process Energy Saving - Spraying Cancellation to Color Plate Project
During the Reporting Period, Shunde Factory, a branch of Midea Group producing cooking and foodpreparation appliances, carried out the "Gas-to-Electricity Project for Drying Furnaces". To address the issuesof high energy consumption and poor safety in the factory, this initiative makes full use of automatic weldingwaste heat for drying and cleans the cavities with high-speed centrifugal fans and air knives under electricheating. After the renovation, the factory's natural gas consumption decreased by 33% and carbon emissionsreduced by 1,511 tons.
Equipment Energy Saving - Gas-to-Electricity Project for Drying Furnaces
During the Reporting Period, Midea Group Shunde Welling was selected as 2023 "Embroidery Spirit" modelfor the distributed photovoltaic project by Yangcheng Evening News. Low carbon energy renovation wasconducted in Shunde Welling from the perspective of green and low-carbon optimization on the energysupply side and energy efficiency management improvement on the energy use side. The Shunde plant wasfirst constructed in the 1990s, so the roof could not directly support the PV modules. To solve this problem,we continued to look for a solution, carried out a detailed assessment of the roof structure, and finallyconfirmed the roof reinforcement program through constant communication with the construction company,laying the foundation for the subsequent PV laying. By the end of the Reporting Period, Welling deployed10 MW distributed photovoltaic and 4 MW energy storage. We have completed the grid connection of theentire project, which is expected to generate 11.4 million kWh of electricity and reduce carbon emissions byapproximately 7,000 tons per year.
Power Energy Saving - “Embroidery Spirit” Photovoltaic Project
During the Reporting Period, the energy saving renovation for air compressors was implemented at Midea GroupWuhu Welling with hybrid models as the mainstay, complemented with combined first-level building-basedpower. We made efforts in system design, selection and data simulation analysis according to the 61% powertransmission efficiency requirement. And we applied advanced intelligent control systems to ensure optimaloperation. This digitized energy saving renovation helped Wuhu Welling achieve energy savings of up to 25%.
Digitized Energy Saving - Extreme Compressed Air Control Project
We continue to use clean energy and promote energy transition of Midea Group by laying distributed photovoltaic andpurchasing green electricity.
Midea Chongqing Factory Parks Roof Distributed Photovoltaic Power Generation Project
Successful Connection to the Grid of Midea Chongqing Industrial Parks Photovoltaic Project
The two parks of Midea Chongqing Factory deployed distributed photovoltaic power generation systems onthe roofs of production plants for self-generation and self-use and excess electricity for the national grid. Thedistributed photovoltaic power generation project in the two parks was connected to the grid at full capacityin 2023. It is expected to generate 277 million kWh of electricity within 25 years of the full life cycle of thephotovoltaic system, with an average annual power generation of 11 million kWh, equivalent to saving about 3,379tons of standard coal per year, and reducing annual carbon emissions by about 7,928 tons.
During the Reporting Period
Midea Group built distributed photovoltaic power generation systems, which had generated more than
millionkWh electricity with
MW installed capacity. Green power purchasing was
7.439
million kWh. In the future,Midea Group will accelerate to build a clean, low-carbon, safe and efficient energy system.
Protect the Blue Planet
Build a Harmonious
Community
Practice “Bring GreatInnovations to Life”
Jointly Create theProsperous Ecology
Appendix
3940
Environmental Management
Midea Group strictly abides by the Environmental Protection Law of the People's Republic of China, the Water PollutionPrevention and Control Law of the People's Republic of China, the Atmospheric Pollution Prevention and Control Law ofthe People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of EnvironmentPollution Caused by Solid Wastes, and other local laws and regulations. Besides, the Group has formulated andcontinuously improved environmental management policies applicable to the places where we operate. And we haveestablished and regularly approved the EHS management system.Environmental Management SystemBased on the principle of "complying with laws and regulations, achieving pollution prevention, creating a greenenvironment, and building a beautiful Midea", we have ensured the sound operation of the environmental managementin the EHS governance structure, management system, system review and certification. In this way, we continue to builda resource-conserving and environment-friendly enterprise.
Midea Group's Safety Management Committee is the highest governing body for EHSaffairs within the Group. It is responsible for making regular decisions regarding EHS-relatedmatters, including environmental protection, production safety, occupational health etc.,and for supervising, evaluating and assessing EHS management. The Director of Qualityand Intelligent Manufacturing serves as the Director of the Safety Management Committee,leading the committee's activities. The Group has also set up the Safety ManagementCommittee Office as the daily management body for EHS work, which reports regularlyto the Safety Management Committee. Each business group/division has established anEHS governance structure tailored to its own operations to implement the EHS policies,objectives and other management requirements.
EHSGovernance
Structure
Midea Group continuously identifies applicable EHS laws, regulations and other requirements.Based on this, we regularly review and improve our EHS management policies, standardsand performance requirements each year, taking into account the best EHS practices in theindustry and characteristics of our business. We have established a five-level EHS system,like the Manual of Midea Group EHS Management Control Framework. By doing so, we havespecified the consistency requirements from the aspects of EHS management boundary,EHS process control and EHS data recording, providing guidance for the standardization ofEHS management. In addition, following the principle of "One Midea, One System and OneStandard", we continue to integrate the Group's EHS technical standards, by constantlyestablishing EHS technical standards and audit standards in key areas, to further standardizeand systematize the Group's EHS management.Moreover, we have established an EHS information management platform to collect andanalyze EHS data to evaluate the current status of EHS management and identify potentialrisks of EHS. Therefore, we may realize rapid perception and control of EHS-related matters,real-time monitoring, advance warning and pre-control, joint disposal and regulation,system evaluation and automatic control. Then we will finally achieve the goal of integratedmanagement of "safety, environmental protection and fire control".
EHSManagementSystem
We require each business group/division to conduct its own annual EHS review tocomprehensively evaluate the operation of the EHS management system from theimplementation of EHS procedural documents, EHS compliance, and EHS target outcomes.Additionally, at the group level, we conduct EHS review on each business group/divisionannually, which mainly covers the implementation of the EHS management policies andkey EHS work. In response to issues identified in the review, we actively take appropriatemeasures to continuously improve the Group's EHS management.While steadily constructing EHS system, we actively participate in third-party certifications,to assist each factory to attain environmental management system certification. By the endof the Reporting Period, 37 factories had obtained ISO 14001 Environmental ManagementSystem Certification.
SystemReview andCertification
Water Resources Management
The sustainable management of water resources is one of our core tasks to promote "Green Strategy" and protect theblue planet. We have set the 2030 Sustainable Water Resources Management Goal, aiming to establish a sustainablewater management system in all water-stressed areas and production sites in key watersheds by 2030. During theReporting Period, the Group did not have any deficiency in water sourcing.We always follow the four basic principles of "sustainable water intake and water resources protection in watersheds,water resources recycling, water footprint tracking on products, and promotion of healthy water in communities". Weconduct water management programs across all operations of the Group to achieve sustainable water use and waterimprovement by protecting water resources in the watersheds where we operate, improving water use efficiency andreducing wastewater discharge at production sites, providing water-saving products to consumers, and providing waterpurification products to communities in need of healthy drinking water. By the end of the Reporting Period, a total of 10factories of Midea Group had completed the water conservation evaluation.
SustainableWater Resources
Management
◎Paying continuous attention to water management in the watersheds where weoperate, and fully considering the impact of the operations on local water resourcesbefore building plants.Water Resources Protection in Watersheds
◎Actively carrying out wastewater recycling and reclaimed water reuse projects toimprove the efficiency of water resources use.
◎Developing and optimizing water-saving technology and equipment in production,actively adopting water-saving equipment and renovating existing productionequipment to save water.
◎Cooperating with third parties, including city, district, town and village governments andother water users to encourage the use of factory water for urban greening and roadcleaning.
Water Resources Management in Production and Operation
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Sustainable Water Management Platform of Hefei Laundry Appliance Factory
To achieve the target of 100% water recycling in manufacturing, we continue to drive the recycling of waterresources in manufacturing with Hefei Laundry Appliance Factory as a pilot factory. And now breakthroughshave been achieved in this area. While reducing water consumption, we reused, reallocated and recycled waterto optimize our water resources management. By doing this, we have established a self-sufficient sustainablemodel of water resources management. By the end of the Reporting Period, Hefei Laundry Appliance Factoryhad saved more than 240,000 tons of water. Adopting the ultrafiltration technology, the test center with thehighest water consumption in manufacturing laundry appliances had recycled and reused more than 85% of testwater.
Water Resources Management in Production and Operation - Midea Hefei Laundry Appliance Factory
SustainableWater Resources
Management
◎Designing products to be more water efficient. Achieving better water conservationand lower water consumption while improving product use efficiency through processinnovation, technology upgrading and other measures.Water Efficient Products
◎With Midea's core water purification technology, providing more people with healthierand safer drinking water through various products such as water purifiers.Healthy Drinking Water in Communities
Technical Scheme for Dishwashers with First-Level Water Efficiency
Based on the concept of waterconservation and environmentalprotection, we have innovativelyadopted the water diversion andthrottling technology in our dishwasherproducts. The technology through theprecise shunt valve control system toaccurately control the water flow intothe dishwasher, according to the actualcleaning needs to optimize the waterdistribution and flow size, and throughthe use of water diversion and throttlingtechnology and adjust the speed of thepump motor, to achieve the operationof transient pipeline injection of waterto reduce the amount of water, and thusachieve the effect of saving 20% of theeffect of water.
Water Efficient Products - Dishwashers with First-Level Water Efficiency
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Committed to providing healthy drinking water incommunities, we took the initiative in promoting the "3 zeros"filtration technology of "zero additive, zero scale inhibitor andzero stale water" in the industry, and set the standard of “zerostale water” in the water purifier industry. On this basis, weconduct further research on mineral drinking water. With "finemineral" and "fresh mineral" technology, our water purifierscan maintain the balance of minerals in water by purely naturalfiltration and adsorption. We guarantee that our purifiersare free from added scale inhibitors, minerals, or hazardoussubstances contaminated during the collection, filtration andtransportation of natural water to provide clean and healthywater and restore the water quality at local sources. With ourcore water purification technology, we make more peopleaccessible to healthier and safer drinking water. And weare dedicated to safeguarding the health of more people indrinking water.
Healthy Drinking Water in Communities - Midea Solution to "Whole House Healthy Drinking Water"
Standard Setter forZero Stale Water
Zero-Waste Factory ConstructionMidea Group pursues the sustainable development and holds the philosophy of circular economy. The Group sticksto the 3R Principle of "Reduce, Reuse and Recycle" to reduce waste at source, and recycle and reuse resources. MideaGroup also minimizes the landfill and advances the construction of zero-waste factories. By the end of the ReportingPeriod, Midea Group had 3 provincial zero-waste factories and 2 zero-waste-to-landfill factories.
Following the "Reduce" concept, we optimized the production process and parameters in Hefei EconomicDevelopment Zone Factory of Refrigerator Division to improve discharge stability during this year. We haveembraced trimming-free production, which largely reduces waste and improves production efficiency. As aresult, we reduced scrap materials by 14.6%.
Reduction of Leftover Materials at Source
During the Reporting Period, Midea RAC Shunde Factoryobtained the Zero Waste to Landfill Management SystemCertificate, becoming the first factory in the global domesticair-conditioning industry and the first factory under the MideaGroup to get the diamond level certification. Meanwhile, MideaGroup Welling obtained the Zero Waste to Landfill ManagementSystem Certificate, becoming the first factory getting thethree-star certificate within Midea Group and among the globalmechanical and electronic industry. Starting from the wastefull life cycle management, Shunde Factory and Welling arecommitted to source reduction, reuse and landfill reduction, andcontinues to promote the reduction of waste at source and theutilization of resources, so as to carry out the Group's mission ofsustainable development in a practical manner.
Midea Group's Two Factories Receive Authoritative "Zero-Waste Factory" Certificate
Zero-Waste Factory CertificateAwarding Ceremony
Waste and Emission Management
Wastewater generated in the Group's production and operating processes mainly includesdomestic wastewater and industrial wastewater. We have established sewage dischargemanagement policies and classified wastewater into different types. Domestic wastewater andindustrial wastewater are pretreated by septic tanks and factory sewage treatment stationsrespectively. Wastewater that meets the standard is then discharged to municipal sewagetreatment network and sewage treatment plant. Moreover, we are actively optimizing theexisting wastewater treatment process, to improve the treatment effect. We are also promotingthe diversion of rainwater and sewage from the old plants, wastewater treating equipmentupgrading, to reduce the overall discharge of wastewater in a comprehensive way, andstrengthen its management.WastewaterManagement
In addition to establishing internal waste management policies in compliance with applicablelaws and regulations in the regions where we operate both domestically and internationally,we also strictly abide by the Basel Convention on the Control of Transboundary Movements ofHazardous Wastes and Their Disposal, and do not export e-waste to any non-OECD countries.The non-hazardous wastes generated by the Group mainly include general waste and domesticwaste. General waste is collected and disposed of by qualified third parties after classificationin the factory; domestic waste is entrusted to local sanitation departments for disposal. Forhazardous wastes, we supervise and manage their collection, storage and transportation anddisposal, and entrust qualified third-party hazardous waste disposal agencies for disposal.WasteManagement
In accordance with our internal requirements, the Group strictly processes exhaust gasgenerated in our plants, to ensure that it is well treated by the exhaust gas treatment devicebefore discharge, to prevent air pollution.Exhaust gasManagement
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Aim to Hold the Ecological Red LineMidea Group pays close attention to biodiversity protection in business development and operation. Regularassessments are carried out to assess the ecological impact of business operations. And we also conduct variousbiodiversity conservation projects to fulfill sustainable development commitments.
Midea Group implements the "Green Strategy".We innovate green technology and environment-friendly products tailored to local needs. Forexample, corrosion-resistant products arepromoted to adapt to the local island climatein Mauritius and other South African regions.Additionally, we promote environmentalprotection projects, and work with locals,volunteers, partners and other groups to carryout beach cleanup activities to help preserve localbiodiversity, and jointly protect the blue island.This case was selected as "2023 Top Ten Cases ofInternational Image Building in China" and "Casesof New Silk Road", demonstrating Midea Group'sgreen responsibility.
Protecting the blue island of Africa
Beach Cleanup Activities
Midea Building Technologies held the beachcleanup City Walk activity for "Ocean Carbon CyclePlan". Our employees, together with volunteersand community residents, formed a carbon searchteam to clean up the beach. They collectedplastic bottles, plastic bags and other wastes onthe beach, to protect the blue coastline. After theevent, we also donated money to marine projectsto protect the marine ecosystem and the home ofocean life.
Beach cleanup City Walk for "Ocean Carbon Cycle Plan"
Ocean Carbon Cycle Plan
Make Sustained Efforts for Green andLow-Carbon DevelopmentMidea Group issued its first green bonds of USD 450 million in 2022 to support the "Green Strategy". By the end of theReporting Period, 100 % of the proceeds of the green bonds had been used for eligible green assets under Midea'sgreen financing framework. The table below shows how the proceeds were allocated to eligible green assets.
Eligible Green Asset Class
Amount of Proceeds
Allocated
Environmental Benefits of Eligible Green AssetRMB(million)
Equivalent
USD(million)
Ecologically efficientproduct design anddevelopment
1,505 212
In 2023, Midea Air Conditioning once again achieveda breakthrough in R290 technology. The Efficlima newproduct adopts the environmentally friendly naturalrefrigerant R290, which is fluorine-free, chlorine-free,and low-carbon. According to calculations, compared tomodels using R32 refrigerant with the same power, thisproduct can reduce emissions by approximately 0.447tons of carbon dioxide equivalent. Calculated basedon the carbon sequestration of 0.015 tons per tree peryear, this is equivalent to the annual carbon dioxideabsorption of approximately 30 trees.
Transformation of energy-and ecology- efficientmanufacturing andprocess
997 141
We are comprehensively advancing the constructionof a green manufacturing system. By the end ofthe Reporting Period, 28 factories had obtainedNational Green Factory Certification, and 9 factorieswere recognized as "National Green Supply ChainManagement Model Enterprise". All manufacturingfactories have improved their energy managementsystems and obtained ISO 50001 certification. By theend of the Reporting Period, 35 factories had obtainedISO 50001 Energy Management System Certification.Operation of photovoltaicpower plants andconstruction of renewableenergy projects
9213
We continue to expand our presence in clean energy.During the Reporting Period, the Group's distributedphotovoltaic power generation system generated over220 million kWh of electricity, with an installed capacityof 280 MW, which was equivalent to a reduction of158,947 tons of carbon emissions, and the amount ofgreen electricity purchased was 7.439 million kWh.R&D, production of corecomponents of newenergy vehicles andproject construction
59484
The construction of the Anqing manufacturing base fornew energy vehicle components has been completed,and products such as compressors and valve islandshave achieved mass production in the factory area.Total3,188450/
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As a responsible corporate citizen, Midea Group, while pursuing our own development, actively shares the fruitful resultsof corporate development with employees, the public and other groups. The Group adheres to an open human resourcesystem, promotes the development of employee diversity, and aims to create an organizational culture of diversity,equality and harmony. Meanwhile, we are actively engaged in the development of the local community and takespractical measures to contribute to society, thereby creating sustainable value in a responsible manner.
Build a HarmoniousCommunity
Number of training
courses on"M-Learning" platform
(units)64,399
28,874
Cumulative amountof "Employee SupportFund" (RMB million)
148.7
64.7
Cumulative number of
employees involvedin the Midea Series ofPublic Welfare Activities
Program (times)
10,000
LTIR per 200,000 hours
0.030
0.063
Midea Group 2030 Sustainable Development Goals and Progress
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Strive to Nurture Talents at Midea
Midea Group always upholds the management concept of "being people-oriented, driving employee diversity,and promoting fairness, openness and inclusiveness". The Group constantly optimizes its talent structure, and hasestablished a comprehensive talent management system from four dimensions, including protection of employee rightsand benefits, talent introduction and development, employee communication and care, and employee health and safety,to support employees to realize their self-worth and facilitate their growth.Protection of Employee Rights and BenefitsAt Midea, we respect differences and willingly accepts employees' unique experiences and diverse backgrounds. TheGroup respects and actively safeguards the rights and interests of each employee, and continues to maintain a diverse,equal and harmonious working atmosphere, so that each employee can better unleash their potential and create morepossibilities.Equal EmploymentThe Group strictly abides by the Labor Law of the People's Republic of China and other laws and regulations relevantto the operations at home and abroad, and complies with the United Nations Global Compact (UNGC) and otherrequirements related to human rights protection. At the same time, the Group has formulated and is continuouslyoptimizing the Management Measures for Recruitment and Assignment of Midea Group and other management policies,explicitly prohibiting discrimination in recruitment, among other relevant management requirements, so as to establish asound and compliant employment management system, and fulfill our mission of corporate citizenship.The Group opposes and prohibits the use of child labor and forced labor. We spare no efforts to strengthen theemployment review of employee recruitment, onboarding approval and registration, and implement compliantemployment management regulations. During the Reporting Period, Midea Group had no violations involving child laboror forced labor.
LinkedIn "2023 Global Talent Magnet Employer"
Diversified Employee Team
Diversity and Inclusiveness
The Group continues to track and manage employee diversity data, and fully respects employees of different ages,races, genders, nationalities and physical conditions. The Group also resolutely puts an end to any form of discriminationor harassment based on nationality, region, race, ethnicity, gender, age and other factors, and sets up clear channelsfor reporting discrimination and harassment incidents. Once the above behaviors are found, the Group will strictly takecorrective or disciplinary measures to ensure equality and safety for employees in the workplace.The Group respects and cares for female employees. We provide antenatal leave, caring parking spaces and otherbenefits for pregnant employees, set up exclusive mother-and-baby rooms for lactating employees, and provide supportfor mothers returning to work after pregnancy. In order to support employees to better fulfill their responsibilities asparents or family caregivers, we also provide maternity leave, paternity leave, childcare leave and other benefits. Inaddition, we actively help people with disabilities, and provide the disabled with positions that utilize their talents whilemeeting business requirements.In order to cultivate a multi-cultural environment, we have promoted diversity and inclusiveness through training andthematic activities on a regular basis. We put efforts to enhance employees' awareness and understanding of diversity,equality and inclusiveness, such as organizing "3·8 International Women's Day Salon" to encourage female employeesto express and appreciate themselves. Meanwhile, we regularly carry out cross-cultural communication activities tocreate opportunities of interaction among employees from different countries and regions. We also provide overseasemployees with skills upgrading support and guidance to facilitate their development. During the Reporting Period,Midea Group was recognized for its support for female employees and leaders, and was selected as one of ForbesWorld's Top Female-Friendly Companies.
Besides, the Group follows theprinciple of equal pay for equal work,provides equal opportunities inrecruitment, remuneration, benefits,promotion and other aspects ofemployment. Every employee istreated equally with broad space fordevelopment. During the ReportingPeriod, we were awarded a numberof honors, including "Global TalentMagnet Employer" by LinkedIn,"2023 Extraordinary Employer"by Liepin, "2023 Most WantedEmployer" by Maimai, and "Youth-friendly Employer Brand" by Ciwei.
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In the early stage of the "3·8 International Women's Day Salon" activity, we promoted it through the Women'sDay themed video "We Women". The Group also launched an activity for collection of articles entitled "WomenI Appreciate", inviting all employees to actively participate and share their ideas. During the activity, we invitedfemale managers to share their personal experiences in the form of salon talk from the perspectives of personalgrowth, family, and career development. The Group further fostered an equal, harmonious and inclusivecorporate atmosphere through flash mobs, such as flower distribution, and body building courses includingfitness courses.
"3·8 International Women's Day Salon" Activity
Salon Talk and Sharing
The household air conditioner sector of Midea Group launched the first session of the "Thai EmployeesVisiting China" project. Employees from both countries seized the opportunity to communicate across regions,languages and cultures, accelerating the Group's cultural building of diversity and inclusiveness. Meanwhile,the project gave overseas employees an opportunity to improve their skills through one-on-one tutoring andbroaden their horizons, bringing more creative and innovative ideas to this cultural communication trip.
Inviting Thai Employees to Visit China to Enhance Cultural Collision and Fusion
Introduction and Development of TalentsFollowing "Midea's talent standards", we refine the talent development strategy, and conduct talent needs analysis basedon business requirements. The Group persists in promoting diverse recruitment, and selects talents on a global scale.Moreover, a future-oriented talent management system has been put in place, integrating talent reviews, performanceassessments, and training and development. By doing so, we can ensure joint progress and success for both MideaGroup and our employees.Talent Recruitment and ReviewWe attract and allocate talents in an open and inclusive manner. We have established and implemented managementpolicies such as the Management Measures for Recruitment and Assignment of Midea Group to standardize the hiringand onboarding processes. Through diverse recruitment channels, we continuously carry out talent recruitment andimprove the talent structure.
Diverse Recruitment Channels
◎We actively engage in campus recruitment, attracting outstanding new graduates throughinternship, creative competitions, on-campus recruitment presentations and other activitiesto boost Midea's employer brand.
◎For current students at various universities, the Group established the "Midea Youth"internship program, providing high-quality internship opportunities to students worldwide inproject-based formats.
◎For recent graduates on campus, the Group created the "Midea Star" program, offeringextensive growth and opportunities based on our experience in grooming graduates.CampusRecruitment
◎The Group also expands the social recruitment channels by partnering with recruitmentplatforms and well-known headhunters to broadly attract talents.
◎Meanwhile, the Group has set up exclusive high-end talent recruitment sites in overseasregions such as the United States and Japan, continuously introducing high-end talents withdiverse backgrounds.SocialRecruitment
◎We offer internal opportunities for employees, creating the "Midea Talent-spotter" sectionon internal recruitment platform to support employees' job transfer in line with their careerdevelopment, and to explore broader growth space.InternalRecruitment
*请提供高清图片
Pictures of Learning and Communication
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Midea Talks: Feedbacks from Our Employees
"July is the season when gardenias bloom, and your arrival, one after another, symbolizes 'joy',the flower language of gardenia, filling the vibrant summer with hopes and happiness. Openyour mind, maintain the curiosity and desire to explore that come from youth, and bravely stepon the path you wish to take. After all, there is no road in life that is taken in vain. Every stepcounts. "
YuxuanZhejiang University, Product Manager
"Joining Midea International, with the help of colleagues, I have gained a lot in the field ofhuman resources. During my work, I had the opportunity to participate in human resourcesprojects across the entire Group and globally, working with colleagues from over twentycountries. Midea International, international opportunities and challenges, is an endless sourceof motivation for continuous efforts."
IvyXiamen University, HRBP of Dubai Branch
"In the past two years, Midea has offered unlimited possibilities. I have witnessed our revenuesoaring a hundredfold, and experienced my own transformation from a fresh graduate to amodule leader."
ParveenUniversity College London, Operations Manager
We attach importance to establishment of a tiered talent pool, continuously strengthening the talent reserve throughtalent reviews to align with the Group's long-term strategic needs. Midea conducts the special activity of talent reviewtwice a year, evaluating the current status of core talents, unifying the mode of talent management, and aligningtalent management standards. Based on these reviews, the Group dynamically adjusts its talent review results throughregular performance observations and 360-degree evaluations to ensure the results are objective, fair, and accurate.Additionally, the Group actively utilizes talent reviews to provide targeted development programs for different types oftalents.
Moreover, Midea Group, to maintain team stability, develops talent retention plans and takes measures regardingremuneration and benefits, training and development, and employee communication to reduce turnover. We alsoconduct exit interviews and sampling follow-ups to analyze the reasons for leaving and make targeted improvements.Talent Development and Support
Midea is dedicated to fostering a corporate culture of lifelong learning, and continuously refining a multi-level talentdevelopment system for better career advancement to support the sustained and efficient self-improvement and growthof employees at all levels. The Group has established management policies such as the Training Management Measuresto standardize training methods and content, clarify training responsibilities, and comprehensively strengthen trainingmanagement. Such efforts will assist talents to achieve rapid growth, maintain creativity, and gain competitiveness onMidea's global stage, leading the way in cutting-edge technology and building a better world together.In terms of employee development, Midea offers a multi-channel talent development system and has established athree-level Midea talent cultivation system composed of Midea Academy, business group/business division/platform HR,and unit/factory/department HR. Based on strategic and business needs, as well as employee demands, and consideringdifferent stages of employee development and business challenges, we provide corresponding training programs, suchas new employee onboarding training, professional skills training, and management capability enhancement training.
Targeted Development Programs (Examples)Select talents to work abroadto gain overseas practicalexperience
Select talents to participate inkey projects that match theirskills
Select talents to participate in jobrotation in different departments,professions, and countries
Middle and grassroots
leadership
Middleand seniorleadership
Midea Academy
Business Group/Business Division/Platform HR
Unit /Factory/ Department HRProfessional skillsThe Three-Level Midea Talent Cultivation System
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Midea Academy, as the center to cultivate talents, is positioned as Midea's corporate university for lifelong growth,and focuses on building an "employee growth platform + strategic implementation platform + knowledge managementplatform". With the help of five empowerment centers, Midea Academy supports the learning and growth of all Mideaemployees.
Midea encourages self-directed learning among employees and has established the M-Learning platform tocomprehensively strengthen their professional competence. The M-Learning platform has combined multiple functionalscenarios such as online learning, online exams, live streaming, learning journeys, and face-to-face teaching, managingknowledge, trainees, instructors, and certification in an integrated manner. Moreover, the Group has integrated trainingon anti-corruption, environmental health and safety into the M-Learning platform, requiring all new employees to engagein comprehensive learning. We adopt a training approach that relies primarily on online learning and supplemented byoffline practices to reinforce employees' understanding of compliance, health and safety.
Midea Group, adhering to the dual strategies of "bringing in" and "going globally", fullypromotes global and diverse talent training projects. For groups such as dispatchedprofessionals and overseas leaders at local, we apply a variety of methods includingclassroom learning, factory visits, market research, and cross-cultural communicationto further build a diversified talent team. Training programs such as the Global ProductManager Training Camp (GPMC), Global Manufacturing Pilot Camp (GMPC), and GoldenSeed enhance trainees' capabilities through a cycle of "learning, practice, application, andevaluation." These programs not only impart professional knowledge, but also promotecross-cultural communication, supporting employees' all-around growth.
Globalization EmpowermentCenter, Intelligent ManufacturingEmpowerment Center andDigital and Intelligent InnovationEmpowerment CenterLeadership EmpowermentCenterNewcomerEmpowerment Center
The Group offers newemployees induction andspecialized job skill trainingor mentoring, including FreshGraduate Training Camp,Jumei, Huimei, Chuangmeiand other programs, to helpnew employees becomefamiliar with the corporateculture and values, and speedup their integration into thenew environment. During theReporting Period, the Grouplaunched a total of 308 newjoiners training programs,benefiting 41,537 people-times, with a cumulative112,149.90 hours of training.
Based on the managementcadre talent developmentsystem, the Group hasestablished a mature trainingmodel, including SailorProgram, Voyager Program,Explorer Program, and PilotProgram, each targetingthe development of middleand high-level managementtalents. During the ReportingPeriod, the Group advanced55 cadre training projects,covering 131,458 people-times, with a total of199,595.30 hours of training.
Based on Midea's strategyand business characteristics,the Group has promotedthe diverse development ofglobal talents and supportedthe skill enhancement ofworkers and professionalsregarding R&D, manufacturingand information technology.During the Reporting Period,Midea, in line with actualbusiness needs, launched 27specialized empowermentprojects.
Midea Leadership Development Stages and Training Programs
ProfessionalDevelopment
Sailor Program
Voyager Program
Explorer Program
Pilot Program
NewcomerintegrationIndividual contributor
Lead othersIndividual contributorto manager
Lead the managerManaging individualcontributors tomanaging othermanagers
Lead the function unitManage teams tomanage independentbusinesses
Lead independentbusinessManageindependentbusiness tointegrated business
By the end of the Reporting Period, through M-LearningWe had developed
28,874
courses, with certified
7,232
internal instructors;supported
1,724,910
people-times in learning, totaling
908,094.9
learning hours;provided anti-corruption training to
47,976
people-times, totaling
9,275.2
hours;and offered EHS courses to
163,917
people-times, totaling
20,439.1
hours.
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The "Voyager" Program is designed to "reach new heights and lead Midea's sustainable development," andserves as a core training program within Midea Group's leadership series for mid-level and high-level reserves.The program, based on the challenges and ability development requirements of Midea's four major strategicfocuses for managers, promotes cross-boundary and cross-company learning to facilitate the transformation ofcore high-potential thinking and broaden their horizons.During the Reporting Period, we launched a year-long "Voyager" Program, which included offline training,online learning, role model visiting, thematic discussions, experience summary, and discussions in privateboard meetings. For the 108 selected leaders, the six training sessions focused on individual, team, corporate,and market business challenges, and were organized around four dimensions including "Learn - Knowledgeand Skills", "Practice - Cross-Boundary Thinking", "Share - Case Studies", and "Apply - Efficient Application".Combining business challenges and personal growth demands, the program comprehensively assisted traineesin adapting to new roles, learning new methods, developing new capabilities, and facing new challenges.
During the Reporting Period, the Group conducted a four-day orientation training for 1,921 new employeesglobally, focusing on three modules of "About Midea", "I am in Midea", and "A Promising Future". The chairman,CTO, CFO, CPO, vice presidents, and other senior executives were invited to engage in face-to-face discussionsand Q&A sessions with new hires. Besides, there were multiple activities, including a "Growth Market" designed,managed, and operated by new employees, and a "Midea Story Time" wrote, directed and performed by newhires. New employees were allowed to unleash their energy and showcase themselves, demonstrating theirsense of mastery and innovative thinking, and revealing Midea's culture of "unlimited growth".
Building Leadership - "Voyager" ProgramQuick Integration, Rapid Growth - New Employee Onboarding Training Program
On-Site Training of the "Voyager" Program
Onboarding Training of New Employees
Additionally, Midea Group places a high emphasis on employee professional development, and has established andimplemented the Continuing Education Management Policy of Midea Group to standardize further education foremployees, and encourage and support them to enhance their professional qualifications and obtain higher degrees.According to management requirements, the Group supports all employees to obtain professional qualificationcertifications (such as ACCA and Legal Professional Qualification) and pursue further education (such as professionalmaster, doctorate, MBA, EMBA and other degrees), and offers subsidies to those who obtain these certifications ordegrees to enhance their professional competence. During the Reporting Period, we invested more than RMB 5.8 millionto help our employees enhance their professional skills in all aspects.
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Talent Remuneration and Incentives
Midea Group has established and strictly implemented the Performance Management Measures of Midea Group,continuously standardized performance management, and optimized the goal-oriented performance evaluationaccountability system. From the perspective of performance objective and planning, communication and coaching,phased summaries, evaluation and feedback, and improvement plans, the Group conducts annual assessments ofemployees' work performance every year, so as to support the personal improvement of employees.
Following the Remuneration Management Measures of Midea Group, the Group aims to provide employees withcompetitive and internally fair compensation and benefits based on job value contribution and professional capability.We have established a salary structure consisting of fixed and variable income for all employees (including non-officers and non-sales staff), with variable income linked to individual performance and other factors, so as to motivateemployees and maximum their personal value. The Group also develops a salary increase plan with reference toindustry salary level, our business performance, employee development, and performance contributions, so as to sharedevelopment achievements with employees.Under the strategy of "Technology Leadership", the Group has established comprehensive innovation incentivemechanism (including project awards, salary subsidies, and other diverse incentive options) for management, business,and technical roles to encourage innovations and breakthroughs. Since 2014, Midea Group has launched the long-termincentive mechanism for 10 consecutive years, including a Core Personnel Stock Ownership Scheme and a RestrictedShare and Option Incentive Scheme, to improve the long-term incentive mechanism and advocate the value of commongrowth. As of the end of the Reporting Period, Midea's long-term incentive plan had benefited over 15,000 people.Main Steps of Performance Evaluation
Partner Stock Ownership Scheme
◎8 terms of Global Partner Stock OwnershipSchemes
◎5 terms of Business Partner StockOwnership Schemes
◎For core management personnel who playan important role in the Group's overallperformance and medium- and long-termdevelopment
Core Personnel Stock Ownership Scheme
◎1 term of Core Personnel Stock OwnershipScheme
◎Incentives given to about 150 people-times
◎For core management personnel who playan important role in the Group's overallperformance and medium- and long-termdevelopment
Option Incentive Scheme
◎9 terms of Option Incentive Schemes
◎Incentives given to about 12,500people-times
◎For the Group's R&D, manufacturing,quality and other scientific andtechnical personnel and related middlemanagement personnel
Restricted Shares
◎7 terms of Restricted Shares
◎ Incentives given to about 2,200 people-times
◎For senior management who haveprimary management responsibility forunits and departments and other corepersonnel who have a direct impact onthe Group's operating performance andfuture development
◎Utilize multiple goal management tools, including but not limited to KeyPerformance Indicators (KPIs) and Objectives and Key Results (OKRs), and applydifferent tools for employees of different grades and functions to set tailoredgoals;Set Performance Goals
◎Encourage managers to maintain regular communication with the team, trackprogress towards goals, and provide timely coaching and support for any work-related issues;
◎Encourage managers to hold regular formal interviews with employees and recordthe key points from the talk in a digital system to support employee growth;
◎In the early stages of onboarding, promotion, or interdepartmental transfer,managers shall provide performance coaching to help employees adapt to newenvironments for a better performance;PerformanceImplementationand Coaching
◎Adhere to the principle of objectivity and fairness, the regular performanceevaluations shall be carried out based on employees' annual achievements,capabilities and performance, and other indicators;
◎The evaluation process includes performance appeal, allowing employees withconcerns about the results to file appeals, in a bid to protect employee rights andinterests;Performance Evaluationand Feedback
◎The performance results will affect employee remuneration and incentives,promotion and development, and talent training. Additionally, based onperformance evaluation outcomes, the Group provides improvement suggestionsto employees for better growth and development.Application andImprovement ofAssessment Results
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"Open Talk Café" Activity
"Day for Tea" Activity
Employee Communication and Care
We maintain open communication and trust our members. Midea advocates cross-level and borderless communication.The Group has built up open, equal, and diversified channels for communications, and encourages employees to takeownership to drive development of the Group. Additionally, we have established an attractive benefits system andorganized a variety of care activities to help employees live better lives and work more effectively. In 2023, the Groupinvested about RMB 2.4 billion in employee care, including the construction of employee dormitories and employee mealsubsidies.
Employee Communication
We value communication with employeesand are constantly refining ourcommunication and feedback mechanism.To collect employees' suggestions for ourdevelopment, the Group has opened the"Chairman's Direct Line" as a platform fordirect communication with the chairman.Various themed activities and employeesymposium (e.g., "Day for Tea" and "OpenTalk Café") are arranged from time to timeto listen to their voices. Furthermore,we constantly improve our internalonline forums, maintain and upgradeMidea's employee community platform"Midea Talks", where employees cananonymously or openly pose questionsand suggestions about products, services,and life.Employees can make complaints againstproblems and misconduct at work throughthe special whistleblower mailbox andhotline. After receiving a complaint, wewill conduct an appropriately assessment,and refer the complaint incident tothe relevant department. In addition,we strictly protect the information ofwhistleblowers, complainants and otherswho provide relevant investigationinformation. Any retaliation is prohibited.
"Focus · Practicality · Leadership", the 28th Technology Month Activity of Midea GroupThe Technology Month Activity of Midea Group, initiated in 1996, has been successfully held for 28 years.It serves as a platform to showcase Midea's strength in technological innovation and facilitate exchangesamong scientific and technical personnel, presenting Midea's emphasis on technology and technologicaltalent. By the end of the Reporting Period, nearly RMB 500 million was awarded, with the highest award forproject reaching RMB 5 million and that for individual exceeding RMB 1 million. During the Reporting Period,the Group introduced the "New Technology Star" award to recognize young R&D personnel making significanttechnological breakthroughs, in a bid to encourage and promote the growth of young talents of scientificresearch.In 2023, the 28th Technology Month centered on the theme of "Focus · Practicality · Leadership", focusingon the promotion of generic and collaborative technology projects of next-generation refrigeration, next-generation odor elimination, home brain, energy storage, and the world's highest energy efficiency. Itdemonstrates our determination of leading the industry and escorts the Group's core strategy of "TechnologyLeadership". As the future force of Midea's digital transformation, the "New Technology Star" will help MideaGroup march towards a globally leading industrial enterprise and technology group.
"New Technology Star" Award Ceremony
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Midea News, as the mainpublication of Midea Group,has a history of nearly 31years. It reports on thestrategic orientation ofthe Group, the voice ofthe employees and othercontents, and serves asa platform for Midea'semployees to understandour trends and express theirown views. By the end ofthe Reporting Period, MideaNews had published its 508thissue.
Midea News
508th Issue of Midea News
To effectively protect the rights and interests of employees, we have established trade union organizations in compliancewith the law. These unions serve as a link between management and employees, maintaining close communication withemployees. Union representatives negotiate with the company on behalf of employees regarding labor compensation,working hours and rest breaks, insurance benefits, occupational safety and health, professional training, and othermatters. Collective agreements are signed to protect the rights and interests of the labor force.Besides, as employee engagement matters, we conduct annual surveys on how well they are engaged. Based on theresults, we evaluate management effectiveness and formulate and implement improvement measures accordingly.During the Reporting Period, we conducted the 2023 Engagement Survey for all employees around the world, whowere evaluated from the perspective of "engagement" and "organizational support". We analyzed the results in a timelymanner and took improvement measures to address identified issues. We implemented targeted improvements throughkey projects and tracked progress. The aim was to enhance employees' happiness at work.
Employee Benefit and CareMidea Group cares for every employee, and provides diversified non-compensation benefits for all employees byestablishing the Welfare Management Measures and other management systems, and implementing the welfare systemand care system. We have established an employee welfare system that covers six sections, namely, "Guarantee", "EnjoyWork", "Enjoy Life", "Love Your Family", "We Care", and "Specific Benefits". This welfare system aims at continuouslyrewarding employees for their contributions.
Guarantee · Protectemployees' basic rights andinterests
◎Five insurance benefits andthe housing provident fund,statutory holidays, high-temperature subsidy andother benefits are providedfor employees.
Love Your Family · Care foremployees' families
◎We provide additional leavebenefits for our employeeswhen they and their familiesembrace special moments,such as getting married, havinga baby or their children takingtheir college entrance exams.In doing so, our employeescan accompany their childrenwith pay when they are goingthrough the senior high schooland college entrance exams.
◎We also provide commercialinsurance for employees' familymembers, along with MideaGroup's characteristic holidaysand activities such as travelleave and family open days toprotect their beloved ones.
Enjoy Work · Multipleemployee benefits at work
◎Provide employees withmeal subsidies, commutershuttles, meal allowancesand other benefits toeradicate obstaclesencountered in the workscenario.
We Care · Build a friendlyenterprise
◎For employees in need, Mideaprovides special aid andsupport funds.
◎Employees who have officiallyretired are entitled to a one-off retirement subsidy. Atthe same time, we provideadditional subsidies for retiredemployees with 20 years ofservice.
Enjoy Life · Establish anemployee care mechanism
◎Benefits are provided includingholiday benefits, healthbenefits, risk protection, andadditional holidays.
◎We care for our employees'health. In addition to the annualmedical check-up, we also offerfacilities such as professionalsports venues, Chinesemedicine physiotherapy hallsand infirmaries. Free-of-chargepsychological counsellinghotlines are also provided.
Specific Benefits · Provide multi-dimensional care for employees
◎Special customized benefitsare provided for differenttypes of employees.
◎Midea provides housing andcar allowances and otherbenefits for scientific researchand technical employees;and for expatriate workers,relevant training, informationguidance, insurance, safetyprotection, among others,are provided to fully facilitatetheir work and life.
Midea News had published its
th issue
Employee benefit systemGuarantee
Enjoy Work
SpecificBenefitsEnjoy Life
We CareLove YourFamily
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Midea Group established the "Employee Support Fund" in 2007. This fund was set to provide assistance toemployees and their immediate family members over medical expenditures on critical diseases or accidents.In this way, we can better support our employees, so that they can feel a stronger sense of belonging. Overthe years, "Employee Support Fund" has become a long-term program that effectively creates love, care, andenthusiasm for the corporate atmosphere. By the end of the Reporting Period, Midea's "Employee SupportFund" had helped 218 employees and paid out more than RMB 19.22 million in support funds.
More Care for Employees · Employee Support Fund
We require each management department to formulate a systematic daily employee care program and a standardizednew employee care program according to the management reality. The program is implemented in multiple dimensionsof employee work and life. Specific measures include the establishment of gyms and the construction of gardenfactories to promote communication among employees and enhance their happiness thus team cohesion.
We encourage our employees to actively cultivate and develop their personal interests outside of work. Diverseemployee care activities are provided to help them better balance work and life. Currently, Midea Group has 11 coreassociations along with more than 20 recreational interest groups independently operated by our employees. Regularly-held cross-divisional cultural and sports activities help to create a warm and harmonious atmosphere in the Mideacommunity. During the Reporting Period, we conducted over 100 employee association activities, including Midea GroupBasketball Cup, Football League, Table Tennis Tournament and other sports events. Besides, there were various culturaland recreational activities such as reading and sharing sessions, photography competitions and band performances.
GymLibraryBadminton Court
In 2023, 30 couples from Midea Group and various business divisions of Midea tie the knot on the same daywith the blessings of their relatives, friends and colleagues. With the theme of "Love and Harmony", this groupwedding integrated the culture of Midea and Lingnan. And it showed the "inheritance" and "innovation" ofMidea Group's 32 years of collective wedding activities while blessing the couples with a future full of "harmonyand beauty".
To welcome the Mid-Autumn Festival, the Residential Air Conditioner Division organized a musical party,where employees and their families could share the full moon under the "Moon Landing Project· Cross theBoundary". Midea Thailand Washing Machine Factory held the Mid-Autumn Festival singing competition, andcarried out on-site lottery, band performance, moon cake distribution and other activities. This not only madeemployees feel the sense of happiness more intuitively, but also further promoted traditional Chinese culture.
Love and Harmony · The 32nd Group Wedding Ceremony
Special Activities to Celebrate the Mid-Autumn Festival
Group Wedding Ceremony
Mooncake Distribution ActivitySinging Competition
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In addition, we work to build a harmonious and enterprising corporate culture by interviewing outstanding employees invarious positions, uncovering and sharing their stories.
Employee Health and Safety
Midea Group adheres to the concept of "employee first" and establishes and improves the occupational health andsafety management system to protect the health and safety of employees. We strictly abide by the Law of the People'sRepublic of China on Work Safety, the Law of the People's Republic of China on Prevention and Control of OccupationalDiseases and other applicable laws and regulations related to occupational health and safety in the domestic andoverseas regions in which we operate. Guided by internal health and safety management concept, Midea Grouporganizes training and cultural activities to help build a health and safety culture that ensures the physical and mentalhealth of employees.
◎The program is based on interviews with employees, demonstratingthe excellent performance of Midea Group's employees at workand their positive attitudes in life by means of "character stories".During the Reporting Period, we published more than 19 relatedarticles, including stories of new employees, existing employees,outstanding individuals, and excellent teams.
Midea People
◎The program focuses on the insight into the current situationwithin the Group, in particular the working conditions of employeesand the problems and challenges they encounter at work, and willput forward practical suggestions for improvement. This programhelps us to better understand the needs and expectations ofour employees, which can serve as an important reference forsubsequent management decisions.
Program "A Few Facts about Midea"
Safety Concept and SystemAdhering to the occupational health and safety management policy of "full participation, full responsibility, preventionfirst, intrinsic safety, continuous improvement, and recurrence prevention", Midea Group establishes and continuouslyimproves the occupational health and safety management system. Besides, ongoing efforts are made to ensure theeffective and efficient operation of the system, and to better manage occupational health and safety issues. By the endof the Reporting Period, a total of 53 factories of Midea Group had obtained ISO 45001 Occupational Health and SafetyManagement System Certification.Safety committees have been set up in the headquarters as well as each subordinate business group/business segmentand product company to take charge of the management of production safety and occupational health of the Group.According to the requirements the Law of the People's Republic of China on Work Safety, to make safety a team effort,we have set up factory safety sub-committees, including equipment protection and upgrade safety sub-committee,logistics safety sub-committee, and other committees to consolidate the safety responsibility system. During theReporting Period, Midea Group's total EHS investment exceeded RMB 400 million, with no general production safetyaccidents, and a lost time injury rate per 200,000 hours of 0.063, which was at the international advanced level, and adecrease of 16.1% compared to 2022.
Health and Safety ManagementMidea Group vigorously promotes the safety management mechanism of "safety compliance, risk investigation andhidden danger management". By deeply integrating the safety production management and lean manufacturing andfocusing on the accident prevention and process risk control, Midea Group forms an all-round and full-coverage gridmanagement mode, which can effectively protect the life and health of employees and enhance their safety awareness.We control process, equipment, R&D and other risks to ensure the intrinsic safety of equipment protection, the safetyof material sources, the ergonomic stability of the process, and the controllability of the front end of assembledcomponents, so as to minimize safety risks. Meanwhile, with continuous improvement to the emergency managementsystem, we have formulated internal emergency management system to define the emergency organization and itsresponsibilities, and established a comprehensive emergency plan to guide and standardize the emergency rescue, andenhance the emergency disposal capability.
During the Reporting Period
Midea Group's total EHS investment exceeded RMB
million, with no general production safety accidents, anda lost time injury rate per 200,000 hours of
0.063
, which was at the international advanced level, and a decrease of
16.1%
compared to 2022.
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Equipment Upgrade · Electrical Safety ImprovementProject of the Laundry Appliance Division
Process Transformation · Intrinsic Safety Project ofthe Industrial Technologies Business Group
An electrical fire monitoring system is added to continuously monitor the residual current, temperature and otherparameters related to electrical fire hazards in the system. When the parameter of the monitoring device in theprotected line exceeds the alarm set threshold, an alarm and control signal is triggered to eliminate the electricalfire hazards caused by the residual current.
In order to eliminate the safety risks posed by oil-based paints that are flammable, explosive, toxic and harmfulduring the production process, we carry out process transformation and use advanced and environmentallyfriendly water-based paints to fully protect health and safety.
To prevent, control and eliminate occupational hazards, we carry out regular detection and evaluation of occupationaldisease hazard factors in our factories every year. In this way, we can identify hazards factors that have the potential tocause harm in the workplace and determine appropriate ways to control and eliminate these hazards, thereby protectingthe health and safety of employees. At the same time, we organize regular occupational health and safety examinationsand carry out pre-job, on-the-job and off-the-job occupational health and safety examinations for employees in positionsinvolving occupational disease hazards, so as to continuously monitor the health of the employees. In addition, we careabout the mental health and safety of employees and take various measures to help them stay physically and mentallyhealthy. These measures include setting up an exclusive mental health care hotline for employees, launching mentalhealth counselling and lectures, and organizing mental health knowledge popularization and other activities.
Mental Health Literacy Materials
Foster a Safety Culture
We push ahead with our efforts to foster a safety culture by organizing various activities such as lean safety week,EHS training camp, internal and external training, which focus on EHS professional management team building, EHSgeneral skills development, and management EHS leadership building. Through these, we enable all employees tobecome well aware of safety issues. We also carry out activities such as Suggestions for "Near-Miss" Approach and EHSHidden Danger in Photo to encourage employees to report potential safety hazards, thus promoting health and safetyawareness in the workplace. During the Reporting Period, Midea Group conducted 620,658 inspections, with 606,500hidden hazards detected and eliminated, and employees identified a total of 673,642 hidden hazards.
During the Reporting PeriodMidea Group conducted
620,658
inspections, with
606,500
hidden hazards detected and eliminated,and employees identified a total of
673,642
hidden hazards.
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Work Together to Build a HarmoniousSocietyMidea Group has always been actively practicing corporate social responsibility, collaborating with charity partners, andactively responding to the rural revitalization strategy through innovative models such as village-enterprise cooperationand the Midea series of activities. We continue to support local education, inspire the scientific ideals of the nextgeneration, and contribute new momentum to social development. Internally, we continuously cultivate a cultureof philanthropy, encouraging employees to participate in charity activities, fostering kindness, nurturing talent, andcontributing to the construction of a harmonious society.Promote the Development of Local Community
In active response to the national rural revitalization strategy, Midea Group empowers rural construction anddevelopment with its own experience and resource advantages. We have adopted the village-enterprise cooperationmodel to stimulate rural vitality and promote rural development. In January 2024, we signed a "village-enterprise co-construction, village-village pairing" tripartite cooperation agreement with Huanglong Village in Beijiao and BaiqiaoVillage in Gaozhou, outlining six implementation plans. We will leverage our resource advantages to empower the"Baiqiao Lychee" brand construction, focusing on creating a lychee customization theme park, and contribute moderncorporate strength to the "High-quality Development Project for Hundreds of Counties, Thousands of Towns, and TenThousand Villages" and rural construction.We continuously focus on education and implement the plan of "talent first, education first". By strongly supportingpublic education and introducing high-quality educational resources to communities, we have effectively addressed theneeds of children of high-level talents for high-quality educational resources. In addition, we run Midea series of publicwelfare activities and rely on science and technology to support rural science and technology education and safeguardchildren's scientific and technological dreams.
Midea Group collaborates with the Shunde District Governmentand the East China Normal University to establish schools, hasplanned to donate RMB 140 million to support the ShundeMidea School affiliated to East China Normal University, and theMidea High School affiliated with the Second Affiliated MiddleSchool of East China Normal University, meeting the demandfor high-quality high school education resources in localcommunities.As of the end of the Reporting Period, Midea Group hadsuccessfully cooperated with the East China Normal Universityto establish a school that provides high-quality educationalresources for primary, junior and senior high school levels. Theschool will provide more than 6,000 primary, junior and seniorhigh school places, supporting the development of high-qualityeducation in the community.
Midea Group Supports the Development of Community Education and Introduces High-qualityEducational Resources
Shunde Midea School Affiliated to
East China Normal University
"Midea - Science for All Program" Contributes to Rural EducationDevelopmentIn May 2023, Midea Group organized a visit to the No.1 Primary Schoolin Guansuo Street, Guanling Buyi and Miao Autonomous County, AnshunCity, Guizhou Province, as part of its "Midea - Science for All Program"series. Midea Group donated funds to help the school build a sciencelaboratory and provided 600 science experiment kits to help morestudents experience the beauty of science and technology. In addition,Midea Group invested RMB 1 million to support scholarship activities inGuizhou Qiandongnan Prefecture. In this way, teachers and students aremotivated to adhere to the original mission of education and contribute tothe high-quality development of local education."Midea - Public Welfare Science and Technology Study" Safeguards Children's Scientific and TechnologicalDreams
In August 2023, Midea Group, together with Yixin Social Work Service Center, launched the project of "Midea- Public Welfare Science and Technology Study". 23 children were invited to visit Foshan Science Museum andMidea Global Innovation Center. We invited expert teachers to explain scientific knowledge to children, guidethem to do scientific experiments, and stimulate their curiosity and interest in science.
Midea Series of Public Welfare Activities
Midea - Science for All Program
Midea - Public Welfare Science and Technology Study
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Devote to Public WelfareWe continue to promote the construction of public welfare culture, and carry out various public welfare activities athome and abroad. With our own business and technical advantages, we promote the construction of facilities andpopularize the concept of health. We also help develop the local and overseas communities where we operate, to build aharmonious society.
The Thailand factories participated in many charity activities organized by local communities, donated electricalappliances, drinking water, sporting supplies and school supplies to five schools.
Community Public Welfare Activities in the Asia Pacific Region
In July 2023, Midea Air Conditioner launched the "Midea Lotso MengyuPublic Welfare Program", and donated Lotso air conditioners to theRiyuexingchen Autistic Children Growth Support Center in ZhejiangProvince. This program aims to provide assistance to autistic childrenand raise social awareness and concern for them at the same time. Atthe kick-off meeting, we organized a painting exhibition and charitysales for autistic children, set up a popular science exhibition, and invitedprofessionals to explain ASD spectrum disorders. The event has effectivelybuilt a bridge between autistic children and the society.
In September 2023, employees of Midea Group actively responded to the call for voluntary blood donations andparticipated in related activities. A total of 464 participants successfully donated 147,500 ml of blood to helppatients in urgent need of blood. Midea's employees conveyed true love and hope with their kind actions.
Mengyu Public Welfare Program Safeguards "Children with Autism"
Voluntary Blood Donation Conveys Love and Hope
Midea Lotso Mengyu Public
Welfare Program
Employees of Midea Group Participated in Voluntary Blood Donation
Thailand Factory Donation ActivitiesPhilippine employees visited local children's welfare institutes as part of their public welfare activities, donated booksand played interactive games with children.
Philippine Children's Welfare Institute ActivitiesAll employees in Singapore volunteered at local nursing homes and donated household appliances.
Volunteering Activities in Singapore Nursing Homes
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Indonesian School Team Activities
Assistance Activities for Remote Areas in MalaysiaDonation of Electrical Appliances
Midea Indonesia sponsored school team activities to promote harmonious community development.
Malaysian employees went to remote communities to donate household appliances to indigenous people in need, andorganized eco-tourism projects to promote community cultural development.
◎Worked with the New York City Football Club to donated more than 400 products including mini refrigerators,portable air conditioners, microwave ovens and dehumidifiers to the Bronx Homeless Shelter Center;
◎Collaborated with community public welfare organizations to collect and distribute warm winter clothing to those inneed;
◎Cooperated with youth development public welfare organizations to prepare Thanksgiving dinners and toys forteenagers;
◎Worked with local community welfare organizations in Alaska to provide energy efficient household appliances tofamilies in need of special care.
Community Public Welfare Activities in North America
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True to the corporate vision of "Bring Great Innovations to Life", Midea Group provides intelligent, green products andthe best service experiences for global customers through its globalized R&D layout, comprehensive product lifecyclemanagement, and quality service system. We are committed to becoming a global brand leader and creating a better lifeand future for the world.
Practice "Bring GreatInnovations to Life"
Accumulated R&Dinvestment since 2020(RMB billion)
49.3
The number of products for CO
emission accounting in product
use stage (units)100%
coverage of major Midea SmartHome Solution categories
Cumulative number ofrecycled products ('000 units)
50,000
4,150
Midea Group 2030 Sustainable Development Goals and Progress
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Four-Tier R&D System
The organizational structure of the “Four-Tier R&D System” enables the separation between technology researches andproducts development at the organizational level. By doing so, resources can be invested in future-oriented productsand technologies, thus achieving a balance between long-term strategies and short-term operations.
Aspire to Drive Innovation and R&D
Midea Group adheres to the "Technology Leadership" strategy. Through a global R&D layout, a perfect intellectualproperty rights management system and an extensive university-enterprise research cooperation at home and abroad,Midea Group is building a globally competitive R&D and innovation mechanism.
R&D SystemTo better support R&D and make innovation more efficient and sustainable, Midea Group has built an industry-leadingR&D system integrating the "Four-Tier R&D System", the "Three Generations", the "Global Scientific Research TalentsSystem" and the "Global R&D Layout".
Organizational Structure of the "Four-Tier R&D System" of Midea Group
CoreCompetenceDisruptive ResearchCutting-EdgeTechnology Research
(bottlenecks)
Development Cycle
Over 5 Years3-5 Years
2-3 Years1 Year
Common Technologies,Fundamental TechnologiesSpecialized Technology Research
Product Development
LevelFour
LevelThree
LevelTwoLevelOne
Three Generations
The technical framework of the "Three Generations" consists of the technology research generation, platform reservegeneration and product development generation. It enables effective interlocking among user portraits, brand matrices,product platforms, core selling points and technologies. Therefore, the framework has created synergy for the entiresystem, further enhancing innovation and efficiency in product development.
Global Scientific Research Talents SystemMidea Group is committed to attracting R&D talents around the world by virtue of the "2+4+N" global R&D network
. Weestablish R&D scale advantages, and at the same time realize local R&D according to local conditions and user needs indifferent markets. At present, there are more than 23,000 R&D personnel in the technical team of Midea Group. Amongthem, over 5,000 have a master degree or doctorate degree, and about 500 are senior foreign experts. These foreignexperts are Academia Europaea Fellows, IEEE Fellows, IET Fellows, ACM Distinguished Scientists, Silicon Valley SeniorScientists, etc.
Global R&D Network of "2+4+N": "2" refers to the two domestic full-category R&D bases located in Guangdong andShanghai; "4" refers to the four overseas full-category R&D bases in the US, Germany, Italy and Japan; and “N” refers tosingle-category R&D centers established across the globe by business groups/divisions and units as needed.
Four-Tier R&D System
Three GenerationsGlobal Scientific Research Talents System
Global R&D Layout
Corporate Research Center
Business Unit
Technical Framework of the "Three Generations" of Midea Group
Generational relationship
Product Generation I
in Development
ProductGeneration II
ProductGeneration III
ProductGeneration IVMid-to-Long-Term Product and Technology Planning
Product (FirstGenerationDevelopment)Platform (First
Generation
Reserve)
Technology(First Generation
Research)
1-2 Years1-2 Years1-2 Years1-2 Years
PlatformGeneration III
PlatformGeneration IV
PlatformGeneration VPlatform Generation II
1-3 Years1-3 Years1-3 Years1-3 Years
TechnologyGeneration IV
TechnologyGeneration V
TechnologyGeneration VITechnology Generation III
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Global R&D Layout
By continually accelerating and deepening the global R&D layout and technological ecosystem, Midea Group hasset up 33 research centers in 11 countries worldwide. At home, Midea Group takes the Global Innovation Center inShunde HQs and the Shanghai Global Innovation Center as the core and has 16 national platforms such as the nationalcertified enterprise technology center, national industrial design center, and national postdoctoral research station.While overseas the Group owns research centers in the USA, Germany, Japan and Italy as its main force of research anddevelopment to fully exploit to the regional technological advantages of each center, integrate global R&D resources,form a global technology R&D ecosystem with complementary advantages, and systematically build a global R&Dlandscape with talent density and pool guided by the "Technology Leadership" strategy.
Innovation CapabilityMidea Group is fully aware that protecting intellectual property rights is protecting its own innovation capability. Bynow, Midea Group has built an intellectual property rights management system with high-value patents as the core. Inaddition, Midea Group has also actively established in-depth research cooperation with universities at home and abroadto continuously enrich its innovation reserves.Intellectual Property ManagementMidea Group strictly abides by the applicable local laws and regulations on intellectual property rights, including thePatent Law of the People's Republic of China, the Trademark Law of the People's Republic of China, and the CopyrightLaw of the People's Republic of China. Besides, Midea Group has also formulated and implemented policies such as thePatent Management Measures of Midea Group and the Detailed Rules for Patent Agency Management of Midea Groupto standardize patent quality management.
Besides, Midea Group plays an active part in promoting the certification of the intellectual property rights managementsystem. By doing this, Midea Group keeps improving the intellectual property rights management system, andenhancing our ability to create, use and protect intellectual property rights.
R&D InvestmentRMB Billion
We attach great importance to the protection of our intellectual property rights.We not only embed patent nodes in the R&D project management system to buildan infringement identification mechanism, but also include intellectual propertyprotection clauses in contracts with external parties. In this way, we ensure that ourown patent rights are not arbitrarily infringed.Protecting OurIntellectual Property
Rights
We also fully respect the intellectual property rights of others, and carry out R&D in alawful and compliant manner. We embed patent risk investigation nodes in the R&Dproject management system and regard patent risk investigation as an important partin R&D. By strictly controlling intellectual property management from the R&D process,we have avoided infringing upon the legitimate rights and interests of others.Respecting theIntellectual PropertyRights of Others
The Reporting Period
A total of
entities of Midea Group successfully passed the certification, supervision and audit of the EnterpriseIntellectual Property Management (GB/T 29490-2013). Among them,
entities passed the initial certification,
entities passed the supervision and audit, and
entities passed the recertification.
202112.02
+5.03%
+15.57%
20222023
12.62
14.58
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As at 31 December 2023
Midea Group had applied for more than
10,000
patents worldwide, with over
10,000
authorized.Midea Group won
national patent awards, including
silver awards and
8excellence awards, and
provincial patent awards in total.
The Reporting Period
University-Enterprise Cooperation
Adhering to the "Technology Leadership" strategy, Midea Group actively promoted R&D capabilities fostering andtechnological deployment both at home and abroad. In China, Midea Group launched strategic and technologicalresearch cooperation with universities including Tsinghua University, Shanghai Jiao Tong University, Zhejiang University,Chinese Academy of Sciences, Harbin Institute of Technology, Xi'an Jiaotong University, Huazhong University ofScience and Technology, South China University of Technology; Meanwhile, Midea Group is conducting basic researchcollaborations with overseas universities such as UIUC, Purdue University, The University of Sheffield, University ofMinnesota System, UC Berkeley. By the end of Reporting Period, Midea Group has established strategic, project, andtechnological research cooperation with 124 domestic and overseas universities.
In addition, we regularly conducted promotion, training and exchange activities on intellectual property rights tocomprehensively improve the Company's management on intellectual property rights.
In July 2023, Midea Group held the "Sharing and Exchanges on Intellectual Property Rights". All membersfrom the intellectual property rights system of Midea Group and business leaders from intellectual propertyrights cooperation institutions at home and abroad shared and exchanged ideas on topics concerning "Howto Improve Patent Quality" and "How to Achieve Leadership and Global Breakthrough in Intellectual PropertyRights".
Sharing and Exchanges on Intellectual Property Rights
Sharing and Exchanges on Intellectual Property Rights
Midea Group had applied for over
100,000
valid patents worldwide, and maintained more than
80,000valid patent licenses.
In March 2023, on the occasion of the second anniversaryof signing the strategic cooperation agreement betweenMidea Group and Shanghai Jiao Tong University, MideaGroup and the Sino-US Global Logistics Institute ofShanghai Jiao Tong University jointly issued the WhitePaper on Supply Chain Digital Intelligence. The White Paperon Supply Chain Digital Intelligence discusses the needsand challenges of supply chain development in the new erafrom the perspectives of policy, market and technology,and proposes the future development direction of supplychain in terms of integration, intelligence, collaboration,service and greening. Besides, the White Paper alsosummarizes the methods and application scenarios ofdigital and intelligent technology in current logistics andsupply chain areas, and shares the experience on supplychain digital intelligence by case studies.In July 2023, Midea Group worked with ChongqingUniversity, Tsinghua University and other universities andenterprises to launch a program named Key Technologies,Equipment and Application of Low-carbon Heating andAir Conditioning for Buildings in the Yangtze River Basin.The program addressed the difficulties in low operatingefficiency, high energy consumption, severe frost and poorthermal comfort of air supply in winter for the YangtzeRiver basin in need of heating and cooling. Therefore,the program was granted the First Prize for Scientific andTechnological Progress of Chongqing Sci-Tech Award.
Research Cooperation with Universities
Release of the White Paper on Supply Chain
Digital Intelligence
First Prize for Scientific and TechnologicalProgress of Chongqing Sci-Tech Award
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8586
Endeavor to Standardize ProductManagement
Midea Group adheres to the concept of "Creating a Better Life for Everyone in the World", focuses on core business andproducts, integrates the concept of sustainable development into every aspect of product life cycle management, and iscommitted to creating shared value together with stakeholders.
Under the guidance of quality vision, quality strategy and quality culture, Midea Group has built a "5 comprehensive + 5digitalization" intelligent quality management model integrating digital operation system and innovative managementtool as well as methodology, and realized the digital intelligence transformation across the whole process coveringplanning, R&D, manufacturing, marketing and services.
Product Life Cycle Quality Management SystemMidea Group adheres to the four strategic focuses of "Technology Leadership, Direct To Customer, Digital IntelligenceDrive and Global Breakthroughs", clarifying quality vision, quality strategy, and quality culture in conjunction with userneeds.
Quality VisionQuality StrategyQuality Culture
To provide the world withreliable intelligent productsand services, to create abetter intelligent life for users
Build a global intelligentquality management systemto provide users with goodproducts that are green, safe,intelligent, easy to use anddurable
Full participation, qualityproducts, true cause pursuit,essential improvement, sourceflow management, reissueprevention
Midea Intelligent Quality Management Model
Building a Better Life
Digital Intelligence Drive Operation
System: 632 System
Management Tools and Methods:
T+3 MBS TRS
Digital intelligence drive empowers smart manufacturing by Midea, leading the transformation
and upgrading of China's manufacturing industry
Providing globally trusted smart products and services, creating a better and smarter life for users
"5 Comprehensive" Business Innovation
“5 Digitalization” Management Innovation
Demand Side
Supply Side
User Needs(To Consumer)Enterprise Needs(To Business)Social Needs(To Society)
Smart HomeSolutionsEnergy Solutions& IndustrialTechnologyIntelligentBuildingTechnologyRobotics &AutomationInnovationBusiness
IntelligentDecision-
making
Intelligent
AnalysisIntelligentPrediction
IntelligentEarlyWarningIntelligentControl
IntelligentQuality
Supply Chain Procurement
Procurement of greenmaterials, control ofhazardous substancesProduct R&D
Low carbonization, intelligence,humanization, health, use ofenvironmentally friendly materials
Manufacturing
Innovative technology, upgradedequipment, intelligent testing,quality and safety certificationProduct Recycling
Recycling network and channels,used machine recycling, trade-in,dismantling management
Logistics & TransportationAutomation, digitalization,intelligent logistics system
Product Life Cycle Carbon
Footprint ManagementProduct Life Cycle Quality
Management System
Product Distribution
Global distribution network, digitalmarketing, integration of onlineand offline retail resourcesProduct Use
After-sales service, recallmanagement, carbon emissionaccounting in product trial stage
Product Life Cycle Management
TechnologyLeadership
Direct To Customer
Digital IntelligenceDrive
GlobalBreakthroughs
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Appendix
8788
Quality Management System Development Stage
Product Life Cycle Carbon Footprint CertificationMidea Group is actively engaged in the product life cycle carbon footprint certification, from raw material acquisition,production, distribution, use, recycling to disposal. Midea Group's 9 categories of products (namely residential ACs,laundry appliance, refrigerator, electric water heater, microwave oven, induction stove, oven, VRFs, and heat pump) haveobtained more than 40 product carbon footprint certificates.
List of Product Carbon Footprint Certificates
Product Research And DevelopmentGuided by Midea Group's sustainable innovation and R&D system, Midea Group focuses on user needs by conductingtechnology innovation and product development from multiple perspectives such as low-carbon, intelligent, user-friendlyand healthy, and constantly launches many innovative industry-leading products.
The product uses fluorine-free, chlorine-free, low-carbon andenvironmentally friendly natural refrigerant R290. It is estimatedthat compared with the use of R32 refrigerant model in the samepower segment, a R290 Efficlima Residential AC of refrigerantreplacement reduces emissions of about 0.447 tCO
e. This isestimated based on the carbon fixation of a tree (0.015 tons peryear) and it is equivalent to the amount of carbon dioxide 30 treesabsorb in a year. At the same time, R290 Efficlima Residential AC isequipped with high-efficiency equipment such as high-efficiencycompressors, high-efficiency motor control and high-efficiencybionic axial flow fans. It is third-party certified to be far more energyefficient than the highest energy efficiency A+++ rating in theexisting EU energy labelling regulations.
De-carbonization
R290 Efficlima Residential AC
T?V SUD Certificate
The product is equipped with a number of core technologies suchas integrated mechatronics and control design, magnetic bearingcontrol technology, permanent magnet synchronous motortechnology and AI adaptive technology. Assuming the productlifetime of each KWING magnetic bearing centrifugal chiller to be20 years, every 1,000 chillers can reduce 27,750 tons of standardcoal consumption and 69,250 tons of carbon dioxide emissions. Bythe end of 2023, the product had obtained Energy ConservationCertification, AHRI certification
, CRAA certification, etc.
KWING Magnetic Bearing Centrifugal Chiller
KWING Magnetic Bearing Centrifugal Chiller
Quality and Safety 1.0
Quality and Safety 2.0
Quality and Safety 3.0
◎Comply with the ProductSafety Law, Product QualityLaw and other laws andregulations.
◎Reliable design andmanufacturing that exceedsindustry standards, conduct"six-dimensional" safetyreviews, including: fire/water/electrocution leakage/misoperation/explosionprevention/mechanical heat.
◎Safety defect managementunder non-mandatory safetystandards, such as cuts/scalds/pinches/smashes, etc.
◎Physical Safety DefectPrevention and Improvement:
Preventive improvementof safety defects that mayexist under foreseeablecircumstances of normal useor misuse of the product bythe user.
◎The global OBM quality andsafety compliance preventionsystem is built, compliancemaps in multiple scenariosare established and globalquality and global safetycompliance operation controlis implemented. For example,product compliance riskmaps for each country in theworld, food safety risk controlmaps, environmental lawsand regulations maps, privacyregulations maps, and hazardoussubstance risk control maps.
◎Establish a preventionmechanism for product defectrecall cases, improve the marketproduct safety and compliancerecall event database, failurecases and standard deposits,and optimize the product defectrecall grading and controlsystem.Safety review + deviceattenuation control + process
PL review
User full touchpointand defect review
PreventiveSafety
Scenario Analysis ->Hazard Identification-> Risk Assessment ->Risk Evaluation -> RiskReductionPhysicalSafety
Mandatory/recommendedsafety control
Universal Safety ControlGlobal Quality and Safety Control
AHRI Certification, The Air-Conditioning, Heating, and Refrigeration Institute, is a product quality certification system inthe HVAC industry established in North America and is one of the most authoritative certification bodies globally.
Compliance System
+ Safety System +Prevention System
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Appendix
8990
The product is a pioneering cross-border combination of laundry appliance and vacuum cleaner robot, which solves theinconvenience of taking and putting clothes in laundry appliance, and the problem of vacuum cleaner robot occupyingtoo much space. It also solves the vacuum cleaner robot's water supply issue through the laundry appliance's waterpipe and drainage system. At the same time, the product is also equipped with intelligent functions such as AI stainrecognition, laundry process automatic reminder, one-button control by mobile APP. During the Reporting Period, theproduct had won international awards such as the Red Dot Design Award and the iF Design Award.
Starting from diversification of use scenes, intelligent function and humanized design, the product is innovativelydesigned to be assembled together or taken apart to be used in different scenarios. At the same time, the product isprogrammed with a humanized sleep curve detector and can automatically adjust the temperature according to the timeof falling asleep.
The product uses three key intelligent technologies of perception, interaction and decision making to build a whole-house smart air system with super sensor, smart central control screen and AI decision-making system as carriers. It alsoprovides users with more intelligent and convenient services through multi-dimensional interaction methods such aslarge screen control, voice control and APP control. With excellent performance and smart technology, the product wassuccessfully selected for the "2024 Global Top Brands" list and won the "Whole-House Smart Air Solution Gold Award".
Starting from the elderly users' needs of intelligence, comfort and ease of operation, the product achieves 0.10m/s idealwind speed through precise speed control, cold volume and wind amplitude. In this way, the elderly does not feel directcold air blowing even when they are facing the vent. This effectively solves problems of joint pain and knee swellingcaused by direct cold air blowing for the elderly. With comfortable wind, intelligent sensing, air cleaning and other age-friendly and user-friendly performance, the product won the "Heart-to-Heart Companion - Smart Home Appliances FirstPrize", providing high-quality solutions to protect the health and life quality of the elderly.
Intelligent
8B Dual Washing Stations
COLMO Dual Washing StationsRed Dot Design AwardiF Design Award
Midea Navigator Series 3rd Generation Residential Central Air Conditioner
Midea Navigator Series 3rd Generation
Residential Central Air Conditioner
Whole-House Smart Air Solution Gold Award
User-friendly
Double Engine Heater HDW22PD
Double Engine Heater HDW22PD
Midea Whisperer Series Air Conditioner
Midea Whisperer Series Air ConditionerHeart-to-Heart Companion - SmartHome Appliances First Prize
DISCIPLINE PRODUCTCATEGORY HOUSEHOLD / TABLEWARECOLMO Dual Washing Stationwashing machineDESIGNWuxi Little Swan Electric Co., LtdWuxi, ChinaCLIENT / MANUFACTURERWuxi Little Swan Electric Co., LtdWuxi, China
2023
J
ury
| M |
arika Aakesson | Werner Aisslinger | Marike Andeweg | Jan-Erik Baars | Ceren Bagatar | Larissa Barreto Adad | Christiane Bausback |
obert Beck | Stefan Behnisch | Oliver Berger | Inma Bermúdez | Romy Bloch | Silke Bochat | Sibylle Bornefeld | Michael Brandis |
| P |
hilipp Bree | Dave Brown | Maike Budde | Sean Carney | Eva Castro | Shikuan Chen | Lu Chen | Edward Chiang | Dok Chon |
atrizio Cionfoli | Paul Cohen | Sonja Corneli?en | Mia Cullin | Isabelle Dahlborg Lidstr?m | Clara del Portillo |
| D |
e?er Demircan Al?c?o?lu | Andreas Diefenbach | Bern Donadeu | Jarred Evans | Marc Fabra | Friederike Faller | Cathy Figueiredo |
itz Frenkler | Claudia Friedrich | Niklas Galler | Manuel Gattinger | Katja Gerhards | Oliver Gerstheimer | Tilla Goldberg |
| Ja |
cques Gramser | Dario Grasseli | Arwed Guderian | Iwan H?nggi | Olivia Herms | Joa Herrenknecht | Jorge Herrera | Tom Hirt |
uMei Huang | Stephan Hühne | Tim Hulford | Uzin Hwang | Minoru Ikeda | Masazumi Imai | Charry Jeon | Henrik Jeppesen |
| P |
ernilla Johansson | Charles Johnson | Ann Kalkschmidt | Hyun-Ah Kim | Soo Yeon Kim | Yong-ju Kim | Janet Kinghorn |
lix Klingmüller | Toni Koberling | Birgit Kohlhaas | Petteri Kolinen | Karen Korellis Reuther | Henk Kosche | Akira Koyama |
| K |
arsten Küber | Peter Kutz | John W. Lam | Michael Lanz | Maria Leinvuo | Ningning Li | Lidan Liu | Sam Livingstone |
hanna Loomis | Katrin Menne | Nils Holger Moormann | Yujin Morisawa | Craig Morrison | Marco A. Mueller | Mitsuhiko Nagata |
| A |
chim Nagel | Stina Nilimaa Wickstr?m | Anne Julia Nowitzki | Katrin Oeding | Mike John Otto | Thomas Paulen | Andy Payne |
tima Pombo | Rosa Reig | Ana Relv?o | Guto Requena | Andreas Ries | Andreas Rotzler | Robert Sachon | Emma Sandberg |
| C |
arsten Schelling | Johannes Scherr | Tanja Schmitt-Fumian | Anja Scholze | Anneke Short | Stan Skolnik | Marcus Solomon |
ongkyu Song | Bj?rn Sorge | Patrick Speck | Chun-Wei Sean Su | Junggi Sung | Elisha Tal | D?rte Thinius | Martin Topel |
| N |
isan Tuncak | Lauren Tutssell | Mirjam van Coillie | Fabio Verdelli | Wolfgang Wagner | Min Wang | Rock Wang |
Fabian Wappler | Matthew Weaver | Sven Weichert | Jutta Werner | Margarete Wies | Moni Wolf | Satoshi Yoshiizumi
572277
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Appendix
9192
HealthyMini Microwave, Steaming, and Baking Integrated Machine
Mini Microwave, Steaming, and Baking Integrated Machine
WAHIN Ultra-thin Sugar Control Refrigerator
WAHIN Ultra-thin Sugar
Control Refrigerator
At the same time, Midea Group is also actively developing environmentally friendly materials that can be recycled. Weconsider environmental protection and sustainability of components, finished products and packaging materials at thedesign stage.
◎Midea pool heat pump product shell is composed of more than 50% post-consumer recycled materials (PCRmaterials). It received the world's first pool heat pump recycled material content certificate fromT?V SUD.
◎Midea residential AC starts innovation from packaging materials. Media Group develops easily recycled high-densitypackaging materials manufactured with high-density polyethylene (HDPE) and foamed polypropylene (EPP). Forconsumption areas without recycling and disposal capacity, degradable packaging materials manufactured withpolylactic acid (PLA) and poly (butylene adipate-co-terephthalate) (PBAT) are developed to further enhance eco-friendly characteristics in our product packaging.
◎Midea laundry appliance begins innovation from its packaging design. Midea Group develops and uses honeycombcarton instead of the traditional double corrugated carton. In this way, we achieve a 32.9% reduction in paperconsumption and 50% reduction in glue consumption.
Double Corrugated Carton Honeycomb Carton
The product adopts the "no-fat and low-salt technology" cooking algorithm that combines waterfall steam with coal fire,which can effectively reduce the content of fat and salt in the process of food cooking. According to the test results ofauthority institutions, when using this product to roast high-fat meat, the rate of fat reduction can be increased by 48%.
The product has a built-in punk health cabin. Through the exchange of thecold and hot ends of the built-in Thermo Electric Cooler (TEC), the digestiblestarch inside the food can be gradually converted into an indigestible resistantstarch. In this way, sugar control is achieved, which is suitable for diabetes,hyperlipidemia patients and people losing weight. Tested by the professionaltesting organization SGS, the resistant starch in the rice stored in ourrefrigerator is 78% higher than that in the untreated rice.
T?V SUD Recycled Material Content Certi?cate
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Appendix
9394
ProductionMidea Group practices the concept of intelligent and high-quality production through the creation of intelligentproduction logistics, the use of intelligent testing technology, product quality control and safety certification measures.In these ways, we achieve efficient, high-quality and sustainable production development.
Intelligent Production Logistics System
Midea Group uses automation and digital technology to actively build an intelligent production logistics systemthrough the deployment of AGV intelligent handling robots, CTU picking robots, intelligent conveyor lines and three-dimensional storage systems. We standardize the "unload, upload, enter, exit" process, and make the process intelligentand unmanned. We also improve production efficiency by solving the production pain points of numerous transfers andstations, long distance and excessive inventories.
Intelligent Production Logistics System
Automatic grippingAutomatic mold feedingAutomatic machiningAutomatic loading
Robot coverageIn-line precision positioningProcessing automationStandardization of small partsAutomatic dustproofingAutomatic carryingAutomatic storage
Automated outbound
warehousing
Elimination of manual setsStandardization of large partsIntelligent automated
lineside warehouse
Intelligent automatedlineside warehouse
Intelligent Production
Logistics System
Intelligent DetectionTechnology
Product Quality and SafetyCertification Control
Intelligent Production
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Appendix
9596
◎Intelligent operation action detection: AI algorithm analyzes employees' operation actions in real time. If employeeshave wrong operations or omit certain steps during operation, an alarm will be triggered immediately.
◎Product weight intelligent detection: It automatically identifies the product model and records the product weight,and then compares the product weight with the standard value set by the system. If there is a great deviation fromthe standard value, it indicates that there might be product quality issues.
◎Intelligent inspection of product appearance: The intelligent robot can identify whether the LOGO is consistent withthe product model through AI vision, and accurately measure the key appearance size of the product through laserpositioning.
◎Intelligent inspection of product interior parts: Through the AI platform, the integrity of the product interior parts isautomatically detected to determine whether there are any missing interior parts.
Intelligent Detection Technology
Midea Group Product Quality and Safety Certification List
Midea Group sets strict product quality and safety certification control requirements, requiring all products to passquality and safety certification tests before production, and obtain safety certifications. Under the strict controlrequirements, Midea Group products have obtained a number of product quality and safety certifications in differentcountries at home and abroad.
Product Quality and Safety Certification Control
Product Distribution
Adhering to the "Direct To Customer" strategy, Midea Group has established a global online and offline productdistribution network covering more than 200 countries and regions in Asia, North America, South America, Europe,Africa and Oceania. We have more than 14,000 sales personnel, and established partnerships with more than 80,000distributors. At the same time, insisting the principle of market-oriented and user-centered, we have prospectivelyestablished global user research network, a localized consumer and market insight organization and a digital marketingecosystem. We will continue to optimize the product distribution system around the needs of users around the worldand changing consumption habit trends.
To make us more approachable to users, streamline sales channels, and promote marketing digital transformation, welaunched the Midea Cloud Sales Platform. It digitally connects a wide network of retailers directly, enabling retailers toorder products directly from us and learn about new products to boost sales. At the same time, we can track retailers'sales and inventories in real time through the Midea Cloud Sales Platform, and respond to changes in consumerpreferences and market demands in a timely manner.
◎Commodity whole chain management: We build a whole chain process covering commodity informationimport, sales attribute management, commodity layout and ordering. This achieves commodity whole chainvisualization management, and improves the efficiency and value of commodity channel marketing.
◎Whole chain visualization of the order system: To better meet the market demand, we realize the ordervisualization management by sharing order information among brands, dealers, distributors and stores.We also improve delivery efficiency and value chain operation efficiency and achieve fine management ofproducts and services in order to improve overall marketing competitiveness.
◎Closed-loop management for marketing expense budget: We create a channel that connects the process ofmarket expense budget, end-to-end cost flow and settlement. In this way, we promote the standardizationand digitalization of cost budget, and match the cost budget process with business objectives, achievingrefined cost control and therefore improving the efficiency of resource input and output.
◎Multi-level purchase-sales-inventory system: Through the establishment of account books and purchaseand sales relationships, we establish a channel connecting brand owners to dealers, distributors and stores,as well as the direct end-to-end connection between brand owners, channel operators and stores. Therefore,we managed to carry out refined operation of marketing channels.
◎Multi-level and diversified promotional activities: We support the development of personalized promotionalactivities. Brand owners can release promotional activities directly to the store to achieve diversifiedpromotional activities and multi-level promotional activities.
◎Well-developed and flexible pricing system: With a well-developed and flexible pricing system, we supportthe multi-level independent pricing by regions, customers and categories, to meet the needs of distributorsfrom various channels and pricing strategies.
Midea Cloud Sales Platform Core Abilities
◎E-commerce and third-party onlineplatforms such as JD.com, Tmall andPinduoduo, and Midea's own shoppingplatform M-Smart
Online Distribution Channels
◎National retailers, regional retailers andregional distributorsOffline Distribution Channels
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9798
As online and offline market integration accelerates, we conduct retail transformation according to users' needs andexperiences by referring different levels and features of distribution channels and the changing trend of users' needs andpayments, constantly integrate online and offline retail resources and optimize product distribution system.
Additionally, we accelerate the promotion of our brand in the global market. We intensify the brand penetrationability in key overseas markets through multiple dimensions, including offline in-store experience, salesperson teamsconstruction, social media promotion and whole-house solution marketing. Moreover, we cooperate with world-renowned chefs and influencers to explore diversified interactive selling scenarios and arrange various live-streamingmodes, thus building a resource pool for overseas marketing. In addition, we sponsor renowned overseas soccerclubs and sport events, improving brand exposure through cooperation with Manchester City F.C., New York City F.C.,Sport Club Corinthians Paulista, and the AFF Championship. Consequently, we improve our local marketing and globalreputation.
Product Use
Midea Group attaches importance to the user experience in product use. Midea Group continuously improves the after-sales service coverage and service capacity, and establishes a holistic recall mechanism. Meanwhile, we are working onmeasuring the CO
emissions of the main products to better understand the situation and reduce emissions.
After-Sales ServicesMidea Group strictly abides by the "Three Guarantee Provision"
in the Law of the People's Republic of China on theProtection of Consumer Rights and Interests to provide after-sales services for consumers, and has established extensiveservice points around the world. As of the end of 2023, we had more than 6,000 domestic after-sales service points andapproximately 5,000 overseas. For consumer end (C end) users, our after-sales services include delivery, installation,maintenance, return and replacement, and value-added services such as partial renovation and cleaning. Users can useMidea's WeChat Official Account and mini-program, online M-Smart platform, and 400 hotline to reserve engineer fordoor-to-door services. We also provide service and repair manuals, parts removal, replacement videos, and 365-dayreplacement for certain small household appliances. For business and industrial solution end (B end) users, we arrangeprofessional teams for installation, maintenance and other services, sparing no effort to improve users' loyalty and buildtrust with extraordinary services.Additionally, we conduct regular training and service quality assessment for after-sales service personnel to improvetheir knowledge and skills and ensure the quality of after-sales services.Product Recall ManagementMidea Group develops and implements the Measures for Product Defect Assessment and Recall to standardize productdefect assessment mechanism and recall process. When discovering possible existence of product defects in quality andsafety in the market, we actively take measures to recall the circulating defective products as soon as possible to reducethe risk of use. There were no product recalls due to safety and health problems during the Reporting Period.
Three Guarantee Provision: Guarantee for repair, replacement and refund.
◎Strengthening the retail capacity of stores and improving the whole-chain experience: Utilize digitalmarketing tools such as Midea Cloud Selling Platform and Midea Home Delivery mini-program torestructure the retail system of stores, and assist stores in conducting online and offline promotions toattract and retain more customers.
◎Actively entering the lower-tier market: Fully present in core shop booths, and keep upgrading terminalstandards to provide fast and professional shopping experience. Improve the quality of consumption andkeep unleashing new consumption potentials in the lower-tier market through consumption policies suchas trade-in and marketing strategy such as vouchers.
◎Focusing on retail shopping experience: Launch quality product marketing activities based on brandreputation, customer flow and retail sales with product experience as its core. Conduct product tourexhibition in markets at all levels, and leverage active service as a breaking point to facilitate distributionchannels covering public, private and membership sectors.
◎Strengthening consistent experience for end consumers: Improve the e-commerce distribution capacityand off-premise sales ability of the offline stores by integrating online capabilities of Midea Mall,SmartHome APP and Midea Service and promoting the retail platform - Midea Smart Home integratingonline and offline services. Ensure that consumers get the same shopping experience at terminal shopsas at e-stores.
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Appendix
99100
Carbon Emission in Product Use
To better understand the CO
emissions of products in use that have already been sold, and to standardize the caliberand method of CO
emissions accounting, we select four typical domestically sold products to calculate the CO
emissions in product use stage. In the future, we will gradually promote full CO
emissions accounting of main productsin use. And we will plan precise carbon reduction approaches for products in use according to the actual situation.
◎Cancelling remote control device equipment: HDY22L heater is no longer equipped with remote controller, reducing119,000 of remote controller production, namely 238,000 batteries, thus further reducing pollution and CO
emissionfrom product use.
◎Adopting environmentally friendly refrigerant: From 2021 to 2023, Midea Group sold 3.75 million R290 refrigerantproducts including split air conditioner, mobile air conditioner, and dehumidifier, compared with R32, R134a andR410A refrigerant products. The replacement with R290 refrigerant products realizes 1.63 million tCO
e decrease,which is equivalent to one-year CO
absorption of 1.93 million hectares of Amazon rainforest
.
◎Reducing paper manuals: Provide paper manuals(simplified version) and e-manuals (full version) for room airconditioners according to the international requirements.By simplifying paper manuals, each manual can be reducedby five A4 pages. According to related statistics on productsales, 12 thousand tons of A4 paper can be saved everyyear. If it takes 10 20-year-old trees to produce 1 ton ofpaper, 120,000 20-year-old trees can be saved from beingcut down.
Scan a QR Code to Get Digital Instruction for
Use and Installation (Full Version)
Product Recycling
Midea Group consistently responds to national policies such as the Extended Producer Responsibility Plan and theNotice on Encouraging Home Appliance Manufacturers to Undertake Recycling Targeted Responsibility. Furthermore,Midea Group develops and implements the Green-Recycling-Appliance Recycling Service Management Scheme of MediaGroup, the Notice on Reiterating On-Store Green Recycling Requirements, and the Notice on Clarifying Rules for theRecycling of Used Consumer Equipment. Therefore, Midea Group clarifies the scope, content and procedure of productrecycling, realizing a closed whole-chain recycling loop from user - Midea Group - dismantling plant.
Midea Group is building a nationwide recycling network through online and offline platforms. Users can realize the oldmachine recycling and trade-in through the offline dealer stores; or reserve the door-to-door recycling service throughMidea's WeChat Official Account and Mini Program, Meiyunshou (Midea Cloud Recycling) Mini Program, Midea HomeService Mini-Program and the 400 Customer Service Hotline, so professionals will visit to dismantle and recycle; forthose of higher residual value and can be easily dismantled, users can take-back them by the way of mail-in.
All categories of Midea Group's own brandproducts, and air conditioners, refrigerators,laundry appliances, water heaters and TV productsfrom other brands.
A unified product recycling standard is adoptedwithin Chinese Mainland, and product recyclingstandards in overseas regions (including HongKong/Macao, China) are subject to local regulatoryrequirements.
Scope of the recycling programStandards of the recycling program
CO
Emission from Product Use=product sales * annual comprehensive power consumption * grid emission factors * life expectancy, inwhich the comprehensive power consumption is the national standard working condition test result; grid emission factors are taken fromthe Notice on the Management of Greenhouse Gas Emission Reporting for Enterprises in the Power Generation Industry in 2023-2025 (EIAClimate Letter [2023] No. 43), released by the General Office of the Ministry of Ecology and Environment; the life expectancy is based onthe Safe Useful Life for Household Electrical Appliances Part 3: Room Air Conditioners and other rules.
Carbon sequestration was calculated at 0.8433 tons/year per hectare, in reference to Hubau, W. et al. Asynchronous carbon sinksaturation in African and Amazonian tropical forests. Nature 579, 80-87 (2020).
As of the end of 2023
Midea Group's recycling services
comprehensively covered
Chinese districts andcounties as well as key township-level markets.There were over
million users registered on Midea's WeChat Official Account and Mini Program.
The Reporting Period
Midea Group has recycled
3.098
million of obsolete household appliances including televisions, refrigerators,laundry appliances, and air conditioners, exceeding the annual target of
2.6
million.Midea Group provided all kinds of services to over
million users.
Meanwhile, we actively implement all kinds of measures to reduce CO
emissions from product use where our operationscomply with rules and regulations:
Product CategoryCO
Emission from Product Use (in '000 tons)
Typical Refrigerator Products274
Typical Commercial Multi-split Products 945
681Typical Laundry Appliance Products
3,060Typical Residential Air Conditioner Products
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101102
To guide consumers to develop a sense of proper use and replacement, Midea Group recycles and disposes of usedhome appliances in a formal and environmentally friendly way. We conducted online and offline trade-in themecampaigns throughout the Year, such as Lunar New Year's Shopping Festival, Shopping in March, Midea Fans Festival,Cooling Down Festival, House Furniture Festival and Midea Green Action. Through promotions such as green trade-incoupons, cross-category trade-in and 365-day replacement, Midea Group provides credit against a new purchase andreal benefits for consumers, effectively fulfilling our producer responsibility and promoting a green lifestyle.
For the dismantling end, Midea Group cooperates with 45 dismantling enterprises on the national List of EnterprisesSubsidized by Waste Electrical and Electronic Products Disposal Fund
to achieve the procedure-based dismantlingof waste appliances from various channels for resource reuse, energy conservation and emission reduction, and greencircular economy development. We strictly inspect dismantle partners' qualifications, such as Waste Electrical andElectronic Products Disposal Qualification Certification from the environmental protection authorities, ISO 9001 QualityManagement System, ISO 14001 Environmental Management System, and International E-waste R2 Certification.Furthermore, Midea Group became a shareholder of Fuyang Dafengye Renewable Resources Co., Ltd. (listed in theList of Enterprises Subsidized by Waste Electrical and Electronic Products Disposal Fund) during the Reporting Period,and provided financial support for its new base construction. Midea Group also supported its "Internet+ Recycling"capability and systems for its technology and capacity upgrading to further implement Midea Group's responsibility formanufacturers' recycling business.
The China Household Electrical Appliance Association andthe magazine China Appliance jointly held the first "ChinaHousehold Appliance Sustainable Development Summit".Experts and leading enterprises in the sustainabledevelopment of household appliance gathered to discussthe direction of industrial sustainability and share greenand low-carbon experiences.At the forum, Midea Green Action was demonstrated,showcasing Midea Group's excellence in promoting low-carbon living and fulfilling its mission. Different fromthe traditional trade-in within one category such as"replacing old air conditioner with a new one", MideaGroup created "cross-category trade-in" by establishing"green household appliance stock". Given its innovativepractice in recycling household appliances, Midea GreenAction was awarded "the Prize of Excellence in SustainableDevelopment" by the magazine China Appliance.
Midea Green Action wins "the Prize of Excellence in Sustainable Development"
Midea Green Action Wins "the Prize of
Excellence in Sustainable Development"
Poster for Trade-in Series Theme Campaign
The dismantling enterprises on the List of Enterprises Subsidized by Waste Electrical and Electronic Products DisposalFund shall strictly abide by the Administrative Regulations on Recycling and Disposal of Waste Electrical and ElectronicProducts, and the Guide for Auditing the Dismantling of Waste Electrical and Electronic Products and other nationalpolicies on the dismantling of electrical and electronic products. Such companies are required to be audited by a thirdparty on a regular basis and to publish the audit report.
In 2023
Midea Group's trade-in campaign was held in over
15,000
communities and villages, covering more than
38,000
stores with trade-in subsidies of over RMB
million, benefiting over
3.6
million users.
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Appendix
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Pursue High-Quality CustomerExperience
Adhering to the "customer-oriented" concept, Midea Group constantly improves the marketing managementmechanism. In detail, we continuously strengthen pre-sales, sales and after-sales services, and strictly implement themanagement requirements for data security and privacy protection to bring users better service experience.Responsible Marketing
Midea Group always strictly abides by the Advertising Law of the People's Republic of China, the Anti-Unfair CompetitionLaw of the People's Republic of China, the Law of the People's Republic of China on the Protection of Consumer Rightsand Interests, the Cybersecurity Law of the People's Republic of China, the Measures for the Administration of InternetAdvertising and other relevant laws and regulations as well as industry standards for domestic marketing. The Group hasformulated and implemented the Compliance Guidelines for Advertising and Promotion Behavior, the Ten Prohibitionsin the Marketing Field, the Compliance Management Requirements for Online Business, and the Risk Warnings,Management Requirements for Domestic E-commerce Promotions and other policies and regulations. By doing so, wedefine the compliance red line for advertising, price promotions, on-site and off-site livestreaming, service operations,and other activities in both online and offline marketing, ensuring compliance with the law.In terms of external publicity and review, the Group's legal department and relevant business groups/divisions conductcompliance review of all marketing materials before release in accordance with policies and regulations. By doing so,we are able to identify, correct and rectify problems or errors in a timely manner, to avoid that the released marketingmaterials involve any infringement or violations of the Advertising Law.
◎All advertising and marketing materials shall be approved before release;
◎Absolute terms such as most, best, first, and top, shall not be used;
◎False or misleading marketing by means of fictitious transactions, fabricated user comments, etc. shall not beallowed;
◎It is prohibited to make premium sales or make false and inaccurate statements about the types, probability,maximum amount, total amount, quantity, quality, or the winning methods of prizes;
◎Unauthorized images, fonts, comics, videos, portraits of others, and popular IPs shall not be used;
◎Advertisements that violate good social climate, such as promoting racism and sexism, and damaging nationaldignity, shall not be published.
Provisions for approving external publicity information (illustrative)
Meanwhile, the Group strengthens the awareness of responsible marketing among employees in relevant positionsthrough online and offline training, sharing and analysis on typical cases in work groups, and special posters to improvethe marketing management.
Marketing Compliance Training at the Livestreaming Base
Responsible Marketing Poster Typical Marketing Case Sharing and Analysis
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We have established effective channels for user communication and complaints in time. Users can consult or complainthrough 7*24 free 400 customer service hotline, Midea service official account, mini program, and other channels. Forproduct installation demand, we will make an appointment with the user for home installation within 24 hours as required.For product maintenance demand, we will communicate with the user about the problem and make an appointment forhome treatment within 48 hours. For user complaints, we will respond within 2 hours and communicate with the userabout the solution.During the Reporting Period, we reconstructed traditional customer service processes, that is, "starting from customersand ending up with customers", so that customers are more actively involved in key service processes. By restructuring,we have further strengthened the timeliness and quality control of the service processes, increased the difficulty ofmaking false documents and reduced the difficulty of implementation at service outlets.
Customer ServiceMidea Group constantly improves user experience, and strengthens pre-sales, sales and after-sales services, committedto building a high-quality user service system. The Group has formulated and implemented policies and regulationssuch as the Measures for the Administration of the Whole-Process Service, the Measures for the Administration of WorkOrders and the Measures for the Administration of Upgrading Information. By doing so, we regulate and standardize theworking mechanism of the whole-process user service.Midea Group launches "5 Digitalization", a new digital and intelligent service model around the "Digital Intelligence Drive,Direct To Customer" strategy, aiming to meet user needs. By utilizing digital and intelligent means, the Group improvesuser service in an all-round manner, optimize service processes, and enhance service efficiency and experience toprovide more warm-hearted services.
Identify potential opportunitiesand abnormal risks through datamodelling and intelligent analysis;
Compare and analyze conclusionsand target limits to automaticallyprovide warnings;
Intervene in abnormalities exceedingtarget limits in a real-time manner,while triggering improvementtasks for automatic closed-loopmanagement;
Providesuggestions fordecision-makingthrough simulationmodelling and AI.
Predict user needs,future trends,and potentialopportunities basedon data analysis toidentify the optimalsolution;
Pre-Service
DuringService
IntelligentPredictionIntelligentDecision-
Making
Intelligent
Analysis
Intelligent
ControlIntelligent
EarlyWarning
Post-Service
Direct To Customer
Before change:
◎Outlets/Engineers book, change andcancel appointments.
◎Engineers end service.
After change:
◎Customers initiate or confirm thebooking, change and cancellation ofappointments.
◎After engineers complete the service,professional service reports are sent tocustomers. Customers will confirm theservice contents and end the service.
Customer requests
Engineer services
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A total of more than 35,000 engineers nationwide participated in the Fourth "Diamond" Skills Competition, ofwhich 182 engineers stood out in the finals, competing in professional skills and exchanging service experience.Through the competition, they were able to better serve customers.
The Fourth "Diamond" Skills Competition
The Fourth "Diamond" Skills Competition
We conducted more than 1,800 training sessionsfor our 400 hotline customer service personnel,totalling 55,000 training man-hours. Such trainingmainly included service standards, core sellingpoints of different categories, branding techniques,membership system, core new product features,315 consumer rights and interests, peak seasonempowerment, and winter anti-freezing. Thesetraining sessions had enriched the customerservice knowledge and improved service quality ofhotline service personnel in all aspects.
400 Hotline Service Personnel Training
400 Hotline Training Site
Midea Group regularly carries out user satisfaction survey every year, and organizes a list of common problems basedon the results to launch special improvements. During the Reporting Period, we conducted a survey of about 8 millioncustomers, and the customer satisfaction rate reached 98.56%.
Midea Group understands that the professional capability of customer service personnel is the key to better servecustomers. For this purpose, we have established a comprehensive training mechanism, and carried out a variety oftraining and skills competition programs to comprehensively strengthen customer service personnel's professionalcapability.
We have conducted long-term certification training for home service engineers. Four major certificationtraining sessions, namely outlet technical supervisor certification, engineer authorization certification, technicalinstructor certification and high-level engineer certification, were carried out. Through such certification training,we have fully explored and developed internal senior engineers and technical instructors to continuouslyimprove the professional skills and service quality of engineers. By the end of the Reporting Period, 180,000engineers had completed the certification training.
Engineer Certification Training
Engineer Certification Training Site
Customer Satisfaction
202098.00%202198.10%
202298.14%202398.56%
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Midea Group strictly adheres to the principles of "lawfulness, legitimacy, and necessity" in the protection of personaldata. We have specified that only the personal data necessary for the provision of services is collected. In order toprovide better product experience, we minimize the collection of the necessary personal data of customers. In addition,to safeguard data privacy, we prioritize local processing of users' personal data to reduce the risk of data leakage.As of the end of the Reporting Period, Midea Group had obtained ISO/IEC 27701 Privacy Information ManagementSystem Certification and ISO/IEC 27001 Information Security System Management Certification. In addition, SmartHomeApp had passed the Mobile Internet Application (App) Security Certification. During the Reporting Period, Midea Group'sinformation systems did not experience any major cybersecurity risk incidents or major data leakage, tampering,destruction or loss incidents.
In addition, in order to enhance the awareness of privacyprotection among all employees, reduce the occurrence ofprivacy security incidents, and ensure the compliance anddaily operations, we regularly conduct information securityand privacy compliance training for employees through theinternal training system "M-Learning". Such training coversprivacy protection laws and regulations and relevant industrystandards, internal policies and systems for privacy protection,identification of general data and sensitive data, and dailywork norms related to privacy protection.
Information Security and User Privacy
Midea Group attaches great importance to information security and privacy protection. The Group strictly complies withthe Data Security Law of the People's Republic of China, the Cybersecurity Law of the People's Republic of China, thePersonal Information Protection Law of the People's Republic of China, the General Data Protection Regulation (GDPR),the California Consumer Privacy Act (CCPA) and other applicable laws and regulations in places where we operate. MideaGroup has formulated and implemented a number of internal policies, such as the Personal Information Protectionand Management Measures and the Data Leakage Incident Management Guidelines. By doing so, we standardize theprocesses and requirements for managing personal information throughout the lifecycle, the responsibilities for personalinformation protection management, the mechanism for assessing the impacts of data protection, the respondingmechanism to the rights of the data subject, the procedures for responding to and disposing of data leakage incidents,and the regular audits for personal information protection.Midea Group has established a four-level organization to manage data security and privacy protection, consisting ofthe data protection office, security and privacy protection departments, data protection representatives from eachbusiness division, and relevant employees from business divisions for specific implementation. Responsibilities of eachorganization are as follows:
◎Data protection office: Comprised of Midea Group's Legal Data Compliance Officer, Information Security Officer,and Head of the Digitalization Office, it is responsible for guiding and overseeing the Group's information securityand privacy protection. In detail, the office is responsible for formulating policies related to information security andprivacy protection, following up on regulations and standards issued by regulators in this regard, identifying datasecurity and privacy risks, and advancing the construction of the culture of privacy protection;
◎Information security departments: Responsible for the implementation of the Group's data security and privacyprotection strategy. As a bridge between the data protection office and business divisions, they are also responsiblefor assessing impacts on data protection, raising privacy and security awareness, and promoting the acquisition ofindustry-related privacy and security certifications;
◎Data protection representatives: As a bridge between security and privacy protection departments and employeesof various business division, they are responsible for communicating relevant policies issued by the data protectionoffice, assisting employees of business divisions in information security and privacy protection activities, as well asevaluating and reviewing the effectiveness of the activities;
◎Relevant employees from each business division: Responsible for implementing and monitoring informationsecurity and privacy protection activities. If a data leakage occurs, they will promptly report it to the data protectionrepresentative.
Mobile Internet Application (App)Security Certification
ISO/IEC 27701 Privacy InformationManagement System Certification
ISO/IEC 27001 Information SecuritySystem Management Certification
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Midea Group works with partners to move towards a greener, more efficient, smarter and better future.
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Midea Group 2030 Sustainable Development Goals and Progress
Coverage rate of sustainabilityperformance assessment for new
suppliers (%)
Due Diligence Rate of supplier
controversial sourcing (%)
Number of suppliers forSSC supplier empowerment
(units)1,000
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Promote Smart TransformationFollowing the "Technology Leadership, Digital Intelligence Drive" strategy, Midea Group integrates information, networkand smart technologies with cutting-edge manufacturing and sustainable energy-saving methods in the industrial filed.With this integration, the Group has launched smart industrial solutions covering green energy, intelligent manufacturing,smart logistics, intelligent buildings and other fields. By doing so, Midea Group aims to lead and empower the digital andintelligent transformation of upstream and downstream industries and partners.Green EnergyMidea Group has adopted a green energy solution throughout the value chain covering supply, allocation, consumption,control and management around "SGLS"
. With green energy supply, energy storage technology, energy digitization,high efficiency and energy distribution, we help many enterprises save energy and reduce carbon emissions and ensuretheir energy security and efficient supply.
SGLS, an acronym for “source, grid, load and storage”, is an integrated solution.
Haifeng AGC Energy Storage andFrequency Conversion Project
To respond to the national energy storage policy and meet thedemand for high-quality frequency conversion services in thecurrent power market and energy structure of Guangdong PowerGrid Corporation, Midea Group helped complete Haifeng AGCEnergy Storage and Frequency Conversion Project. This project isequipped with direct scheduling and leverages new self-developedgroup control management technology and system, to improvethe regulation rate, regulation accuracy and reduce the responsetime. As of the end of the Reporting Period, the project's chargecapacity and discharge capacity had totaled 138,607,000 kWh and119,006,000 kWh respectively.
Haifeng AGC Energy Storage and Frequency Conversion Project of Guangdong Power Grid Corporation
Electromagnetic Stirrer Upgrade
In 2023, Midea Group assisted an iron and steel group in Shandong in implementing an energy-efficientfrequency conversion solution. A number of electromagnetic stirrers were upgraded, comprehensivelyimproving automation of the mixing process. Through the project, we helped the group reduce energyconsumption by about 15% and improved metal melting rate and yield by about 13% and 1% respectively.
Energy-Efficient Frequency Conversion Solution for an Iron and Steel Group in Shandong
◎With significant energyconsumption, industrialparks face the pressurebrought by dual carboncommitments, carbontrading, and carbon tax.
◎The distributedphotovoltaic powergeneration system isbuilt on the roof of theindustrial park, theparking shed and thebuilding lighting facadefor self-generationand self-use. Theexcess electricity canbe contributed to thenational grid.
◎The energy networkarchitecture isconstructed in theindustrial park forcoordinated controlof industrial andcommercial energystorage based onthe energy storagenetwork interface tosupport diverse energyintegration.
◎The high and lowvoltage inverterswith high energyefficiency are applied tomachinery processing,water pumps, airconditioning, elevators,conveyors and otherequipment to smoothlystart the equipmentmotor, accuratelycontrol the motorspeed and outputpower, and reduceenergy waste andexpenditures.
◎Industrial parks facechallenges such asexpanding price gapbetween peak and off-peak and the energytransformation.
◎Pumps in metallurgy,chemical, electricpower, municipal watersupply and miningindustries sufferfrom high load powerconsumption.
Response toPain Points
Distributed PhotovoltaicSolution for Industrial
Parks
Description
Industrial andCommercial EnergyStorage Solution
Energy-EfficientFrequency Conversion
Solution
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Intelligent ManufacturingMidea Group summarizes end-to-end solutions for lighthouse/digital factories and smart workshops at home and abroadthroughout the value chain. We have helped enterprises at home and abroad build hundreds of digital factories, digitalworkshops and smart workshops to improve quality and efficiency and reduce delivery costs, delivery time, and energyconsumption.
FAW-Volkswagen Smart Workshop'sAutomatic Battery Assembly Line
Midea Group assisted FAW-Volkswagen Foshan Branch's batteryfactory to build a smart workshop, aiming to reduce manuallabor through automation, digitize equipment and processes,and realize intelligent management of energy consumption. Byimplementing KUKA Flexible Systems and introducing 101 KUKArobots on the battery shell welding line and the battery packagingline, the factory achieved an annual output of 150,000 batterypacks in a single shift and 300,000 battery packs in a double shift.The overall automation rate reached 82%, ranking among the bestin the world's high-voltage battery field.
Smart Workshop Solution for FAW-Volkswagen
Midea Group and AIMA Technology Entered into a Long-Term Strategic Partnership
In the context of the promotion of the new national standards, the upgrading of consumption and the call forgreen and low-carbon travel, Midea Group and AIMA Technology entered into a long-term strategic partnership.With years of digital transformation experience and advanced technologies such as big data, 5G, industrialInternet, we helped AIMA Technology build a digital factory featuring high quality, fast delivery and low costs.Transitioning from Make-to-Stock (MTS) to Make-to-Order (MTO) production and achieving 100% online ordercoordination led to a roughly 15% increase in overall operational efficiency and a 30% increase in hourly outputfor AIMA's factory.
Digital Transformation Project of AIMA Technology Factory
Smart LogisticsBased on the unique model of "1+3" integrated supply chain services
, Midea Group has created a smart logisticssolution with its own characteristics. We analyze the challenges in different logistics stages,including pick-up, packaging,direct shipping, transshipment, warehousing, delivery and installation. Our aim is to help enterprises shorten supplychains, reduce inventory, minimize loss and accelerate delivery, thus improving efficiency, cutting costs and promotingsustainable logistics practices.
"1" refers to "full link", and "3" refers to "production and logistics", "shared inventory", and "delivery-installationintegrated service".
◎Production lacks efficient and overallplanning. It's hard to implementlean production, with low schedulingefficiency, serious waste of energy,low efficiency in collaboration anddetection, and difficulty in qualitytraceability.
◎Product lifecycle management is lessstandard, with experience-basedprogram verification, missing dataor data silos, and low efficiency inintelligence and decision-making.
◎The labor-based manufacturing, withlow efficiency, high consumption andpoor quality, is difficult for quality andefficiency improvement.
◎The operation environment formanufacturing is increasingly complexand operations require higher speedand precision.
Response toPain Points
Description
Lighthouse/Digital Factory SolutionSmart Workshop Solution
◎From the three dimensions ofdigitalization, lean operationand automation, enterprises areempowered to build an end-to-endlighthouse/digital factory throughoutthe value chain to improve the controland management efficiency of theentire production process.
◎Through the whole-process digitaldesign, AI detection and automationtechnology, the solution can helpreduce manual labor and inventoryareas and improve energy efficiency.
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In 2023, Midea Group assisted VX Logistics in developing the Swisslog automated warehousing solution for itsTianjin Dongjiang Port Cold Chain Park. This has comprehensively improved the operational efficiency of thePark. As a result, the Park received the LEED Platinum certification for green building. The solution helped coldstores achieve 100% autonomous operations. Even under the constant temperature environment of -18℃, theoperational efficiency reached 190 pallets per hour, with a maximum capacity of 324 pallets per hour, which is 2-3times the efficiency of manual operation.
Automated Warehousing Solution of VX Logistics
Swisslog Automated Warehousing System
◎Lengthy production andlogistics pathways, highcarbon emissions, lowwarehousing efficiencyand large inventoryoccupancy result inoverall high costs.
◎The incoming logisticsfor industrial goodsis opaque, andpreemptive qualitychecks are unfeasible,resulting in excessinventory and wastedwaiting times.
◎Traditional supply chaininvolves multi-leveldistributors, resulting inhigher costs.
◎The changingmarket, higher userrequirements, andshorter productlifecycle make the costcontrol over the supplychain more important.
◎The distributor has nodisassembly capacity,and the installer lacksthe ability to transportused equipment,which leads to a gap inperformance servicesand long waiting timefor the end customer.
◎The cost of deployingthird-party installers/self-built teamsnationwide is high.
Response toPain Points
Description
◎The whole process ofproduction and logisticsis upgraded throughlogistics model reform,lean management,intelligenttransformation,digitalization,warehousingautomation, andintegration oftransportation andpackaging.
◎The integrated supplychain and digitalupgrading enablesinventory sharing,intelligent allocation,production andmarketing coordination,in order to reduceinventory and shortenthe delivery time.
◎Digital and intelligentsystems are appliedto build a high-qualityintegrated servicenetwork for deliveryand installation toenhance marketpenetration.
Production and Logistics
Solution
Solution for Integration ofDelivery and InstallationShared InventorySolution
Comparison of the Supply Network Before and After the Implementation of the Shared Inventory Solution
The Shared Inventory Solution Helped Tsingtao Brewery Cut Costs, Improve Efficiency and ReduceCarbon EmissionsMidea Group helped Tsingtao Brewery transform from a multi-segmented to an integrated supply chain. MideaGroup streamlined the shipment of products by merging sales, dealer and e-commerce warehouses into asingle regional distribution center. This change enables direct shipments from the production site to the centerand then directly to the terminal or users.The implementation of the shared inventory solution resulted in a 60% reduction in warehouse space, 50%faster delivery, 50% higher inventory turnover, 60% lower carbon emissions for Tsingtao Brewery in Henan,significantly reducing costs and increasing efficiency.
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main lineself-distribution
Factories/wa
rehouses
usersmain line
Intra-city distributionEmpty bottles arerecycled uniformlyEmpty bottles are returned
Merging warehouses into a single regional distribution centerFactories/warehouses
usersreginaldistribution center
terminals（30,000）
terminals（30,000）saleswholesalersRDCe-commercewarehouses
dealers（300）Before theimplementation
After theimplementation
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Intelligent Buildings
Based on in-depth analysis of pain points of current industrial parks and buildings, Midea Group has launched three sub-solutions under the smart building solution, namely, industrial energy efficiency, green and low-carbon services, andsmart parks. Those targeted solutions are designed to address the difficulties faced by customers in the low-carbon,green and smart transformation of industrial parks and buildings.
iBUILDING - Intelligent Operation Center of Ningbo Metro Line 6
Supported by the integrated iBUILDING, a digital building platform, an energy saving control systemcombining high-efficiency machine rooms, intelligent wind system, intelligent environmental control, and othertechnologies, Midea provided an energy efficiency solution for the first phase of Ningbo Metro Line 6 project.With the solution, the comprehensive energy consumption was reduced by more than 30%.
Energy Efficiency Solution for Ningbo Metro
iBUILDING-Douyin Group Smart ParkOperation and Management Center
Midea Group completed the overall delivery of theintelligent renovation project of Shanghai Douyin Group'sNew Jiangwan Town office park, covering an area of280,000 square meters. More than 28,000 devices andover 200,000 data points have all been accurately put intooperation. The park is expected to achieve an increase ofabout 30% in operational efficiency, a decrease of about10% in comprehensive energy consumption, an increaseof about 15% in utilization rate of parking spaces, and adecrease of about 5% in total carbon emissions year onyear (approximately 567 tCO
e). The estimated economicbenefits can reach approximately RMB 10 million peryear.
Smart Park Project of Douyin Group
◎Difficulties in balancingproduction efficiencyand environmentalprotection;
◎Difficulties in shiftingisolated equipmentenergy savings tosystematic and digitalenergy conservation.
◎Industrial parks withlarge spaces andcomplex functionalareas usually have theproblems of low energyefficiency, inadequatemanagement ofequipment andfacilities, and manysafety hazards.
◎Difficulties in collectingdata from complexsources of carbonemissions;
◎Multiple carbonemission standards,inconsistent carboncalculation standardsand lack of carbonmanagement tools.
◎Introduce advancedequipment andtechnology, improveequipment operationmodes, and rationallyschedule and manageenergy use to maximizeenergy utilizationand achieve greentransformation of theenterprise.
Response toPain Points
Description
Solution for Industrial
Energy Efficiency
Green and Low-Carbon
Service SolutionSmart Park
Solution
◎Conduct real-timemonitoring andanalysis of equipmentoperation status andpark operation andproduction throughIoT and big data,timely detect andresolve problems inthe production andoperation processand reduce energyconsumption in the parkto ensure productionstability and safety.
◎Provide a carbonmanagement platformthat realizes thedigitalization of thewhole process of"limiting-sourcing-calculating-reporting"from carbon inventoryto carbon verificationto meet the carbonmanagement needsof different businessdepartments of theenterprise.
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Jointly Create Sustainable Value
Midea Group continuously strengthens the risk management of the supply chain by applying the full life cyclemanagement mechanism of suppliers and cooperates with partners to implement responsible procurement. Whilefulfilling the Group's relevant requirements, we also support the sustainable development of suppliers to establish aresponsible ecological chain for win-win cooperation and sustainable development.Full Life Cycle Management of SuppliersAbiding by laws and regulations such as the Company Law of the People's Republic of China, the Contract Law of thePeople's Republic of China, and the Bidding Law of the People's Republic of China, we have developed and implementedthe Material Supplier Management Manual, the Midea Supplier Code of Conduct and other internal managementpolicies to improve the supplier management system. Moreover, we constantly improve the supplier managementefficiency by leveraging the hierarchical and classified supplier management mechanism and full life cycle managementincluding supplier selection, access and assessment. Meanwhile, we conduct annual on-site reviews of all high-risk directsuppliers and raw material suppliers. During the Reporting Period, we conducted on-site evaluation of 1,672 suppliers tocontinuously strengthen the quality and social responsibility management of suppliers.We attach great importance to the prevention of supply chain risks, and maintain the stability of supply chain throughclassified management of supply chain risks. We also use the global supplier cloud (GSC), integrating supplier sourcing,evaluation and other functions, to realize information management and control of the whole process from supplierintroduction to exit. Additionally, we implement the supply chain system requirements in the GSC to achieve end-to-endtransparent and systematic control.
Supplier SourcingWe conduct supplier sourcing according to the Group's operation needs, and clarify the sourcing requirements byanalyzing sourcing needs. In addition, we conduct sourcing evaluation for potential suppliers and assess suppliers'business qualification, and the environmental impact of their production. Suppliers who pass the evaluation will becomecandidate suppliers for our Group.Meanwhile, in the process of supplier sourcing, we categorize potential suppliers based on business models and thenature of channels and set specific management standards and requirements accordingly in subsequent supplier accessand assessment to enhance supplier management.
Supplier Admission
We have set strict standards for supplier admission. We conduct admissionreview for selected suppliers based on the requirements of the admissionstandards and the Midea Supplier Code of Conduct. The review coversproduction capacity, quality management, and environmental protection.Through qualification checks, we thoroughly understand the qualification ofselected suppliers and ensure they meet our compliance standards. Duringthe Reporting Period, we conducted admission review for 996 suppliers inaccordance with the review process.
suppliers
Conducted admission review for
Supplier Assessment
We conduct supplier assessment from two dimensions: supplier performance assessment and risk managementassessment. For supplier performance assessment, we have established related regulations and procedures, such asthe Supplier Social Responsibility Review Instruction, the Supplier Quality Management Procedure Outline, and theSupplier Comprehensive Performance Model. Moreover, we comprehensively assess supplier performance in qualitymanagement and social responsibility management through desk review and on-site evaluation every year.
We conduct on-site evaluation for suppliers that have received quality warnings,experienced batch accidents, or faced sudden major abnormal situations duringperformance assessment. Additionally, we require suppliers to strictly inspect raw materialsand components, and conduct third-party monitoring when necessary, to ensure supplyquality.Qualitymanagement
We conduct on-site evaluation to assess the adequacy and effectiveness of suppliers'management systems related to labor rights, health and safety and social responsibilities.As part of the assessment, we employ a one-vote veto mechanism to encourage theiractive engagement in social responsibilities.
Socialresponsibilitymanagement
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To ensure the openness and transparency of the assessment process, we have detailed the specifics of supplierevaluation in the procurement cooperation agreements signed with suppliers. This includes assessment contents,frequency, process, and management requirements related to social responsibility management. Additionally, we willnotify suppliers of the time of the assessment in advance via email or the GSC system announcement to improve theefficiency of on-site work. In addition, we will disclose the assessment contents and results to ensure the supplier's rightto know.
For supplier risk management assessment, based on factors such asoperational management risk, quality risk, social and environmental risks,we categorize suppliers into high-risk, medium-risk, and low-risk, taking intoaccount the characteristics of the supplied products, industry traits, andcountry risk associated with the origin of raw materials. Concurrently, weestablish a supplier risk management platform, organize risk managementscenarios, perform risk identification, assessment and response, andcontinuously enhance the risk control of high-risk suppliers. During theReporting Period, we developed a risk list by categorizing 24 risk items.
Categorized risk items
Supplier ESG Practice
Midea Group collaborates with suppliers to continuously implement ESG management practices. We are committedto integrating sustainable development principles with procurement practices in our daily operations. We strive tocooperate with suppliers in an environmentally conscious, honest, and corruption-free approach. Additionally, we controlhazardous substances in products at the source of procurement to ensure the health and safety of our products, and toensure that the sources of minerals used in our products are not implicated in human rights disputes. By the end of theReporting Period, a total of nine factories of Midea Group were selected as "National Green Supply Chain ManagementModel Enterprise".In the Midea Supplier Code of Conduct, we clearly outline requirements for suppliers in areas such as business ethics,labor rights and human rights, health and safety, and environmental stewardship. By enforcing a rigorous supplieradmission assessment process, we ensure the qualification of our suppliers. In addition to quality management ofsuppliers, we highly value suppliers' ESG performance. Under equal conditions, we give preference to suppliers with ISO50001, ISO 45001, IPC 1401 as well as other system certifications, and good labor management performance.Green ProcurementWe integrate safety, environmental protection, and recycling principles into our procurement process. We relentlesslyenhance our green procurement standards and systems, taking into full account suppliers' environmental protectionmanagement practices. We aim to continually reduce the environmental impact of the materials we purchase. Moreover,we proactively optimize production technologies and broaden our procurement of low-carbon and energy-efficientproducts. We work with suppliers to promote environmentally friendly products and enlarge our collective environmentalcontributions.
Supplier RiskManagement
Identifying risksthrough systemscanningInputting riskitems into thesystem
Analyzing riskmonitoring andaletrsDeveloping riskresponse plans
Supplier Risk Management
Based on the supplier assessment results, the Group employs tiered management for suppliers. In response to issuesidentified in supplier assessment, we require suppliers to implement rectification plans, ensuring that all necessarycorrections are completed within a designated timeframe. After the plans are fully implemented, we verify that thecorrective actions have been carried out in line with our standards.When suppliers face significant quality issues or repeatedly experience the same type of quality problems, we mandatesuppliers to collaborate with the Group for on-site investigation, and analyze root causes. An analysis and rectificationreport will be provided within one week. At the same time, we have established a red and yellow card mechanism. Basedon monthly quality evaluation of supplier's materials, we determine the outcomes marked with a yellow or red card, andaccordingly impose supply restrictions or terminate our cooperation with suppliers. Suppliers who receive red cards arenot introduced for 5 years.For non-conformities identified in social responsibility management assessment, suppliers should, upon receiving theFollow-up Form for On-Site Review Non-conformities, perform root cause analysis for the non-conformities, and submitplans for corrective actions and preventive measures. They also set the completion time of the plans, and take correctiveactions.
Tiered Supplier Management
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Midea Group, together with its supplier, China Baowu Steel Group Corporation Limited, established a jointlaboratory to promote the replacement of conventional soft steel with high-strength steel in home appliances,including residential air conditioners, refrigerators, laundry appliances, water purifiers and range hoods. In2023, we purchased more than 6,000 tons of high-strength steel to achieve a lightweight structure of homeappliances. Compared to conventional soft steel materials, we expected to reduce carbon emissions by over2,280 tons.
Midea Group Partnered with Baowu Steel to Explore the Use of High-Strength Steel in the HomeAppliance Industry
Integrity Procurement
Midea Group continues to fortify integrity procurement practices in the supply chain. As a founding member of the ChinaEnterprises Anti-Fraud Alliance and the Sunshine Integrity Alliance, Midea Group maintains strict compliance with allapplicable laws and regulations in the course of business activities. And we are dedicated to upholding high standards ofintegrity, compliance, and sustainable development.In the Midea Group Business Code of Conduct and other management policies, we have clarified integrity standardsfor the supply chain. We enforce standardized procurement bidding procedures and a rigorous anti-corruptionoversight system to govern the conduct of employees involved in procurement. Moreover, we mandate all customers,suppliers and other external partners engaging in business and economic transactions with the Group to sign integrityagreements. These measures ensure honest and clean conducts in business activities and provide comprehensiveprevention and control of corruption risks within procurement processes.Meanwhile, we constantly strengthen our suppliers' own anti-corruption management, requiring all suppliers to haveanti-corruption policies and programs to verify compliance. In addition, to bolster employees' integrity awareness, wehold multiple integrity training sessions each year, encompassing all staff involved in procurement, to enhance theirbusiness ethics.
In 2023, the business group/division's risk management leader conducted a specialized integrity andcompliance training for all employees in procurement roles at the dishwasher factory. The training focused onpublicizing integrity accountability standards and red lines, and employees were required to have compliant andclean conducts in business transactions, to foster a culture of integrity.
Business Group/Division Conducted Integrity and Compliance Training for Employees in FactoryProcurement Positions
Controversial Sourcing ManagementMidea publicly declares that we will not purchase or support the use of any controversial sourcing that directlyor indirectly finances or supports areas affected by armed conflict. We have established a controversial sourcingmanagement mechanism, delineated the associated risk prevention and control processes, and hereby implementedcontroversial sourcing management.We use the global supplier cloud (GSC) platform to fully identify suppliers involved in controversial sourcing risk, andrequire suppliers to report the origin attributes of materials to avoid purchasing raw materials from relevant regionsinvolved in human rights violations, illegal trade, financing violence and other issues. We contractually bind suppliers tothe use of minerals by requiring them to specify in the Midea Group Material Supplier Cooperation Agreement that thesources of minerals used in manufacturing our products do not involve controversial sourcing.Furthermore, we utilize the Responsible Minerals Initiative - Conflict Minerals Reporting Template (RMI-CMRT)Questionnaire to conduct due diligence on suppliers engaged in related mineral raw materials. In 2023, we conducteddue diligence and investigation on 279 high-risk suppliers who might have utilized tantalum, tin, gold, tungsten, andmica. The investigation results were 100% compliant.Hazardous Substance ManagementMidea Group strictly conducts hazardous substance management, and controls the use of hazardous substances inproducts from the procurement source, to ensure product safety. We strictly abide by relevant international and domesticlaws and regulations, and require all purchased raw materials and components to comply with the requirements of EU'sDirective on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHSDirective), and Regulation on Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH Regulation),and China's Administrative Measures for the Restriction of the Use of Hazardous Substances in Electrical and ElectronicProducts.We have formulated internal rules and regulations such as the Guidelines for the Management of Hazardous Substancesin Products, the Map of Hazardous Substances Regulations, and the List of High-Risk Material Baselines. A special teamis established to carry out hazardous substance management. We always pay attention to the updates and changesof relevant laws and regulations, and promptly introduce the latest regulations into internal specifications to ensurethat purchased raw materials and components meet relevant requirements. Each business group/division sets up aregulatory interpretation team to collect and interpret regulatory requirements. The team also conducts regular trainingsto promote regulatory requirements, to avoid risks arising from delays in obtaining regulations.Besides, we strengthen the detection of hazardous substances. We require suppliers to provide test reports forhazardous substances, and also improve our own laboratory testing capabilities. In terms of laboratory testing, thechemical analysis laboratory of the business group/division has obtained the Accreditation on Laboratory approved bythe CNAS (China National Accreditation Service for Conformity Assessment) to ensure testing capabilities. Additionally,the laboratory cooperates with third-party testing agencies to conduct data benchmarking, ensuring accurate andreliable test data and accurate management of hazardous substances.
We create an internal management responsibility matrix focused on supplier environmental review evaluation,energy management evaluation, supplier green empowerment, and carbon inventory. By advancing the tracking andevaluation of ESG-related indicators within our supply chain, we continuously enhance our supply chain carbon emissionmanagement and help develop green supply chain capabilities. In 2023, we continued to motivate suppliers to carry outcarbon inventory. A total of 9 core bulk raw material suppliers, including hot-dip galvanized, aluminized zinc, stainlesssteel, aluminum ingots, etc., disclosed their product carbon emission data with the Group, and several suppliersformulated plans for product carbon emission accounting.
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Supplier Empowerment
While promoting our own innovation and development, we further strengthen communication and cooperation withsuppliers. Based on our own development process, we have established a supplier empowerment system. We also sharethe high-quality resources accumulated in the development process with supplier partners through our empowermentcenter, thus enabling supply chain value creation and joint growth with supplier partners.
We conduct supplier training annually, including quality management, quality improvement, energy conservation andcarbon reduction, environmental compliance, anti-corruption and other topics to fully empower supplier development.In 2023, Midea Group established supply and empowerment support groups to provide on-site guidance to supplierson quality improvement. Through empowerment-based support and guidance, suppliers were supported to accumulatemethods, improve management practices, and enhance quality control capabilities.
Hazardous Substance Management and Environmental Regulation Training
In order to ensure that suppliers keep abreast of the latest regulations on hazardous substance management,Midea Group's Refrigerator Division conducted two trainings on hazardous substance control and environmentalregulations for all suppliers in 2023. The latest regulations related to hazardous substances and environmentalprotection were further explained through material presentation, case sharing, and other forms. After thetraining, Q&A and exam sessions were organized to reinforce learning.
Refrigerator Division Trained Suppliers on Hazardous Substance Management and EnvironmentalRegulations
Supplier Empowerment System
Best PracticesKnowledge Repository
PainPoints
Solutions
Co-creation
Win-WinCooperation
Suppliers
TransformationEmpowermentCollaboration
Empowerment Center
InternalCollaborative Unit
ExternalCollaborative UnitStandards
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Contribute to Industry DevelopmentMidea Group is committed to fostering industry ecosystem and promoting sustainable development across the industrythrough cooperation and exchange.
Industry Communication and Cooperation
Midea Group showcases our best practices and innovative achievements at international forums and industry events. Byleveraging synergies with our partners, we establish mutually beneficial relationships and jointly drive industry progress.
Midea Air Conditioner announces a strategic partnership with the American Institute of Architects (AIA) underthe theme of "Build Green". Midea Air Conditioner collaborates with architects, builders and other partners.With respective professional advantages, this partnership focuses on promoting the application of air sourceheat pumps for low-carbon heating, thus contributing to global emission reduction.
Strategic Partnership with the American Institute of Architects to Build Green and Low-carbon Buildings
In April 2023, Midea Building Technologies cooperated with excellent domestic building automation enterprisesto hold the "New Ecosystem · Limitless Automation - 2023 China Building Automation Development Forum".We analyzed the challenges and development directions of the building automation industry, shared experienceand achievements and discussed the current application and future development of building automationindustry in China.
Collaborative Exploration of Smart Building Ecosystems with Industry Partners
New Ecosystem· Limitless Automation - 2023 China Building Automation Development Forum
Midea Building Technologies at COP28
In December 2023, Meng Tao, a specialist of Midea Building Technologies, participated in COP28 ChinaCorner's Side Event. He delivered a keynote speech themed "Smart Technology Empowering Energy-EfficiencyBuildings", showcasing the innovative achievements of Midea Building Technologies in low-carbon buildings.
Midea Building Technologies at the 28th United Nations Climate Change Conference (COP28)
In May 2023
Midea Group officially joined the United Nations Global Compact, reinforcing our commitment to globalsustainable development.
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The Midea Residential Air Conditioner Division works with suppliers to explore the use of medium aluminazinc-aluminum-magnesium coatings in products. The application of the coatings in residential air conditionersimproves the corrosion and scratch resistance of product components and reduces the frequency ofcomponent replacement, thus enhancing the environmental performance of products.
Midea Group Conducts Research on the Application of Medium Alumina Zinc-Aluminum-Magnesium Coating with Suppliers
Midea Group focuses on promoting PCR materials globally to reduce environmental pollution. In 2023, MideaGroup worked with suppliers to test and evaluate the application of PCR materials in products, completed thetechnical reserves of PCR materials, and built a recycling system for plastic materials.
The Business Group/Division Works with Suppliers to Explore the Use of Post-consumer Recycled(PCR) Materials
Standard DevelopmentMidea further implements the "3+1" standardization strategy of "Innovation Patentability, Patent Standardization,Standard Internationalization and Midea Standard Goes Out". And a two-tier (Group-business divisions) standardizationmanagement system as well as a parallel dual-drive model of "standard innovation + product innovation" have been putin place. Midea Group aims to transform innovative achievements into advanced technical standards and is committed tocontributing to the improvement of industry standards.The standards we have participated in the formulation and revision cover a wide range of areas, including performance,safety, comfort, green, low-carbon, intelligent, nutrition and health.
Standards we have participated in the formulation and revision include:
Specific Rules for Carbon Footprint Accountingof Household Electrical Appliances - Room AirConditioners
Carbon Neutralization Technology - TechnicalSpecification for Evaluation of Low Carbon Operationof Intelligent Household Appliances Series ofStandardsAccounting Methods for Carbon Efficiency Ratioof Products - Room Air Conditioners
Household and Similar Refrigerating Appliances -Clean and Health
Green Supply Chain Management of HouseholdAppliances Series of StandardsProduct Carbon Footprint - Product CategoryRules - Air Conditioners
Midea Group participated in the formulation and revision of
external technical standards, including
international standards,
national standards,
industry standards and
local and group standards.
During the Reporting Period
The Group participated in the formulation and revision over
1,700
external standards,including over
international standards and nearly
national standards.
As of December 31, 2023
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Additionally, we actively promote technological development and industry progress through in-depth cooperation withsuppliers and joint research on low-carbon processes, eco-friendly materials, and other innovative applications.
Midea Group and Jiangxi Green Recycling Co.,Ltd. jointly conduct the recycling, dismantlingand processing of waste electrical and electronicproducts. By establishing a closed-loop recyclingsystem for additive materials, we reduce the useof low-value and difficult-to-recycle materials inhousehold appliances, improve manufacturingprocesses conducive to recycling, and increase theefficiency of resource recovery. In 2023, the closed-loop recycling industrial mode was selected as oneof the first excellent cases of standardized recyclingand reuse of electrical and electronic products, andreceived relevant honorary credentials.
Midea Joins Hands with Green Recycling to Build a Closed-Loop Recycling Industrial Mode forWaste Household Appliances
Honorary Credential
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Appendix
Appendix I: Environmental Data
GHG Emission Data
Indicators202320222021
Enterpriseoperationalemissions
Total emissions (tCO
e)2,298,3111,505,8771,712,766Emission intensity (tCO
e /perRMB 10,000 of output value)
0.061//Scope 11,017,606129,400136,721Fossil fuels(diesel, petrol, natural gas etc.)
141,518129,400136,721Refrigerants (process emissions)851,446//Others24,642//Scope 21,280,7051,376,4771,576,045Electricity (market-based)1,241,4211,376,4771,576,045Steam, heating, and cooling(purchased)
39,284//Scope 3///Business travel///Employee commuting///Others///Carbon removal///Carbon offsets///Product lifecycleemissions
Total Scope 3 emissions (tCO
e)4,960,000//Purchased goods and services ///
In 2023, enterprise operational emissions are counted more than in previous years, with the addition of refrigerant(process emissions) as well as steam, heating and cooling (purchased). The GHG emissions (Scope 1) mainly come fromprimary energy consumption of fixed equipment, vehicles and staff canteen, while the GHG emissions (Scope 2) mainlyoriginate from consumption of purchased electricity and heat and steam. The above data is sourced from invoices forrelated expenses and production statements. The GHG emission factors of electricity are subject to the “Notice onthe Management of Greenhouse Emission Reporting for Enterprises in the Power Generation Industry from 2023 to2025” issued by the Ministry of Ecology and Environment of the People's Republic of China. The GHG emission factorsof outsourced heating power refer to the National Development and Reform Commission's "Guidelines on AccountingMethods and Reporting of Greenhouse Gas Emissions by Enterprises (Trial)". Other GHG emission factors refer to IPCC2006 “Guidelines for National Greenhouse Gas Inventories (Trial)”, etc.
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Other Environmental Data
Appendix II: Social Data
IndicatorsUnit2023
Employee type
Employee headcount'000 People199By gender
Male'000 People139Female'000 People 60By region
Chinese Mainland,Hong Kong, Macao andTaiwan
'000 People164
Overseas'000 People35By age
Aged 30 and below'000 People86
Aged 31 to 40'000 People70
Aged over 40'000 People43By employment type
Full-time'000 People196
Part-time'000 People3By employee category
Management
'000 People4
Non-management
employees
'000 People195Employeediversity
Minority employees'000 People13
IndicatorsUnit2023
Exhaust emissions
NOx emissionTons58.31SOx emissionTons50.94Volatile organic compounds (VOC)Tons196.21Particulate matter (PM)Tons145.71Waste
Total hazardous wasteTons16,312.36Intensity of hazardous waste
Tons/ per RMB 10,000 ofoutput value
0.0004
Use of energy
Total comprehensive energyconsumption
MWh2,882,032Total direct energy consumptionMWh700,287Total indirect energy consumptionMWh2,181,745Energy consumption intensity
MWh/ per RMB 10,000 of
output value
0.0187
Petrol consumptionLiter42,473.33Diesel consumptionLiter213,375.98Compressed/pipeline natural gasconsumption
m
64,474,458Use of WaterResources
Total water consumptionTons18,093,481Intensity of water consumption
Tons/per RMB 10,000 ofoutput value
0.4842
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Indicators202320222021
Product lifecycleemissions
Transportation of goods(upstream and downstream)
///Product use
(use of sold products)4,960,000//End-of-Life treatment of sold products///Total Scope 3 emissions (enterprise operational and product) (tCO
e)4,960,000//Total GHS emissions (after applying offsets) (tCO
e) 7,258,3111,505,8771,712,766
The GHG emissions (Scope 3) boundary includes four stages of product use for typical domestic sales.
In 2023, the types of energy consumed by the Group include consumption for fixed equipment, official vehicles, staffcanteens, purchased electricity and purchased heat, and the sources of the above data are the relevant invoicesor production statements. The energy consumption coefficient refers to the conversion factor provided by theInternational Energy Agency and the national "General Rules for Calculating Comprehensive Energy Consumption (GB/T 2589-2020)".
Management consists of 181 people in senior management and 4,245 people in middle management.
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IndicatorsUnit2023Employeetraining anddevelopment
Average training hours by employeecategory
Senior managementHours24.40Middle managementHours53.80Non-managementemployees
Hours4.09Employee training coverage%100
SuppliersNumber of suppliers by region
South China/178East China/231Central China/47North China/17Northeast China/2Northwest China/0Southwest China/20Hong Kong, Macao andTaiwan
/2Overseas/3Product liability
Percentage of total products sold or shipped subject to recalls forsafety and health reasons
%0Service satisfaction%98.56
The employee turnover rate is calculated based on the number of employees who left during the year divided by thenumber of employees on board at the end of the reporting period.
The scope of employee training and development statistics includes data related to Midea Group's employees inChina.
The scope of statistics on the number of suppliers by region includes only the top 500 suppliers in terms of purchaseamount in the Year.
IndicatorsUnit2023
Employeeturnover rate
By gender
Male%29.29Female%10.84By age
Aged 30 and below%26.79Aged 31 to 40%8.71Aged over 40%4.64By region
Chinese Mainland,Hong Kong, Macao andTaiwan
%37.66Overseas%2.48
Employeetraining anddevelopment
Coverage of trained employees bygender
Male%68.29Female%31.71Coverage of trained employees byemployee category
Senior management%0.18Middle management%2.47Non-managementemployees
%97.35Average training hours by gender
MaleHours5.37FemaleHours5.27
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Appendix III: GRI Index
Midea disclosed the information referenced in the following index table in the current year by reference to the GRIStandards.
GRI Standards Page number (s)
General Disclosure
GRI 2：General Disclosure2021
2-1 Organizational details 72-2 Entities included in the organization's sustainability reporting 32-3 Reporting period, frequency and contact point 3-42-4 Restatements of information 3-42-7 Employees 1362-14 Role of the highest governance body in sustainability reporting 142-18 Evaluation of the performance of the highest governance body 14-152-19 Remuneration policies 14-152-22 Statement on sustainable development strategy 14-152-26 Mechanisms for seeking advice and raising concerns 252-27 Compliance with laws and regulations 212-28 Membership associations 1292-29 Approach to stakeholder engagement 16Material Topics
GRI 3：Material topics2021
3-1 Process to determine material topics193-2 List of material topics19Economic PerformanceGRI 201：EconomicPerformance 2016
201-2 Financial implications and other risks and opportunities dueto climate change
32-34201-3 Defined benefit plan obligations and other retirement plans63-66Indirect Economic ImpactsGRI 203: Indirect EconomicImpacts 2016
203-1 Infrastructure investments and services supported71
GRI Standards Page number (s)
Anti-corruptionGRI 3：Material topics 20213-3 Management of material topics24-26GRI 205：Anti-corruption 2016
205-2 Communication and training about anti-corruptionpolicies and procedures
24-26205-3 Confirmed incidents of corruption and actions taken24Anti-competitive Behavior
GRI 3：Material topics 20213-3 Management of material topics24GRI 206：Anti-competitiveBehavior 2016
206-1 Legal actions for anti-competitive behavior, anti-trust,and monopoly practices
MaterialsGRI 3：Material topics 20213-3 Management of material topics92GRI 301：Materials 2016301-1 Materials used by weight or volume 135EnergyGRI 3：Material topics 20213-3 Management of material topics36-38
GRI 302：Energy 2016
302-1 Energy consumption within the organization 135302-3 Energy intensity 135302-4 Reduction of energy consumption 135302-5 Reductions in energy requirements of products andservices
Water and EffluentsGRI 3：Material topics 20213-3 Management of material topics40-42GRI 303: Water and Effluents2018
303-1 Interactions with water as a shared resource40-42303-2 Management of water discharge- related impacts40303-3 Water withdrawal135
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GRI Standards Page number (s)BiodiversityGRI 3：Material topics2021
3-3 Management of material topics44-45
GRI 304: Biodiversity 2016
304-2 Significant impacts of activities, products and services onbiodiversity
Emissions
GRI 3：Material topics2021
3-3 Management of material topics99
GRI 305：Emissions 2016
305-1 Direct (Scope 1) GHG emissions134305-2 Energy indirect (Scope 2) GHG emissions134305-3 Other indirect (Scope 3) GHG emissions134305-4 GHG emissions intensity134305-5 Reduction of GHG emissions134305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and othersignificant air emissions
WasteGRI 3：Material topics2021
3-3 Management of material topics42-43GRI 306: Waste 2020
306-1 Waste generation and significant waste-related impacts42-43
306-2 Management of significant waste- related impacts42-43
306-3 Waste generated135EmploymentGRI 3：Material topics2021
3-3 Management of material topics49GRI 401：Employment2016
401-1 New employee hires and employee turnover137
401-2 Benefits provided to full-time employees that are not
provided to temporary or part- time employees
63-66
GRI Standards Page number (s)Occupational Health and Safety
GRI 3：Material topics2021
3-3 Management of material topics67-70
GRI 403: OccupationalHealth and Safety 2018
403-1 Occupational health and safety management system68403-2 Hazard identification, risk assessment, and incidentinvestigation
403-3 Occupational health services69403-5 Worker training on occupational health and safety70403-6 Promotion of worker health69403-7 Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
403-10 Work-related ill health69Training and EducationGRI 3：Material topics2021
3-3 Management of material topics54-58GRI 404：Training andEducation 2016
404-1 Average hours of training per year per employee137Diversity and Equal OpportunityGRI 3：Material topics2021
3-3 Management of material topics50-51GRI 405：Diversity andEqual Opportunity 2016
405-1 Diversity of governance bodies and employees136Non-discriminationGRI 3：Material topics2021
3-3 Management of material topics50-51GRI 406： Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions taken50Marketing and LabelingGRI 3：Material topics2021
3-3 Management of material topics103-104GRI 417：Marketing andLabeling 2016
417-1 Requirements for product and service information and
labeling
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2023 Environmental, Social and Governance Report
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