SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
0102
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
About This Report
Reporting Period
Reporting Scope
Data Sources
Basis of Preparation
This is the 2023 Sustainable Development (ESG) Report (hereinafter referred to as "this report") released by SANY HeavyIndustry Co., Ltd. This report is a genuine description of SANY Heavy Industry's efforts to fulfill its economic, social andenvironmental responsibilities and achieve sustainable development, and contains the Company's response to critical issuesof concern to stakeholders. This report has been reviewed by the Board of Directors of the Company is responsible for theauthenticity and e?ectiveness of the information herein. In case of data inconsistency, please refer to the annual report.
This report covers the period from January 1, 2023, to December 31, 2023. To ensure the consistency of the report, some of thecontents may cover information before or after the reporting period.
This Report covers SANY Heavy Industry Co., Ltd. and its subsidiaries.
All the information and data are from the Company's official documents, statistical reports and financial reports, as well asthe information and data collected, summarized and reviewed by the Company. This report is published in both Chinese andEnglish. In case of any inconsistency, the Chinese version shall prevail. Unless otherwise specied, the currency unit is RMB.
This report is prepared according to the Rules Governing the Listing of Stocks on Shanghai Stock Exchange (January 2023Revision), the Guidelines No.1 for Self-discipline Regulation of Listed Companies on Shanghai Stock Exchange-StandardOperations and refers to the Global Reporting Initiative's Global Standards for Sustainability Reporting (GRI Standards) releasedby Global Sustainability Standards Board(GSSB) and A Guide to Formulating Corporate Social Responsibility Reports forEnterprises in China by the Chinese Academy of Social Sciences.
Note on Appellation
Access to This Report
To ensure clarity and readability, SANY Heavy Industry Co., Ltd. hereinafter referred to as "SANY Heavy Industry," "theCompany," and "We" throughout this report.
This report is available for browsing and download on the Shanghai Stock Exchange website: www.sse.com.cn and theCompany's website: www.sany.com.cn.For further information, please contact the Company's Securities A?airs Department of the company:
Telephone: 0731-84031555Fax: 0731-84031555Email: xiaoh62@sany.com.cnAddress: New R&D Building 4th Storey, SANY Heavy Industry Industrial City, Liangtang Road, Changsha County, ChangshaCity, Hunan ProvincePostal Code: 410100
0304
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Message from the Chairman
The challenging yet opportunistic year of 2023 has swiftlypassed. We have steadfastly adhered to long-termism,recognizing the power of certainty amid uncertainties,epitomized by the convergence of two rare opportunities—the Chinese Dream of the great rejuvenation of the Chinesenation and the "super technology window" resulting fromthe intersection of the Fourth Industrial Revolution and theThird Energy Revolution. In an era where transformationand opportunities coexist, we, grounded in a new
historical juncture, have refined the corporate strategyof "Globalization, Digitalization, and Decarbonization,"continually consolidating and advancing the transformationalpace in relevant domains. We actively respond to changesin the external environment, consistently implementingthe United Nations Sustainable Development Goals andChina's commitments to "peak carbon emissions andachieve carbon neutrality," striving for green and sustainabledevelopment, thus showcasing the resilience and innovationof the Company.Throughout this year, we've navigated the tumultuouscurrents of global markets and the intricate paths ofeconomic recovery. Yet, SANY Heavy Industry remainssteadfast in its commitment to innovation-driven strategies,actively adapting to market shifts. As we continue ourglobalization strategy, we're intensifying our foothold ininternational markets. By fostering localized productionand robust research and development endeavors, we'veachieved pivotal advancements in product and technologyand made significant strides in international markets. Ourlocalized production initiatives in India and Indonesia haveyielded notable outcomes, streamlining our supply chain,curbing costs, and amplifying our brand presence locally.Furthermore, to establish sustainable global operationalcapabilities, we have undertaken organizational reforms foroverseas entities, adopting an organizational framework of"platform empowerment + elite teams." We have establishedoverseas regions and national regions as comprehensivestrategic planning and empowerment platforms at theregional level, signicantly enhancing overseas operationalefficiency. Our strides in globalization are resolute androbust, and through close collaboration with SANY teamsacross various countries globally, we continually elevatethe localization standards of products and services, bettercatering to the diverse needs of di?erent markets.SANY Heavy Industry is actively driving the comprehensivedigitalization upgrade across our production, managementsystems, and business models in digital transformation.This e?ort has led to signicant enhancements in productionefficiency and notable reductions in operational costs.Our advancements in "Lighthouse Factories" and smartfactory initiatives mark substantial progress, setting industrystandards by integrating cutting-edge digital technologiesand guiding the future manufacturing trajectory. By adopting
advanced artificial intelligence and big data analytics, wecontinuously refine product design, improve productionquality, and elevate customer service standards, therebygenerating greater value for our customers. The ongoingenhancement of our digital systems and the establishment ofthe new industrial Internet will further boost our informationprocessing capabilities and production operational e?ciency,offering robust support in achieving our "Dual Carbon"goals.The implementation of low-carbon strategies exemplies oursteadfast commitment to environmental conservation andsustainable development. SANY Heavy Industry embracesthe global challenge of climate change and pledges tosupport China's "Dual Carbon" goals. We actively drivethe transition towards green practices and sustainablegrowth, channelings increased R&D investments into areassuch as electric and hydrogen energy technologies. Wehave unveiled a suite of innovative electric and hydrogen-powered products, including fully electric-controlled rotarydrilling equipment and pure electric telescopic crawlercranes. These offerings spearhead the industry's shifttowards a more eco-friendly and energy-e?cient trajectory,making significant strides in curbing greenhouse gasemissions and fostering the advancement of clean energysolutions. The excellent performance of these innovativeproducts not only meets the market's demand for increasedefficiency and reduced emissions but also demonstratesSANY Heavy Industry's significant technical expertise inrenewable energy, which further highlights the Company'sleading position in the sector.We deeply understand that robust corporate governance isthe foundation of business development and consistentlyadhere to high standards and strict requirements."Customer-first" is not only the cornerstone of operationbut the core driving force behind our ongoing innovationand quality improvement.We place great emphasis on thequality of corporate management, following the principlesof legality, clear procedures, efficient management, andscientic rationality. We continue to deepen the constructionof the Board of Directors, strengthen internal managementand risk control, ensure the compliance and transparencyof operations, establish a modern corporate governancesystem, and ensure the healthy and stable development ofthe enterprise.
Guided by the vision of "Build First-class Enterprises, FosterFirst-class Talents, and Make First-class Contributions,"we proactively assume various social responsibilities andensure the rights and welfare of employees. Upholdingtalent concepts such as "Putting employees first" and"Embracing the spirit of endeavor," we focus on employeewell-being, striving to provide a safer, healthier, and moreharmonious working environment, thereby enhancingemployee happiness and sense of belonging while o?eringextensive career development opportunities and abundanttraining resources. Our employee stock ownershipplan further ignites creativity and enthusiasm amongour workforce, bolstering the cohesion and unity of ourenterprise.In terms of social responsibility, we maintain opencommunication and collaboration with stakeholders, workingtogether to fulfill our social responsibilities and contributeto societal harmony and progress. SANY Heavy Industryadheres unwaveringly to the belief that "The responsibilityto society outweighs the interests of the Company." Weactively participate in philanthropic activities, supportrural revitalization, promote educational innovation, andcontribute to the establishment of disaster relief networks.Together with our employees and their families, we engagein various charitable activities focused on green and low-carbon initiatives, community engagement, and educationalinnovation. Through these endeavors, we aim to spreadlove and warmth, making meaningful contributions to theharmonious development of society.Looking ahead to 2024, SANY Heavy Industry will continueto uphold its corporate mission of "Quality changesthe world" and its corporate vision of "Build First-classEnterprises, Foster First-class Talents, and Make First-class Contributions," steadfastly advancing its strategyof "Globalization, Digitalization, and Decarbonization". Inthis new era, we will remain committed to people-orientedprinciples and innovation-driven approaches, collaboratingwith global partners to explore the path of sustainabledevelopment. We aim to contribute to achieving globalsustainable development goals and create greater value forour employees, shareholders, and society.
ChairmanXiang Wenbo
SANY Heavy Industry
Co., Ltd.
0506
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
SANY Automotive's "Key Technology Research and Application of Large-span Fire Truck for ComplexEnvironments" and "Key Technology Research and Application of New Generation Smart Pump Truck"
respectively won the Second and Third Prize in the Technology Invention Award.
About SANY Heavy IndustryCompany Prole
Awards and Recognition in 2023
SANY Heavy Industry (SH: 600031) was listed on July 3, 2003. It is the rst enterprise in China to succeed in the split-sharestructure reform and achieve full circulation of shares. In July 2011, SANY Heavy Industry was shortlisted in the Financial Times(FT) Global 500 list for the rst time, and it was the only Chinese construction machinery enterprise on the list. In 2012, SANYHeavy Industry acquired German manufacturer Putzmeister, renowned as the "Global No. 1 Brand of Concrete Machinery". InMay 2021, SANY Heavy Industry was shortlisted in the Forbes Global 2000 list, ranking 468th and breaking into the prestigiousGlobal Fortune 500 for the rst time, which positioned the Company as the top in China and the second globally in engineeringmachinery on the list.SANY Heavy Industry, primarily engaged in equipment manufacturing, offers a diverse product portfolio including concretemachinery, excavators, cranes, road construction machinery, and piling machinery. The Company's concrete machinery holdsa dominant global position. In 2020, our excavator sales topped the global rankings for the rst time. Additionally, our sales oflarge tonnage cranes, crawler cranes, and piling machinery were ranked rst in China.
February 2023
July 2023
October 2023
November 2023
December 2023
October 2023
December 2023
November 2023
September 2023
February 2023SANY Automotive was awarded as a GreenSupply Chain Management Enterprise.
SANY Heavy Industry was shortlisted inChina's Top 500 Enterprises.
SANY Heavy Industry's 5G Lighthouse Factory Beijing SANY Manufacturing 5G FactorySANY Crane 5G Smart FactorySANY Heavy Machinery 5G FactoryZhejiang SANY Equipment Tracked Crane5G Factory were shortlisted in the "2023 5G
Factory Directory"
Zhejiang SANY Equipment Co., Ltd. and SANYSpecialized Automobile Co., Ltd. were shortlistedin the "2023 National Intellectual PropertyDemonstration Enterprises".
SANY Automotive was shortlisted inthe "2023 Annual Smart ManufacturingExcellent Scene Publicity List".
Zhejiang SANY Equipment Co., Ltd. and SANYSpecialized Automobile Co., Ltd. were shortlisted
in the "2023 National Intellectual Property
Outstanding Enterprises".
SANY Heavy Industry was shortlisted inChina's Top 500 Machinery Enterprises.
SANY Heavy Industry was shortlisted in China'sTop 50 Enterprises for Cross-border Operations.
SANY Tower Crane's at-top tower cranewas approved as a Green Design Product.
Ministry of Industry and Information Technologyof the People's Republic of China
"Fortune" magazine
China Machinery Industry Federation
Ministry of Industry and InformationTechnology of the People's Republic of China
China National Intellectual Property
Administration
Ministry of Industry and InformationTechnology of the People's Republic of China
China National Intellectual Property
Administration
China Machinery Industry EnterpriseManagement Association
Forbes China
Ministry of Industry and Information Technology
of the People's Republic of China
SANY Heavy Industry has business divisions and industrial centers all over the world. It has built industrial parks in Beijing,Changsha, Shanghai, Kunshan, Chongqing and other places in China, and global R&D and manufacturing centers in India, theUnited States, Germany and Indonesia.Adhering to the mission of "Quality changes the world," SANY Heavy Industry spends more than 5% of its sales revenue onR&D every year and is dedicated to manufacturing world-class products. Building on the strength of technological innovation,SANY Heavy Industry received the National Scientific and Technological Progress Award three times and the NationalTechnological Invention Award twice. These two awards represent the highest honor in the engineering machinery industry inthe PRC.With the premier product quality, SANY Heavy Industry has undertaken a great number of significant projects worldwide,including Burj Khalifa, Beijing Olympic venues, London Olympic venues, Brazil World Cup Stadium, Shanghai Tower, Hong KongInternational Finance Center, Hong Kong-ZhuhaiMacau Bridge, Beijing Daxing International Airport, and Xiong'an New Area.
Our main products include truck-mounted concrete pumps, trailer pumps, batching plants, truck mixers,and line pumps.Concrete machinery is mainly used in in building, bridge, tunnel, foundation construction and otherindustries.Our excavators include large, medium, small, and mini excavators.They are mainly used in the farmland, water conservancy, railway, highway, construction, and real estateindustries.The main products are truck cranes and crawler cranes.Cranes are widely used in the electric power, steel, bridge, shipbuilding, and petrochemical industries.Small truck cranes are mostly used in bulk cargo business such as municipal works, while large truckcranes and crawler cranes are used in the power, steel, shipbuilding, and petrochemical industries.The main products are rotary drilling rigs.Our piling machinery is mainly used in municipal works, highway and bridge construction, industrial andcivil buildings, underground diaphragm walls, water conservancy, anti-seepage slope protection andother infrastructure construction projects.The main products include roller, paver, grader, and asphalt batching equipment.Road construction machinery is mainly used for the construction of highways, urban roads and airportrunways.We o?er vehicle nancing services to provide buyers of engineering machinery with mortgage and othernancial services.
Concrete Machinery
Excavator
Crane
Piling Machinery
Road Construction Machinery
Financial Services
0708
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) ReportPerformance Highlights in 2023
Green and Safe Operations
Workplace and Employees
Giving Back to Society
"Globalization, Digitalization, and Decarbonization" Corporate Strategy
Honest Operations and Governance
R&D and Product Quality
●
International sales revenue reached RMB
43.449
billion, an increase of
18.81
% compared to last year, withoverseas income accounting for
60.75
% of total revenue.
●A total of
lighthouse factories have been completed, with a reduction of
46.33
% in unit labor costs.
●Obtained
patents on clean technology.
●
Revenue from electric products reached RMB
3,146
million, with revenue from hydrogen energy reaching RMB
million.
●
General Meeting of Shareholders and
Extraordinary General Meetings of Shareholders were convened;
meetings of the Board of Directors and
meetings of the Board of Supervisors were held with
% attendance.
●Over
risk repositories covering
6,196
risks in nance, business, marketing, overseas, etc., were established.
●Audits were conducted on
key clues and issues, identifying and addressing over
4,000
problems andrisks.
●
Anti-corruption audits were conducted on the headquarters and all subsidiaries, achieving a coverage rate of
%.
●The signing rate of the Integrity Cooperation Agreements/Commitment Letters with suppliers reached
%.
●R&D investment reached RMB
6.101
billion, accounting for
8.33
% of main operating income.
●Established training sessions for institute directors, covering
individuals, and R&D lectures covering
1,000
individuals, totalling
sessions conducted.
●Filed1,533
patent applications, with
valid patents granted for inventions.
●Participated in the formulation and release of
national standards,
industry standards.
●Conducted
information security awareness training and examination for all employees, with over
22,389
participants and a coverage rate of
%.
●Out of
main engine and component manufacturing subsidiaries,
have obtained ISO 14001 certication forenvironmental management systems, while
have achieved ISO 45001 certication for occupational health andsafety management systems.
●Clean energy usage reached
44,815.9
thousand kWh, accounting for
6.55
% of total energy consumption.
●Non-production area energy consumption decreased by
% year-on-year, while energy consumption per RMB10,000 of output in production areas decreased by
10.7
%.
●Energy-saving projects conducted during operations resulted in cumulative energy cost savings of approximatelyRMB
million.
●A total of
207,118
individuals participated in health and safety training, accumulating a total of
271,313
training hours.
●The injury rate per thousand persons was
1.3
‰, with a completion rate of
% for third-level safety educationtraining, occupational disease injuries was
, with a
% rate of occupational health examinations.
●Occupational training coverage reached
92.52
% of employees, with an average training duration of
121.40
hours per person.
●The scale of stock incentive amounted to RMB
million, beneting
7,131
employees.
●Employee participation rate in satisfaction surveys reached
94.81
%, with employee satisfaction exceeding
points.
●Assistance subsidies for employees facing di?culties totalled RMB
1.011
million, beneting
individuals.
●A total investment of RMB
27.8720
million has been allocated to disaster relief, epidemic prevention, ruralrevitalization, public welfare education, donation of goods and other projects.
●Conducted
public welfare and volunteer service activities, with a cumulative participation of
11,200
individuals, and a total duration of
2,266.20
hours of employee volunteer activities.
0910
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Stakeholder EngagementSANY Heavy Industry establishes a regular stakeholder communication mechanism to get to know and respond to theexpectations and demands of stakeholders. Aimed to generate shared values, SANY Heavy Industry conducts materialityassessments regularly to take major issues that stakeholders focus on into daily operations and decision-making.
Stakeholder Communication Strategy
Materiality Analysis
The Company values the expectations and demands of stakeholders by maintaining active communication with them throughmultiple channels and responding to the expectations and issues of common concern in the value chain.
To better respond to the expectations of stakeholders in this report, the Company regularly identies and evaluates the materialissues. The material issues that have a signicant impact on the Company and stakeholders are dened, specially revealed andresponded to in the report. We have drawn up a matrix of the importance distribution of issues in terms of both "Importance toStakeholders" and "Importance to SANY Heavy Industry" to clarify the focus of responsibilities.
Issues of Medium Importance
Importance to SANY Heavy Industry
Importance to Stakeholders
Issues of High Importance
Matrix of materiality issues for 2023
StakeholdersIssues in FocusCommunication and Feedback
Government Departments/
Regulators
Operational ComplianceE?uent TreatmentHonesty and IntegrityClimate Change Response
On-site Spot ChecksDialogue and MeetingOn-site InvestigationShareholders
KPI PerformanceESG ManagementOperational Compliance
General Meeting of ShareholdersOn-site InvestigationRoadshowInvestors
Corporate GovernanceProduct Quality and SafetyIndustry CommunicationTechnology and Innovation
Company AnnouncementInvestment ConferenceRoadshowTelephone ConferenceEmployees
Rights and Interests of EmployeesHealth and SafetyRemuneration and Benets
Employee TrainingLabor Union ActivitiesCustomer Satisfaction SurveySuppliers
Supply Chain ManagementProduct Quality and SafetyHonesty and Integrity
On-site AssessmentQuality CommunicationSupplier Training and AssistanceSupplier ConferenceCustomers
Product Quality and SafetyClimate Change ResponseIndustry CommunicationTechnology and Innovation
Market ResearchSatisfaction SurveyMedia Conference CustomerOnline and O?ine PromotionCommunity, the Publicand NGO
Community CulturePublic Welfare Poverty AlleviationCommunity Environment
Community SymposiumCommunity PublicityOnline PromotionPartners
Industry CommunicationStable PartnershipHonesty and Integrity
Strategic CooperationHigh-level ExchangesIndustry Peers
Fair CompetitionIndustry Communication
Industry Forum and MeetingCooperation AgreementInspection and Exchange of Opinions
Honesty and Integrity
Operational Compliance
KPI PerformanceProduct Quality and SafetyHealth and SafetySupply Chain Management
Customer SatisfactionWater Resource Management
Intellectual Property RightsClimate Change Response
E?uent Management
Rights and Interestsof EmployeesIndustry CommunicationEmployee CareCommunity Public Welfare
Rural Revitalization
Energy Consumption Management
Employee Training and Development
Product and Technology
InnovationComplaint handling and product recall
1112
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Feature:
"Globalization, Digitalization, and Decarbonization" Corporate StrategySANY Heavy Industry is actively pursuing its strategies of "Globalization, Digitalization, and Decarbonization" tohasten the Company's growth. By establishing production bases and research centers globally, SANY Heavy Industrynot only enhances the competitiveness of its products and services worldwide but also ensures swift responses tomarket demands and localizes its services effectively. Furthermore, the Company is leveraging advanced digitaltechnologies to drive the digital transformation of its production processes, management systems, and businessmodels, thereby enhancing operational efficiency and the quality of decision-making. In terms of low-carboninitiatives, the Company is dedicated to sustainable development through practices such as green manufacturing,energy conservation, emission reduction, and the promotion of circular economy principles, all aimed at contributingto the creation of a cleaner and brighter future.Globalization - Expanding Worldwide Presence
Manufacturing Globalization
SANY Heavy Industry actively seizes upon the opportunities presented by globalization, integrating premium resources toestablish a global presence spanning production bases, research centers, and marketing networks. This strategic endeavor hasenabled the Company to achieve comprehensive coverage across diverse business sectors and geographical markets. Withan unwavering commitment to its globalization agenda, the Company has implemented and refined a robust organizationalframework, strategically positioning itself to narrate the compelling story of SANY on the global stage. Building upon thefoundation of domestic recognition, SANY relentlessly pursues excellence in product quality and service delivery, therebygarnering widespread acclaim from customers worldwide.In 2023, we embarked on a series of pivotal initiatives, including the "Implementation of Overseas Organizational Reform," the"Strict Enforcement of Product Quality Control," and the "Establishment of a Comprehensive Global Manufacturing Platform."These endeavors have not only propelled the execution of our globalization strategy but also facilitated rapid responsivenessto dynamic global market demands while elevating our service capabilities. By doing so, we are actively fostering the long-termsustainability and growth of the Company.
SANY Heavy Industry has strategically expanded into global markets by establishing localized production bases in keyregions to better adapt to local market demands and shorten supply chain cycles. Through localized production, the Companycan rapidly respond to market changes, provide products and services that meet local standards and preferences, reducetransportation costs, and enhance price competitiveness. Additionally, the localized production strategy helps SANY HeavyIndustry optimize resource allocation globally, promote local employment and technology exchange, deepen integration withlocal societies, and provide solid support for the Company's globalization strategy.
The majority of the Company's revenue and prots are derived from overseas markets, achieving a historic breakthrough.
In 2023,
Case
Case
Successful Implementation of Localized Production in India
Joint Venture for Factory Construction, Deepening Presence in Central Asian Markets
In December 2023, SANY Heavy Industry achieved a signicant milestone with the successful implementationof a localized production project in India. By customizing our product o?erings, such as road rollers and motorgraders, to meet the specic requirements of the Indian market, we not only improved product performance butalso increased customer satisfaction.Furthermore, our e?orts to shorten the supply chain led to improved market responsiveness and cost reduction.To ensure the quality of our production, teams from our Indian research and assembly facilities receivedcomprehensive training at our headquarters in Lianyuan City, Loudi City, Hunan Province. The successful launchof the localized production project in India reinforces SANY Heavy Industry's global strategic positioning andsignicantly enhances the competitiveness of the SANY brand in international markets.
In November 2023, SANY Heavy Industry signed a memorandum of understandingwith Enter Engineering, an energy construction contractor in Uzbekistan, to jointlyinvest in and construct a new factory in the G'allaoro Special Industrial Zone.Spanning an area of 48,000 square meters, the factory aims to locally producevarious construction machinery equipment, including semi-trailer trucks, concretemixers, and dump trucks.This collaboration not only strengthens SANY Heavy Industry's production andservice capabilities in the Central Asian market but also provides robust support forlocal infrastructure development and economic growth in Uzbekistan.
Successful implementation of localized production in IndiaSANY Heavy Industry's internationalsales revenue reached RMB
43.449
billion
Overseas revenueaccounted for
60.75%
of total operating income
Spanning an area of48,000
square meters
Marking an increase of
18.81%
compared to the previous year
1112
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
1314
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Global Business Expansion
Global Product Expansion
SANY Heavy Industry, through its global business strategy, actively responds to demands from various regions worldwide bydispatching specialized teams to project sites. Whether in bustling metropolises in the Far East or remote areas in Africa, SANYHeavy Industry can swiftly deploy personnel and resources, providing end-to-end services from consultation and planning toimplementation. Through exible and e?cient global operations, the company continuously expands its international inuence,driving its globalization process forward.
SANY Heavy Industry achieves global product distribution by innovating and improving equipment based on a deepunderstanding of the diverse needs of customers in different regions. This approach successfully positions the Company'shigh-performance construction machinery products in global markets, achieving a comprehensive global product layout.With outstanding performance and reliable quality, SANY Heavy Industry's products have received widespread acclaim ininternational markets, e?ectively driving the deep implementation of the Company's globalization strategy.
Case
Case
Case
Supporting NEOM City Construction
SANY Cranes Arrive in Chile
Launching Excavator Products for the European and North American Markets
In 2023, SANY Heavy Industry continued to contribute to global infrastructure development, particularly playinga signicant role in supporting the construction of NEOM City in the northwestern part of Saudi Arabia. NEOMCity is a crucial component of Saudi Vision 2030, aiming to create a future city entirely reliant on sustainableenergy through innovative design and technology. Faced with complex technical requirements and a massiveconstruction scale, we assembled an on-site service team of over 50 engineers and deployed more than 2,000pieces of equipment to ensure the smooth progress of the project.
In October 2023, SANY Heavy Industry's SCL10000all-terrain lattice boom crane successfully arrived inChile. With a maximum lifting capacity of 1,000 tonsand a maximum lifting moment of 11,000 ton-meters,this crane not only set a new record for Chineseexports to the South American market but alsobecame the largest crane currently operating in Chile.
In November 2023, SANY Heavy Industryintroduced five new models of compactexcavators specifically tailored for theEuropean and North American markets.These products underwent comprehensiveupgrades in functionality and performanceto meet the long-term demands of thesemarkets. The development of these fivecompact excavators emphasized fourmajor advantages: enhanced functionality,improved performance, increasedmanoeuvrability, and strengthenedoperational safety. The goal is to provideusers with a more e?cient, safer, and moreconvenient operational experience. Thisproduct upgrade not only showcases SANYHeavy Industry's innovation capabilitiesin the field of construction machinerybut also consolidates the Company'scompetitiveness in the European and NorthAmerican markets.
Supporting NEOM city construction
SANY cranes arrive in Chile
Excavator products for European and North
American markets
With a maximum liftingcapacity of
1,000
tons
A maximum liftingmoment of
11,000
ton-meters
1314
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
1516
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Digitalization - Aids in the Achievement of the "Dual Carbon" Goals
Construction of Lighthouse Factories
Digital System Upgrade
SANY Heavy Industry seizes the opportunities of the new era by enhancing its information processing capabilities according tomarket and business needs. It is gradually transitioning towards digitalization by using smart technologies, with a foundation inthe digitalization of production operations and business processes. We integrate digitalization into manufacturing, operations,services, and products, with the construction of lighthouse factories as the core. This involves data collection and application,industrial software application, and standardized, online, automatic, and intelligent processes, promoting the transformation andupgrading of "digitalization" to improve production e?ciency and support the advancement of "Dual Carbon" initiatives.
With the rise of "Industry 4.0," advanced technologies such asIndustrial Internet, robotics, and articial intelligence are increasinglyapplied in various industrial scenarios. SANY Heavy Industry'slighthouse factories integrate various digitalization technologies,using 5G technology and the Industrial Internet as the foundation.They utilize flexible automation, artificial intelligence, and large-scale Industrial Internet of Things (IIoT) to create a digitalized heavyequipment manufacturing system. Through seamless integration,they achieve smart manufacturing and the "Internet of Everything,"contributing to the construction of a "Global network of lighthousefactories." This initiative promotes outstanding development in termsof production efficiency and ecological sustainability. By the endof 2023, SANY Heavy Industry had built and put into operation 33lighthouse factories, reducing labor costs by 46.33%.
Digital technology is a crucial focus for smart transformation and a key driver for enhancing operational efficiency andproductivity in enterprises. SANY Heavy Industry, leveraging the Manufacturing Operations Management (MOM) platform asits foundation and complemented by multiple digital systems such as the Warehouse Management System (WMS), AdvancedPlanning and Scheduling (APS) system, and digital twin, has formed the "smart brain" for factory production and manufacturing.Through online, real-time, and digital research and production management, SANY Heavy Industry makes informed decisionsscientifically, facilitates optimal resource allocation, achieves cost reduction and efficiency improvement, and reducesunnecessary energy consumption. In 2023, we implemented bi-weekly iterative upgrades to our digital systems and adjustedthe release frequency based on user needs and habits to ensure an excellent user experience.
Sany Heavy Industry is the only heavy industry enterprise in the world to receive certication as a "lighthouse factory"from the World Economic Forum. As of December 31, 2023, 2 factories, the "Beijing Piling Machine Factory" andthe "Changsha No. 18 Factory," have obtained "lighthouse factory" certication, providing a replicable model fordigitalization development in the global manufacturing industry.
CaseConstruction of Sany Heavy Industry's "Lighthouse Factory" in Indonesia
In 2023, SANY Heavy Industry, following the standards of Industry 4.0, fully integrated the concepts of smartness,exibility, and green production, successfully designing and constructing its rst overseas "lighthouse factory" inIndonesia. This achievement realized full network connectivity and unmanned production.The factory draws extensively from the successful experiences of over 30 domestic lighthouse factories, aimingto establish a comprehensive smart system. This system includes manufacturing operation systems, warehousemanagement systems, automated material distribution systems, digital twin systems, process simulation systems,and automatic reporting systems. By incorporating functions such as automatic ordering, unmanned vehicledistribution, visual positioning and tracking, trajectory heat maps, and anomaly alerts, the factory promotesthe intelligence and efficiency of operational processes. Simultaneously, it enhances operational safety, andproduction e?ciency, and reduces energy consumption.
Smart production workshop at the "Lighthouse Factory" in Indonesia
SANY HeavyIndustry had built
lighthouse factories
Reducing laborcosts by
46.33%
1516
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
1718
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Overview of SANY Heavy Industry's Digital System Construction in 2023
CaseSANY Heavy Industry Reduces Energy Consumption with Digital Twin TechnologyIn 2023, SANY Heavy Industry developed an energy-efficient optimization digital twin system for electricconcrete mixers. By integrating collected data into thedigital twin model, real-time analysis of informationsuch as vehicle speed and energy consumption isachieved, along with monitoring of abnormal conditionsrelated to battery health and temperature.Furthermore, we comprehensively applied energymanagement, charging planning, and route selectionalgorithms. Through visualization, multiple dimensionsof energy monitoring and alarm, as well as predictionsof range and charging planning are presented. Thisenables the prediction of energy consumption changesand the scientific formulation of energy-savingstrategies to improve energy utilization e?ciency. Thesystem has been applied to major models of SANY'selectric concrete mixers, contributing to a reductionin comprehensive vehicle energy consumption byapproximately 5%.
Visualization of energy consumption achieved bythe digital twin system for electric concrete mixers
New Industrial Internet Construction
The Industrial Internet is the result of deep integration between digital technology and manufacturing, incorporating acomprehensive technical system that integrates digitalization, networking, and smartness to achieve information sharing andcollaborative operations. SANY Heavy Industry involves a large number of engineering machinery and complex operatingprocedures in manufacturing and operations scenarios.To improve production and operation e?ciency, we are advancing the management model of the Industrial Internet, e?cientlyutilizing smart management technologies such as the Industrial Internet of Things (IIoT) and "water, electricity, oil, and gas"four-meter management. This connects machines, equipment, systems, and personnel to achieve autonomous promotionand application in planning, production execution, warehouse logistics, engineering changes, and equipment interconnection,supporting the Company's high-quality development in the manufacturing eld.In 2023, SANY Heavy Industry continued to carry out internal and external construction of the Industrial Internet, timelyidentifying issues and taking optimization measures to improve production e?ciency, promoting sustainable development andcooperation.
Manufacturing Operations Management (MOM) Platform
Warehouse Management System (WMS)
Advanced Planning and Scheduling (APS)
Digital Twin
DigitalizationNetworkingSmartness
Comprehensivetechnical system
1718
●Coordinates and manages manufacturing operations, covering various aspects such as production factorymodelling, execution, logistics scheduling, and quality control; optimizes production processes to improve e?ciency,reducing the MOM single factory implementation cycle from 3 months to 1 month;
●
All workstations in the structure component workshop of the Indonesian factory have been brought online, withgradual coverage of all factories.
●Achieves warehouse management and logistics automation, precisely controls inventory to avoid material waste,and reduces manual operations and waiting time, improving operational efficiency; WMS single warehouseimplementation cycle reduced from 1 month to two weeks, with a 28.7-fold increase in delivery e?ciency;
●Supports 10 languages, with both domestic and overseas warehouses using the WMS system for control.
●Achieves unmanned production planning through e?cient algorithms, with a calculation e?ciency increase of over20 times compared to traditional algorithms;
●Adaptable to multiple scenarios such as assembly lines, structural components, and mechanical processing;
●APS covers a total of 25 factories.
●During the early stages such as product scheme design and factory construction, virtual simulation technology tosimulate whether the scheme meets expected requirements, reducing productivity and material consumption due torepeated attempts;
●In the mid-to-late stages such as product deployment, use model algorithms to predict faults in advance, facilitatingtimely fault handling and reducing potential losses from operational interruptions;
●For energy-consuming products such as batteries, helps reduce unnecessary energy consumption.
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
1920
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
"External Connectivity""Internal Access"
Expanding the layout of the "new C (Customer)"Industrial Internet by promoting the unied protocol andtoolchain of various business clients, while reducingclient storage and computing costs. Over 320,000 hostdevices have been accessed, with a cumulative costreduction of RMB 6.62 million in 2023.Gradually expanding the "new C" platform overseaswhile complying with local information security lawsand regulations. Overseas Industrial Internet C-endsites have been established in Singapore, Frankfurt,and Africa. It is expected that the "new C" IndustrialInternet will achieve full connection domestically andinternationally in the future.
Conducting self-developed IIoT platform replacement,realizing real-time online access of 18,000 devices,29,000 four-meters, and over 50,000 cameras,supporting smart security, work hours quota, auxiliarymaterial quota, energy consumption control, andequipment efficiency improvement systems. Asof December 2023, cumulative cost savings haveexceeded RMB 1 billion.
Case
Case
Case
Achieving Energy Savings in Heat Treatment through Equipment Interconnection
Optimization of User Behavior Analysis Platform
Development of Unmanned Electric Loader by SANY Heavy Industry
In 2023, SANY Heavy Industry continued to promote the application of equipment interconnection technology.By integrating equipment interconnection, energy, and production data, we modelled the heating furnace for heattreatment, optimizing the heating process and smart control insulation time. In 2023, energy e?ciency increasedsignicantly by 25%, with an annual savings of approximately RMB 16 million in electricity costs and a reduction inelectricity consumption of approximately 28.07 million kWh.
In 2023, SANY Heavy Industry upgraded and iterated the user behavior analysis platform. By systematicallyreceiving user behavior data reported from multiple ends, the platform not only supports data management anduser grouping management but also realizes various real-time analysis models, data dashboard management,and permission management. This signicantly improves the accuracy and e?ciency of data analysis, with anexpected annual saving of approximately RMB 530,000 in various cost expenses.
In 2023, SANY Heavy Industry successfullydeveloped an unmanned electric loader,advancing the smartness and unmannedtransformation in construction operations.The unmanned electric loader focuses onthe material loading operation at batchingplants. Integrated with a digitalized cloudcontrol system, it autonomously plansand selects travel roots, utilizes overheadcameras to monitor material levels inreal-time, and schedules tasks based onmaterial shortage at the loading ports. Itfeatures autonomous driving, obstacleavoidance, parking, loading, and unloadingcapabilities. Additionally, emergency stopbuttons are installed in the human-machineinterface to ensure operational safety.
Interface of the equipment interconnection platform
Visualization of data volume received after system launch
Unmanned electric loader
"Four-dimensional Process" and Industrial Software Applications
Digitalization of Product and Technology
SANY Heavy Industry conducts closed-loop management in R&D, supply chain, procurement, production, sales, and otherprocesses, making good use of big data and smart technology to promote standardization, onlineization, automation, anddigitalization (referred to as "four-dimensional process") construction of processes, thereby improving operational e?ciency.In 2023, the Company carried out a series of optimization projects such as application management platform upgrades, tagplatform construction, data middle platform docking, and unied mobile development platforms, e?ectively saving manpowerand resource costs in various processes.
In the context of rapid development of frontier technologies such as big data and articial intelligence, SANY Heavy Industryseizes the opportunities of the times, continuously carries out technological innovation, and promotes innovation andtransformation through smart technologies such as visual recognition, smart algorithms, unmanned driving, and 5G networks.This provides more stable, secure, and e?cient hardware and software support, exploring the development of smart productsthat balance e?ciency and environmental protection. In 2023, we integrated technological innovation resources, carried outproduct technology innovation according to market demand, and made phased progress in unmanned transportation, automaticparking, and other areas, driving the improvement of the value chain and expanding the e?ciency of digital transformation,extending the digitalization strategy to a broader scope.
1920
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
2122
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Low Carbonization - Targeting Clean Opportunities
Electric and Hybrid Technology
Hydrogen Energy Technology
Highlighted Electric Vehicle Models
With the increasing awareness of environmental protection and the demand for green development, clean technology isgradually becoming an important engine for commercial development. SANY Heavy Industry regards low carbonization as a keydevelopment strategy, carrying out business layouts in sectors including pure electric, hybrid, and hydrogen fuel. We continueto explore clean energy production and utilization, promote and apply clean technology, and accelerate energy conservationand emission reduction. In 2023, SANY Heavy Industry obtained 275 patents in clean technology, achieved sales of RMB 3,276million, with revenue from electric products reached RMB 3,146 million, and revenue from hydrogen energy reaching RMB 130million.SANY Heavy Industry attaches importance to the development and mastery of electrification technology in main products,core components, and auxiliary power devices, covering products such as excavators, loaders, pump trucks, mixer trucks, andcranes. We actively carry out the conversion of oil to electricity and strengthen the research and development of pure electrictechnology based on hybrid power. We expand the development of independent vehicle control units (VCUs) and continue tolaunch new pure electric vehicle models to reduce reliance on fossil fuels. In 2023, the Company launched more than 40 newproducts, including the world's rst fully electric rotary drilling rig, pure electric telescopic crawler crane, breaking through morethan 30 key technologies, with sales exceeding 4,300.
Hydrogen energy, as a widely available renewable energy source, is an ideal medium to support the development andapplication of clean energy, with signicance for energy conservation, emission reduction, and deep decarbonization. SANYHeavy Industry deeply understands the vast prospects of hydrogen energy and actively engages in the hydrogen energyindustry, considering it a key area of focus for low-carbon strategies. Leveraging its strong talent pool, the Company focuses onR&D in hydrogen energy vehicles and adjusts its product energy structure and service models. It continues to roll out technologyachievements with independent intellectual property rights to support the development of the entire hydrogen energy industrychain.
SYM5311GJB1BEV412 ChargingEdition Mixer Truck
SCE800TB-EV80t ElectricTelescopic CrawlerCrane
SW956EElectric WheelLoader
CaseSANY Heavy Industry Develops Multiple Hydrogen Fuel Mixer Trucks
In 2023, leveraging mature and reliable guarantees of Type III cylinders, parts,systems, and vehicle "three-level" tests, SANY Heavy Industry's Engineering VehicleDivision has developed vehicles equipped with industry-leading durability hydrogenfuel cell systems. Multiple hydrogen fuel mixer trucks have been launched, includingthe 411 hydrogen fuel cell and 416 hydrogen fuel cell models. These trucks areequipped with a 1,680-liter large-capacity hydrogen cylinder group, providing acruising range of over 500 kilometers under constant speed conditions. They operateefficiently, and their energy systems are stable and reliable. Additionally, safetydesigns such as high-temperature protection, over-current protection, low-pressurealarm, leakage detection, and control have been incorporated into the onboardhydrogen supply system to ensure the stability and safety of gas usage.
Hydrogen fuel mixer truck
Highlighted Vehicle ModelsFeatures
Providing a cruisingrange under constantspeed conditions of over
km
2122
●Industry-rst frameless structure combined with integrateddrive design, decreasing energy consumption by reducingvehicle weight, lowering over 30% operating costs comparedto fuel vehicles.
●Introduces the world's rst pure electric telescopic crawlercrane, with a lifting capacity nearly 10% higher thanindustry benchmarks, featuring smart functions such asremote air conditioning and wireless remote control.
●Achieves zero emissions during equipment use, equippedwith a 282 kWh high-capacity battery from CATL, savingcustomers over RMB 1,400 in fuel costs per day.
●Utilizes in-house developed VCU control technology forprecise tuning, providing stability and reliability of traditionalloaders with the quick response of electric loaders, withlong endurance of 4-8 hours and high operating e?ciencyof 700t/h, which offers a comfortable driving environmentand reliable performance for operators.
●Saves nearly 14,000 liters of fuel for every 1,000 hours ofoperation.
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
2324
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
SANY Heavy Industry is committed to achieving sustainableand high-quality development. We adhere to honest andcompliant operations, prioritize risk management and internalcontrols, uphold business ethics, and firmly oppose all formsof corruption. By continuously strengthening the Company'sinstitutional system, we steadily enhance the scientic, robust,and effective governance, providing a fundamental guaranteefor the Company's sustainable development.
Strengthen Corporate GovernanceComprehensive Risk ManagementAnti-Corruption and Business Ethics
Honest Operationsand Governance
2526
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Third Defense(Auditing and SupervisionHeadquarters)
Strengthen Corporate GovernanceComprehensive Risk Management
Risk Management
A sound corporate governance mechanism is the core for companies to achieve a stable operation and sustainabledevelopment. SANY Heavy Industry adheres to the relevant requirements of the Company Law of the People's Republic ofChina, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, andthe Rules Governing the Listing of Stocks on Shanghai Stock Exchange, continuously optimizing the corporate governancestructure to ensure the full performance of the functions and responsibilities of the General Meeting of Shareholders, the Boardof Directors, and the Board of Supervisors. At the same time, we disclose information according to the law and regulations,establishing a scientic modern corporate governance system with e?ective balances and e?cient operations.The Board of Directors has established several key committees including the Strategic Committee, Audit Committee, NominatingCommittee, and Remuneration and Appraisal Committee. When selecting board members, we prioritize a comprehensiveevaluation that encompasses industry experience, educational background, skills, and gender diversity to ensure the board'scomposition meets the standards of independence and inclusivity. Our directors bring a wealth of professional expertise andexperience in legal matters, finance, auditing, and corporate management. This diverse skill set significantly enhances theboard's performance and overall governance e?ectiveness, ensuring that board decisions are made with sound judgement andby best practices. Our independent directors play a crucial role within our corporate governance framework. They are dedicatedto safeguarding the interests of shareholders and stakeholders while advancing the Company's long-term sustainability goals. In2023, the Company's board comprised 9 directors, including 3 independent directors and 1 female director.
Considering the realities of production, operation and management of the Company, to ensure the achievement of theCompany's strategic goals, SANY Heavy Industry has established and maintained a standardized and effective riskmanagement and internal control system. The Company has formulated and issued internal laws and regulations, such as theJudgment Guide for Problems, Defects and Risks, the Operation Guide on Internal Control Evaluation, the Audit and SupervisionQuality Manual, the Auditing and Supervision Management System, Audit and Supervision Plan and Management Process,and Audit and Supervision Rectication Tracking Management Process. In this way, we continuously improve our capability forpreventing risks and the Company's operation and management to ensure the safe and sound operation of the Company.
The Company has established 3 defenses of risk prevention and control, which consist of business divisions, functionalheadquarters and auditing and supervision headquarters. We dene the responsibilities of risk management and integrate therequirements of enterprise risk management into enterprise management and business processes in terms of the responsibilitiesand functions of di?erent posts, e?ectively building a risk prevention and control system.In 2023, SANY Heavy Industry actively utilized digital means, integrated internal and external data, and developed riskassessment models for dynamic risk evaluation. Focusing on key business scenarios with "high risk, high value, high frequency,and large data volume" in the nancial, commercial, marketing, and overseas areas, the Company summarized and renedviolation characteristics and constructed multidimensional supervision models covering multiple risk aspects such as "fraudulentbid rigging," "false sales" and "false reimbursement." This enabled the Company to identify operational risks and provide real-time alerts for abnormal events, further enhancing the Company's business resilience against risks. Additionally, we regularlyconduct risk prevention and control training for employees to strengthen their capabilities in fullling their responsibilities forrisk prevention and control. In 2023, the Company established over 30 risk repositories, covering 6,196 risks in financial,commercial, marketing, and overseas areas, with 382 audit projects conducted for key clues and issues, identifying andaddressing over 4,000 issues and risks.
First Defense(Business Divisions)
The Company organizes the General Meeting of Shareholders, Board of Directors Meetings and Board of Supervisors Meetingsby applicable laws, regulations and the Articles of Association. The convening, deliberation and voting procedures compliedwith relevant regulations. The Company's and the shareholders' legitimate rights and interests, especially minority shareholders'are safeguarded. In 2023, SANY Heavy Industry held 1 General Meeting of Shareholders, 4 Extraordinary General Meetings ofShareholders, and 7 Board of Directors Meetings, with 100% directors attendance; 7 Board of Supervisors Meetings were held,with 100% member attendance.
The Board of
Directors
The Board is responsible for the General Meeting of Shareholders. It examines important mattersregarding the Company's operating activities and submits its decisions to the General Meeting ofShareholders for review.The Board ofSupervisors
The Board of Supervisors oversees the Board members and senior executives, as well as theCompany's nance.
SeniorExecutives
Senior executives are guided by the Board of Directors and take charge of the Company's dailyoperations and management.
SANY Heavy Industry's Management Level and Major Responsibilities
Three Defenses for Risk Management System
Corporate Governance Structure
Case
SANY Heavy Industry Organized Risk Control TrainingIn 2023, SANY Heavy Industry conducted 8 training sessions on risk identication and the use of internal controlassessment systems. The training covered basic concepts and principles of risk management and internalcontrol, testing requirements for risk management and internal control, methods for risk identification andanalysis, as well as internal rules and evaluation methodologies. The training reached a total of 327 participantsin the overseas system, 122 participants in the business system, 327 participants in the nancial system, and 259participants in marketing, e?ectively enhancing employees' risk awareness.
The General Meeting
of Shareholders
The Board ofSupervisors
The AuditCommitteeThe Nominating
CommitteeThe Strategic
Committee
The Remuneration andAppraisal Committee
The Board of
Directors
Main Functions
Management
Level
Second Defense(Functional Headquarters)
●Operational and ManagementMeasures
●Internal Control Measures
●The Business A?airs Headquarters
●The Smart ManufacturingHeadquarters
●The Marketing Risk ControlDepartment
●The Securities and Investment O?ce
●The Process and IT Headquarters
●SANY Legal A?airs Department
●The Financial A?airs Headquarters
●Internal Control and Audit
2728
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Internal Control and ComplianceThe Company is committed to systematically promoting internal control and compliance, e?ectively harnessing the synergiesbetween internal control and compliance management to foster healthy development. Throughout 2023, we continued reningthe internal audit system framework, continually enhancing the audit and supervision mechanisms. Led by the Auditing andSupervision Headquarters, we exercise comprehensive oversight over the Company's compliance operations, with collaborationbetween the Supervision Department and Auditing Department in conducting audits. Concurrently, by integrating "digitalization"into our audit processes, we are vigorously deploying a digital fraud detection system and actively advancing the implementationof a global compliance framework.
Based on the comprehensive "1+8+N"
internal control management system, SANY Heavy Industry monitors the core businessprocesses of its subsidiaries, focusing on key clues and issues through audit work, with the Audit and Supervision ManagementSystem serving as the foundation. Under the guidance of the "digitalization" development strategy, auditing follows a digitaldevelopment model of "platform + model + data," continuously iterating and upgrading according to management needs witha user-oriented approach. All projects, tasks, and outcomes are completed through the system, with individual indicatorsautomatically calculated, making digitalization an e?ective tool for auditing.In response to the globalization strategy, the Company formulates and updates compliance policies based on the legalrequirements of countries and regions globally, ensuring compliance with relevant domestic and international laws andregulations, and establishing clear compliance principles and guidelines. Additionally, a compliance management andsupervision system jointly coordinated by the Auditing and Supervision Headquarters and the BPIT Headquarters, withcompliance officers designated in each operating unit, ensures the implementation and monitoring of compliance policies.For identified compliance risks and violations, appropriate response and corrective measures are promptly taken based oncategorized and graded governance standards.SANY Heavy Industry incorporates compliance management and risk management into its performance assessment. Whenemployees violate compliance and risk management regulations, resulting in losses to the Company, their performance ratingsmay be reduced, and performance bonuses may be decreased or cancelled. For serious violations causing signicant lossesand severe damage to the Company's brand reputation, in addition to the aforementioned measures, other disciplinary actionsmay be taken based on relevant provisions in the Accountability Management System.Through regular global unit internal control assessments and compliance training, we not only enhance compliance awarenessamong business units but also instill a culture of compliance among employees. During the reporting period, compliance trainingcoverage for the newly recruited and job promotions reached 100%, e?ectively enhancing the ability to protect the Company'sreputation and interests.
"1+8+N" refers to clearly dening one risk management organizational structure, division of responsibilities, and overall control framework. Based on this,it establishes eight executable process systems for risk assessment and management, control activities and processes, information and communication,supervision and evaluation, continuous improvement, and internal control compliance talent cultivation. Additionally, it optimizes and improves N-specicexecution standards, processes, methods, and plans according to actual circumstances.
DepartmentTheAuditing andSupervisionHeadquarters
The AuditingDepartmentSupervisor
Teams
TheSupervisionDepartment
Functions
Auditing and Supervision System
Auditing and Supervision System Assignment of Responsibility
Case
Conducting Training Initiative "Marketing Compliance Enhancement Month"
In April 2023, SANY HeavyIndustry conducted a month-long compliance managementtraining. Led by the Auditing andSupervision Headquarters andthe Legal Department, centralizedtraining sessions were conductedfor all subsidiary business units,reaching over 10,000 internaland agency personnel, furtherenhancing employee complianceawareness.
"Marketing compliance enhancement month" activity
The Auditing and Supervision
Headquarters
CooperationandInteraction
The SupervisionDepartment
The AuditingDepartment
Leads and
Needs
Leads and
Needs
The Engineering VehicleBusiness DivisionThe Heavy Machinery
Business DivisionThe Heavy CraneBusiness Division
......
Supervisor Team OneSupervisor Team Two
......
●
Developing supervision and evaluation systems for internal control and risk management procedures
●Inspecting and assessing the completeness, suitability and e?ectiveness of internal control and riskmanagement procedures of di?erent departments
●Encouraging departments to build and maintain a risk database
●Promoting self-evaluation of di?erent systems and organizing risk re-assessment activities
●
Independently examining, verifying, assessing and reporting on the effectiveness and suitability ofinternal control and risk management procedures of the operators within our scope of supervision
●
Investigating major fraud cases and developing the anti-fraud system
Cooperation
andInteractionCooperation
andInteraction
2930
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) ReportAnti-Corruption and Business Ethics
Integrity Management
SANY Heavy Industry adheres to the principles of honesty, integrity, and fair competition in business ethics. With a zero-tolerance approach towards corruption, we have established a robust anti-corruption system and fostered a culture of integrity.We are steadfast in implementing anti-money laundering measures, contributing to the creation of a clean and transparentenvironment. These e?orts serve as a solid foundation for the Company's high-quality development.
To step up integrity, the Company supervises corruption, and prevents and controls integrity risks by prioritizing the 3 aspects of"before, in progress and after." The Company focuses on the core business processes of auditing and supervision, leveragingour data platform to develop a smart auditing platform centered around risk prevention. This platform, with its core centers forearly warning, operations, and decision-making, is designed to enhance corruption governance e?ectiveness by harnessing theadvantages of big data monitoring technology. In 2023, the Company conducted anti-corruption audits across its headquartersand subsidiaries, achieving a full coverage rate of 100%. As a result, 13 instances of fraud were identied and addressed, while34 individuals faced repercussions due to public opinion.
In 2023, the Company underwent a comprehensive upgrade of its smart audit platform, focusing on smart early warning, swiftauditing, and precise decision-making. This initiative involved restructuring business processes to gradually achieve online,automated, and smart workows, thereby empowering and enhancing the e?ciency of auditing and supervision tasks.
We conduct honesty and integrity training, stage honesty and integrity educational exhibitions,organize honesty, integrity & compliance tests, and offer integrity notifications at festivalsfor sta? in di?erent divisions and departments. We also require sta? at key positions to signan Honesty and Integrity Letter of Responsibility and o?er them preventative education andtraining to ensure that our sta? and cadres are clean and honest.We improve the processes by utilizing the digital model supervision, reporting and complaintmechanism, senior management supervision and evaluation mechanism, businesscompliance check, "Ten Rules" supervision of business decision-making, the Supplier contactand visit mechanism, gift and cash declaration mechanism, and conflict of interest andexternal investment declaration to ensure that risks are controllable.We focus on investigating and handling major cases, announcing typical cases, and buildingthe blacklist sharing mechanism, tracking mechanism of resigned personnel, and reportingranking and investigation mechanism. By diversifying accountability measures, we have madethem act as a deterrent.
Anti-Corruption Initiatives
Five Major Upgrade Directions of the Smart Auditing Platforms
Responsible Departments for Integrity Management and their Duties
AdvancePublicity andPrevention
OngoingSupervision andGovernance
Punishment andAccountability
SANY Heavy Industry regards internal anti-corruption as a crucial safeguard for the steady development of the enterprise.The Company strictly adheres to laws and regulations such as the Criminal Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, and the Interim Provisions on Prohibiting Commercial Bribery, fullyimplementing internal policies like the Conict of Interest and Integrity Management System, the Blacklist Sharing ManagementProcess, and the Business Personnel Behavior Management Regulations. In 2023, we updated the Accountability ManagementSystem, further rening the Company's red lines and clarifying internal accountability measures. We deepen the awareness of"cannot be corrupt, do not want to be corrupt, and dare not be corrupt," adhere to the "high standards, strict requirements" workdiscipline, establish a responsibility management and accountability mechanism for fullling duties, investigating errors, andquestioning responsibilities, thus laying a solid foundation for ethical conduct.As of the end of the reporting period, we have established a supervision and management structure with clear responsibilitiesand division of labor. The Board of Directors of the Company directly oversees, guides, evaluates, and supports theachievements of the Auditing and Supervision Headquarters in integrity management. It provides guidance, support, assistance,and decision-making for anti-corruption management work.
Fulfills the main responsibilities for managingconict of interest and integrity and self-disciplinework and reports the conict of interest accordingto the rules and regulations.
The principal in charge of each department
The principal in charge at each departmentMay authorize designated personnel to handleand investigate issues related to conflicts ofinterest and integrity, ensuring the implementationof accountability measures; They are alsoresponsible for receiving returned gifts or presentsfrom employees, managing their disposal, andrecording them for documentation.
The O?ce of the ChairmanSupervises the Auditing and SupervisionHeadquarters' work on managing conflicts ofinterest, and cash received as bonuses and gifts.
The Auditing and Supervision HeadquartersIs responsible for the publicity, implementationand declaration of the Conflict of Interest andIntegrity System; the interpretation, acceptance &investigation and punishment of infractions of theSystem.The Business A?airs Headquarters and the BusinessA?airs Department of each business divisionAre responsible for the declaration, implementation,investigation and auditing of the supplier's conictof interest as well as the implementation of theresults, and accepting the supervision from theAuditing and Supervision Headquarters.
Are responsible for collaborating with the Officeof the Chairman and the Auditing and SupervisionHeadquarters on the declaration and publicity ofconict of interest issues.
The Human Resources Headquarters / The HumanResources Department of each business division
●From "Control-Oriented" to "Risk-Oriented"
●
From "Post-Conrmation" to "Preventive" Approach
●From "Emphasizing Supervision" to "Empowerment"
●From "Experience-Driven" to "Data-Driven"
●
From "Traditional Project-Based Auditing" to "Agile Auditing"
3132
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Supplier Integrity ManagementComplaint ReportingPreventing ethical risks in the procurement process is one of the Company's key focuses. We adhere to transparentprocurement practices, following principles of openness, fairness, impartiality, and honesty, while identifying critical risk factorsin dealings with suppliers. Our systems, including the Supplier Management System, Procurement Framework Agreement, andSupplier Contact / Visit Management Plan, all articulate clear requirements regarding supplier integrity.In 2023, SANY Heavy Industry notably strengthened compliance management among global supply chain partners, ensuringadherence to relevant laws and regulations in the operational regions to prevent suppliers from adversely impacting theCompany due to integrity issues. The Company conducted specialized training for procurement teams, emphasizing theprohibition of employees from accepting hospitality or any form of gifts, cash, or vouchers from suppliers. Any instances ofbribery or corruption are promptly investigated and rigorously addressed, with relevant information promptly reported to supplierleadership. To uphold the purity and transparency of cooperative relationships, the Company and its suppliers sign an IntegrityCooperation Agreement as a joint code of conduct for ethical behavior.
To safeguard the rights and interests of whistle-blowers, we kept the informants' identity a secret and implemented thewithdrawal system while passing the case information and investigating it. If the identity of a whistle-blower or informant werestolen or leaked, the competent department would be held accountable according to the Accountability Management System.If the informant were intimidated or retaliated, the Company would assign dedicated personnel to protect them from harm. Ifnecessary, the Company would report the retaliatory conduct to the judicial authorities and hold anyone who took revengeresponsible.
SANY Heavy Industry has enhanced its internal reporting management process of Reporting Management Procedures inaccordance with the requirements of national disciplinary and supervisory authorities, further standardizing the handlingof reports. The Company has established diverse reporting channels to ensure a wide range of sources for anti-corruptionfeeds and has set up a smart supervision platform. A dedicated department is permanently assigned to handle reports andcomplaints, with a focus on investigating and addressing reports from suppliers, whether anonymous or named. Individuals canmake reports through several channels, including reporting mailboxes, email, hotlines, SMS, WeChat o?cial accounts, Cloud-Hub (mobile o?ce software), Feishu (SANY Heavy Industry's real-time o?ce software), and notications to the O?ce of theChairman. The Company assigns dedicated personnel to regularly collect and summarize problem clues, creating a work ledgerfor systematic assessment and resolution. In 2023, the Company received 75 complaint cases, all of which were investigatedand handled according to the reporting management process.
FeishuWeChat
Cloud-HubQQTELReception
RoomMailProcurementFramework Agreement
Supplier Contact / VisitManagement Plan
Receive Feedback, Register,
Assign
Identify and ClassifyAccept
Conrm and Give FeedbackSubmit an Incentive O?er for the
InformantReview the Incentive O?er
the signing rate for the Integrity Cooperation Agreement / Letter of Commitment with suppliers reached
100%
.
Supplier Integrity Management Rules
Reporting Channels of SANY Heavy Industry
SANY Heavy Industry's Complaint Handling Processes
In 2023,
SupplierManagement System
Emailjiancha@SANY.com.cnWorkbench / SANY IntegritySANY Integrity Public Account;Chairman's Letter Box
Chairman's Letter Box, SANY Integrity25926895500731-84031222、85835000Room 306, Complex Building of Changsha Industrial Park / O?ce of the Supervisory Head in AllIndustrial ParksAuditing and Supervision headquarters, SANY Industrial City, Xingsha Economic and TechnologicalDevelopment Zone, Changsha City, Hunan Province, 410100.
●Stipulates access requirements of dishonest operations
●
Requires suppliers and franchisees to sign the Integrity CooperationAgreement
●Fills in the Conict of Interest and External Investment Declaration Form onthe procurement system
●Builds a real-time feedback mechanism through the reporting hotline, WeChatplatform and follow-up visit
●Announces infractions of rules and regulations in real time
●Publicizes the Company's policy on honesty and integrity
●Investigates and conrms a supplier's suspected breach of contract
3334
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) ReportAnti-Corruption Training
Anti-Money Laundering
To uphold fairness in the business environment, the Company continues to advance its e?orts in promoting "Diversied" integritypractices, fostering a culture of integrity, and reinforcing ethical conduct to ensure e?ective integrity management. Upon joiningthe Company, all employees participate in anti-fraud training, followed by integrity assessments to gauge the e?ectiveness ofthe training. Regular communication campaigns are conducted in the workplace to further instill awareness of integrity values.Moreover, the Company conducts integrity policy briengs during the annual supplier conference and sends reminders aboutanti-corruption policies to suppliers during holidays, thereby strengthening transparent and clean cooperation relationships.In 2023, the Company organized integrity training sessions for all full-time employees, internal directors, suppliers, and part-time/ outsourced personnel. These included onboarding training for 4,200 new employees, learning and exams on accountabilitymanagement systems and red line criteria covering 100% of employees
, and five integrity education sessions for 1,538suppliers.
The Company highly values anti-money laundering works and strictly abides by the relevant provisions of the Anti-MoneyLaundering Law of the People's Republic of China. During the reporting period, to prevent nancial risks, protect the interestsof all parties and improve the compliance level of the Company, we actively strengthened internal control and cooperation, andformulated and revised the Anti-Money Laundering Internal Control System, the Anti-Money Laundering Self-Evaluation System,the Rules for Reporting Large Transactions and Suspicious Transactions, the Trade (Business) - based Money LaunderingRisk Assessment Management Measures, the Anti-Money Laundering Evaluation Measures, the Anti-Money Laundering Self-Evaluation Implementation Rules, the Management Measures for Customer Identication and Customer Identity Information andTransaction Record Preservation, and the Measures for Emergency Management of Money Laundering and Terrorist FinancingEmergencies. We enhance the anti-money laundering responsibilities across various departments, refine the criteria foridentifying suspicious transactions, develop risk assessment criteria for combating money laundering in products, and establishcomprehensive risk assessment criteria for the company. Through these e?orts, we collaboratively foster an honest, safe, andstable nancial environment.
Employee
enrollmentandpromotionPublicity
Suppliersigning
Designate the Legal Compliance Department asthe leading unit to take charge of the Company'santi-money laundering effort and appoint onededicated officer in charge of anti-moneylaundering in each department.Develop and revise internal regulations andprocesses, clarify the anti-money launderingobligations and each department's anti-moneylaundering responsibilities, and regulate thereporting mechanism for suspicious transactionsand money laundering risk assessment process.Operate the Anti-Money Laundering InformationSystem to automatically identify and evaluatethe customer's money laundering risk basedon the anti-money laundering monitoring list,customer identity, financial product categoryand transaction amount, and communicate themoney laundering investigation findings to thebusiness segment.
Review the source and ow of specic cashtransactions to ensure the compliance andlegitimacy of capital flow and to eliminateillicit operations.Establish the CRM
system and GSP systemto manage customers and supplier les, carryout credit evaluation and review of customersand suppliers, and strictly control cooperativetransactions and supplier access.
Additionally, we have established procedures for customer identication, protocols for retaining customer identity informationand transaction records, as well as systems for reporting large and suspicious transactions. From both nancial managementand financial monitoring perspectives, we uphold an internal anti-money laundering control system to ensure the effectiveimplementation of anti-money laundering and anti-monopoly regulations. This further enhances SANY Heavy Industry'scapabilities in safeguarding nancial security, stabilizing market orders, protecting customer interests, and ensuring compliantoperations.
Integrity Education Forms
Anti-Money Laundering Internal Control System
CRM is the abbreviation of Customer Relationship Management.
Financial Monitoring
Financial Management
Evaluation
The accountability management system and red line criteria learning and exams are inclusive of all full-time employees as well as part-time / outsourcedpersonnel.
●Declaration of conict of interest and external investment; Training on honesty and condentiality.
●Integrity sunlight week, integrity and honesty education exhibition, Integrity knowledge competition,thematic lecture on the criminal justice system, short videos on integrity and honesty, greetingsmessages on integrity at festivals.
●
Supplier signing ceremony on integrity and compliance
●Evaluation of integrity and honesty performance; Integrity and compliance test.
3536
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
As a global front-runner in equipment manufacturing, SANYHeavy Industry has always believed in the concept of "InnovationDrives Everything," which has driven the Company to continuouslyoptimize its advanced manufacturing roadmap, and lead withtechnological innovation for the high-quality development of itsdiverse array of products and eventually the Company's leapfrogadvancement. Customer-oriented and product quality-focused, theCompany, through a stable and sustainable supply chain, strives tobuild an excellent reputation in the industry and create greater valuenot only for its customers but also for society.Innovation-Driven DevelopmentPursue Superior QualityJointly-Built Responsible Supply Chain
R&D and ProductQuality
3738
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Innovation-Driven Development
SANY Heavy Industry regards R&D innovation as the primary driver of the Company's growth. Three major strategies of "lowcarbonization", "digitalization", and "globalization" have underpinned our e?orts in consolidating our technological foundationsand implementing a well-dened matrix management model through a robust R&D management framework to enhance our corecompetitiveness in scientic research, which is driven by our talented workforce. Additionally, we place signicant emphasis onsafeguarding and leveraging intellectual property rights, while promoting external exchanges and collaborations. Our objective isto elevate the Company's level of technological innovation, thereby generating new momentum for its development.
The Company has consistently adhered to internal policies such as the Research and Development Project ManagementSystem, the Three-generation
Parallel R&D Management System of SANY Heavy Industry, and the Management Measures forGeneric Technologies of Smart Products. These policies are actively promoted to drive the Company's fundamental technologyresearch. In 2023, under the guidance of the Company's Chairman and the Performance Leadership group, we systematicallystandardized the procedures and regulations related to R&D planning, project management, and performance evaluation.Additionally, we have established an Integrated Product Development (IPD
) project life-cycle management system. This systemnot only ensures seamless integration of planning, management, and performance evaluation in research and development butalso fosters cross-departmental collaboration among business, nance, manufacturing, sales, and service departments. As aresult, we can e?ectively achieve the objectives of our research and development projects.
Three generations refers to the Company's strategic R&D thinking of "One Generation of Marketing, One Generation of Reserve, One Generation ofR&D."
"IPD" stands for "Integrated Product Development", which refers to a set of patterns, philosophies, and methodologies for product development.
Scientic Research System
The Organizational Structure of Scientic and Technological R&D Management
Technical R&D
CommitteeNine TechnicalCommittees
Professional
TechnicalSubcommittees
Through efforts to arrange responsibilities and functions at different levels appropriately and enhancing cross-departmentalcollaboration, the Company has improved the organizational structure of scientic and technological R&D management. Wehave established a Technical R&D Committee, led by the Chairman and comprised of nine technical committees, to overseethe R&D progress in key areas and coordinate the Company's strategic R&D layout. Furthermore, we have set up professionaltechnical subcommittees within each research field to focus on in-depth research and technological innovation, collectivelydriving the steady advancement of SANY Heavy Industry's R&D endeavors.
During the reporting period, we have updated the five majorscenarios covered by the Company's research and developmentprojects: new product development, variant product development,custom product development, application technology development,and pre-research technology development and categorized theminto four levels: L, A, B, and C, based on their level of importance.We have also clarified the acceptance criteria for each keymilestone to further enhance the standardization of research anddevelopment project management. In 2023, SANY Heavy Industryinvested 6.101 billion RMB in R&D, accounting for 8.33% of theCompany's total revenue.
In 2023, SANY Heavy Industry invested
6.101 billion
RMB in R&DAccounting for
8.33%
of the Company's total revenue
●Settle on cutting-edge technological directions, devise research and developmentstrategies, and establish plans for technological advancement;
●Lead professional technical subcommittees, propose signicant technical decisions, andprovide solutions for important technical issues.
●Comprised experts in nine major technical elds including mechanical, control, hydraulic,testing, simulation and digital twins, new energy, unmanned driving, generalization, andindustrial design.
●Responsible for researching and deliberating on the specic guidelines and medium tolong-term planning for the development of professional technology;
●Responsible for researching new products and technologies in the profession, andpromoting their application within the Company;
●Responsible for drafting and approving various technical standards and operatingprocedures within the profession;
●Responsible for facilitating the exchange and sharing of professional technicalachievements both within and outside the Company.
3940
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Intellectual Property RightsSANY Heavy Industry is committed to both technological innovation and intellectual property protection, striving to enhance itsability to create, utilize, and manage intellectual property rights. The Company strictly adheres to national laws and regulationssuch as the Patent Law of the People's Republic of China, the Trademark Law of the People's Republic of China, and theEnterprise Intellectual Property Management as well as the Company's internal regulations such as the Management Rulesof R&D and Patent Work and the Trademark Management System. During the reporting period, revisions were made to theManagement Rules of R&D and Patent Work and guidelines such as the Overseas Patent Application Process Guide Manualand the PCT International Patent Review Process Guide Manual were formulated. Continuously refining mechanisms formanaging and protecting overseas product patents, the Company is speeding up the implementation of its global strategy.The Company is actively building a comprehensive intellectual property service system that encompasses patent application,patent analysis, patent invalidation declaration, patent operation, patent acquisition, and patent asset evaluation processes. Thissystem integrates the creation, utilization, protection, and management of intellectual property services across the entire chain.To advance digitalized management of intellectual property, the Company has employed a Patent Navigation System whichallows for various practical features such as patent management, patent information retrieval, and patent shelf, signicantlyimproving e?ciency in patent risk prevention and patent asset management.In a bid to bolster intellectual property protection comprehensively and elevate the legal framework for safeguarding intellectualproperty, the Company has been leveraging legal avenues to decisively clamp down on various forms of infringement. Thisaction aims to uphold the lawful rights of intellectual property and ensure fair competition in the market. In 2023, our e?ortsresulted in victorious patent protection cases with enforced settlements amounting to 9 million RMB. Furthermore, we've takenlegal action against patent infringers, with 5 cases already led.To enhance the Company's ability to address intellectual property risks and improve skills in overseas patent applications, weorganized o?ine training sessions for patent engineers during the reporting period. These sessions focused on various aspectsincluding overseas patent application procedures, patent layout planning, assessment and response to patent infringementrisks, development of high-value patents, and enhancement of corporate intellectual property management systems. Seasonedexperts from the industry were invited to conduct these training sessions. In addition, we provided foundational patent knowledgetraining for newly hired R&D personnel and other activities such as competitors' patent interpretation workshops throughout thesubsequent R&D process.
Intellectual Property Achievements
The total number of patents applied for bySANY Heavy Industry and its subsidiaries1,533Computer SoftwareCopyright
Participating in the drafting andpublication of national standards
Foreign PatentApplications
Design Patents
Industry standards
Granted Valid InventionPatents
Subsidiaries which have completed the standardizationcertication of the intellectual property system
Utility ModelPatents
R&D Team
R&D Training Programs
SANY Heavy Industry regards research and developmenttalents as the core competitive advantage of the Company.Based on positions and oriented towards the capabilitiesand achievements of employees, we have formulated a titleevaluation and management system for all R&D personnel.It stipulates that R&D personnel who have obtained aprofessional title can enjoy corresponding benets accordingto the Company's salary system and welfare policies,thereby motivating R&D personnel to continuously improvetheir technical expertise and accelerating the output of R&Dresults. Furthermore, to boost the overall capability of theresearch team, we've devised a management system forR&D project managers. This system entails o?ering projectmanagement training and certification to R&D personnel,fostering the continual enhancement of project managers'expertise.In 2023, we revised the Research and DevelopmentProject Incentive Management Measures and introducedthe Research and Development Incremental Profit BonusManagement Measures. These initiatives clearly outline ourinnovation incentive mechanism. Through a tiered goal andbonus system, we integrate R&D rewards across the entireproject life cycle. Furthermore, we allocate bonuses based onthe proportion of incremental prots from product categorieseach year, aiming to fully stimulate the innovation drive anddynamism of our research team. During the reporting period,we disbursed a total of 33 million RMB in bonuses to theR&D team.The Company prioritizes the construction of its R&D trainingsystem, offering customized training courses tailored tothe varying levels and capabilities of R&D personnel.This approach has steadily enhanced the efficiency ande?ectiveness of our research sta?. In 2023, training programsof Dean Course with 500 participants, and R&D Lecture Hallwith 1,000 participants were o?ered. In total, seven trainingsessions of the two training programs were conducted.
The courses of the program cover professionalskills for creating hot-selling products, shapingleadership in management, and courses on thedigitization of technology. During the reportingperiod, a total of 8 training sessions of this programwere conducted, covering over 80% of researchersin management roles.
The courses of the program include experiencesharing in creating "Best-selling" products andproduct development processes and projectmanagement, introduction to clean energyinternal combustion engine technology, sharing ofexperimental simulation technology, etc. In 2023,a total of 7 training sessions of this program wereconducted, covering 100% of theCompany's research personnel.
Dean CourseR&D Lecture Hall
4142
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Pursue Superior QualitySANY Heavy Industry relies on large-scale industrial bases and mature, comprehensive quality management procedures tostrictly control product quality. We are committed to providing customers with the highest value through top-quality products.Through enhanced communication and cooperation with customers, we have earned their trust and recognition, solidifying ourbrand reputation.
Quality Management
Product quality is the cornerstone of enterprise survival and development. The Company strictly complies with the nationallaws and regulations of the Product Quality Law of the People's Republic of China, standard of Q/SY 011244-2021, and theCompany's internal regulations of Importance Rating and Requirements of Product Quality Properties, Technical NoticationManagement System, and 3.3.4.1 Technical Notice Management Procedures. These internal regulations specify principles,content, labelling methods, and management requirements for grading the importance of product quality properties, andprovide clear guidelines for triggering technical notices in situations such as after-sales faults, product repairs, and user-specic requirements. The Company requires all its subsidiaries to comply with its quality management system requirements inaccordance with standards such as ISO 9001 and IATF 16949.By the end of 2023,
Among the
SANY Heavy Industry and its subsidiariesmanufacturers of main engine and spare parts
Quality Management SystemQualityObjectivesManagementPlanningObjectivesReviewManagement
Quality Resourcesand Performance
Management
Quality MethodsManagementQualityImplementationManagementQuality CostManagementQualityExaminationManagementQualityImprovement
R&D QualityManagementQuality Issuesin R&DAccreditationManagement andImplementation
Manufacturing
QualityManagement
After-salesQualityManagementAfter-salesQuality ProblemsManagement
Supplier QualityManagementSupplier QualityManagementBefore MassProduction
SupplierQuality andPerformanceManagement
Apart from the 3 newly established ones during 2023, the remaining
have passed ISO 9001 or IATF 16949 certicationQuality Management System
R&DImplementationQualityManagement
QualityMeasurement andInspection PlanProductionProcess QualityManagementFinishedProduct QualityManagementQuality AnomalyManagement
Supplier QualityManagementDuring MassProductionSANY Heavy Industry remains attentive to and has been learning from the latest technological advancements and innovativestudies within the industry. We proactively engage in collaborations with universities, research institutions, and industry peers,actively pushing the boundaries of technological research and development to foster innovation.
SANY Heavy Industry has been actively promoting the commercialization of R&D achievements, committed to creatingoutstanding smart products and technologies and setting a benchmark for the smart construction of the industry. In 2023, weachieved remarkable technological breakthroughs and results in three smart product domains: smart driving, smart operation,and smart services.
Commercialization of R&D Achievements in 2023
Smart DrivingSmart OperationSmart ServicesSelf-developed L4 autonomousdump trucks, including both fu-el-powered and electric variants:
which achieve functions such asautomatic unloading, automaticparking and turning, obstacleavoidance and navigation, V2Xvehicle-excavator coordination,and coordination with trafficlights and blind-spot intersec-tions. It meets the requirementsfor unmanned driving in sce-narios such as industrial parktransportation and mining areatransportation.
Remote control robots fordisaster relief, emergencyrescue, and bomb disposalscenarios: we have deliveredthe first disaster relief robot,which can achieve multi-moderemote control and digitaltwinning of the surroundingenvironment. It is capable ofautonomously returning to itsstarting point and evacuatingfrom dangerous environments.
Smart all-terrain crane: threecore technologies have beenachieved, including one-touchtelescopic boom, one-touchattachment and detachment ofcounterweight, variable span.Currently, these technologieshave been applied to threeinternational models: 600E,1500E, and 2500E.
SANY Heavy Industry's businessis transformed to engineeringservices, providing customerswith full-scene solutions andoperation services, based on in-telligent hardware and machinedecision-making algorithms asthe core, providing engineeringusers with real-time interactionand analysis of the value of dataintelligence, creating a smart op-eration ecosystem covering thefull range of 20 major construc-tion scenarios, and realising anew model of one-stop, full-cycleengineering services.
4344
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Customer Service
SANY Heavy Industry vigorously upholds the "Customer-first" principle, basing its approach on high-quality products anddelivering outstanding, e?cient services to earn customer trust. The Company strictly adheres to laws and regulations such asthe Law of the People's Republic of China on the Protection of the Rights and Interests of Consumers, the Advertising Law ofthe People's Republic of China, and the Anti-Unfair Competition Law of the People's Republic of China. Furthermore, robustmanagement systems to standardize service processes and enhance service quality have been established and continuouslyimproved.
Customer Service Enhancement Initiatives
Smart dispatch, process monitoring, online evaluation, and online settlement for 9 types of orders including faultrepair, maintenance, and inspection.Smart Dispatch of Service Orders
Service personnel are categorized into 10 skill levels, with mandatory certification for essential skills beforeemployment.Service Training and Certication
Assessment and incentives for customer service quality encompass satisfaction levels, complaint resolution,service e?ciency, parts supply, and meeting customer demands.Service Evaluation
A calculation model for positioning personnel and equipment is used to monitor the standardization of customerservice behaviors.Monitoring of Service Violations
Monthly random visits to customer sites to conduct surveys, test service processes, and report and rectify anynon-compliant behaviors.
Mystery Client Investigation
The Company is dedicated to the deep integration of digital information technology and quality management practices. We haveestablished a comprehensive quality information system to monitor the entire life cycle of projects, ensuring high standards ofdelivery quality. In 2023, we planned six major subsystems, rened 40 business modules, and conducted quality monitoringthroughout the life cycle of 35 projects, thereby enhancing the e?ciency and precision of quality management.To promote the sustainable development of the Company and enhance product quality, we have developed a quality controlmap to identify quality risk control points. Process quality engineers, based on product models and production line workstationinformation, maintain four types of information: quality control documents, common issues and countermeasures, "need-to-know" lists, and technical documents. The aforementioned information is displayed in real-time on electronic boards atproduction line workstations. For employees experiencing job changes, the system automatically assigns "Need-to-Know"exams, and quality management personnel regularly check the exam results to prompt learning and enhance employees'awareness of product quality. The quality control map visually presents the overall status of the Company's quality management,aiding Company managers in accurately controlling the product process. Additionally, based on the quality control map, weperiodically summarize key risk positions and quality risk cases, promoting a unied understanding of the importance of productquality among employees, standardizing operational procedures, and facilitating high-quality development.
Ouality Boards atWorkstations
●Work Procedures
●Key qualitycontrol points atworkstations
●Historical failures atworkstations
● Safety hazard points
●Quality Trend atworkstations
●Critical risks atquality control points
●Ouality Risks atworkstations
●
Risks Associatedwith Need-to-Knowknowledge and skills
●Knowledge learningandskills training
●Exams
●Data Statistics
●Ouality Trend atproduction lines
●Productionline personnelinformation
Quality Risk Map
Need-to-KnowManagement
Ouality Boards atProduction Lines
In response to emergencies such as product safety incidents,the Company has established the Accountability ManagementSystem for Major Quality Defects to standardize the emergencyhandling process for product safety incidents. In the event ofa major quality incident, the Company will promptly initiate theemergency response mechanism for product safety incidentsand strictly follow established procedures for emergencyhandling. Additionally, the Company ensures comprehensivereporting of emergency handling situations, as well as thelosses and potential impacts resulting from the incident, to theQuality Headquarters and the Board Office within 24 hours.This allows for timely, informed decision-making to minimizethe negative consequences of the incident. During the reportingperiod, the Company did not experience any major productsafety incidents.
Operation Process of Quality Control Map
4546
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Supplier managementSANY Heavy Industry has formulated the Supplier Management System and Supplier Category Exit Processin accordance with the Law of the People's Republic of China on Tenders and Bids, Regulation on theImplementation of the Law of the People's Republic of China on Tenders and Bids, and relevant legislativeprovisions in the operating area. These measures establish an open, fair, and just mechanism for supplieradmission, tendering, and exit, outlining the responsibilities of relevant departments in the supplier admission,evaluation, and elimination processes.By internal protocols such as the Supplier Evaluation Process and the High-Quality Risk Supplier ManagementProcess, we conduct a comprehensive evaluation of all stages from supplier admission, and evaluation, to supplierexit. For newly admitted suppliers, we thoroughly assess criteria such as their establishment duration, compliancewith admission standards, validity of quality certications, environmental qualications, tax records, and businessintegrity. We have gradually implemented scenario-based admission controls and have completed compatibilityassessments for 13 admission scenarios during the reporting period. Following evaluations, we implement atiered management strategy based on suppliers' comprehensive capability ratings. Suppliers are categorized asstrategic, premium, backup, actively exiting, and passively exiting, ensuring continuous optimization and e?cientoperation of the supply chain. By the end of 2023, we have completed evaluations for 560 suppliers.We fully integrate ESG strategies across all facets of supply chain management. By implementing measures likeinventory management, qualication reviews, regular assessments, and evaluations, we continuously rene theenvironmental performance and social responsibility of our supply chain. This proactive approach enables us toe?ectively identify environmental and social risks associated with our suppliers.
Jointly-Built ResponsibleSupply Chain
Building a stable and healthy supply chain is a crucial aspect of SANYHeavy Industry's sustainable development. We are committed toinstilling the philosophies of sustainability throughout our supply chain,collaborating with suppliers to construct a transparent, mutually benecial,and responsible supply chain system. Together, we aim to drive thesustainable development of the industry.We follow internal protocols such as the Customer Complaint Procedures, theService Management System, and the Customer Complaint Management Process:
From Filing to Settlement, establishing a robust mechanism for handling customercomplaints, feedback, and prompt responses. To ensure timely feedback and opinionsfrom customers, we have set up diverse communication and complaint channels,including a 24/7 service hotline at 4008-87-9318, online customer service on ourofficial website, and private messages on social media platforms. In 2023, theCompany received 1,096 complaints, achieving a customer satisfaction rate of 80.3%in complaint resolution.The Company attaches great importance to customer information security and dataprivacy protection and is dedicated to providing customers with a premium serviceexperience. In accordance with the Personal Information Protection Law of thePeople's Republic of China, and the Company's internal regulations such as theInformation System Classification Management System, the Information SecurityIncident Handling and Emergency Response Management System, the DataAccountability Management System, the Data Asset Classification ManagementProcedures, the Supplier Information Security Management System, and the ThirdParty Information Security Management Regulations, we have established a robustnetwork to ensure information security and data privacy protection. In 2023, theCompany conducted one information security awareness training and examinationfor all employees, with a participation of over 22,389 individuals, achieving a 100%coverage rate among sta? members.
In 2023, the Companyconducted one informationsecurity awareness training andexamination for all employees,with a participation of over22,389
individualsAchieving a100%
coverage rate among sta?members
SANY Heavy Industry has been actively constructing a digital marketing platform to enhance customer satisfaction by upgradingservice digital management. In 2023, the Company continued its e?orts in advancing customer satisfaction surveys, conductingactivities such as service roadshows, customer demand surveys, and internet-based customer satisfaction surveys. Throughactive communication, the Company has maintained robust business relationships with customers and endeavored to deliversuperior service experiences.
Construction of Digital Marketing Platform
By integrating features of online partsprocurement, new parts marketplace,and integrated service calls, we aim toachieve "More Accurate, Faster, andMore Convenient" parts acquisition forcustomers.Launching LTC
with 117 optimizationrequirements and 3 major marketingtools (such as financing calculators,promotional toolkits, etc.) to facilitateinitial collaboration within the marketingnetwork (including online reporting,automatic attribution recognition, andperformance visualization).
Integrate CRM, financial NC
system,parts forecasting, and cloud taxationdata and functionalities across multipleplatforms to enable online resolution ofcomprehensive maintenance, servicecalls / technical modications to majorrepairs, settlement and disbursement,and invoicing, among other businessoperations.
Establish a one-stop smart serviceassistant and promote remote technicalsupport across the entire Company.
LTC stands for Lead to Cash, which is an enterprise operational management philosophy and an integrated business process that covers the entirejourney from lead generation to cash receipt.
The NC system is a comprehensive nancial information system management and control model.
CustomerInteraction
Platform
Upgradeof MajorMaintenanceManagement
System
Upgradeof ServiceCalls
OnlineMarketingUpgrade
4748
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Supplier Communication Enhancement Initiatives
Supplier CommunicationSANY Heavy Industry prioritizes transparent communication and open collaboration with its suppliers. Regular supplierempowerment meetings are organized to foster responsibility awareness and boost supply chain resilience. Customizedtraining programs are tailored to supplier needs, and technological innovation cooperation is actively pursued. High-level visitsare conducted regularly, promoting a progression towards mutually beneficial supplier development, from shared goals tocollaborative innovation and ultimately, mutual growth.
Supplier Empowerment Training Program
Supplier Improvement Initiative
Technological Innovation Cooperation
High-level Visits
Supplier Must-know Training Camp: coveringsix modules, including the Company's corevalues, business processes and systems, qualitystandards, new product development procedures,financial systems, and logistics management.Throughout the reporting period, 231 suppliersengaged in the training, totalling 313 participants.The graduation exam achieved a 100% pass rate.
Using the "Supplier Evaluation System andSupplier Assistance System" and guided by the"Principles of Long-term Thinking, ImprovementMindset, and Practicality", we have assisted 56suppliers in enhancing quality and reducing costs.
Through initiatives like the tech lecture seriesand innovation forums, we enhance technicalinnovation exchanges with alliance suppliers,creating a collaborative ecosystem.
High-level visits and meetings totalled over 100,fostering a multidimensional and deep cooperativeenvironment together.
CaseSupplier "Must-know" Empowerment Training CampOn October 24 and 25, 2023, SANY Heavy Industry conducted theSupplier "Must-know" training camp. This training was aimed at newlyonboarded production suppliers for the year 2023 who had engagedin procurement activities. It encompassed 11 courses covering theCompany's history, values, procurement, quality, R&D, logisticsmanagement, etc. The objective was to facilitate a quicker understandingof the Company's business processes and systems for new suppliers,enabling them to conduct business more e?ciently. The training campreached 231 suppliers, with a total of 313 participants registering fortraining. The pass rate for the graduation exam was 100%.
SANY Heavy Industry's supplier data statistics in 2023 include internally assisted suppliers but exclude those eliminated or placed on a blacklist by the endof 2023.
The training camp reached
suppliersWith a total of
participantsregistering for trainingThe pass rate for thegraduation exam was100%
SANY Heavy Industry's ESG Management Strategy for Suppliers
Number of suppliers of SANY Heavy Industry according to product categories in 2023
We require suppliers to voluntarilydeclare information related to socialresponsibility and environmentalqualifications. This includes aspectssuch as corporate compliance, tax-ation, social security contributions,environmental certifications, qualitycertifications, financial status con-cerning debts, the association ofshareholders and senior executives,as well as information related to thequalications and capabilities of cor-porate governance.
We integrate specic criteria includ-ing business ethics, employee man-agement, health and safety, energyconservation, and resource e?cien-cy into our supplier evaluation sys-tem, promoting the establishment ofa green supply chain framework.
We verify the information providedby suppliers through on-site inspec-tions. In our performance evalua-tion, we have specifically includedclauses related to social responsi-bility and sustainable developmentmodules. This involves confirmingthe actual situations concerning var-ious aspects such as labor practic-es, human rights, corporate culture,and overall employee satisfaction.
To effectively reduce supply chain risks, we have utilized advanced technologies such as big data and smart algorithmsto establish a systematic and platform-based supplier risk control system. This system enables us to identify and addresspotential risks proactively, provide timely warnings for impending risks, and swiftly initiate systematic disposal mechanisms andtraceability processes in the event of risk occurrence, thus ensuring the stability and sustainable development of the supplychain.
Number of non-productionsuppliers
Number of Suppliers according to product categories
Number ofsuppliers ofspecialized products
2,702
In the supplier admission reviewprocess, we rigorously scrutinize theenvironmental certicates providedby suppliers, maintaining a zero-tol-erance policy towards any instancesof environmental certicate forgeryor expiration, and proactively takingmeasures to terminate relationshipswith non-compliant suppliers.
We track the validity period of en-vironmental certificates, qualitycertifications, and other relevantaccreditations for suppliers alreadyin our system. In the event of cer-tificate expiration, we automaticallyfreeze business transactions withthe supplier, ensuring e?ective man-agement of supplier ESG-relatedqualication documents.
We consider fuel consumption as acritical metric and incorporate it intoour product procurement evalua-tions to practice green procurement.
Number of productionsuppliers
3,223
Number of suppliers ofgeneral products1,190
4950
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
SANY Heavy Industry proactively embraces its "dual carbon"responsibilities, propelling a green shift in its developmentalapproach. We are committed to fostering low-carbon, eco-friendly modes of production and operations. Adhering tothe core principle that "life and safety come first", we areon a continuous path to enhance our safety managementpractices. This steadfast approach has enabled us to establisha rigorous and e?ective Health, Safety and Environment (HSE)management system, thereby paving the way for sustainableoperations.HSE Management SystemEnvironmental ProtectionCommitment to Green DevelopmentOccupational Health and Safety
Green and SafeOperations
5152
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
HSE Management SystemAt the heart of SANY Heavy Industry's operations is a relentless focus on safety and environmental stewardship. Employeehealth, safety in production, and environmental conservation are cornerstones of our management ethos. Guided by aphilosophy of "putting people rst, putting prevention rst, conserving resources and protecting the environment", we have setforth stringent standards and protocols. These measures are designed to systematically identify, evaluate, and mitigate potentialsafety hazards, while also implementing robust strategies to cut down on pollutant discharge. Our ongoing e?orts to rene theHSE management system are aimed at minimizing adverse HSE incidents and fostering sustainable growth.
To ensure the compliant operation of our HSE management system, we conduct both internal and external supervision andaudits on an annual basis. Any issues identied during these audits are promptly addressed to prevent the recurrence of similarproblems and improve operations. Meanwhile, we are steadfast in our e?orts to advance HSE management system certicationat our core business operation sites. In 2023, among our 26 mainframe and components manufacturing subsidiaries, 10subsidiaries achieved ISO 14001 environmental management system certication, accounting for 38.5% of the total. Additionally,11 obtained ISO 45001 occupational health and safety management system certication, covering 42.3% of our operations.Furthermore, 17 subsidiaries attained GB33000 safety production standardization certication, with 10 at level two and 7 at levelthree, encompassing 65.4% of the business.
Our actions are guided by the HSE Management Manual, which standardizes our approach to HSE work. We implementHSE management measures for self and related parties, including environmental assessment and management, hazardidentication, emergency management, HSE reviews, and agreement signing, aiming to ensure the comprehensive and e?ectiveimplementation of the HSE system and build a safe, healthy, and environmentally friendly workplace.
Implementation Measures for the HSE Management System
Measures for Whole-Process HSE Management
Auditing Situations Related to HSE at SANY Heavy Industry in 2023
InternalSystemImprovement
EnvironmentHealth and Safety
ManagementStructureConstruction
Performanceand TargetManagement
External independent audits are conductedannually, complemented by internal site auditsevery six months and internal online auditsmonthly, ensuring full coverage across allfactories.
Annual external audits and certications for healthand safety, including certication of managementsystems and standardized safety production, arecarried out across all factories.
Environmental impact assessment
Environmental Monitoring
●
We conduct comprehensive assessments to evaluate potential adverse impacts and risks to theenvironment throughout the project life-cycle, in line with local laws and regulations before theproject starts. We also implement sound and effective risk response measures to minimize oreradicate adverse e?ects, ensuring a harmonious coexistence with the environment.
●Each company crafts monitoring plans tailored to its unique circumstances and establishes a robustenvironmental monitoring system. This system integrates various methods such as environmentalmonitoring, automated supervision, manual monitoring, and commissioned testing;
●We rigorously enforce adherence to emission standards, supported by third-party assessments ofemission permits. In 2023, we successfully obtained 100% necessary emission permits without anyviolations.
●Issue the HSE Management Manual as per ISO 14001: 2015 Requirements and Guidance forUse of Environmental Management System, ISO 45001: 2018 Requirements and Guidancefor Use of Occupational Health and Safety Management System and relevant laws andregulations.
●Formulate or rene HSE procedural documents and management protocols in alignment withthe legal and regulatory updates. In 2023, we introduced internal guidelines such as the SafetyVisualization Work Instruction, and advanced methods for environmental factor assessmentwith the revised Environmental Factor Identification, Evaluation, and Control Procedure tobolster the e?ciency of our HSE framework in an all-around way.
●Centralized management: The Company's president is responsible for reviewing andapproving major HSE decisions, and monitoring the occurrence of major HSE abnormalevents. In 2023, SANY Heavy Industry conducted 2 president o?ce meetings to discuss majorsafety production issues.
●Implementation: Establishing a Safety and Environment Committee to promote the HSE workand report progress to the board members to ensure the effective implementation of HSEmanagement system requirements.
●HSE goals setting: Setting annual goals to be achieved in HSE management, and requiresubsidiaries to develop and split up the annual HSE management goals.
●Linking HSE performance to remuneration: Incorporating HSE performance into the annualperformance contracts of executives, and establishing the HSE Reward and PunishmentSystem with a corresponding manual. The policy that salaries of employees and executivesare adjusted according to HSE performance species a decrease in executives' compensationwhen poor HSE performance occurs, and an increase that when the performance meetsrequirements, to raise the management's attention to HSE and promote management level.
5354
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Employee Training
Stakeholder Management
CaseCase
SANY Heavy Machinery's Annual Environmental Compliance InspectionVOCs Reduction Project on Painting Production Line at SANY Heavy Industry's Changsha CompanyIn 2023, following local government directives, SANY Heavy Machinery conducted its annual environmentalcompliance inspection. This process included manual monitoring and involved accredited third-party testingagencies, which carried out extensive tests on pollutants including wastewater, exhaust gases, and volatileorganic compounds. The inspection strictly followed national testing standards, such as the ComprehensiveWastewater Discharge Standard and the Comprehensive Atmospheric Pollutant Discharge Standard. The resultsconrmed that SANY Heavy Machinery achieved 100% compliance in its pollutant emissions, demonstrating itscommitment to environmental stewardship.
In 2023, the Changsha Company, a subsidiary of SANY Heavy Industry, completed a transformative upgradeto its production line painting process. The company switched from using traditional oil-based paints toenvironmentally friendly water-based electrophoretic primers, significantly increasing the utilization rate ofcoatings. Additionally, the introduction of innovative methods such as dry spray painting, dry lter paper boxes,and activated carbon adsorption substantially reduced emissions of VOCs. By the end of the year, thesechanges resulted in a reduction of VOC emissions by 73.84 tons, achieving a 94.1% reduction rate and markedlyenhancing the project's environmental benets.
Environmental Protection
Exhaust Gas Management
SANY Heavy Industry adheres to the principle of clean production, by strengthening the control of harmful environmentalemissions such as wastewater, exhaust gas, and waste to reduce pollution from the source, and improving the quality ofthe ecological environment while protecting biodiversity. In 2023, SANY Heavy Industry invested RMB
million inenvironmental protection.
Pollutants such as volatile organic compounds, welding/cutting fumes, exhaust gas from natural gas combustion, etc., areproduced in the process of coating, welding, cutting, heating, and drying. The Company always follows laws, regulations andstandards, including the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and theAir Pollution Prevention and Control Action Plan issued by the State Council, to implement in-house requirements for pollutantemissions strictly, and introduce advanced production technologies with low emissions to ensure legal compliance of exhaustemissions.In 2023, we set reduction targets for exhaust gas pollutants. The VOCs emission concentration in 2023 was 0.00136 tons permillion yuan of revenue, a 23% decrease from the base year with the target achieved.
In 2023, we continued to improve equipment and process ows to reduce exhaust gas emissions. We use environmentallyfriendly coatings on the painting line, promote water-based paint electrostatic spraying to reduce the smoke and dust particlesgenerated by traditional electrostatic spraying; improve the construction process of cleaning agents, replace the use of obsoletepaint pumps for washing workpieces, adopt manual wiping and pump ushing methods, saving nearly 30% of the cleaning agentusage, and reducing VOCs by 44 kilograms per shift.
Targets for reducing atmospheric pollutantsAnnual VOC emissions per million yuan of revenue to decrease by 10% compared to thebaseline year of 2021
Target achievement status
Wastewater, exhaust gas, and on-site noise emissions met
100%
of standards, and allhazardous waste was disposed of in compliance with regulations.
Environmental performance of SANY Heavy Industry in 2023:
"Four New" Introduction Management
Emergency Response
Achieved
●
When introducing new equipment, materials, technologies, or processes (collectively referred to asthe "Four New"), we meticulously identify and assess project hazards and environmental factors toensure compliance with safety and environmental regulations;
●Comprehensive HSE training is provided before the introduction of any new processes, technologies,materials, or equipment, thereby enhancing employee safety awareness and operational e?ciency;
●Standard acceptance procedures are established for projects involving the "Four New".
●
We proactively manage and mitigate potential environmental and safety incidents or emergencieswithin the Company, ensuring prompt and e?ective response measures;
●We develop and regularly rehearse emergency plans to bolster employee response capabilities andprociency.
●
We design customized training programs and competency requirements for employees in various jobroles, focusing on risk management, case studies, and emergency prevention/preparedness, thusenhancing their HSE knowledge and response skills.
●We form specialized agreements with stakeholders that specify responsibilities and effectivemeasures for managing safety, environmental protection, re safety, occupational health, and publicsecurity;
●Essential reviews of safety, environmental protection, and fire safety protocols are conductedby project contractors and suppliers, maintaining compliance with all relevant standards andrequirements throughout the duration of the project;
●We carry out safety and environmental assessments of stakeholders, imposing economic penaltiesfor non-compliance to e?ectively inuence and regulate their behavior.
5556
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Wastewater Pollutant Reduction TargetsHazardous Waste Reduction TargetTarget achievement statusTarget achievement status
AchievedAchieved
Wastewater Management
Production wastewater and domestic wastewater are the main sources of wastewater discharge by SANY Heavy Industry.Wastewater pollutants primarily include chemical oxygen demand (COD) and ammonia nitrogen. While the Company manageswastewater discharge by the Water Law of the People's Republic of China, the Law of the People's Republic of China on thePrevention and Control of Water Pollution and other regulations, our subsidiaries fashion and enforce their management systemfor sewage disposal, and strictly control the disposal and discharge of industrial wastewater through advanced wastewatertreatment techniques and on-line monitoring.In 2023, we established a target for reducing the total volume of wastewater. By the end of the year, the wastewater dischargeintensity was 5.42 tons per million in revenue, a 38% reduction compared to the base year, successfully meeting our target.
Reduce the annual wastewater volume per million in revenue by 10% annually from thebase year of 2021
2% reduction in total hazardous waste production compared to the previous year
CaseCase
SANY Zhongxing Company Completed Environmental Wastewater Upgrade ProjectSANY Heavy Machinery Kunshan Branch's Oil-Water Separation Project for Machine Tool Cutting FluidIn December 2023, SANY Zhongxing completed an upgrade project for wastewater treatment. The projectinvolved the use of low-temperature atmospheric evaporators and condensers to concentrate wastewatere?uents. The steam generated was collected by the condensers, and the resultant condensate was reused forwashing parts on the production line. This process not only treated wastewater e?ectively but also enabled thereuse of water resources, enhancing the e?ciency of wastewater management.
During the machining process, a large amount of waste oil is mixed into the cutting uid, oating on its surfaceand accelerating its deterioration, resulting in signicant hazardous waste production. In December 2023, SANYHeavy Machinery Kunshan Branch completed the oil-water separation project for machine tool cutting fluid.This project employs physical separation with a processing speed of up to 1,000 liters per hour, achieving multi-purpose usage and e?ectively reducing cutting uid loss. It results in a reduction of over 12 tons of hazardouswaste annually per single plant.
Waste ManagementAs per the Law of the People's Republic of China on Environmental Protection, Law of the People's Republic of China onPrevention and Control of Environmental Pollution by Solid Waste and other relevant regulations, SANY Heavy Industryestablishes a special system to manage waste in a normalized way, including Waste Management Guideline, which is to ensurethat waste of all kinds are well disposed of and keep at bay impact of waste discharge on the surrounding environment. In 2023,we further optimized our institutional framework and updated waste management policies.In 2023, we continued to promote the switch from oil-based paint to water-based paint and reduce hazardous solid waste suchas paint slags and paint barrels. Hazardous waste incurred shall be stored in a closed container to prevent re-contaminationbefore being handed over to a certied third party for disposal.In 2023, SANY Heavy Industry established emission reduction targets for hazardous waste. The total production of hazardouswaste in 2023 was 4,845,184.50 kg, a decrease of 2.04% compared to 2022, achieving the set target.
5758
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Commitment to Green Development
Whole-process Low-carbon Operation
SANY Heavy Industry actively responds to the national goals of "carbon peak and carbon neutrality", and embraces the conceptof green development. We are committed to integrating green production with green living, with a focus on whole-processcarbon reduction initiatives and the development of green industrial parks. Starting from the source, we strictly control carbonemissions and promote the e?cient use of resources and energy, striving to create a green, low-carbon, and circular sustainabledevelopment ecosystem.
Faced with the global challenges of climate change, SANY Heavy Industry is unwavering in its commitment to implementingcarbon reduction measures throughout the entire production process. Our goal is to establish a green production chain thatstarts with carbon reduction at the source, maintains inter-connectivity throughout, and emphasizes emission reductions atevery stage, thereby ensuring an e?cient and environmentally friendly approach to production.Carbon reduction from the sourceFossil fuel combustion is a major contributor to global greenhouse gas emissions. The extensive use of fossil fuel since theIndustrial Revolution has intensied global warming trends, posing risks to both ecological environments and human health.SANY Heavy Industry is committed to transforming our energy infrastructure. We promote projects such as photovoltaic andproprietary hydrogen production and effectively cut emissions by bolstering the use of clean energy sources like solar andhydrogen. Additionally, adopting energy-saving measures like LED lighting helps us to reduce carbon emissions at critical pointsin our industrial chain.
To enhance energy management, SANY Heavy Industry establishes an energy management team to set energy consumptiontargets, implement energy-saving measures, and conduct feasibility studies on clean technologies. The team also performs dailyinspections to monitor energy consumption at all production stages and provides weekly energy usage reports. This proactivemonitoring allows us to quickly identify and address issues, optimizing energy use and minimizing our carbon footprint from thestart.
SANY Heavy Industry had installed photovoltaic power generation systems in 21 subsidiaries, with cleanenergy usage totalling
44.8159
million kWh, proportion of clean energy utilization
accounting for
6.55%
.
By the end of 2023,
Target achievement status
Achieved
Achieved
In 2023, SANY Heavy Industry set energy-saving and consumption reduction targets:
Through digital and integrated management initiatives, reducing energy consumptionin non-production areas by 13%By digitally upgrading processes and equipment, lowering the energy consumptionper RMB 10,000 of production value in production areas
by 10%. In 2022, this gurewas RMB 44.26, which fell to RMB 39.53 in 2023, achieving a reduction of 10.7%
The calculation method for the proportion of clean energy utilization: the ratio of photovoltaic power consumption converted into energy consumption tototal energy consumption.
The calculation method for energy consumption per RMB 10,000 of output value in the production area: energy consumption cost incurred during theoperation of the production area / the output value × 10,000.
Ecological ProtectionSANY Heavy Industry places high importance on biodiversity conservation, adhering to the philosophy of "respecting, complyingwith, and protecting nature", to minimize the impact of business operations on ecosystems. We implement e?ective measures toprotect vital ecosystems, species, and genetic resources for the safety of ecological systems.We strictly comply with legal requirements and conduct environmental surveys and assessments during the preparatory phasesof all new construction or renovation projects. We ensure that our operation and construction activities do not encroach uponlegally designated ecological protection areas
, as well as important habitats
and regions with signicant ecological functionsthat are crucial for the conservation of biodiversity.Moreover, we perform a tiered assessment of environmental sensitivity at project sites. Follow-up work will be carried out afterconrming that the project will not have a signicant impact on ecological resources and habitats, to avoid any damage to theecosystem as much as possible.
Pollutant Emission Data in 2023
Legally designated ecological protection areas: Dened or conrmed by laws, regulations, policies, and other normative documents as national parks,nature reserves, natural parks and other natural protected areas, including World Natural Heritage sites, ecological protection red lines.
Important habitats: These include natural concentration areas and habitats of key species, spawning grounds, foraging areas, overwintering sites, andmigration pathways for signicant aquatic life, as well as critical breeding grounds, stopover sites, wintering areas, and migration routes for migratorybirds and other wildlife.
IndicatorUnit2023 Value
Exhaust Gas Emissions
Total exhaust gas emissionsCubic meter12,130,314,056.00SO
emissionsTonne1.98NOX emissionsTonne32.09VOCs (volatile organic compounds) emissionsTonne99.35Total soot emissionsTonne87.74
Wastewater Discharges
Total water dischargeTonne397,090.35Biochemical oxygen demand (BOD) dischargeKilogram5,330.36Chemical oxygen demand (COD) dischargeKilogram31,664.00Suspended solids (SS) dischargeKilogram7,289.25Ammonia nitrogen (NH
) dischargeKilogram4,204.28Waste
Total hazardous waste dischargeKilogram4,845,184.50Total general industrial solid waste dischargeTonne160,941.60
5960
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Carbon reduction via the inter-connectivity systemSANY Heavy Industry is dedicated to green, e?cient and sustainable growth. SANY Heavy Industry follows standards suchas the Code for Construction and Acceptance of Industrial Automated Meter Engineering and the Engineering TechnicalSpecications for Energy Consumption Measuring System of Large Public Buildings to establish its equipment inter-connectivitysystem, to continuously promote technological advancements and smarter management of production processes. This approachnot only boosts production e?ciency but also minimizes energy consumption, laying a robust foundation for sustainable growth.In 2023, 2,173 energy-measuring devices were connected to our system. As of the end of the reporting period, we achieved acumulative connection of over 25,000 devices with a compliance rate of 99.5%.
Structure of SANY's Equipment Inter-connectivity System
Visualization
Predictive Maintenance
Big Data Analytics
Real-time Data Storageand Processing
4G/5GWirelessNetwork
Industrial Network Communication ProtocolDimensionalDatabase
AGVRobotCNC
HeatTreatment
Furnace
TestingEquipment
AutomaticProductionLine
OtherEquipment
IndustrialEthereum
Case
PV Rooftop Installation at the Cylinder Base Industrial Park
The newly established Cylinder Base Industrial Parkhas a rooftop area of 240,000 square meters, idealfor photovoltaic generation. In 2023, the installationof photovoltaic panels on these rooftops created a13-megawatt distributed PV system, expected togenerate 11.7 million kWh per year. This initiativenot only reduces fossil fuel use and greenhouse gasemissions but also decreases electricity costs, enhancesenvironmental quality, and achieves an annual energycost saving of approximately RMB 500,000.
Expected togenerate
11.7
million kWh per year
Achieves an annual energy costsaving of approximately RMB500,000
E?ective grid connection of the distributed PV
system at the Loude SANY cylinder base
SANY Heavy Industries' subsidiary, Changde SANY, developed the Phase II PV plant, which started togenerate power and connect to the grid on June 14, 2023. The facility boasts a capacity of 1.87 MW,generating 1.65 million kWh annually, which represents 18% of its total yearly electricity needs.
SANY Heavy Industries' subsidiary, Anren Company launched the Anren PV plant, funded with an investmentof about RMB 20 million. It connected to the grid on June 19, 2023. The plant's capacity is 5.56 MW, withannual generation reaching 4.68 million kWh, covering 90% of its yearly electricity consumption.
SANY Heavy Industries' subsidiary, Shaoyang Company, set up the Shaoyang Lake Auto PV Phase II station,which connected to the grid on June 25, 2023. This project has a capacity of 6.53 MW and produces 5.32million kWh annually, amounting to 25.8% of its annual electrical usage.
Carbon reduction via the inter-connectivity system
Clean Energy Initiatives in 2023Phase II PV Power Plant, Changde SANY Machinery Co., Ltd.
Anren PV Power Plant, Zhuzhou Zhongren Machinery Manufacturing Co., Ltd.
Shaoyang Lake Auto PV Phase II Power Station, SANY Special Vehicle Co., Ltd.
Data Integration
Connector
ControlInstructionsAcquisitionDataProcessingGivingInstructions
DataStandardizationMulti-sourceHeterogeneousReal-time DataAcquisition
ERPPLMMES
QualityManagement
6162
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Case
SANY Heavy Industry Develops a Smart Carbon Emission Management PlatformSANY Heavy Industry has pioneered an advanced smart carbon emission management platform utilizingROOTCLOUD technology. This platform facilitates the online collection of data for water, electricity, oil, and gas,capturing diverse energy consumption metrics both accurately and instantaneously. Moreover, the platform isdesigned aligning with ISO 14064 international standards and the national greenhouse gas accounting guidelinesset by the National Development and Reform Commission, enabling automated carbon emissions calculations.Equipped with up-to-the-minute carbon emissions data, the Company has installed a carbon monitoring displayon-site. This display vividly presents the carbon emission and reduction statuses across various sectors such asfactories, processing centers, and products, thereby helping to swiftly pinpoint critical carbon emission insightsand support decision-making for emission reductions.
Carbon monitoring display
In-process carbon reductionSANY Heavy Industry integrates energy-saving measures into every facet of its production activities to deepen carbonreduction initiatives. We optimize operational workows and strategically schedule equipment use to minimize energy wastage.The Company also embraces state-of-the-art energy-saving techniques and high-efficiency equipment, further curtailingenergy consumption and carbon emissions, and propelling our commitment to sustainable development. In 2023, our energyconservation projects during operational processes yielded an estimated energy cost saving of around RMB
million.
Project Name
Optimizationof thePaintingProcess
EnhancingMachiningE?ciency
ImprovingPowderCoatingProcessManagingIdle EquipmentEnergyConsumption
Replacingwith Energy-E?cient Gas
Furnaces
Initiatives and Results
SANY Heavy Industry Energy-Saving Initiatives in 2023
We actively engage in energy conservation and emission reduction efforts by setting up standards for measuring andaccounting for carbon emissions. Leveraging interconnected equipment technology, we capture the real-time carbon emissiondata, ensuring the timeliness and accuracy of data. By employing scientic statistical and analytical techniques, we delve intothe carbon emission data to detect underlying patterns and potential issues, thus providing strong data support for targetedreduction strategies within the Company.
●Adjusted the painting process timing for containers, reducing individual work time by 15 minutesand improving energy efficiency by 25%-30%, saving a total of 1.324 million cubic meters ofnatural gas annually;
●Shifted from single to double hanging production and seasonally adjusted the drying temperatureof the production line, shutting down parts of the hot air circulation baking, which improvedproduction line e?ciency and reduced energy waste, saving a total of 413,000 cubic meters ofnatural gas annually.
●Synchronized operation with multiple power heads and optimized parameters, reducing machinecycle time by 56.67% and decreasing electrical energy consumption during operations, applied to41 di?erent blade models, saving a total of 3.175 million kWh of electricity annually.
●Replaced regular paint with low-temperature powder coatings, reducing natural gas consumptionduring the heating and curing process by approximately 53.21% compared to the same period lastyear, saving a total of 427,000 cubic meters of natural gas annually.
●Used an "Equipment-Electric Meter" smart IoT model to monitor shutdown and standby energyconsumption anomalies, promptly turning off high-energy consuming controllers and peripheralequipment power, saving a total of 1.93 million kWh of electricity annually.
●Opted for gas furnaces with high combustion e?ciency and good insulation properties, replacingold brick furnaces. The new furnaces feature waste heat recovery and furnace door openingcontrol functions, e?ectively reducing heat loss and lowering natural gas consumption by about60%, saving a total of 196,000 cubic meters of natural gas annually.
6364
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
The Company's Energy Resource Usage and Carbon Emissions in 2023
IndicatorUnit2023 Value
Energy use
Purchased electricitykWh426,142,502.10GasCubic meter24,508,850.00GasolineLiter13,648.44Clean energykWh44,815,944.50DieselLiter907,595.16Combined energy consumption
tce89,196.51Greenhouse gasemissions
Scope 1
tCO
e84,120.07Scope 2
tCO
e129,708.80Total of Scope 1 and Scope 2tCO
e213,828.87
Combined consumption: The sum of all kinds of energy consumed in the production of a product or provision of a service during the statistical reportingperiod, as converted according to the corresponding prescribed calculation methods and units. Calculation basis: General Principles for Calculation ofCombined Energy Consumption (GB/T 2589-2020).
Direct GHG emissions (Scope 1) mainly include emissions from the combustion of gasoline and diesel fuel in administrative vehicles and transportationvehicles, and emissions from the use of natural gas. Calculations are as per the Greenhouse Gas Emissions Accounting Methodology and ReportingGuidelines for Machinery and Equipment Manufacturers (Trial Implementation). Fuel intensity is based on the Energy Statistics Workbook (EnergyDivision, National Bureau of Statistics, 2010).
Indirect GHG emissions (Scope 2) mainly include emissions from purchased electricity and purchased heating. The national grid emission factors arebased on the Notice on the 2023-2025 Work Related to the Management of Corporate Greenhouse Gas Emissions Reporting in the Power Industry.
Green Industrial ParksSANY Heavy Industry continues to build green industrial parks, takes energy and resource-saving measures across variousscenarios such as o?ces and accommodations, leverages digital technologies to aid in energy-saving and emission reductionwithin the parks, while promoting a circular economy to minimize environmental pollution. The Company endeavours to createa low-carbon, eco-friendly, and sustainable living and working environment, contributing to climate change mitigation e?ortsthrough the "SANY Power".
EnergyConsumptionManagement
Paperless
O?ce
SmartDormitories
Initiatives Highlights of Green Industrial Parks in 2023
●Implemented 2.5D visualization of workstation resources on the campus, e?ectively improvingthe utilization rate of o?ce areas;
●Maintenance requests can be submitted online via SANY+ software and other platforms likeFeishu, facilitating automatic dispatch and online closure of service requests. In 2023, SANY+was rolled out across 21 campuses nationwide, serving over 30,000 user sessions.
●
Transparent dormitory and guest house resources with accurate occupancy data, utilizingpaperless electronic contracts for complete online processing from booking to check-in,reducing paper usage;
●Utilized smart locks and smart utility meters to analyze abnormal data and promptly addressand rectify issues, reducing energy consumption;
●Developed dormitory-related business operations online, achieving 95% automation insettlements, saving manpower and energy costs for dormitory sta?.
●
Adheres to the Non-production Area Energy Consumption Management System and issuedenergy consumption control system such as the Notice on Promoting Energy ConsumptionManagement in Industrial Parks, conducting grid inspections and energy consumption controls;
●Retrofitted 394 solar street lamps and installed 2,032 timer-controlled power strips, savingapproximately 3.889 million kWh of electricity;
●Advanced the construction of distributed photovoltaic power stations on rooftops in non-production areas, with completion in Zhuzhou campus generating 3.62 million kWh annually;
●Analyzed GPS data to detect and reduce unauthorized use of company vehicles, therebydecreasing carbon emissions;
●
Digitized vehicle fuel consumption data to control vehicle use based on fuel metrics;
●Implemented segmented lighting in public areas and introduced voice-activated lights to avoidunnecessary energy consumption when equipment is not in use;
●
Set air conditioning temperatures based on environmental conditions to minimize energy wastefrom overloading while maintaining indoor comfort.
6566
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Integrated Resource Management Measures of Industrial Parks in 2023
2023年公司资源使用数据
HazardIdentication
RiskAssessment
Risk List
RiskVisualization
Risk Warning
Safety Risk Management
Departments undertake detailed, systematic, and multi-faceted hazard identications for both regularand irregular activities, personnel, and production equipment.Risks are scientifically evaluated using the job condition hazard analysis method (LECD), withassessments based on the likelihood of hazardous events, the frequency of exposure to hazards,and the potential consequences of accidents. Risks are rated and categorized into four levels- major, high, moderate, and low - each marked by a color code (red, orange, yellow, and blue,respectively), with tailored management and monitoring strategies for each level.A comprehensive risk register is maintained, listing potential hazards, associated accidents, risklevels, likely locations, and mitigation strategies, and is updated as necessary.A color-coded safety map is created to illustrate risks and their locations, aligned with evacuationplans to establish practical escape routes and emergency assembly points, thereby enhancingemergency response capabilities.A Safety Visualization Work Instruction Manual is developed, identifying areas requiring safety signs,such as high-risk machinery, storage areas, and chemical handling sites, and ensuring that thesesigns are both prominent and clear.
Case
SANY Heavy Industry's Packaging Redesign and Circular UseDisposable packaging often uses non-renewableresources such as paper and wood, which canlead to resource wastage and environmentalpollution if not properly managed. SANY HeavyIndustry explores circular use of packaging,undertaking redesign initiatives for cardboardand wooden boxes. Based on the demandsof packaging materials and components,disposable wooden boxes are upgraded tocollar boxes and specialized tooling for circularpackaging, while disposable cardboard boxesare transformed into more durable and eco-friendly iron boxes packaging for reuse, reducingcosts and waste. In 2023, this initiative savedRMB 2.2 million in packaging material costs andsignificantly reduced the generation of generalsolid waste.
Retrotted recycled iron box
IndicatorUnit2023 Value
Water Resource UsageMunicipal Supply WaterTonne2,895,168.00Packaging Material UsagePackaging MaterialsTonne2,942.10
Occupational Health and Safety
Work Safety and Training
SANY Heavy Industry places a high priority on the health and safety of employees, suppliers, and other stakeholders, thuscontinuously refining its occupational health framework. The Company provides solid support across various dimensionsincluding safety risk management, health screenings, safety equipment provision, and expansive training programs. TheCompany is dedicated to fostering a safe, healthy, and comfortable work environment, contributing significantly to theCompany's stable growth.
SANY Heavy Industry strictly complies with the Law of the People's Republic of China on Work Safety, the Provisions on SafetyTraining of Production and Operation Entities and other laws and regulations. The Company has implemented robust safetymanagement systems such as the 3R Management System, 6S Management of 3R Data, and Accident Reporting, Investigation,and Handling System, which standardize the management of safety-related activities. Regular monthly safety self-inspectionsare performed to maintain a thorough and effective safety production system. In 2023, SANY Heavy Industry introducedadditional internal protocols including the Team Safety Management System and Production Site Safety Management System,which detail specic safety management requirements for personnel and equipment and enforce strict actions against non-compliance to guarantee the e?ective execution of safety duties.To ensure the safety of its personnel and maintain stable production, the Company adheres to the Basic Norms for SafetyProduction Standardization of Enterprises (GB/T 33000-2016) and performs hazard identication, risk assessment, risk listing,and risk alerts, aiming to prociently manage safety risks and minimize the frequency of safety incidents. In 2023, the Companyfurther rened its safety risk management frameworks, introducing systems such as the Safety Risk Identication and GradedControl System and Daily Safety Inspection and Hidden Danger Management System, enhancing the scrutiny and managementof risks and supporting the prompt identication and correction of safety hazards.
Water ResourceManagement
Food Waste ReductionSustainable Packaging
●Conduct regular silentinspections to identify and sealleaks
●Install sensor faucets inwashbasins in restrooms
●Adjust non-residential areawater pressure
●Monitor inventory data tominimize food waste due tooversupply
●Advocate the "Clean PlateCampaign" to enhanceemployee conservationawareness
●Reduce the use of disposablepackaging
●Implement packaging redesignand reuse
6768
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Utilizing the Emergency Response Plan Management Measures from the Ministry of Emergency Management, the Companyhas developed the Emergency Preparedness and Response Management System. This system includes tailored emergencyresponse plans based on accident types, encompassing risk analysis, organizational roles, response procedures, on-siteactions, and necessary emergency resources. The Emergency Drill Ledger tracks drill performance, continuously rening theseplans and enhancing the company's capability to handle safety incidents effectively, thus bolstering its commitment to safeproduction.SANY Heavy Industry has also established an extensive safety training program for both internal and external personnel, aimedat boosting safety awareness and skill levels among employees. The company has introduced an evaluation and incentivescheme to foster a culture of continuous learning. In 2023, the company conducted four professional exams including safetymanagement personnel tests and comprehensive safety accountability training, signicantly advancing the professionalism ofsafety practices. Over the year, more than 207,118 individuals participated in these safety training sessions, accumulating over271,313 hours of instruction.
Internal
External
SANY Heavy Industry's Safety Training System
On-boarding Training: A minimum of four hours of group-level On-boarding safety training andtesting.
Certication Training: Use of an HSE digital platform to establish a certication list, ensuring100% implementation of external training certications.
Three-Level Safety Training: Company-wide, workshop, and team On-boarding includes no lessthan 24 hours of safety training. Developed 26 company-level, over 100 workshop-level, and over300 team-level safety training course wares.
Expert Training: Inviting safety experts from various local administrative law enforcementbureaus and safety expert pools to conduct diverse and rich safety and health topic training.
On-the-Job Safety Training: Establish annual safety training plans, and conduct monthly safetytheme training, covering topics such as mechanical injuries, electrical injuries, conned spaces,re prevention, and occupational health.
Case
Safety Training at SANY Heavy Industry Changsha ParkIn November 2023, SANY Heavy Industry ChangshaPark invited safety experts from the Changsha CountyAdministrative Law Enforcement Bureau to conducta safety training session. Focused on the "LegalResponsibilities of Safety Management Personnel",law enforcement officers explained common safetyproduction and emergency legal knowledge andanswered questions raised by attendees. The trainingwas conducted both online and offline, coveringover 260 participants, including the company's full-time and part-time safety managers and workshopsupervisors.
Safety training scene
Occupational Health and SafetySANY Heavy Industry has implemented internal frameworks such as the HSE Management Manual, and HSE Incentives andPunishment System while enhancing the system of quantitative indicators for health and safety performance. The Companyundertakes a thorough monthly review of HSE metrics, focusing on critical indices like the thousand-person injury rate, accidentrate, occupational disease incidence, and instances of unsafe conditions. To ensure accountability, executive compensation isdirectly tied to health and safety performance, with specic provisions for salary reductions when performance metrics decline.
Health and Safety Objectives: Thousand-person injury rate
at
‰
,
%
completion rate of three-level safety education training.Health and Safety Outcomes: Thousand-person injury rate at
1.3
‰
,
%
completion rate in three-level safety education training.
occupational diseaseinjuries, occupational health examination compliance at
%
.
2023
An injury rate in a thousand workers(‰) = Number of sta? injured by the work/total number of sta?×1,000, number of sta? injured by work is the sum ofdeaths and sta? with slight or severe injuries.
6970
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
SANY Heavy Industry adopts rigorous measures in occupational disease prevention, operational compliance, and healthscreenings to mitigate the potential impacts on employees' physical well-being due to work environments and operationalprocedures. In 2023, the Company updated the Employee Health Management System, enhancing and detailing variousmedical and psychological health support initiatives, to foster a safer and healthier workplace and safeguard the physical andmental health of all employees.
Rigorous application of occupational health "simultaneous consideration" protocols for new, altered, or expandedprojects, implementing pertinent occupational disease prevention e?orts.
All short-term contract workers, temporary sta?, and interns must sign employment contracts andcomplete tiered safety training. Those operating specialized equipment or engaged in specializedtasks are required to hold the appropriate certications before work.During the vetting process, adherence to the ISO 45001 Occupational Health and SafetyManagement System is evaluated. Suppliers must pass a thorough qualication review coveringbusiness licenses, company credentials, staff qualifications, transportation capabilities, andoperating licenses. We also ensure that all supplier personnel receive safety training and areprovided with necessary protective equipment. Additionally, a comprehensive Safety, EnvironmentalProtection, Fire Safety, Occupational Health, and Security Agreement is executed.
Employees must adhere strictly to labor discipline, safety regulations, and operational guidelines.
Performed by trained teams, involving employee or representative participation, clearly stating the right to refusetasks that threaten life or health.
Ensuring a healthy and safe workplace and living environment that meets legal standards for drinking water,sanitation, re safety, lighting, and ventilation, and taking adequate precautions to minimize workplace hazards.
Systematically organizing and performing health screenings, offering occupational health examinations before,during, and after employment for those exposed to occupational hazards, and maintaining individual records.
Implementing an Employee Assistance Program (EAP), engaging professional counseling services to providepsychological support to employees.
Supplying protective gear that meets standards tailored to specic job conditions.
Occupational Health and Safety Initiatives
Health and Safety Assurance Measures for Stakeholders
Occupational Disease Prevention
Health and Safety Risk Assessments
Provision of a Safe Environment
Psychological Support
Safety Equipment Provision
Stakeholder Health and SafetyIn addressing stakeholder health and safety, SANY Heavy Industry demonstrates a high level of professionalism and an o?cialstance. We are committed to fostering a safe, healthy, and sustainable work environment through close collaboration withstakeholders.The Company has established the Stakeholder Safety, Fire, Security, and Environmental Management System and signs SafetyManagement Agreements with stakeholders, ensuring their strict adherence to health and safety regulations while continuouslyenhancing health and safety measures to preempt potential occupational injuries.
Standard Operational Protocols
Health Screenings
Employees
Suppliers
We conduct a thorough review of all contractors' credentials. Certified operators for specializedtasks and equipment are mandatory. Contractors must rigorously follow our Company's safety,environmental, re prevention, occupational hazards, and security regulations and receive healthand safety training upon entry.
We verify all necessary qualications and provide clear information about potential hazards at theleased premises, along with details of our safety, environmental, and re safety protocols.
These groups are fully integrated into our safety management framework. We conduct regularsafety training and periodic safety audits to ensure compliance and safety continuity.
Safety training and briefings for these personnel are managed by the appropriate supervisorydepartments, ensuring they are well-informed and compliant with our safety standards.
ProjectContractors
LeasingUnits
PermanentStakeholders
O?cial/Government
Personnel
7172
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
SANY Heavy Industry is committed to a people-centric anddiverse development philosophy, striving to create a fair andinclusive workplace that aligns employee career growth withcompany objectives. Through an inclusive talent strategy,a robust talent development system, and competitivecompensation and benefits, the company fosters personalachievement and mutual success for both employees and theorganization.
Safeguarding Employee RightsFocus on Talent GrowthFocus on Employee Welfare
Workplace andEmployees
7374
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Safeguarding Employee RightsSANY Heavy Industry maintains compliance in itsrecruitment and employment practices, actively nurturinga diverse and equitable work environment. The companyo?ers fair career opportunities, ensuring every employee canshowcase their talents and contribute value.Compliant Employment
Talent Attraction
SANY Heavy Industry follows the Labor Law of the People'sRepublic of China, the Labor Contract Law of the People'sRepublic of China and its implementing regulations, andthe Provisions on Prohibition of Child Labor, among otherrelevant laws. The Company has set up detailed internalpolicies and procedures that enhance the human resourcesmanagement system.The Company opposes any form of child labor andforced labor, and adopts specific measures to preventsuch practices. Prior to recruitment, specific trainingand awareness sessions are provided to HR personnelto deepen their understanding of the dangers andconsequences of employing child labor and forced labor.During the recruitment, candidate identities are verified toensure compliance with hiring standards, thereby preventingchild labor from the outset. Moreover, SANY Heavy Industrydefines work hours, including daily working time and restperiods, in compliance with labor laws to prevent forcedlabor. During the reporting period, there were no incidents ofchild or forced labor, and the labor contract signing rate was100%.Furthermore, the Company commits to providing equalopportunities for all employees at various stages ofemployment, including recruitment, appointment,compensation, benets, training, promotion, resignation, andretirement. We respect and embrace the cultural diversityof our staff, striving to foster an inclusive and diverseworkplace. In 2023, we introduced the Data Platform PrivacyPolicy, which upholds and protects employee privacyand prohibits any discrimination or harassment based onrace, ethnicity, religion, gender, age, health, nationality, orother individual characteristics. Our efforts are dedicatedto eliminating employment discrimination and ensuringworkplace equality.
The Company places high importance on attractingand developing talent, and expands its recruitmentchannels to include a diversity of sources. Byhosting multiple online presentations, utilizing publicinformation platforms, and organizing o?ine job fairs,we have successfully attracted a broad range ofexceptional talents from various backgrounds, therebystrengthening and expanding our team. As of the endof 2023, the Company has a total of 25,930 full-timeemployees, including a 10% representation of womenin the executive team.In 2023,SANY Heavy Industry was honored asthe Forbes China Best Employer of 2023,Liepin's Extraordinary Employer of 2023,and Zhaopin's Top Employer in China for2023.
The Company's Employee data in 2023
25,930
22,566
1,2822,788
13,108
7,7758,293
4,3928,057
12,616
17,309
Total number of full-time employees
Number of employees by gender
Number of employees by role type
Number of employees by rank
Number of employees by age
Representation percentage of women in the executive team
Maleemployees
AdministrativepersonnelServicepersonnelManagementpersonnel
High-level
employees
Mid-level
employees
≤30
3,364Female employees
ProductionpersonnelSalespersonnelTechnicalpersonnel
Financepersonnel
Generalemployees
≥51
31-50
persons
10%
7374
7576
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) ReportFocus on Talent GrowthSANY Heavy Industry is committed to creating a robust talent development system assisted with a variety of career paths. Weplace great importance on employee career growth by o?ering structured training programs and clear promotional tracks. Thisapproach improves employees' skills and competencies, helping them to reach their professional aspirations.
Senior Managers: Develop strategic thinking from a global perspective, enhanceleadership capabilities, and improve critical decision-making skills.Mid-Level Managers: Bolster skills in business process improvement, increase teamcollaboration e?ciency, and elevate hands-on management capabilities.Entry-Level Managers: Improve daily operational management skills, enhanceexecution, and better manage employee relations.
Marketing Leaders: Forge comprehensive market strategies, effectivelymanage customer relationships, and boost brand value.Sales Experts: Develop advanced sales techniques, enhance service quality,and strengthen market analysis skills.Marketing Promoters: Improve the impact of product promotions, executepromotional strategies, and precisely identify customer needs.
Skill Leaders: Enhance technical guidance and project managementskills, fostering technological innovation.Advanced Skilled Personnel: Master advanced operational techniques,improve precision in tasks, and advance process optimization.Production Operators: Reinforce fundamental skills and awareness ofe?ciency, ensuring high-quality and safe operations.
R&D Leaders: Foster innovation, boost product development efficiency, andenhance insight into market trends.Senior Technicians: Expand specialized skills and technical expertise, rapidlyapply new technologies, and address technical challenges.Technical Operators: Hone operational techniques, adopt new processingmethods, and strengthen safety consciousness.
Overseas Operations Managers: Develop internationally competitive managementskills, enhance cross-cultural communication, and fortify risk management.Overseas Business Professionals: Boost operations in international markets,improve foreign language proficiency, and deepen understanding of internationalregulations.Overseas Project Team Members: Increase the e?ciency of international projectexecution, solve on-site challenges, and raise customer satisfaction levels.
Training and DevelopmentSANY Heavy Industry prioritizes employee development and provides an extensive array of training opportunities andmodalities. Aligned with our strategic goals, we have established and enforced several internal regulations, including the TrainingManagement System, New Employee Training Management, and Training Needs Analysis Management. These measures havecreated an all-around framework for talent cultivation, including both domestic and international training, capacity building for keyand core roles, and cross-role development for high-potential employees, ensuring that our workforce's capabilities advance instep with the Company's needs.
We have developed specic training plans tailored to di?erent job responsibilities and levels, precisely addressing the needsof various employee groups. Moreover, we pool advanced internal teaching resources and build an exceptional training teamthrough regulated management and selection of trainers under the guidance of the Instructor Management, the Lecturer TitleEvaluation Management, and the Outstanding Lecturer Selection Management.
Centered around manager appointment and talent assessment mechanisms, this systemaims to signicantly enhance both the general and specialized skills of employees.It includes an extensive training program covering nine key areas: business management,R&D, marketing, processes, manufacturing, quality assurance, commerce, finance, andhuman resources, aiming to establish a holistic, product-focused training approach.Built on expatriate assessment and ongoing support mechanisms, this training emphasizesresolving business challenges and boosting front-line operational skills.It covers five essential dimensions for critical talents: basic knowledge training, riskmanagement, language proficiency, and professional development, ensuring thatemployees perform e?ectively and safely in international roles.This focuses on enhancing capabilities, recognizing talent, and fostering good practices. Itensures that employees in pivotal roles gain the necessary skills and knowledge throughtargeted training, improving their job performance and e?ciency.This training is dedicated to deepening cultural understanding, learning about processstandards, and achieving job-related certications. Through this system, employees in corepositions will thoroughly grasp the company culture, master crucial business processes,and boost their market competitiveness with professional certications.
SANY Heavy Industry's Talent Training System
SANY Heavy Industry Training Plan in 2023
DomesticTraining
Management Talent
Marketing Talent
Skilled Talent
Technical Talent
International TalentOverseasTraining
Key PositionTrainingCore PositionTraining
7778
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
In 2023, we held 394 training sessions for 23,993 employees, with a participation rate of 93%. The average training duration peremployee was 121.4 hours, totalling an expenditure of RMB 56 million.
Case
Case
"Pathways to Digital Transformation" Training Program
"Project Management" Training Program
In 2023, SANY Heavy Industry activelyresponded to the trend of digitaltransformation by launching a seriesof trainings titled "Pathways to DigitalTransformation". This training programdelved into key topics such as theoptimization of corporate organizationalstructures, digital transformation ofbusiness processes, and strategicapplication of digital technologies in thedigital era. Through this program, a totalof 10,438 mid-to-senior level managersunderwent systematic learning. They notonly enhanced their understanding ofthe importance of digital transformationbut also acquired practical skills andstrategies.
In 2023, SANY Heavy Industry organizeda specialized training program onproject management to enhance theproject management capabilities of itsemployees, unify the project managementlanguage across different levels of theCompany, and enable staff to masterefficient project management tools andtechniques. This training was attendedby 10,245 mid-to-senior level managers,and an assessment was conducted at theend of the training. This provided strongsupport for improving the Company'sproject organization and managemente?ciency.
"Pathways to Digital Transformation" Training Session
"Project Management" Training Session
21,005
116.70
78.40
12,498
134.00
11,299
109.01
Number of employees trained by gender
Number of hours of training per employee by gender
Number of employees trained by rank
Number of hours of training per employee by rank
Maleemployees
Maleemployees
High-levelemployees
High-levelemployees
Mid-levelemployees
Mid-levelemployees
2,988Femaleemployees
Femaleemployees
Generalemployees
Generalemployees
23,993
121.4092.52
Number of employees trained
Number of hours of training per employeePercentage of employees trained
persons
hours%
SANY Heavy Industry Employee Training Data in 2023
122.10
777877
7980
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Compensation and BenetsPerformance Appraisal
In its continuous e?ort to enrich and maintain a high-qualitytalent pool, SANY Heavy Industry has established a fair,equitable, and competitively market-aligned compensationand benefits incentive system. On top of basic salaries,the system includes end-of-year performance bonuses,medium and long-term equity incentive plans, prot-sharingschemes, exceptional target rewards, special bonuses, andmid-year (annual) raises, creating a oating compensationsystem covering all employees. To fully engage employeeenthusiasm, the Company continued to implement anemployee stock ownership plan (ESOP) in 2023, allowingemployees to share in the Company's operational success.
The whole organization's performance systemensures every key position is set with clearobjectives that consider both short-term operationalresults and long-term capability development.Differentiated performance design for coremanagement roles to evaluate performance andlong-term contributions, select key indicators basedon organizational functional needs, and apply aunied performance model.Performance indicator design adheres to the"Competence + Weight + Focus" principle to achievefairness and e?ciency in performance management.
We take advanced management tools andtechniques like the Balanced Scorecard,Ishikawa diagrams, and PerformanceFlywheel to offer support for performanceassessments.These tools help in setting clear performancetargets, quantifying evaluation standards,identifying root causes of issues, formulatingimprovement measures, and trackingperformance progress, ensuring that eachemployee's work objectives are closelyaligned with the Company's strategy.
Composed of four main parts: performance models, performance targets,performance calculations and measurements, and performance incentives.Performance Models: The models rely on indicators and weights, with keyposition indicators divided into operational performance and long-termcapability, adapted to di?erent sectors and stages of operation, ensuring auniform model for similar positions.Performance Targets: The targets are divided into basic and challengingcategories to prevent low-standard achievements and must adhere to the"Five Musts"
and the SMART criteria
, established and documentedthrough bi-directional communication.Performance Calculation and Measurement: We clearly define indicatorparameters, calculation rules, and data sources to ensure the feasibility ofevaluations.Performance Incentives: The incentives are aimed at fulfilling basic
objectives and encouraging employees to surpass challenging goals, withadditional performance scores and bonuses as incentives.
After the performance evaluation, the direct supervisor of an employee will analyzehis performance, achievements, and future focuses based on the evaluation results.Together, they will plan personal growth plans and work objectives for the nextassessment period, outline clear action plans, and provide necessary support.To objectively and fairly assess employee performance andsupport their continuous development, SANY Heavy Industryhas established a Performance Management System for allemployees. We have not only clarified the core philosophyof performance management but have also detailed themanagement methods for performance evaluation, andintroduced a series of effective performance managementtools.
In 2023, the Company issued an ESOP worthapproximately RMB
million for its coretechnical and managerial staff, directors,supervisors, and senior management, involving
7,131
participants.Directors, supervisors, and senior managementwere granted shares worth RMB
million,representing
4.74%
of the plan.Middle management, key position holders,and core business (technical) personnel weregranted shares worth RMB
million,accounting for
95.69%
of the plan.
SANY Heavy Industry is committed to long-term principles, continuously enhancing theCompany's incentive and restraint mechanisms,and advancing the employee stock ownershipplan.
2023 Employee Stock Ownership Plan
Core Philosophy of Performance ManagementPerformance Assessment Management MethodsPerformance Assessment Management Tools
"The Five Musts" refer to the requirements set by SANY Heavy Industry, which mandate that performance objectives must have a formalized performancecontract; must be predetermined through thorough communication; must be achievable through e?ort; must have measurable key results; and must haveclear measurement methods and evaluation criteria.
The SMART principle, which stands for Specic, Measurable, Attainable, Relevant, and Time-bound, sets the ve dimensions for establishing performanceindicators.7980
2023年可持续发展（ESG）报告
8182
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) ReportEmployee Promotion
Employee Benets
At SANY Heavy Industry, we are committed to o?ering more promotion opportunities for our employees' career growth. We'veimplemented the Management Personnel Rank Management System and the Cadre Management System, establishing aperformance-based framework for talent development and promotion. This ensures that employee contributions are recognizedand rewarded both fairly and equitably. Every January and July, we kick o? our promotion process, which is characterized bystringent evaluations and approvals, guaranteeing that promotion opportunities are both fair and transparent. Additionally, weo?er tailored career development by role types and position features, ensuring that each employee has a tailored growth plan tofulll their professional aspirations.
SANY Heavy Industry provides a package of benefits beyond mere compensation, as specified in our Employee BenefitsManagement System. This system elaborates on various benefits mechanisms, ensuring comprehensive coverage for allemployees. This includes the mandatory ve social insurance and one housing fund for all employees, as well as commercialinsurance for our overseas employees and employer liability insurance for interns.
Moreover, we actively facilitate our employees' applications for professional titles by providing extensive support andconvenience.
professional talentsprofessional talentsleadershipleadership
SANY Heavy Industry Career Promotion ChannelsPromotion Channel for Management Personnel
Management talents
Promotion Channel for R&D Personnel
R&D talents
SANY Heavy Industry Employee Benets System
Case
Establishment of a Senior Professional Title Review Committee
In July 2023, with authorization from the Work Leadership Group of Professional Technicians Title (ProfessionalQualication) in Jiangsu Province, SANY Heavy Industry established a Review Committee of Senior ProfessionalTitles of Mechanical Engineering. This Committee evaluates senior professional qualifications, including thehighest senior levels, and simplies the professional title assessment process for our sta?.
Focus on Employee WelfareSANY Heavy Industry o?ers a range of non-salary benets and organizes a variety of cultural and sporting activities, fostering ahealthy work-life balance for our employees. We are attentive to the needs of all our sta?, particularly women, and are committedto enhancing employee satisfaction by actively engaging with and listening to their feedback.
Statutory Benets
●In accordance with national policies, we fully contribute to employees' pensions, unemployment,work-related injury, medical and maternity insurance, and housing provident fund.
●We ensure employees are entitled to statutory holidays, including but not limited to home leave,marriage leave, bereavement leave, maternity leave, and sick leave.Health Checkups
●We organize specialized health checkups for high-risk occupations such as painters and weldersto ensure their health.
●Adhering to the Labor Law of the People's Republic of China and Regulations on Work-relatedInjury Insurance, we achieved a 100% coverage rate for employee entry health checkups in 2023.
●We provide annual health checkups for eligible employees, prioritizing their health and well-being.AdditionalCommercialInsurance
●As per the Employee Commercial Insurance Management Measures, we provide commercialinsurance for specic employee groups, including interns and foreign experts.
Employee Housing
●Through the Employee Housing Management Measures, we address accommodation issues,providing dormitories for all employees.
TransportationBenets
●Shuttle services are arranged between industrial parks for commuting employees. Specialvehicles are provided on weekends and holidays.
●Vehicle expense subsidies and car purchase subsidies are o?ered to eligible employees.Festival Gifts
●On traditional festivals such as the Spring Festival, Dragon Boat Festival, and Mid-AutumnFestival, we distribute holiday gifts to employees as per the Festival Materials DistributionStandards, bringing festive warmth to our sta?.
Clothing Benets
●According to the Work Clothing Management Measures, we provide free work attire to allemployees.Catering Benets
●We o?er a monthly meal subsidy to all employees, ensuring a balanced diet.
●As per the High Position Restaurant Dining Management Measures, dining services are providedfor eligible employees.
Employee Children'sEducation
●We assist employees with their children's schooling and enrollment issues.Welfare Holidays
●We o?er paid annual leave and an additional day of paid leave on March 1
st
each year.
senior manager
chief engineer
dean
director
director/Business
Division CEO
engineer of specialgradeexpert engineersenior engineermid-level engineerjunior engineerassistant engineermanager
supervisor/generalmanager of thesubsidiarydepartmental head/departmentalsupervisorcommissioner
8384
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Cultural and Sports Activities
To ensure employees get proper relaxation from their busy work schedules, the Company offers a variety of cultural andentertainment activities.
Case
Case
Fun Sports Festival
The 7th Employee Swimming Competition
On April 21, 2023, SANY Heavy Industry held an innovative Fun Sports Festival, allowing employees to boost teamspirit with light-hearted and creative sports events. The day was lled with laughter and enjoyment, with bonusesand trophies awarded to participants who displayed energy and enthusiasm during the events.
To enrich the cultural and spiritual lives ofour employees and foster a healthy sportsatmosphere, the Company organized the 7
th
Employee Swimming Competition on July 30,2023. Medals, honor certificates, and cashprizes were specially prepared for the winners,highlighting the Company's commitment to thephysical and mental health of its employees.
Fun Sports Festival
The 7
th Employee Swimming Competition
Case
Case
"SANY Romance · Dopamine" Singles Social Event
The 4
th Annual SANY Heavy Industry's Charity Run
On August 19, 2023, SANY HeavyIndustry organized a singles socialevent, providing a platform for singleemployees to meet and interact. Theevent attracted 80 participants, andthey deepened mutual understandingthrough interactive games anddiscussions.
On November 5, 2023, SANY HeavyIndustry hosted a 10-kilometercharity run open to all employees toencourage their physical fitness andteamwork. Trophies, honor certicates,finisher medals, and certificates wereawarded to the winning individuals andteams. This event not only fosteredcommunication and collaborationamong employees but also created ahealthy and joyful work environment.
"SANY Romance · Dopamine" Singles Social Event
The 4th Annual SANY Heavy Industry's Charity Run
8586
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Employee CareEmployee Communication
At SANY Heavy Industry, we deeply value each employee'shealth and well-being. We've established mental health careservices that provide all employees with free psychologicalcounselling. This initiative helps them manage emotionalchallenges and stress, both in the workplace and in theirpersonal lives, thus protecting their overall mental health.In 2023, we launched a significant care initiative foremployees facing serious illnesses and alleviated medicalexpenses for 829 participants via an annual medical mutualaid program. For the ill family members of employees, weactively organized charitable fundraisers to rally company-wide support. That year, we provided financial assistanceto 39 employees in need, totalling RMB 1.011 million insubsidies.We also offer comprehensive support for our femaleemployees, including maternity leave, parental leave, andmaternity insurance, to ensure their legal rights are fullyprotected during pregnancy and child-rearing.
At SANY Heavy Industry, we prioritize e?ective communication with our employees and have implemented several measures toensure open and smooth dialogue. We conduct monthly administrative service satisfaction surveys and forums that encompassall sta? to gather their feedback and address their concerns promptly. Additionally, we are constantly expanding the channelsthrough which employees can voice their opinions, e?ectively bridging the "last mile" in communication. Our management of"Employee Suggestions and Feedback" includes platforms such as the Chairman's Mailbox, email, and specialized sections onthe ISANY APP, enabling rapid, multi-channel responses to employee issues.In 2023, we carried out a satisfaction survey among our sta?, and 94.81% of employees participated in the survey and sharedtheir satisfaction feedback on the Company's systems and administrative procedures, culture, benefits, work environment,catering, accommodation, and IT services. The results revealed an overall satisfaction score of 90, indicating widespreadapproval of our performance in key areas and guiding future e?orts to enhance and optimize the employee experience.
Case
Case
Celebrating Women on InternationalWomen's Day
Addressing the Needs of Working Mothers
On March 8, 2023, SANY Heavy Industrycelebrated International Women's Day withthe "Flowers of Dedication - Creating BeautyTogether" themed handicraft event. Femaleemployees were invited to create DIY eternalflowers and texture paintings. Following theevent, 31 lucky participants received exquisitegifts, adding a unique and enjoyable dimensionto the celebration. This event not onlybolstered team spirit but also demonstratedour appreciation and respect for our femaleemployees.
In 2023, insights gathered fromthe ISANY APP's employeevoice platform highlighted thechallenges faced by workingmothers. In response, wequickly set up a well-equippednursing room, alleviating theconcerns of working mothersand ensuring their workplacecomfort.International Women's Day Event
SANY Heavy Industry Nursing Room
8788
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
SANY Heavy Industry is deeply committed to shouldering itssocial responsibilities. We firmly believe that a company'ssustainable development hinges not only on economicprosperity but also on the social value it delivers. Hence,we actively participate in diverse public welfare initiatives,translating sustainable public welfare principles into tangibleactions, and endeavoring to make significant contributions tosocietal advancement.
Public Services and Voluntary ActivitiesEmpowering Rural RevitalizationSocial Rescue Engagement
Giving Back toSociety
8990
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Public Services and Voluntary ActivitiesEmpowering Rural Revitalization
Infrastructure Enhancement
At the core of SANY Heavy Industry's ethos lies aprofound commitment to aiding others and enrichingsociety. To effectively manage volunteer resourcesand public welfare endeavors, we have instituted the"SANY Public Welfare" employee volunteer platform.Through convenient channels like the ISANY APP,SANY Feishu, and our public WeChat account,employees can enlist as volunteers on this platform.To incentivize participation, we reward employees withpoints and recognition upon completing online ando?ine volunteer assignments. Furthermore, we fostera culture of volunteerism by encouraging employeesto form their volunteer teams and partake in voluntaryactivities.
SANY Heavy Industry has been at the forefront of propelling rural revitalization endeavors. Leveraging our industrial prowess,we determine multifaceted revitalization strategies and propose innovative projects through the SANY Foundation. Servingas a testament to our commitment, Daotong Village in Lianyuan City, Hunan Province, acts as a focal point for implementinginitiatives, such as infrastructure, healthcare, rural governance, and industrial revitalization, to catalyze holistic rural rejuvenation.
In rural areas, insu?cient infrastructure poses a major obstacle to economic advancement and daily life, prompting signicantdemand for modernization. However, inherent constraints result in uneven infrastructure development. Therefore, improvinginfrastructure is essential for achieving comprehensive rural revitalization. Leveraging our strengths, we actively participate inrenovating and constructing rural infrastructure, laying a solid foundation for revitalization.
Case
Case
"Explorer School Visit O?cer" Initiative by SANY Foundation
Longtang Lake Water Quality Improvement Project
In December 2023, to nurture scientic aspirations and instill career awareness among rural children, the SANYFoundation initiated the "Explorer School Visit Officer" program. Volunteers visited Yanjing Township CentralPrimary School in western Hunan and discussed with students there to understand their academic, personal, andemotional needs.During the event, volunteers not only partook in ag-raising ceremonies and sports activities but also facilitatedinteractive sessions to impart scientic knowledge, fostering scientic literacy among the students. Furthermore,a dedicated sharing session highlighted SANY Heavy Industry's entrepreneurial journey and the charm ofconstruction machinery, igniting the children's career aspirations and promoting vocational education.
In 2023, we overhauled Longtang Lake, a crucial water source for the village, from the following four aspects:
Reservoir seepage control: Implementing anti-seepage measures along the perimeter wall toprevent water leakage e?ectively.Water purification: Installation of state-of-the-art water purification equipment and associatedinfrastructure to enhance water quality.Facility construction: Establishment of a new water purication facility to safeguard equipmentfunctionality.Surrounding infrastructure refurbishment: Renovation of adjacent roads, installation of guardrails,and infrastructure upgrades to ensure the village's access to safe drinking water.
Longtang Lake Water Quality Improvement ProjectExplorer School Visit O?cer
As of December 31, 2023, the "SANY Public Welfare" platform boasts 17,002 registered volunteers, comprising 51 volunteerteams and involving 714 participants, who collectively contributed 2,266.2 hours of volunteer service. In the same year, weorganized 76 public welfare and volunteer service events, drawing participation from 11,200 individuals. In 2023, the company'svarious social welfare fund donations amounted to approximately RMB 27.8720 million.
The "SANY Public Welfare"platform boasts17,002
registered volunteers
The company's various socialwelfare fund donations amountedto approximately RMB
27.8720
million
9192
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Healthcare and Elderly CareCultural RevitalizationThe issue of elderly care in rural China is a pressing societal concern, and the comprehensive revitalization of rural areas hingeson addressing the challenges in rural healthcare and elderly care. This not only impacts the well-being of the elderly populationin rural areas but also signicantly enhances their quality of life and sense of happiness. We are actively taking measures tocontribute to the construction and improvement of rural healthcare and elderly care facilities through various means.
Cultural revitalization, integral to the overall revitalization of rural areas, includes preserving history, customs, and traditional arts,while also fostering innovation in rural cultural ecology. Acknowledging its importance, we actively support rural cultural activitiesand projects to cultivate harmony, stability, and prosperity within rural communities.
CaseCase
Construction of Rural Healthcare and Elderly Care CenterHarvest Celebration EventIn 2023, the SANY Foundation completed theconstruction of the Dao Tong Village Healthcareand Elderly Care Center. This center providescomprehensive and professional medical and elderlycare services to all villagers. By the end of 2023,the center had provided 12,595 instances of elderlycare services and 3,248 instances of mobile medicalservices, receiving a 100% satisfaction rating. Theestablishment of the healthcare and elderly carecenter effectively addressed the healthcare andelderly care issues in Dao Tong Village, therebyenhancing the quality of life for its residents.
On September 23, 2023, the SANY Foundationorganized a "Celebrating the Harvest in DaotongVillage" event. The festivities included culturalperformances, sports games, legal awarenesscampaigns, medical consultations, and villagevisits, bringing joy to the hardworking villagers.This celebration fostered a deep appreciationfor agriculture, rural life, and farmers, while alsouniting them in their quest for a better future. Itprovided significant momentum and support for thecomprehensive advancement of rural revitalization.Dao Tong Village Healthcare and Elderly Care CenterHarvest Celebration Event
CaseCase
"Age-Friendly" RenovationRural Cultural InheritanceThe SANY Foundation initiated the "Age-Friendly" renovation project for 17 households in Dao Tong Village inAugust 2023 and completed the project inspection on November 28
th. The project adopted personalized designsfor each household, with a focus on providing support to families facing di?culties, as well as disabled and semi-disabled elderly individuals, and elderly individuals living alone. The aim was to meet the home accessibility needsof the elderly and o?er them a more comfortable and secure life in their later years.
In the summer of 2023, we organized the "SANY with Me, Grateful for You" series of parent-child study tours.Employee families visited Daotong Village to experience the natural beauty of the rural seasons, taste localorganic crops, and gain rsthand insight into the charm of rural life. Additionally, they learned about the historyof bamboo weaving culture in Daotong Village from local o?cials, gaining a deep appreciation for folk art andtraditional craftsmanship. This experience enhanced participants' understanding and support for rural culture andintangible heritage protection.
Age-Friendly Renovation of Kitchen and BathroomRural Cultural InheritanceLocal Bamboo Weaving
9394
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) ReportIndustrial Revitalization
Education Revitalization
Rural industrial revitalization plays a vital role in driving rural revitalization in an all-around way. It boosts economic growth,enhances farmers' living standards, and fosters harmonious rural-urban relationships. Leveraging our technological andresource advantages, we actively participate in rural industrial revitalization projects. By providing technical support, industrialguidance, and talent development, we aim to optimize and upgrade rural industries, promoting sustainable economic growth andcontributing to overall rural revitalization.In Daotong Village, we have introduced advanced ecological agricultural technologies and management practices, such asorganic fertilizers, soil and water quality testing, and "zero chemical additives" eld management. By o?ering precise agriculturalsolutions, we have achieved natural, healthy, and avorful crop growth. The innovative application of these technologies andmanagement strategies has signicantly enhanced crop quality and generated substantial economic benets for local farmers,facilitating the transformation and modernization of agricultural production methods.
Revitalizing education is crucial for holistic rural development, significantly enhancing the growth potential and talentdevelopment in these areas. By providing high-quality educational resources, we not only raise the cultural standards of ruralcommunities but also develop vital talents for their rejuvenation. We are committed to promoting fairness and innovation in ruraleducation by leveraging strengths from the engineering machinery sector. In alignment with the "Vocational Education On-SiteEngineer Special Training Program," we partner with the SANY Foundation to advance the "Explorer Education" initiative. Thisproject o?ers high-quality, inclusive technical and engineering education through hands-on technical activities. These encouragelearners to engage in immersive, creative experiences, fostering engineering thinking and boosting scientic literacy.
Case
Case
Case
Establishment of a Strawberry Planting Industry Demonstration Base
Participation of Explorer Education Project in the 2023 International Technical EducationAssociation Annual Conference
Optimization of Explorer Education Project
In 2023, leveraging our industry demonstration base, we formed a mutually beneficial partnership with thevillage collective economy. We invested over 600,000 RMB to expand 11 acres of high-standard steel framegreenhouses for strawberry cultivation. Additionally, we constructed a new agricultural processing plant andcold storage facilities to further strengthen the agricultural industry chain, increasing the collective income of thevillage and creating more job opportunities for residents.
In 2023, the Explorer project launched by the SANY Foundation made an appearance at the 2023 InternationalTechnical Education Association Annual Conference, showcasing experiences conducted in Chinese ruralareas and communities to nearly 500 global engineering and science education practitioners and researchers.Attendees were briefed on the project's innovation and practicality, demonstrating its signicant role in promotingscience and technology education and community development.
In 2023, the SANY Foundation's Explorer Educationproject refined its curriculum framework, developedstandardized course o?erings, and partnered with 210institutions across 21 provinces. The initiative trainedover 500 teachers who now implement ExplorerEducation across China, beneting more than 21,000students with over 174,400 hours of class. Theseenhancements led to an impressive average coursecompletion rate of 87.5% for the year. Additionally,the satisfaction rate among teachers regarding thecourse content and training averaged 9 out of 10.
View of the Strawberry Planting Base
Explorer Education showcased at the 2023 International Technical Education Association Annual Conference
Explorer Education curriculum and materials kit
Case
Scientic Literacy Training for Rural Teachers
On September 18, 2023, we invited a leading gure inthe eld of science education from Nanjing to conducta one-day scientific literacy training for 44 relevantteachers from over 30 local primary schools in Wuxi.This training, which integrated front-line teachingexperience, shared practical aspects of startingscience courses and how to conduct region-specicscientic literacy education. This training, not only didit broaden the teaching horizons of teachers in Wuxi,but it also injected new vitality into rural education.Scientic Literacy Training for Rural Teachers
9596
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Social Rescue Engagement
SANY Heavy Industry recognizes the critical need for rapid and effective responses to natural disasters and emergencies.Leveraging our strengths, we actively participate in rescue missions by providing technical and equipment support for disasterrelief and reconstruction. Additionally, based on our extensive experience, we develop comprehensive rescue protocols for
engineering machinery and conduct thorough training. This ensures our rescue teams consistently display high professionalismand e?ciency in every operation.
SANY Heavy Industry's Disaster Relief E?orts in 2023China - North China
Rainstorm and Flood Disaster Relief in
the Beijing-Tianjin-Hebei Region
China - Guangdong
On September 5, 2023, a suddenand severe rainstorm led to floodingand mountain collapses in Xinyi City,Maoming, Guangdong Province. Inresponse, SANY rapidly deployed twoexcavators and forklifts to Qianpai Town,the area most affected by the disaster.Their mission was to clear obstructedroads and undertake rescue operations,crucially helping to restore essentiallifelines for the villagers.
Rainstorm Disaster Rescue in Xinyi
On October 24, 2023, a sudden 3.1-magnitude earthquake joltednorthern Gansu. The SANY engineering machinery rescue teamwas immediately sent to the area, where they located 7 missingpersons, helped excavate and transport 172,000 cubic meters ofsilt, constructed 260 meters of emergency access roads, and lledin 650 cubic meters of stone. Additionally, SANY donated 2,000emergency rescue kits to the a?ected residents, containing food,drinking water, warm clothing, and essential daily supplies to meettheir urgent needs.
Emergency Disaster Relief in Gansu
China-Gansu
Morocco
On September 9, 2023, a 6.9-magnitudeearthquake hit Morocco, causingsignificant destruction. SANY quicklydispatched rescue teams and equipmentto Sidi Hssaine, the hardest-hit area,initiating swift rescue operations andworking to restore vital connections fordisaster relief.
Disaster Relief in Morocco
TurkeyOn February 6, 2023, a devastating
7.8-magnitude earthquake struck
Turkey. In response, the SANYFoundation deployed a teamcomprising structural collapse rescueexperts and local employees withengineering machinery to the disasterzone. They managed to searchan area of 6,000 square meters(covering 8 buildings), rescuingone survivor and discovering 22casualties.
Earthquake Rescue in Turkey
In late July 2023, Typhoon Dusureihit North China, triggering significantprecipitation disasters in the Beijing-Tianjin-Hebei area. The SANYEngineering Machinery Rescue Teamswiftly responded with effective rescueoperations. We evacuated more than 470individuals, provided urgent assistance tove emergency patients, helped managethe discharge of over 80,000 cubic metersof sewage, and distributed upwards of200 boxes of emergency supplies.
9798
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
Case
Case
Publishing Standards for Engineering Machinery Rescue Teams
Specic Training for SANY Engineering Machinery Rescue Team
In 2023, drawing upon our extensive experiencein disaster relief and rescue operations, the SANYFoundation took the lead in proposing two standardsfor engineering machinery rescue teams to the ChinaAssociation for Disaster Prevention: the Guidelines forCollaborative Training of Engineering Machinery RescueTeams and the Minimum Requirements for Participationof Engineering Machinery in Rescue Missions. Thesestandards are designed to optimize the utilization ofengineering machinery in rescue efforts, enhanceemergency response effectiveness, mitigate rescue-related risks, foster technological advancements, andstandardize industry practices. Ultimately, they serve toadvance the field of emergency rescue and contributesignicantly to its ongoing development.
We handpicked team members from our global workforceto compose the SANY Engineering Machinery RescueTeam. To ensure their proficiency in rescue operations,we provide systematic training sessions for the team everyweek. In 2023 alone, we conducted a total of 25 trainingsessions, comprising 6 in-person and 19 virtual sessions,with a participation count of 500 trainees. Many membersof the SANY Engineering Machinery Rescue Teamacquired national vocational qualification certificatesfor emergency rescue personnel, WAFA (WildernessAdvanced First Aid) certications, as well as swift waterand coastal rescue endorsements. This robust trainingregimen guarantees that our team members adhere tothe highest standards in engineering machinery rescue,enabling us to swiftly mobilize and respond to large-scaledisasters, both domestically and internationally, based onthe distribution of a?ected areas.
Publishing Standards for Engineering Machinery
Rescue Teams
Training and Teaching for Rescue Teams
Key Quantitative Performance Indicators
Environmental
IndicatorUnit2023
ISO 14001 certication coverage%38.5Signicant environmental incidentNumber0Atmospheric pollutantsTotal exhaust gas emissionsm
12,130,314,056.00SO
emissionsTonne1.98NOx emissionsTonne32.09VOCs (volatile organic compounds) emissionsTonne99.35Total soot emissionsTonne87.74Water contaminantsTotal water dischargeTonne397,090.35Biochemical oxygen demand (BOD) dischargeKilogram5,330.36Chemical oxygen demand (COD) dischargeKilogram31,664.00Suspended solids (SS) dischargeKilogram7,289.25Ammonia (NH
) dischargeKilogram4,204.28Solid wasteTotal hazardous waste dischargeKilogram4,845,184.50Total general industrial solid waste dischargeTonne160,941.60Energy/resource consumptionPurchased electricitykWh426,142,502.10Gasm
24,508,850.00GasolineLiter13,648.44Clean energy (solar electricity)kWh44,815,944.50DieselLiter907,595.16Combined energy consumptiontce89,196.51Municipal water supplyTonne2,895,168.00GHG emissionsScope 1: Direct GHG emissionstCO
e84,120.07Scope 2: Indirect GHG emissionstCO
e129,708.80Total GHG emissionstCO
e213,828.87Packaging material consumptionPackaging material usedTonne2,942.10
99100
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
Social
IndicatorUnit2023
EmployeesNumber of employeesPerson25,930Number of employees, by genderMalePerson22,566FemalePerson3,364Number of employees, by rankHigh-level employeesPerson206Mid-level employeesPerson13,108General employeesPerson12,616Number of employees, by role typeProduction personnelPerson8,293Sales personnelPerson4,392Technical personnelPerson8,057Finance personnelPerson576Administrative personnelPerson542Service personnelPerson1,282Management personnelPerson2,788Number of employees, by age group30 and belowPerson7,77531-50Person17,30951 and abovePerson846Development and trainingEmployees trainedPerson23,993Number of employees trained, by genderMale employeesPerson21,005Female employeesPerson2,988Number of employees trained, by rankHigh-level employeesPerson196Mid-level employeesPerson12,498General employeesPerson11,299Average number of hours of training for employeesHour121.40
IndicatorUnit2023
Average number of hours of training for employees, by genderMale employeesHour122.10Female employeesHour116.70Average number of hours of training for employees, by rankHigh-level employeesHour78.40Mid-level employeesHour134.00General employeesHour109.01Health and safetyISO 45001 certication coverage%42.3Injury rate in a thousand workers‰1.3Completion rate for third-level safety education training%100Occupational diseasePerson0Coverage of occupational health checkup for those onprofessional posts
%100Attendance of health and safety trainingPerson-time207,118Total health and safety training hoursHour271,313Supply chain managementNumber of suppliersNumber 7,784Suppliers, by product categoryProduction (procurement of raw and auxiliary materials) suppliersNumber 3,223Non-production (project procurement) suppliersNumber 669General suppliersNumber 1,190Specialized suppliersNumber 2,702Quality managementISO 9001 or IATF 16949 certication coverage%23R&D and innovationR&D and innovationRMB 100 million 61.01Patent applicationsNumber1,533Patents grantedNumber854Computer software copyrights grantedNumber225
101102
SANY Heavy Industry Co., Ltd.
2023 Sustainable Development (ESG) Report
IndicatorUnit2023
Customer servicesCustomer satisfaction%80.3Customer complaintsNumber1,096CommunityCommunity investmentRMB 10,000 2,787.20
Governance
IndicatorUnit or description2023
Number of risk management training sessionsNumber8Employees covered by risk management trainingPerson 1,035Suppliers covered by integrity and compliance testsNumber1,538Percentage of suppliers signing supplier integrity agreement/statement
%100
Statement of use: SANY Heavy Industry has reported the information cited in this GRI content index for the period of January1, 2022 to December 31, 2022 with reference to the GRI Standards.GRI 1 used: GRI 1: Foundation 2021GRI STANDARDLOCATIONGRI 2: General Disclosures 20212-1Organizational detailsP5-P62-2Entities included in the organization's sustainability reportingP62-3Reporting period, frequency and contact pointP1-P22-6Activities, value chain and other business relationshipsP8-P92-7EmployeesP73-P742-8Workers who are not employeesP702-9 Governance structure and compositionP252-10 Nomination and selection of the highest governance bodyP25-P262-11 Chair of the highest governance bodyP252-12
Role of the highest governance body in overseeing themanagement of impacts
P9, P26-P282-14 Role of the highest governance body in sustainability reportingP25-P282-15 Conicts of interestP29-P302-16 Communication of critical concernsP9-P102-17 Collective knowledge of the highest governance bodyP342-18 Evaluation of the performance of the highest governance bodyP28, P512-19 Remuneration policiesP51, P79-802-22 Statement on sustainable development strategyP3-P4, P582-25 Processes to remediate negative impactsP332-26 Mechanisms for seeking advice and raising concernsP332-27 Compliance with laws and regulationsP502-29 Approach to stakeholder engagementP9-P10GRI 3: Material Topics 20213-1Process to determine material topicsP9-P103-2 List of material topicsP103-3 Management of material topicsP10
GRI Index
103104
SANY Heavy Industry Co., Ltd.2023 Sustainable Development (ESG) Report
GRI STANDARDLOCATION
GRI 201: Economic Performance 20163-3Management of material topicsP7-P8201-1Direct economic value generated and distributedP7-P8, P79-P80201-2
Financial implications and other risks and opportunities due toclimate change
P58GRI 203: Indirect Economic Impacts 20163-3Management of material topicsP89203-1Infrastructure investments and services supportedP90, P93-P97203-2Signicant indirect economic impactsP89-97GRI 204：
Procurement Practices 20163-3Management of material topicsP46-P48204-1Proportion of spending on local suppliersP46-P48GRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruptionP29-P34205-2
Communication and training about anti-corruption policies andprocedures
P33205-3Conrmed incidents of corruption and actions takenP29-P30GRI 302: Energy3-3Management of material topicsP58-P64302-1Energy consumption within the organizationP63303-4Reduction of energy consumptionP21, P59, P62303-5Reductions in energy requirements of products and servicesP21, P59, P62GRI 303: Water and E?uents 20183-3Management of material topicsP55, P65303-2 Management of water discharge-related impactsP55303-4Water dischargeP57303-5Water consumptionP65GRI 304: Biodiversity 20163-3Management of material topicsP57304-3Habitats protected or restoredP57GRI 305: Emissions3-3Management of material topicsP58-P64305-1Direct (Scope 1) GHG emissionsP63305-2Energy indirect (Scope 2) GHG emissionsP63305-7
Nitrogen oxides (NO
X), sulfur oxides (SO
X), and other signicantair emissions
P57
GRI STANDARDLOCATIONGRI 306: E?uents and Waste3-3Management of material topicsP55-P56306-1Waste generation and signicant waste-related impactsP56306-2Management of signicant waste-related impactsP56306-3Waste generatedP57GRI 401 Employment3-3Management of material topicsP73401-1New employee hires and employee turnoverP73GRI 403: Occupational Health and Safety 20183-3Management of material topicsP66-70403-1Occupational health and safety management system/403-2Hazard identication, risk assessment, and incident investigationP68, P100403-3Occupational health services/403-4
Worker participation, consultation, and communication onoccupational health and safety
/GRI 404 Training and Education 20163-3Management of material topicsP75-76404-1Average hours of training per year per employeeP77404-2
Programs for upgrading employee skills and transition assistanceprograms
P76GRI 405 Diversity and Equal Opportunity3-3Management of material topicsP73405-1Diversity of governance bodies and employeesP74GRI 413 Local Communities 20163-3Management of material topicsP89-97413-2
Operations with signicant actual and potential negative impactson local communities
P89-97GRI 414: Supplier Social Assessment 20163-3Management of material topicsP46-47414-1New suppliers that were screened using social criteriaP46-47GRI 416 Customer Health and Safety 20163-3Management of material topicsP42416-1
Assessment of the health and safety impacts of product andservice categories
P43416-2
Incidents of non-compliance concerning the health and safetyimpacts of products and services
P43GRI 418 Customer Privacy 20163-3Management of material topicsP45