l Environmental Policy & Management Systems
- Environmental criteria in the development of new products (and services)
- Environmental Policy & Commitments
- Roles and responsibilities of management policies
LONGi ESG governance structure: LONGi has established a three-tier ESG governance structure covering the governance, management and executive levels, with the Board of Directors as the highest decision-making level, and expanded the existing Strategy Committee to become the Strategy and Sustainable Development Committee to supervise and review the company's ESG-related work.
- Ensure compliance with relevant environmental laws and regulations
Strictly comply with the Environmental Protection Law of the People's Republic of China as well as the requirements of relevant laws and regulations in the locations of our overseas production bases, and formulate a number of internal policies to implement whole life cycle management.) We have made commitments related to the environment, including the following.
- Commitment to the environment
Including the commitment to continuously improve environmental performance and the commitment to set targets and plans to reduce environmental impact
Achieve 70% renewable electricity use by 2027 and 100% renewable electricity use by 2028.
There is a commitment to improving the environmental performance of our internal and external stakeholders.
- Measures to raise awareness of environmental management policies and environmental impacts among internal and external stakeholders
Supply Chain Green Partner Empowerment Program, Intelligent Energy Exhibition Hall, establishment of a unified environmental management system in 2022, establishment of an environmental target responsibility statement, tracking and implementation of a related evaluation system, and more than 10 special training sessions for employees covering three wastes, soil and groundwater management, etc.
- Employees are trained to understand the impact of their work on the environment
More than 10 special training programs covering three wastes, soil and groundwater management, and the construction of a "zero-carbon theme park" at the plant.
- Operations, company processes, and the supply chain covered by the environmental policy:
- Production Operations and Business Facilities
Energy Management: Establishment of the Energy Management Manual, Energy Management System, and Energy Data Management Methods.
- Products and services
Develop and implement a series of system documents such as quality planning, quality objectives, product change management, etc.
- Distribution and Logistics
LONGi continuously improves the efficiency of resource use in the assembly, storage and transportation segments, accelerates the construction of a green, intelligent and informatized logistics industry chain, and helps improve quality and efficiency in the whole process and reduce carbon emissions.
- Waste Management
Exhaust Gas Emission: Develop "Exhaust Gas Management System", Wastewater Emission: "Rainwater and Sewage Management System" and other systems, Solid Waste Emission: Develop "Solid Waste Management System", "Waste Material Management System", "Waste Material Management System" and other systems
Waste Management System", "Waste Material Management System", "Silicon Recycling Management System" and other systems
- Suppliers, service providers and contractors
Formulation of management measures such as "Supplier Management Procedures", "Supplier Recruitment Management Measures" and "Code of Conduct on Corporate Social Responsibility of LONGi Suppliers"
- Due diligence, mergers and acquisitions
Establishment of the Supplier Due Diligence Management Code
- Coverage of environmental management system certification/audit/verification:
- Environmental management system passed international standards
The Company and its subsidiaries have passed ISO 14001 environmental management system certification
l Emissions
- Direct Greenhouse Gas Emissions (Scope 1)
- Direct GHG Emissions (Scope 1)
2019: 14,927 met. ton. CO2e
2020: 92,665 met. ton. CO2e
2021: 94,750 met. ton. CO2e
2022: 158,202 met. ton. CO2e
- Data Coverage Share (% of Operations)
2019: 100%
2020: 100%
2021:100%
2022:100%
- Indirect Greenhouse Gas Emissions (scope 2)
-Indirect Greenhouse Gas Emissions (Scope 2)
Location-based Scope 2 emissions:
2020: 4264079 met. ton. CO2e
2022: 4947699.07met. ton. CO2e
Market-based Scope 2 emissions:
2019: 2197552met. ton. CO2e;
2020: 2480349 met. ton. CO2e;
2021: 3057224 met. ton. CO2e;
2022: 2930501met. ton. CO2e
- Data coverage (% of Operations)
2019: 100%
2020: 100%
2021:100%
2022:100%
- Indirect Greenhouse Gas Emissions (Scope 3)
-Indirect GHG Emissions (Scope 3) :
2020: 20920503 met. ton. CO2e
2021: 22683132 met. ton. CO2e
2022: 29747826 met. ton. CO2e
-Scope 3 GHG emissions category and calculation methodology:
Scope 3 Category/ Emissions in the reporting year (Metric tons CO2e)/Emissions calculation methodology and exclusions
1. Purchased Goods and Services/21619240 met. ton. CO2e /-Gabi database -Calculation based on supplier data and Gabi database
2. Capital Goods/ 0 met. ton. CO2e /Estimated to be negligible and not included in current calculation
3. Fuel-and-energy-related-activities (not included in Scope 1
or 2)/112689 met. ton. CO2e /China regional power grid average
CO2 emission factors in 2011 and 2012 by National Development
and Reform Commission (NDRC) -China Electric Power Yearbook
2019 -Provincial Guidelines of GHG Inventory Preparation (Trial)
4. Upstream transportation and distribution/317096 met. ton. CO2e/GHG Emission Calculation Tool
5. Waste generated in operations/ 302212 met. ton. CO2e/ Gabi database
6. Business travel/ 3228 met. ton. CO2e/ Data provided by travel
management system service provider
7. Employee commuting/ 1448 met. ton. CO2e/ -China regional power grid average CO2 emission factors in 2011 and 2012 by National Development and Reform Commission (NDRC) -China Electric Power Statistical Yearbook 2019 -China Energy Statistical Yearbook 2020 -IPCC 2006 V2_2_Ch2_Table 2.3 -IPCC 2006 V2_3_Ch3_Table 3.2.1, Table 3.2.2
8. Upstream leased assets/ 0 met. ton. CO2e/ Non applicable
9. Downstream transportation and distribution /316722 met. ton. CO2e /GHG Emission Calculation Tool
10. Processing of sold products/ 0 met. ton. CO2e/ Data unavailable at the moment, not included in current calculation
11. Use of sold products/ 0 met. ton. CO2e/ Non applicable
12. End of life treatment of sold products/ 10498 met. ton. CO2e/ Gabi database
13. Downstream leased assets/ 0 met. ton. CO2e/ Non applicable
14. Franchises/ 0 met. ton. CO2e/ Non applicable
15. Investments/ 0 met. ton. CO2e/ Non applicable
Other upstream/ 0 met. ton. CO2e/ Non applicable
Other downstream/ 0 met. ton. CO2e/ Non applicable
l Resource Efficiency and Circularity
- Energy Consumption
-Total non-renewable energy consumption
2019：1781028.2MWh
2020：3665645.973MWh
-Total renewable energy consumption
2019：1757609.8MWh
2020：2557833.5MWh
-Data coverage (% of Operations)
2019：75%
2020：75%
l Waste
- Waste Disposal
-Total waste recycled/ reused
2021：65749metric tonnes
2022：21890metric tonnes
-Total waste disposed
2021：130506metric tonnes
2022：255243.75metric tonnes
2022 target:
2021：130506metric tonnes
2022：255243.75metric tonnes
2022 target:
-Data coverage (as % of Operations)
2021：75%
2022：75%
- Hazardous Waste
- Total Hazardous Waste Disposal
2019: 1067.17 metric tonnes
2020: 29001.76 metric tonnes
2021: 32586 metric tonnes
2022: 17385.35 metric tonnes
- hazardous waste with unknown disposal method (tons)
2019: 1067.17 metric tonnes
2020: 29001.76 metric tonnes
2021: 32,586 metric tonnes
2022: 17385.35 metric tonnes
- Data coverage (% of Operations)
2019: 100%
2020: 100%
2021: 75%
2022: 75%
l Water
- Water Consumption
A: Withdrawal:Total urban water supply (or from other water utilities)
2019: 17.506281 million cubic meters
2020: 32.750659 million cubic meters
2021: 35.08761924 million cubic meters
2022: 36.51639 million cubic meters
B: Extraction:Freshwater surface water (lakes, rivers, etc.)
2019: 0 million cubic meters
2020: 0 million cubic meters
2021: 0 million cubic meters
2022: 0.0177 million cubic meters
C: Extraction:Fresh groundwater (million cubic meters)
2019: 0 million cubic meters
2020: 0 million cubic meters
2021: 0 million cubic meters
2022: 0 million cubic meters
D: Discharge:Water returned to the source of extraction at similar or higher quality as raw water extracted (only applies to B and C)
2022: 25.84339 million cubic meters
E:Total net freshwater consumption (A + B + C - D)
2022: 10.6907 million cubic meters
Data coverage (%)
Denominator: operations
2019: 100%
2020: 100%
2021: 100%
2022: 100%
l Climate Strategy
- Climate Governance
- Oversight Responsibilities for Climate-Related Issues by Board-Level Committees (comprised of members of the Board of Directors) The Strategy and Sustainability Committee provides overall oversight and approval of the Company's ESG strategy, ESG mid- and long-term plans, annual plans, and the development and implementation of ESG policies, reviews the Company's major ESG issues and the progress of its ESG goals, and approves and identifies ESG risks and opportunities related to the Company's development).
- Frequency of climate-related issues as an item on the Board of Directors' agenda
The Strategy and Sustainability Committee meets at least once a year to communicate with the Board of Directors on ESG-related issues).
- Management positions or committees responsible for climate-related issues
Management has a Sustainability Management Committee, a Sustainability and Climate Action Office and a Sustainability Expert Committee
- TCFD Disclosure
Governance:
- Board oversight of climate-related risks and opportunities
Strategy and Sustainability Committee: the highest decision-making body and governance level for the Company's climate action, chaired by the Chairman of the Company, who regularly reviews climate change strategies and objectives.
- Management's role in assessing and managing climate-related risks and opportunities
Sustainability Management Committee: the decision-making body for the Company's climate action, led by the Chief Sustainability Officer (CSO), who regularly assesses the risks and opportunities presented by climate change and develops climate action strategies.
Strategy:
- Short-, medium- and long-term climate-related risks and opportunities are disclosed in the LONGi Climate Risk Matrix, including the impact of climate-related risks and opportunities on the organization's business, strategic and financial plans, and the resilience of the organization's strategy taking into account different climate-related scenarios, including scenarios of 2°C or lower.
Risk management:
Climate Risk Identification Mechanism: The Office of Sustainability and Climate Action facilitates the ESG Compliance Group, led by the Risk Management Department, within the ESG Executive Team to identify climate risks, taking into account national and international trends and feedback from external stakeholders, and to establish a list of risks for annual review by the Board of Directors. Climate Risk Evaluation and Ranking Mechanism: The Risk Management Department will lead the Climate Risk Sensing Department to evaluate and rank the climate risk list, and form a prioritized list of climate change risks, which will be submitted to the Board of Directors for review.
- Scope 1, Scope 2 GHG emissions and, Scope 3 emissions and associated risks (Scope 1: Total direct GHG emissions in metric tons of carbon dioxide equivalent (tCO2e) for 2019, 2020, 2021, and 2022, Scope 2: Actual emissions for 2022, 2021, 2020: 2930501 , 3057224, and 2480349 tCO2e, Scope 3: Metric tons of carbon dioxide equivalent (tCO2e) in 2022, 2021, and 2020: 29747826, 22683132, and 20920503, respectively.
- The targets we use to manage climate-related risks and opportunities and performance towards goals
Setting target:
70% renewable electricity use by 2027 and 100% renewable electricity use by 2028.
Complete deployment of an energy management system by 2025 and improve energy efficiency by 35% using 2015 as the base year.
Install charging facilities at 100% of manufacturing operations by 2030.
-Incentives provided for the management of climate-related issues：
Entitled to incentive: Business unit manager
Type of incentive: Monetary reward
Performance indicator: Energy efficiency improvement
-Climate Risk Management
Climate Risk Management: The Company integrates climate change risks and opportunities into the Company's overall risk management program; the Company has developed a specific climate change risk management process, i.e., a standardized process that considers climate change risks and opportunities separately from other business risks and opportunities.
-Climate Risk Identification Mechanism:
The Office of Sustainability and Climate Action facilitates the identification of climate risks by the ESG Compliance Group of the ESG Executive Team, led by the Risk Management Department, and identifies a list of risks for annual review by the Board of Directors. Climate Risk Assessment and Ranking Mechanism: The Risk Management Department leads the Climate Risk Sensing Department to assess and rank the list of climate risks and form a prioritized list of climate change risks, which is then submitted to the Board of Directors for review.
- Types of climate-related risks included in the risk assessment
Current regulations, emerging regulations, technology risks, legal risks, market risks, reputation risks, acute physical risks, chronic physical risks; LONGi Climate Risk Matrix includes natural disasters, climate change, legal compliance, emerging regulations, market changes, technological changes, corporate reputation.
- Timeframe covered by the climate risk assessment
LONGi's climate risk matrix is divided into short, medium and long term.
- Climate Change Scenario
Transition Scenario (2°C or below 2°C): IEA NZE 2050，NGFS(2°C and below scenarios)
Physical Scenario (Above 2°C）:RCP 4.5 (or SSP2 4.5)
- Physical Climate Risk Adaptation
- Response to natural disasters: Optimize product packaging and selected transportation modes to reduce impacts on global transportation; establish an emergency management organization and prepare an emergency response plan for climate change.
- Response to climate change: Consider the long-term trend of climate change in the local region in terms of business demand and production; strengthen water resource risk management and formulate water abstraction and use strategies in a forward-looking manner.
- Emissions Reduction Targets
- Target coverage: Scope 1 + Scope 2 combined
LONGi commits to reduce absolute Scope 1 and Scope 2 GHG emissions by 60% from 2020 levels by 2030.
- Target coverage: Scope 2
Annual active procurement of renewable electricity increased from 15% in 2019 to 100% in 2028 .
- Target coverage: scope 3
By 2030, Scope 3 emissions per ton of purchased materials will be reduced by 52% from 2020 levels.
- Net-Zero Commitment
LONGi is committed to reducing absolute Scope 1 and Scope 2 greenhouse gas emissions by 60 percent by 2030, compared to 2020 levels. Scope 3 emissions per ton of purchased material will be reduced by 52 percent by 2030, compared to 2020 levels.
By 2023, LONGi will make its production base in Baoshan, Yunnan Province, LONGi's first "Zero Carbon Factory", realizing net-zero emissions within its operations.
-LONGi has set a four-step goal:
1. use 100% renewable electricity for the whole year (RE100) 2. complete production reforms to significantly reduce natural gas leakage (EP100)
3. promote green transportation and green office (EV100) within the base.
4 Purchase CCERs, etc. to offset carbon emissions that cannot be completely reduced at the base.
- Low-Carbon Products
-LONGI's PV sillicon wafer
Since 2012, LONGi has amassed a cumulative shipment of PV silicon wafers exceeding 290 GW, with estimations projecting a cumulative generation of over 1,148.2 bilion kWh of green electricity by the close of 2022, a feat equivalent to averting the global emission of 536 million tonnes of CO2.
-Solar plant construction and services
l Biodiversity
- Biodiversity risk assessment
- The process for identifying and assessing biodiversity risks related to dependence and impacts
- Planning and design stage: field survey of the project site before site selection, assessment of environmental impacts related to biodiversity and natural resources, as far as possible not to damage the mountain and vegetation, strict adherence to the "red line of ecological protection", and formulation of reasonable and scientific environmental impact control measures based on the results of the evaluation.
- Construction phase: Strictly implement the "three simultaneous" environmental protection measures, carry out environmental impact assessment at the same time of construction, and organize corresponding acceptance in a timely manner; reduce the time and materials required for construction as much as possible.
- Operation and maintenance stage: carry out regular investigation of environmental protection risks; widely carry out publicity and education activities related to ecological environment protection to improve the employees' awareness of environmental protection.
- Late stage of the project: carry out ecological restoration work according to the results of the environmental impact assessment.
l Clean tech and opportunities
The mission of "Utilizing the sun's rays to create a green energy world" and the planned objectives for long-term strategic development in the photovoltaic industry.
-R&D as a percentage of revenue
2022: 0.93%
2021: 1%,
2020: 0.91%
2019: 0.92%
-The average R&D expenses in the last three years
2022: 171.81 USD million
2021: 127.42 USD million
2020: 127.42 USD million
l Product Stewardship
- Environmental criteria in the development of new products (and services)
-Choice of raw materials or components that have a lower environmental footprint
Raw material supply: Choose upstream suppliers and logistics companies that are as green as possible. e.g. We provide a complete set of hydrogen production equipment with alkaline water electrolysis and gas-liquid separation frame as the base and strive to create high-performance and high-quality products. Among them, the LONGi ALK Hi1 series products released in February 2022, with high efficiency and high yield, which can reduce DC power consumption by more than 10% and achieve the goal of efficient hydrogen production.
-Direct operations, production & manufacturing
Use more green electricity and clean energy to reduce carbon emissions. e.g. LONGi provides innovative green new energy solutions for customers in the industrial, commercial, and household markets to realize the benign interaction between ecology and energy. LONGi Hydrogen has been vigorously building a hydrogen R&D center and increasing investment in S&T research and development. The main business scope covers the manufacture of alkaline water electrolysis production equipment and the solution of hydrogen production systems by renewable energy. The company is committed to becoming the world's leading hydrogen equipment technology company.
-Distribution, storage and transportation
Transportation and storage: Make efficient use of transportation and storage space. e.g. Based on the application of automated production and control systems and the operation of intelligent operation and maintenance platforms, we have achieved intelligent and reliable production and operation, and guaranteed safety, reliability, efficiency and benefits of hydrogen products to the largest extent.
-Use phase - operation and servicing/ maintenance
Operation and maintenance: Extend the life of products and seek repair instead of replacement. e.g. LONGi Hydrogen won in the Sinopec's first >10,000-ton Green Hydrogen Demonstration Project. The project has been China's first >10,000-ton green hydrogen project so far. This project will build a new 300MW photovoltaic power station and an electrolytic water hydrogen production plant to generation 618 million kWh green electricity and 20,000 tons green hydrogen per year. It will also realize the partial replacement of natural gas for hydrogen production and can reduce carbon emissions by about 500,000 tons per year, which is of great demonstration significance for the comprehensive implementation of the carbon peaking and carbon neutrality strategy and the promotion of energy transformation.
-End of life management (e.g. recovery, disposal, biodegradation)
Recycle and reuse: Establish the Waste Material Management department, and study methods to reuse waste materials.
- Life Cycle Assessment
- Life Cycle Assessment approach
According to LONGi's Product Lifecycle Quality Standard, we remain committed to four-tiered standardized management and six-pronged standards of the lifecycle of product and power plant lifecycle to ensure the efficient operation of the product in power plants for 25-30 years.
In addition, we have launched a protection system that simulates various types of real-life outdoor conditions and verifies the reliability of our modules after thorough testing, ranging from rigorous tests that focus solely on a specific aspect exclusively to comprehensive tests of product aging, from the use of products in complex and diverse environments to extreme disaster climates. In doing so, we can ensure the safe and efficient operation of the modules for the long-term return with high profit from a PV power plant throughout its lifecycle.
-% of Total Products：100
l Labor Practice Indicators
- Non-discrimination and anti-harassment policies and measures that can effectively address discrimination and harassment in the workplace
- Clear statement of prohibition of harassment:
We promote a safe working environment in order with an emphasis on anti-harassment to prohibit sexual, coercive, threatening, abusive or exploitative behaviors including gestures, language and physical contact.
- Zero tolerance policy on discrimination:
We eliminate discrimination based on ethnicity, race, nationality, religious belief, gender, age, disability, or marital status.
- Corrective or disciplinary action taken in cases of discriminatory behavior or harassment:
We have stipulated the violation handling policies, appeal procedures, and the management mechanism for communication and mediation in the Complaints and Reporting Management Measures, the Accountability Management Measures, the Labor Dispute Settlement Management Measures, and other internal measures.
- Number of Employees by Gender
-Share of women in total workforce: 19.52%
-Share of women in top management positions: 20%
- Number of employees by region
Share in total workforce (as % of total workforce)
The Chinese mainland: 79.596%
Hong Kong, Macau, and Taiwan regions of China: 0.0066%
Overseas: 20.3973%
LONGi supports employees' freedom of association and collective bargaining, and has formulated the Group's Labor Union Management System, which makes it clear that employees can voluntarily join labor union organizations.
-% of employees represented by an independent trade union or covered by collective bargaining agreements: 100%
l Human rights
- LONGi's commitment to respect human rights in accordance with internationally recognized standards, commitment to prevent/respect:
- forced labor
- Child labor
- Freedom of association
- The right to collective bargaining
- Equal remuneration
- Discrimination
- Requirements for own operations (employees, direct activities, products or services)
- Requirements for suppliers
- Requirements for partners
l Human Capital Development
-Average hours per FTE of training and development: 28.83 hours
- Employee development programs
1.Empower leadership: Based on RamCharan's leadership pipeline model, we provide customized training for managers at different levels, including training programs for senior managers, mid to high level managers, junior to mid level managers, and team leaders.
Description of program objective/business benefits: Leadership capability building.
Quantitative impact of business benefits: 100% managers and leaders improved their management ability.
% of FTEs participating in the program: 100
2.Train newly-hired graduates: We prepared systematic programs to help newly-hired graduates quickly adapt to the workplace and find a sense of belonging.
Description of program objective/business benefits: Help newly-hired graduates quickly adapt to the workplace and find a sense of belonging.
Quantitative impact of business benefits: 100% new employees were adapted more quickly.
% of FTEs participating in the program: 100
l Talent Attraction & Retention
- Agile conversations
The company pays attention to the two-way communication in the closed loop of performance management, where the appraiser and the appraisee communicate and reach consensus in all aspects of performance planning, performance coaching, performance evaluation and performance feedback.
- Plans and Policies Included in Employee Support Program
Work Stress Management: LONGi has established a comprehensive compensation and benefit management system and a scientific and efficient performance evaluation and assessment mechanism, and implemented equity incentives through restricted shares and options, etc., continuously improving the level of employee compensation, constructing a customized employee benefit model, building a digital benefit information and statistics platform, and organizing and carrying out employee caring activities, etc., in order to balance the work and life of the employees and to relieve the work stress and enhance the sense of belonging and well-being of the employees. to balance the work and life of employees, relieve their work pressure, and enhance their sense of belonging and happiness.
-Sports and Health Initiatives:
In 2022, we organized a total of 526 cultural and sports activities, including World Cup-themed online activities, LONGi Cup soccer matches, New Year's garden party, June 1 parent-child activities, cross-country fun sports, and health knowledge lectures, in combination with hot current affairs, with a per capita participation of 3.81 times.
- Family Benefits:
Breastfeeding facilities or benefits (In addition, we offer a diverse range of care and attention such as parental leave, mother and baby care rooms, special seating for women during pregnancy in restaurants, and support for women during special times).
- Trend of Employee Wellbeing
-Employee Satisfaction Survey Data Main Focus:
Employee Satisfaction
-Employee Satisfaction Survey Score
2022: 91.12 points
-Proportion of scope covered by employee satisfaction survey (not disclosed)
- Indicators covered in employee surveys: external motivation, internal motivation, etc.
Job satisfaction involved (external motivation, e.g. I am satisfied with my job)
l Occupational Health & Safety
- OHS policy/commitment
- Compliance with relevant international standards and regulations on occupational health, voluntary programs and/or collective agreements on occupational health: LONGi strictly complies with laws and regulations including the Work Safety Law of the People's Republic of China and the Law of the People's Republic of China on Prevention and Control of Occupational Diseases and formulates systems such as the "Management System for Quality, Environment and Occupational Health and Safety Accidents" and the "Rules and Regulations of Work Safety".
- Commitment to continuously improve the performance of the occupational health and safety management system:
LONGi formulates annual occupational health and safety annual management objectives and implementation programs, we regularly carry out hidden danger investigation work, and promptly initiate a new round of hazard identification work based on the "Hazard Identification and Evaluation and Control Procedures" when there are changes in the environment, formulate emergency response measures, and issue occupational hazards notification cards, as well as carry out the production plants' At the same time, we conduct occupational hazards testing in our production plants. We continue to improve occupational hygiene conditions in the workplace, provide employees with qualified and portable personal protective equipment, and regularly maintain occupational disease protection facilities to safeguard employees' physical and mental health from occupational injuries and workplace harassment.
- Setting priorities and action plans: In order to enhance employees' safety awareness, LONGi has set up a three-tier safety training system and provided diversified training courses, as well as organized "Work Safety Month" activities, safety knowledge competitions, and emergency drills to popularize safety knowledge among employees and educate them about the importance of safe production and operation.
- Support the implementation of occupational health and health and safety policies and clarify the highest decision-making body:
The Board of Directors/Executive Management (Coordinate group-wide occupational health and safety efforts through the EHS Committee.)
- OHS Programs
- Occupational health and safety risk and hazard assessments to identify factors that may cause harm in the workplace: regular hidden hazard identification work and timely initiation of a new round of hazard identification work based on the Hazard Identification and Evaluation and Control Procedures in the event of environmental changes, the development of emergency response measures, the issuance of occupational hazards notification cards, and the conduct of occupational hazards testing of the production plants.
- Prioritize action plans and combine them with quantitative targets to address these risks: Keefe has established a three-tier safety training system and provided a wide range of training courses, while organizing "Work Safety Month" activities, safety competitions, and emergency drills to popularize safety knowledge among employees and educate them on the importance of safe production operations. We also organize "Work Safety Month" events, safety competitions, and emergency drills to educate employees about safety and the importance of safe operations.
- Evaluate progress in reducing/preventing health problems/risks based on objectives:
Establish emergency response measures, issue occupational hazard notification cards, and also conduct occupational disease hazard factor tests at production plants.
- Internal inspection:
Promptly initiate a new round of hazard identification based on the "Control Procedures for Identification and Evaluation of Hazardous Sources" when there is a change in the environment
- Independent external verification of health, safety and well-being:
Please provide the name and the standard used (e.g., ISO 45001): 28 production sites have been certified to ISO 45001 occupational health and safety management system, 7 production sites have obtained Level 2 production safety standardization certification, and 2 production sites have obtained Level 3 production safety standardization certification.
-Provision of occupational health and safety training to employees and/or other relevant parties to raise awareness and reduce operational health and safety incidents:
To raise employees' safety awareness, LONGi has established a three-tier safety training system, provided diversified training courses, and organized "Safety Production Month" activities, safety knowledge competitions, and emergency drills to popularize safety knowledge for employees and promote safety awareness. We also organize "Work Safety Month" activities, safety knowledge competitions, and emergency drills to popularize safety knowledge among employees and promote the importance of safe production and operation.
-Introducing occupational health and safety standards in procurement and contract requirements:
In addition to safeguarding the occupational health and safety of our employees, we also pay close attention to the occupational health and safety of the laborers in our supply chain. We provide our suppliers with occupational health and safety training, and require them to comply with local labor protection laws and regulations in employee management, and establish preventive and contingency plans to prevent and control the occurrence of production accidents and occupational diseases.
- Privacy Policy
-Commitment:
the privacy policy applies to the entire business, including suppliers: -Clearly define the principles, procedures, privacy design, data transfer, and subjective rights of personal information of customers, suppliers, partners, and employees, and effectively embed the information security and privacy protection requirements and measures into the entire business process.
-Designated personnel or department responsible for privacy issues: establish an information security and privacy protection management system, set up a special working group on information security and privacy protection, be responsible for making decisions and approving the company's information security and privacy protection strategy, and comprehensively promote the construction and implementation of the Group's information security and privacy protection system.
Embedding the privacy policy system in the group-wide risk/compliance management: establishing an information security and privacy protection management system, setting up a special working group on information security and privacy protection, responsible for making decisions and approving the company's information security and privacy protection strategies, and comprehensively promoting the construction and implementation of the group's information security and privacy protection system.
l Corporate Governance
- Board of Directors
- Executive directors（Number of members: 1）
- Independent directors（Number of members: 3）
- Other non-executive directors（Number of members: 5）
- Total board size（Number of members: 9）
- Supervisory Board
- Employee representatives（Number of members: 1）
- Total board size（Number of members: 3）
- Executive Management
- Senior executives（Number of members: 4）
Number of female directors: 2
- Attendance at board meetings:
- Average board meeting attendance: 100% of meetings of board of directors/supervisory board.
- Minimum of attendance for all members
required, at least (in %) : 51
l Materiality
- Materiality analysis process and the methods used to implement the materiality determination:
- Frequency of materiality analysis performed/reviewed: At least annually
- Involvement of external stakeholders in identifying the material issues: Maintain regular communication with various stakeholders such as investors, clients, government agencies, etc., and record the issues of concern and specific content of different stakeholders, with reference to the disclosure content of the 2022 ESG report
- Material Issues are prioritized in a materiality matrix or any other form: LONGI 2022 ESG Materiality Issues Matrix with reference to 2022 ESG Report disclosures
- Materiality assessment integrated in company's ERM process: LONGI integrates materiality assessments into the company's risk management process
- Assessment conducted is based on the principle of double materiality: Materiality to internal and external stakeholders, with reference to 2022 ESG report disclosures
- Materiality assessment process verified by a third-party assurance provider
- Materiality assessment results signed off by: Board of Directors
- Material issues
-Issue 1: Climate Change and Physical Risks
Business Case: Natural Disasters: Extreme natural disasters leading to operational and raw material supply disruptions. - Climate Change: Persistent high temperatures, water scarcity, sea level rise, and frequent extreme weather events may have adverse impacts on production. - Legal Compliance: Risks of litigation due to non-compliance with laws and risks of losses and fines due to failure to meet requirements. - Emerging Regulations: Carbon market compliance cost risks due to failure to adjust operational strategies in a timely manner. - Market Changes: Reduced market subsidies leading to increased direct costs. If photovoltaic technology cannot achieve mass production, the company will incur significant cost losses. - Corporate Reputation: Reduced financing channels due to increasing negative shareholders.
Business Impact: Risk
Business Strategy: In response to global climate change trends, Longi Green Energy Technology Co., Ltd. adheres to the development model of "using clean energy to produce clean energy," promotes "green electricity + green hydrogen energy" products and solutions, and supports the global energy transition. While gradually achieving its own green production and operation, it creates a variety of clean energy collection and storage solutions through photovoltaic and hydrogen energy products, helping global end consumers access low-cost and obtainable green energy. Longi has incorporated climate risk identification and management into its risk management system and continues to comprehensively identify and assess climate change risks and opportunities. In 2022, we deepened the identification of transformation risks and entity risks related to company operations and developed solutions in conjunction with company strategy and development.
-Issue 2: Resource Efficiency and Circular Economy
Business Impact: Cost
Business Strategy: In 2022, we took multiple measures to strengthen energy management, improve overall energy use efficiency, reduce electricity consumption, including policy formulation, project implementation, training, information system development, etc.
-Issue 3: Water
Business Impact: Cost
Business Strategy: Longi Green Energy Technology Co., Ltd. adopts refined water resource management, optimizes existing production processes, improves water resource utilization efficiency, and continuously explores alternative water sources, increasing the utilization of recycled water (such as rainwater, sewage, and reclaimed water). In 2022, the battery production base recycled over 17,000 tons of rainwater.
- Carbon reduction targets for 2030:
- The GHG emissions within the operational boundary will be reduced from the 2020 level by 60%.
- Reduce the production-wise specific electricity consumption by 8.84% against 2020.
- Specific Electricity Consumption Reduction Target Completion of LONGi's Products: Monocrystalline silicon 3.50%, Wafer 5.00%, Cell 8.00%, Module 6.50%.
- Reduce the specific water consumption of all business units by 18.6%-46.4% compared to 2020 (the base year) by 2025.
l Supply chain management
LONGi formulated the Supplier CSR Code of Conduct, and covers specific requirements and standards for suppliers on environmental standards, child labor, basic human rights (anti-discrimination, freedom of association), working hours, overtime, minimum wage, occupational health and safety, greenhouse gas emissions and energy consumption, pollution prevention and waste management, resource efficiency, biodiversity, no deforestation or land protection, business ethics (anti-corruption, anti-competition), and the development of sustainable procurement policies for their suppliers, business ethics (anti-corruption, anti-competition), and the development of sustainable procurement policies for its suppliers.
With reference to international standards and guidelines, LONGi formulated the LONGi Supplier CSR Code of Conduct, and for suppliers with excellent CSR performance, they will be included in the supplier/partner management plus points and prioritized for cooperation under the same conditions.
In 2022, supplier due diligence was conducted for the first time to assess suppliers' environmental and social performance from nine perspectives: labor employment, labor protection, union freedom and collective bargaining, fair treatment, working hours and wages, health and safety protection supply chain management and traceability, environmental protection, legal compliance and fair competition.
By the end of 2022, LONGi has conducted corporate sustainability due diligence on all suppliers and rectified all the problems found.
- Supplier selection criteria used to systematically identify important suppliers:
- Environment: Prioritize suppliers with sound environmental management systems and policies, and increase the overall score for suppliers that provide "Environmental System ISO 14001 Environmental Management System Certification", with 100% of new suppliers screened using the environmental criteria by 2022
- Social: 83% of new suppliers screened using social criteria by 2022
- Governance: We require suppliers to comply with business ethics and the LONGi Sunshine Sourcing Principles and commit to managing their sourcing activities in a correct and sustainable sourcing manner. During the reporting period, 94% of our suppliers completed signing the Code of Business Conduct. We conduct integrity reviews of our suppliers and implement a phase-out mechanism for business partners who do not comply with LONGi Supplier CSR Code of Conduct, Supplier Declaration, etc.
In 2022, we conducted supplier due diligence for the first time, assessing suppliers' environmental and social performance from nine perspectives: labor employment, labor protection, union freedom and collective bargaining, fair treatment, working hours and wages, health and safety protection supply chain management and traceability, environmental protection, legal compliance and fair competition. As of the end of the reporting period, LONGi has conducted corporate sustainability due diligence on all suppliers and rectified all the problems found.
- Supplier information/training on the company's supplier ESG program, processes and requirements
LONGi attaches great importance to empowering its suppliers, and helps them understand and follow up on industry changes by providing them with comprehensive training content to help enhance their sustainable development.
- Support for suppliers in implementing corrective/improvement actions (remote/on-site)
To help suppliers successfully complete the questionnaire, LONGi provides suppliers with question response guidelines and coaching training.
In-depth technical support programs to improve supplier capabilities and ESG performance
In 2022, we will conduct Green Carbon Empowerment Training for suppliers to help them conduct internal carbon inventory, set carbon reduction targets, and raise suppliers' awareness of energy saving and emission reduction management, with a total of 481 suppliers participating in the training; we will conduct more than 9,000 trainings on the use of the supplier management system and SRM system, and guide the operation of the functions of bidding, contract and order management, and performance query, so as to promote sustainable procurement and transparent management. The company has provided guidance on the operation of bidding, contract, order management, performance query and other functions to promote sustainable procurement and transparent management.
In order to effectively enhance the controversial procurement measures, it is stated in the CSR Code of Conduct for Suppliers of LONGi that we do not purchase, use or sell conflict minerals, and the definition of conflict minerals is clearly defined. At the same time, LONGi conducts due diligence audits on the sources of all raw materials for all products in its supply chain, covering self-owned factories, OEM manufacturers, distributors and other related parties in the production and sales chain, to ensure that there are no conflict minerals in the supply chain.
In order to ensure that the review mechanism of the relevant parties meets the requirements, LONGi's "Supplier Investigation Measures and Results" requirements cover raw materials for the production of materials, parts, components, sub-assemblies, complete products (OEM or transshipment), etc. In the future, we will improve the review of controversial raw materials.
In the future, we will improve the management system for the procurement of disputable raw materials, further improve the mechanism for tracing and auditing the origin of raw materials from suppliers, and conduct training on supplier auditing in order to strictly avoid disputable raw material procurement issues.
l Risk and crisis management
We continue to improve our compliance control structure, and on the basis of the "three lines of defense" of corporate compliance risk management, we have set up the Compliance Risk Management Working Group to coordinate the Group's compliance risk management work and provide comprehensive management and leadership for the Group's internal governance.
-The first line of defense: members: all functional departments, centers and business groups of the Group, and all molecular companies Responsible for identifying compliance risks in business areas, and formulating preventive and control measures based on the identified risks.
Second line of defense: Compliance Management Department Responsible for establishing and improving the Group's compliance management system, formulating compliance management systems and standards, and answering questions on compliance-related issues.
Third line of defense: Audit and Supervision Center Responsible for the investigation, handling and accountability of non-compliance incidents.
Conducted business risk identification and assessment of 14 compliance issues, including international trade compliance, antitrust, anti-bribery, etc.
We carried out internal audit and internal control evaluation during the reporting period. The internal audit carried out special investigation and audit of high-risk areas such as marketing and supply chain, and conducted in-depth analysis of business-focused process control elements, and improved the efficiency of governance by combining internal audit with digital transformation. During the reporting period, we carried out 42 audit projects and identified a cumulative total of 104 risk points.
l Business ethics
During the reporting period of FY2022, LONGi improved and updated the "LONGi Code of Business Conduct" "Compliance and Risk Control Management System" "Internal Control Management System" and other relevant systems.
- Anti-Monopoly
LONGi always advocates fair competition and attaches great importance to anti-monopoly and anti-unfair competition, and has formulated the "Anti-Monopoly Compliance Management Measures" and "Anti-Monopoly Compliance Handbook" and other regulations to guide its employees to comply with the rules on anti-unfair competition.
- Anti-Corruption
LONGi has always adhered to the principle of anti-corruption and integrity. Under the guidance of the Board of Directors, we have formulated the "Anti-Commercial Bribery Management Measures" and the "Risk Management Rules for Job Fraud" and other systems, which require our employees to abide by the bottom line of morality, and work together to build a business environment that is clean and upright, and safe and disciplined.
- Complaints & Discrimination & Conflict of Interest
We have formulated the "Complaint and Reporting Management Measures" to standardize the company's complaint and reporting management, establish a smooth complaint and reporting channel, encourage our employees and stakeholders to actively reflect all kinds of behaviors that harm the interests of the company and its employees, and set up diversified channels, such as telephone, WeChat applet, and email. We strictly keep the confidentiality of the personal information of the whistleblower and protect the whistleblower to prevent any discrimination, retaliation and other behaviors; we follow the "Complaint and Reporting Management Measures" for the whistleblower rewards and punishments for the clear provisions and implementation.
- Environment, Health and Safety
Establishment of the "Quality, Environment and Occupational Health and Safety Accident Management System", "Work Safety Regulations", "Environment, Safety and Occupational Health Management Manual", "Occupational Health Management System", "Management System for Workers' Personal Protective Equipment", and "System for Workers' Occupational Health Guardianship and its File Management".
Group-wide anti-corruption and bribery policy:
- Responsibility, accountability and reporting lines are systematically defined in all departments and companies: we continue to improve our compliance management and control structure, and on the basis of the "three lines of defense" of corporate compliance risk management, we have established the Compliance Risk Management Working Group, which coordinates the Group's compliance and risk management work, and carries out comprehensive management and leadership of the Group's internal governance
- Professional helpdesk, key personnel, mediators, hotlines: We established smooth channels for complaints and reports, encourage employees and stakeholders to actively reflect all kinds of behaviors that are detrimental to the interests of the company and its employees, and set up diversified channels such as telephones, WeChat applets, and emails
- Disciplinary actions for violations: We follow the Complaint and Whistle-blowing Management Measures to clearly define and enforce rewards and punishments for whistleblowers
- Compliance system is certified/audited/verified by a third party: In April 2023, LONGi received ISO 37301 certification for its compliance management system
- Number of violations for corruption or bribery in 2022: 0
- Number of violations for discrimination or harassment in 2022: 0
- Number of violations of customer privacy data in 2022: 0
- Number of violations of conflicts of interest in 2022: 0
- Number of violations for money laundering or insider trading in 2022: 0
l Tax strategy
- Earnings before Tax
2021：10232360903.84RMB
2022：6404591124.73RMB
- Reported Taxes
2021：1158549985.1RMB
2022：1641759040.90RMB
- Effective Tax Rate
2021：11.32241%
2022：25.6341%
- Cash Taxes Paid
2021：3915074095.42RMB
2022：5221037117.64RMB
- Cash Tax Rate
2021：38.26169%
2022：81.52023%
l Product Recalls
The number of product recalls in the past four years (2019-2022) and the financial impact due to these recalls
-Number of product lines for which products were recalled:
2019:0
2020:0
2021:0
2022:0
-Expenses incurred due to recalls issued in the corresponding fiscal year
2019:0
2020:0
2021:0
2022:0