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Sustainable Development
The company has formulated sustainable development plans and goals, sorted out 23 environmental, social, and corporate governance related issues, and conducted an analysis of ESG importance issues.
The company strictly abides by relevant national laws such as the Labor Law and local laws and regulations used overseas, adheres to the principle of "openness and impartiality", treats applicants equally, selects talents based on merit, and does not discriminate against any applicants based on age, disability, ethnicity, gender, marital status, nationality, political outlook, etc; Strictly prohibit the employment of child labor and forced labor, and irregularly organize internal inspections to ensure the legality and compliance of employment to the greatest extent possible; At the same time, the company attaches great importance to talent cultivation and constructs targeted training systems at different levels and sequences.
The company attaches great importance to environmental and ecological protection, and continuously reduces the carbon footprint of the entire product lifecycle by developing low GWP high-efficient products and optimizing the system; Substitution of raw materials, such as using less emission intensive raw materials, design optimization, such as weight reduction. In terms of production, continuously improve the production line to achieve the goal of increasing production capacity efficiency; Install solar photovoltaic power generation in various industrial parks, use energy storage systems, and save electricity.
The company has formulated and released the 'Employee Integrity and Self discipline Agreement', which promotes, studies, and implements the company's integrity and self discipline regulations within the company, consciously enhances the awareness of integrity and self discipline, and strictly implements various systems for integrity and professional conduct; For suppliers, the company has formulated the "Integrity and Self discipline Cooperation Agreement", advocating for the common goal of pursuing a fair, just, and transparent business environment with suppliers.
Note: This statement applies to Zhejiang Sanhua Intelligent Control Co., Ltd. (hereinafter referred to as the "Company")
Corporate integrity related policies and standards
The company strives to create a positive atmosphere for promoting healthy, sustainable, and high-quality development. For employees, the company has formulated and issued the "Employee Integrity and Self discipline Agreement", which promotes, studies, and implements the company's integrity and self discipline regulations within the company, consciously enhances the awareness of integrity and self discipline, and strictly implements various systems for honest employment. As of the end of the reporting period, the company and its subordinate business units have completed the signing work of all their employees. For suppliers, the company has formulated the "Integrity and Self Discipline Cooperation Agreement", advocating for the common goal of pursuing a fair, just, and transparent business environment with suppliers, in order to ensure smooth cooperation and transactions, and safeguard the legitimate interests of both parties.
Corporate integrity practice work
The construction of a clean government is an important task that the company president tirelessly focuses on. In order to fully leverage the supervisory role of employees and external affiliated units, effectively protect the legitimate rights and interests of whistleblowers, further establish integrity, create a fair, open, and just clean work environment, and stimulate positive energy, the company has carried out multiple clean practice work:
1. For violations of integrity construction, the company's internal system shall be notified and taken as a warning; Organize anti-corruption promotion and training activities. During the reporting period, the company conducted one anti-corruption promotion and training activity in Hangzhou and Xinchang, respectively, to promote management and employees to be aware of their obligations under anti-corruption laws and practice business ethics.
2. The company has announced complaint and reporting channels (including reporting phone number, reporting email, WeChat, address, etc.), encouraging employees or third parties to report any corruption, fraud, and improper behavior in the business operation process. The company accepts anonymous reporting and encourages real name reporting to improve the efficiency of subsequent investigation work. It strictly and highly confidential the information of whistleblowers, and strictly prohibits any actions such as cracking down, retaliation, and unfair treatment against whistleblowers.
The company has released a sustainable procurement report, identifying the implementation of sustainable procurement, supplier diversification measures, carbon emissions, and carbon supply chain related plans. By participating in the standard development of various industry associations in various fields, the company has comprehensively standardized the requirements of low-carbon, green, and environmental protection; At the same time, the company has issued a Conflict Minerals Declaration prohibiting the direct and indirect use of any conflict minerals.
1、 Sustainable procurement policy
The new version of the "Basic Supply Agreement for Suppliers" and the "New Supplier Code of Conduct" and "Letter to Suppliers" incorporate environmental issues into the principles and agreements of the company's supply chain management, while also covering sustainable procurement policies related to labor and human rights, and incorporating labor and human rights issues (such as working hours and wages) into supply chain management. For the internal part, specialized training on sustainable procurement policies was conducted for procurement personnel from all regions to understand social and environmental issues, and included in procurement functional management.
2、 Conflict minerals section
The organization has signed a Conflict Minerals Declaration and developed a Conflict Minerals Report Template. The new version of the supply agreement also supplements the Conflict Minerals Policy, becoming the mining procurement entity in charge.
3、 Implementation of sustainable procurement
Through the signing of the supplier's Basic Supply Agreement, social or environmental clauses are included in the supplier contract, which standardizes the supplier's code of conduct and ensures compliance with rules to ensure the fulfillment of social and environmental responsibilities. At the same time, when new suppliers are included and annual audits are conducted, the corporate social responsibility (CSR) risk analysis item will be included in the rating item. Evaluate suppliers based on environmental or social practices, such as notifying them of REACH's new requirements through official letters, and organizing CTI environmental dynamic training, hazardous substance training, and global environmental regulation training to strengthen the management capabilities of suppliers on this topic. On top of this, there are unique incentives for suppliers who excel in environmental and social issues, such as organizing evaluations and providing incentives such as trophies.
Improve the management of sustainable procurement management in the procurement team, regularly summarize the sustainable development of suppliers, and share case studies.
4、 Supplier diversification measures
The Strategic Procurement Department has issued a "Declaration on Supplier Diversification" to all suppliers, which has a potential significant positive development promoting supplier diversification. Meanwhile, as a global enterprise, Sanhua's actions to promote supply chain diversification are applicable to all suppliers worldwide.
5、 Carbon emissions and carbon supply chain aspects
The company has launched a dual carbon initiative internally, which is a long-term plan and mainly serves as an overall measure for the company to reduce carbon emissions in the future. 2022 is the first year for Sanhua to move towards carbon neutrality, and a dedicated carbon emission management department has been established as the first level department of the company. At the same time, the strategic procurement department is working together to promote carbon emissions and carbon supply chain management, as well as carbon footprint tracking. In procurement practice, firstly, organize research on the recycled material industry, including scrap copper, aluminum, and steel, and gradually purchase alternative electrolytic copper to reduce carbon emissions from the source. Secondly, organize the company's management department to communicate with international suppliers with clear plans and progress in green development and carbon neutrality, such as Sweden's Grangis Company, a leader in the raw material aluminum industry, to learn advanced carbon management concepts and measures. Thirdly, in the internal production process of the company, a large amount of oil and copper foam generated during the production process are used as recycled materials to be re melted in the furnace, significantly reducing the investment proportion of electrolytic copper.
6、 Deep extension and development of sustainable procurement concept
The Joint Research Institute intervenes in the concept of sustainable procurement from the very beginning of product design, comprehensively building low-carbon competitiveness. By participating in the standard formulation of various industry associations in various fields, we have comprehensively standardized the requirements for low-carbon, green, and environmental protection, and quantified them. Through the source, we have standardized the behavior of industry participants to promote sustainable development throughout the industry. The development of industry association standards involved in 2022 includes the Automotive Heating System Branch of the China Association of Automobile Manufacturers, the Research Center of the China Automobile Association, the China Refrigeration and Air Conditioning Industry Association, the Energy Storage Application Branch of the China Chemical and Physical Power Supply Industry Association, and AHRI.
Zhejiang Sanhua Intelligent Control Co., Ltd. 2022 Social Responsibility Report
As a public enterprise, from the early stages of its development, the company has made social responsibility a part of its business activities, aiming to contribute to the sustainable development of society. Therefore, Sanhua extensively carries out various social activities and contributes to society. The company emphasizes the protection of employee rights and humanistic care. Provide a certain amount of relief fund to employees who suffer from unexpected injuries or accidents, causing temporary living difficulties and similar situations. Regularly carry out employee sports and cultural themed activities to build a diverse cultural atmosphere.