Energy
1. Energy Consumption
Waste & Pollutant
2. Waste Disposal
3. Hazardous Waste
4. Volatile Organic Compounds Emissions
Water
5. Water Consumption
6. Ultra-Pure Water Usage
Climate Strategy
7. 1) Direct Greenhouse Gas Emissions (Scope 1)
8. 2) Indirect Greenhouse Gas Emissions (Scope 2)
9. 3) Indirect Greenhouse Gas Emissions (Scope 3)
10. Perfluorocarbons Emissions
Perfluorocarbons Emissions
LONGi's production process does not involve the use and emission of perfluoro compounds (PFCs).
11. Water resources management
Executive body responsible for water management strategy and performance
The CEO, as the executive for the water management strategy and performance, and the Senior Vice President in charge of EHS, is responsible for the execution of water management (water source usage and water efficiency improvement) and performance.
12. Commitment to Biodiversity Protection and No Deforestation
LONGi Green Energy Technology Co., Ltd.'s approach to biodiversity protection and no deforestation is based on the overall requirements of the United Nations Sustainable Development Goals (UNSDGs), the Convention on Biological Diversity, the Kunming-Montreal Global Biodiversity Framework, and China's Biodiversity Conservation Strategy and Action Plan (2023-2030). The company deeply recognizes the critical importance of forest resources to the Earth's ecosystem. Biodiversity is the foundation of the Earth's community of life and a vital basis for human survival and development. Longi places a high priority on the protection of biodiversity and the commitment to no deforestation, with the company's board of directors serving as the highest authority responsible for the commitment to biodiversity protection and no deforestation. To achieve balanced coexistence with ecosystems and harmonious living with nature, the company solemnly commits to the following:
Actively carry out education and awareness activities on forest and biodiversity protection, raising awareness among all employees and enhancing their sense of responsibility and mission to protect forests and biodiversity.
Integrate the concepts of forest and biodiversity protection into the company culture, encouraging employees to practice conservation actions in their daily lives and work. In the company's production and business activities, prioritize the protection of biodiversity and forests by adopting environmentally friendly and sustainable production technologies and methods to minimize impacts on the ecological environment.
Establish a supervision and management system for biodiversity protection and forest resources, regularly assess and enhance the company's conservation measures and actions, apply a mitigation hierarchy to address biodiversity and deforestation impacts, actively participate in biodiversity conservation and forest planting activities, and ensure the effective fulfillment of commitments.
Strengthen supply chain and value chain management, collaborate with suppliers and clients to jointly promote biodiversity and forest protection, ensuring no harm to biodiversity and forest resources.
Continuously promote effective and transparent internal and external communication regarding the company's biodiversity management and performance. The company will regularly disclose the performance related to biodiversity protection in our annual ESG report.
This commitment, upon approval by the company, will be implemented across all global operational sites, subsidiaries, suppliers, and business or value chain partners, with the aim of achieving the long-term goal of net positive impact (NPI) on biodiversity by 2050.
Human Capital Management
1. Trend of Employee Well being
Customer Relations
2. Customer Satisfaction Measurement
3. Coverage ratio of Customer Satisfaction Measurement
Graduate traineeship/apprenticeship program
Comprehensive training plan, implementation details, and improvement results (with clear emphasis on key stages and projects)
1.0 Purpose and scope of application for LONGi "Graduate Traineeship" program
Purpose：
- Convey the development concepts, principles and goals of LONGi's graduate and internship training, and form a unified ideology and action guide.
- Clarifying the role, rights, and responsibilities of organizations at all levels based on LONGi's key graduate training and development activities fosters collaborative and efficient development of graduates' training.
- By formulating the general growth path and three-year training and development framework for LONGi's graduates, including training empowerment, on-the-job practice, business coaching and growth exposure, training evaluation, etc., we will guide business units to formulate and implement classified and hierarchical targeted training and development plans for graduates, form a set of systematic and standardized graduate training and development business processes, build an excellent talent team, and support the long-term sustainable development goals of the business.
Scope of Application：
- Applicable to the LONGi 2023-2026 LONGi Futures, as well as the LONGi Cultivation programs in 2024 (for the 2023 graduates)
- The complete "LONGi Graduate Recruitment Management Regulations" is scheduled to be released in 2024.
- Applicable to internal LONGi recruitment for recent graduates (graduating students), interns, apprentices, and management trainees, etc.
2.0 The development concept, principles, and purpose of LONGi "Graduate Traineeship" project
The concept of "training and developing"
- Self-development, cultivating development in practice.
- Combining training with practice, with practice as the main focus.
- Give opportunities, apply pressure, and maintain high goal orientation.
The principles of "training and developing"
- Based on the internal talent training mechanism, meeting the gap in cadres and talents.
- Develop a training and development plan based on qualifications for the position.
- Develop targeted training programs based on the classification and stratification of campus recruitment, and implement individualized training responsibilities.
The purpose of "training and developing"
- The first stage - LONGi Futures: After one year of basic training, graduates are qualified for P2 positions.
- The second phase - LONGi Cultivation: Graduates who have been employed for 2-3 years, after a 2-year accelerated training, will be qualified for P3 positions.
Note: The first year of doctoral will be enrolled in the LONGi Futures plan, and the second to third year will enrolled in the LONGi Cultivation plan, and finally qualified for the P4 position.
3.0 The process of business development in LONGi "Graduate Traineeship" project
Tailor growth paths by job qualifications, cultivate through practical experience, and clarify responsibility divisions between headquarters and business units for graduate development activities.
Formal talent pipeline development strategy
Required disclosure content: a comprehensive talent strategy and training plan, including predictive recruitment, job recruitment, job design, and recruitment work and overall operational mechanisms.
1. Talent Pipeline development strategy
2. Responsibility and Authority Description of Talent Development Mechanisms
3. Management of Talent Development Mechanisms: identification and selection
Before entering the talent development program, it is necessary for the owner of each talent development mechanism within the business unit to lead the assessment. Based on the unique business circumstances, the gap between the capabilities of the reserve talent and the target position, as well as their past training experiences, it will be determined whether they should participate in the standardized development program or be placed in a differentiated talent management arrangement (such as direct talent assessment and placement). This ensures that each reserve talent has a clear talent development plan.
4. International talents management Planning
Partners with educational institutions to develop or deliver joint training programs for staff
Comprehensive professional qualifications and position support plan & well-developed and clear training mechanism
1. Supporting employees in attaining professional qualifications and degrees
LONGi attaches great importance to the continuous education and personal growth of employees, establishes and improves the talent training mechanism, focuses on the growth and development of employees, and provides institutional guarantees for all employees（including to obtain professional certification and degree in an all-round way. LONGi encourages all employees to participate in academic advancement programs in an effort to develop the Company into a multi-functional platform that integrates learning and work. LONGi conducts regular business needs surveys and training budget kick-off meetings every year to ensure that the training content is closely aligned with strategic planning, business needs and employee demands.This helps to drive the continuous improvement of the Company and individuals and achieve the dual development of the Company and individuals.
For example, support the organization of finance, procurement, investment, construction engineering and other key positions of employees to participate in a series of professional continuing education courses, including CA (Chartered Certified Accountant), CPA (Chartered Certified Accountant), accounting, ACCA (Association of Chartered Certified Accountants) and Constructor I.
Degree and Certification Programs
In 2023, LONGi had 7 subsidiary companies successfully assist employees in obtaining professional skill level certifications, granting a total of 91,000 yuan in educational subsidies. Among the employees, 82 successfully upgraded their education and 1,079 obtained professional titles.
LONGi also established a comprehensive talent development and incubation system, spanning from doctoral candidates to postdoctoral researchers. In 2023, it became a talent exchange base in Xi'an and a "National Postdoctoral Research Workstation," promoting the deep integration of talent, industry, and innovation chains.
Cooperating with third-party institutions to develop training programs for employees in professional sequence/series; for example, working with HR Excellence Center and Huawei Union College to enhance professional capabilities of human resources workers. Buying management courses from Huawei, Dedao, Hundun and other institutions to offer opportunities for managers to learn and grow. In 2023, LONGi purchased a total of 3,962 membership accounts.
Partners with educational institutions to develop or deliver joint training programs for staff
1) Collaborate with Heriot-Watt University Dubai to conduct STEAM Programs
On December 4, 2023, LONGi and the well-established British research university, Heriot-Watt University Dubai campus, formally collaborated and were invited to become knowledge partners of the university's Climate Center. They will jointly conduct STEAM training camps, providing courses and training related to solar energy technology, and making new contributions to the education and research of solar energy knowledge for local youth.
2) Joint training programs with Universities
In 2023, we actively introduced high-quality resources and established stable industry-academia-research cooperation relationships with more than 30 top universities and research institutes, including Tsinghua University, the Institute of Electrical Engineering of the Chinese Academy of Sciences, Lanzhou University, and Northwest University. We support our employees in furthering their education and improving their qualifications at these relevant institutions. The Longi Central Research Institute collaborates with the UNSW School of Photovoltaic and Renewable Energy Engineering to conduct joint research and cultivate new energy technology talents.
Supply Chain Management
1. Internal Procurement Staff Training
Internal Procurement Staff Training
In 2023, LONGi Green Energy actively promoted supply chain management and sustainable development by empowering suppliers and procurement personnel through a series of training courses. The training content included "Supplier CSR Audit Empowerment Coaching," "Building a Green and Compliant Supply Chain Together, Creating Long-term Sustainable Development," "LONGi Supplier CSR Special Empowerment Training," "Sustainable Development and Sustainable Procurement Trend Sharing," "Global Green Supply Chain Governance and Value Creation Practices," and "Challenges and Responses to Human Rights in the Context of Corporate Globalization." These trainings aim to enhance supply chain management capabilities, promote environment compliance, strengthen awareness of sustainable procurement, and address human rights challenges in globalization, laying a solid foundation for achieving long-term sustainable development. LONGi Green Energy will continue to promote sustainable development and responsible supply chain management through systematic training.
2. Governance Structure of organizational Structure Sustainable Procurement
LONGi Green Energy has established a clear and well-defined structure for sustainable procurement within the company, with clear responsibilities assigned.
3. Sustainable Procurement Targets
Longi Green Energy is committed to promoting the green transformation and social responsibility of the supply chain. Every year, it requires suppliers to complete the signing of the Certificate of Conformity (COC). In 2023, the target was set to have 96% of suppliers complete the COC signing, with the goal of achieving 100% supplier participation. Concurrently, during the supplier management process, 62 suppliers were identified as violating the "Supplier CSR Code of Conduct" regarding business ethics (such as collusive bidding), and were zero-tolerated and removed from the supplier list.
4. KPIs for Supplier Assessment and Development
In 2023, LONGi Green Energy conducted audits on a total of 158 suppliers, including on-site audits for 28 of them. Among these, there were a total of 7 suppliers with issues related to labor rights protection, accounting for 12% of the audited suppliers. By the end of 2023, all suppliers with identified problems had completed their rectifications.
5. Supplier Empowerment Plan
LONGi Green Energy has implemented a five-year supplier empowerment plan, adopting an advanced management plan that expands from the company's internal supply chain to the upstream supply chain, gradually enhancing the system construction and on-site capabilities of suppliers. LONGi Green Energy plans to achieve 100% supplier participation in capacity building by 2028.
6. Supplier Selection Mechanism
Supplier Selection Mechanism——LCC Full Lifecycle Sustainable Procurement Management
LONGi Green Energy has implemented LCC full lifecycle sustainable procurement management, covering four stages: "commitment, risk management, contract assurance, and supervision and management." During the supplier screening phase, LONGi Green Energy decides whether to cooperate with suppliers through six steps: "registration, screening, evaluation, product verification, on-site audit, and contract signing." By the end of 2023, the full lifecycle management process from selecting to managing suppliers has been smooth, achieving dynamic management of suppliers throughout the chain through commitment, closed-loop risk management, contract seeking assurance, and dynamic supervision, without discovering any high-risk ESG substantive issues.
LONGi will continue to empower suppliers to build a social responsibility system, strengthen self-discipline, and management capabilities.
7. Supplier ESG Performance Display
Supplier Performance Rating Display
To help suppliers identify their performance in the field of sustainable development and address their shortcomings, LONGi Green Energy has established a "Supplier Improvement" module in its supplier management system. Suppliers can log in to the SRM platform to view their scores and performance in comparison with peers in the same industry, identify existing issues, and promptly formulate their own rectification plans.
8. Conflict-Free Mineral Measures
Conflict-Free Mineral Measures
LONGi stated in the CSR Code of Conduct of LONGi Suppliers that we commit to neither use nor sell any conflict minerals and requires all direct and indirect suppliers to ensure that their supplied products are free from conflict minerals sourced from high-risk regions. By the end of the reporting period, LONGi’s use of conflict minerals is 0, with 0 revenue from products that use conflict minerals, and the signing rate for the CSR Code of Conduct of LONGi Suppliers has reached 100%.
In 2023, LONGi achieved a 100% completion rate for conflict mineral due diligence surveys of suppliers containing 3TG. All six smelters upstream of the 13 suppliers of tin-containing materials across the Group have obtained the RMAP certification and are not involved with conflict-affected and high-risk areas.
Products containing minerals from conflict-affected and high-risk areas account for 0% of total revenue. Products containing minerals from conflict-affected and high-risk areas sourced from suppliers verified as conflict-free account for 100% of total revenue.
Governance
Directors and Board of Directors
- Zhong Baoshen —— Chairman
Zhong Baoshen served as director & General Manager of the Company and director of Dalian Linton NC Machine Co., Ltd. He is currently the Chairman of the Company and holds positions in some subsidiaries. He is a delegate to the National People's Congress, Chairman of the China New Energy Chamber of Commerce, Chairman and General Manager of Hainan Huizhi Investment Co., Ltd., director of Shenyang LONGi Magnet Co., Ltd., director of Audiowell Electronics (Guangdong) Co., Ltd., and executive director & General Manager of Xi'an Qingshan Enterprise Management and Consulting Co., Ltd.
- Li Zhenguo —— Executive Director
Li Zhenguo was Chairman of the Company. He is currently the director and General Manager and works in some subsidiaries.
- Liu Xuewen —— Executive Director
Liu Xuewen is currently director and CFO of the Company.
- Tian Ye —— Executive Director
He served as Deputy General Manager and General Manager of Hisense Visual Technology Co., Ltd., Chairman and General Manager of Toshiba Visual Solutions Corporation, and Chief of the Company's International Manufacturing Center. He is director and General Manager of Supply Chain Management Center.
- Wang Zhigang —— Non-Executive Director
Wang Zhigang is a strategic consulting expert and founder of Zhigang Think Tank. He used to be a research fellow at Gansu Academy of Social Sciences and a reporter of Xinhua News Agency. He is currently the executive director and General Manager of Chengdu Zhiganghui Investment Co., Ltd., executive director, General Manager and chief planner of Chengdu Zhigang Academy Culture Communication Co., Ltd., the supervisor and chief planner of Beijing Caizhi Ganglue Consulting Co., Ltd., and concurrently serves as a director of the Company.
- Bai Zhongxue —— Executive Director
Bai Zhongxue served as Executive Deputy General Manager of Ningxia LONGi and Assistant to the President of Wafer Business Unit, General Manager of Yinchuan LONGi and Vice President of Wafer Business Unit. He is currently the Company's director, assistant to the Chairman, Head of Enterprise Management Department and Distributed Business Group-BIPV Business Unit.
- Li Meicheng —— Independent Non-Executive Director
Li Meicheng is a Professor and Ph.D. supervisor at North China Electric Power University, recognized as a national high-level talent and a recipient of the State Council Special Allowance. He currently serves as the Dean of the School of New Energy at North China Electric Power University and is an Executive Director of the Chinese Society for Renewable Energy.
He focuses on teaching and research in new energy and energy storage engineering, with extensive experience in the photovoltaic industry and exceptional research capabilities. He has led several major research projects, including those funded by the National Natural Science Foundation of China, the National 863 Program, the National Science and Technology Support Program, the Ministry of Education Doctoral Fund, and various joint funds. His primary research areas include solar cells and solar energy utilization technology, lithium/sodium-ion batteries and energy storage technology, micro-energy, and smart energy systems. As an expert in the new energy industry, Mr. Li's in-depth research and innovative achievements in photovoltaics and energy storage have provided crucial support for the company's development in renewable energy and energy storage technologies.
- Lu Yi —— Independent Non-Executive Director
Lu Yi is a doctoral tutor of Tsinghua University. He was a tenured associate professor at the National University of Singapore. He is currently a professor and head of the Department of Economics at the School of Economics and Management, Tsinghua University, an executive member of the third council of the China Health Insurance Research Association, a member of the tenth council of the China Finance Society, a member of the China Finance 40 Forum, and an independent director of the Company.
- Xu Shan —— Independent Non-Executive Director
Xu Shan is a Doctor of Accounting from Xiamen University, and a certified public accountant. He served as a full-time member of the Ninth Issuance Review Committee of CSRC, an independent director of Kunlun Tech Co., Ltd., CMOC Group Limited, and Sunshine Insurance Group. He is currently the Chairman of Xiamen Tianjian Consulting Co., Ltd., Xiamen Midai Investment Management Co., Ltd., and Xiamen Tianjian Caizhi Technology Co., Ltd. He also serves as a Director at Suzhou Meineng Huazhi Technology Co., Ltd., an independent director at Livit Life Insurance Co., Ltd., and is a adjunct professor for the MPAcc program at Xiamen University and a master tutor at the Xiamen National Accounting Institute. As a special research fellow at the China Research Center for Fiscal Malpractices, Mr. Xu has extensive experience in capital market financial risk management and provides valuable professional insights into financial management, audit supervision, and risk control for the company.
Information Security/Cybersecurity & System Availability
1. IT SecurityGovernance
Information Security Management Organizational Structure
To ensure the management of information security and privacy protection, LONGi has established a global information security and user privacy protection management organization under the Board of Directors. This organization is responsible for decision-making, strategy formulation, and the overall oversight of information security and privacy protection across all systems, regions and processes. To ensure the effective management of these areas, the CEO has been assigned to take charge of monitoring and supervising the implementation of information security and privacy protection measures.
2. Information Security Process & Infrastructure
Information Security Process & Infrastructure
At least one penetration testing and simulated hacker attack is conducted on all information systems of the Group every year, with third-party vulnerability analysis and rectification based on the results ensured. In 2023, 263 system vulnerabilities were identified, all of which have been fully rectified or have a remediation plan in place, without impacting any customers or internal employees. No privacy breach incidents occurred during the year.
Tax Strategy and Governance
Tax Policy
LONGi is a global citizen and upholds the ideals for the continuous creation of value in the Company's sustainable development and innovation. We are committed to information transparency and sustainable development, and we support social responsibilities by paying reasonable taxes in all countries of operations.
- The Company makes all major business decisions in accordance with related laws and regulations and evaluates the impact of such decisions on taxation risks.
- The Related Party Transfer Pricing Policy is established in accordance with the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations established by the Organisation for Economic Co-operation and Development (OECD). The Policy defines related party transaction principles and requires compliance with common trading practices.
- The Company complies with the “Base Erosion and Profit Shifting” (BEPS) of the OECD and generates profits via companies with economic substance. The Company also obtains tax resident status and is governed by the taxation regulations of the country of operations.
- The Company does not plan or operate transactions in countries with low tax rates for the purpose of tax avoidance.
- We fully present the financial reports in accordance with relevant regulations and disclose taxation information in accordance with relevant laws and regulations.
- We have established mutual respect and good communication with the taxation authorities of the countries in which we operate on the basis of good faith.
- This Policy was approved by the Board of Directors.
Business ethics
Oversight of Ethics Issues
The board of directors bears the ultimate responsibility for the compliance of the company's business activities and the management of the company's business conduct, supervising the implementation of employee conduct management; the senior management assumes the implementation responsibility for employee conduct management, executing the resolutions of the board of directors. The Risk Control and Management Department takes the lead in the company's employee conduct management, responsible for the overall coordination, facilitation, and supervision of employee conduct management; each business unit management department assumes the management responsibility for the conduct of employees in its own line, responsible for organizing the implementation of continuous monitoring, identification, recording, processing, reporting, and evaluation of the business ethics risks of employees in the departments under their jurisdiction. It also regularly updates the code of conduct in accordance with external changes and internal needs.
Employee Training on Ethical Standards
Anti-Corruption Training: In 2023, anti-corruption training covered 100% of the governing body members, 100% of all company employees (including part-time employee, contractors, etc.), and 100% of business partners (suppliers and other partners).
Regular Audits of Ethical Standards
The Audit and Supervision Center of LONGi Green Energy conducts a review of the anti-corruption and business ethics implementation for all business operations and units at least once every three years.