孚能科技:孚能科技2022年度环境、社会及治理（ESG）报告（英文版）

Contents
About This Report 04 Governance and Green Employee
Message from the Chairman 06 Operation Development Development
Column: A Global Leader in
Power Batteries 08
Farasis Energy in 2022 14 Corporate Governance Mechanism 27 Environmental Management System 39 Human Capital Management 51
ESG Strategy and Governance 18 Operational Risks 29 Energy and Resources Management 39 Talent Development 53
Compliance Management 31 Prevention and Control of Pollution 42 Healthy and Safe 58
Whistleblowing and Whistleblower Circular Packaging 45 Employee Communication 62
Protection 34
Spotlights: Climate Change 46 Employee Care System 64
Building Core Information Security Management 35
Competence 24 Party building 36
Product and Responsible Corporate
Innovation Sourcing Citizenship
Advancement of Innovation 71 CSR Risk Management on Suppliers 79 Community Charity 85
Product Quality 74 Training and Capacity Building 81
Making Intellectual Property Management 75 Responsible Mineral Manangement 81
Customer Service 77
Positive Impact 68
GRI Standards Index 88Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
Aboutt T Thhisis R Reepporotrt Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
About This Report
The Environmental Social and Governance (ESG) report (hereinafter referred to as "this report") is publicly issued by Farasis
Energy (Ganzhou) Co. Ltd. (hereinafter referred to as "Farasis Energy"). This report is compiled based on the principles of
openness and transparency discloses practices and performance of Farasis Energy in fulfilling ESG-related issues in 2022.Reporting Scope Reporting Principles
Unless otherwise specified the policies statements and materials in this report cover the actual business scope This report is finally compiled by identifying important stakeholders analyzing and rating materiality issues
of Farasis Energy and our subsidiaries which is the same as that of the annual report issued by Farasis Energy. related to sustainable development making decisions on the scope of the report as well as collecting
Unless otherwise stated this report is denominated in CNY (renminbi). summarizing organizing and reviewing relevant data and materials in the preparation process.The following standards and requirements were referred to in the preparation of this report.Self-regulatory Guidelines for Listed Companies on the Science and Technology Venture Exchange No. 1 -
Regulation of Operations by Shanghai Stock Exchange
UN 2030 Sustainable Development Goals (SDGs)
Reporting Period The Global Reporting Initiative (GRI Standards) by the Global Sustainability Standards Board (GSSB)
ISO 26000 (ver. 2010): Guidance on Social Responsibility
This report is the first ESG report released by Farasis Energy covering the period from January 1st 2022 to
December 31st 2022. In order to enhance the readability of the report some of the contents or data have been
presented from to previous or subsequent years.Access to This Report
This report is published in both electronic and printed formats. You can access the electronic version of this report
through the following website:
https://www.farasis.com/index/investor
Definition of Terms
You can contact us at the following ways:
Number: 0797-7329849
For the convenience of expression and reading "Farasis Energy" "Farasis" "we" and "the company" in this report
refer to Farasis Energy (Ganzhou) Co. Ltd. and our subsidiaries such as Farasis Energy (Zhenjiang) Co. Ltd. E-Mail: farasisIR@farasisenergy.com.cn
sustainability@farasisenergy.com.cn
The translation in English is only a reference copy. In case of conflicts the Chinese version shall always prevail.
04 05Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report MMeesssaaggee ffrrom the Chaairirmmaann Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Message from the Chairman
Great accomplishments require ambition and tireless effort. Since our foundation Farasis Energy has been committed to the vision In 2022 we pushed ahead steadily with responsible sourcing
of “Dedicate to technology innovation Lead energy transformation Promote a better life for mankind”. We promote the revolution and drove our suppliers and other partners towards compliance
and innovation in the field of the new energy to empower green and low-carbon development. and high-quality development. As a member of the Responsible
Critical Minerals Initiative (formally known as Responsible Cobalt
At Farasis Energy we focus on building core competence and take a people-centered approach to pursue stronger governance Initiative) we engaged a third-party audit agency as a pilot for
and greener operation. In line with applicable laws regulations and regulatory rules we constantly improve internal procedures enhanced audit with cathode material suppliers in an effort
and systems to optimize corporate governance. We gradually introduce ESG elements into decision making and put in place to build a more transparent supply chain. Being customer-
an ESG governance structure led by General Manager so as to ensure effective ESG governance at strategic and organizational centric we scaled up production in five places in two countries
levels. to nearly 150GWh taking a decisive step towards large-scale
In our pursuit of green development we’ve gained rich and practical experience in carbon neutral operation and calculation development. We upgraded products making our semi-
of Scope 1 and Scope 2 carbon footprints. ln 2021 and 2022 we have achieved Carbon Neutral Production certificates issued solid and 800VTC batteries the first to be mass produced and
by DEKRA a german third-party verification organization which certified the carbon-neutral production of our total volume applied to vehicles. We unveiled SPS (Super Pouch Solution)
produced in 2021 and total volume delivered in 2022 for Mercedes-Benz models at the Zhenjiang site. This represents another and optimized the battery structure further spearheading the
step forward we have taken forward on our journey to “zero-carbon operation”. experience with “ideal batteries of the future”. Always sharing
economic outcomes with communities we did a lot to show our
Being people-oriented we strictly abide by national labor laws regulations and policies and develop or revise a series of care for children.documents including the Remedial Management Procedure for Preventing the Employment of Child Labor and remediation
of Child Labor to require all employees to observe national laws and regulations and forbid the use of child labor and forced Looking ahead to 2023 I hope we could stick to the first
labor. We protect human rights and labor rights follow national policies regarding human rights gender age and ethnic principles layout the optimal solution in our vision and
groups and regulate labor use to guarantee every employee’s legitimate rights and interests. overcome divergences with concerted efforts so as to build a
better future for Farasis Energy together.With great power comes great responsibility. Without the vigorous support from our stakeholders we could barely take any step
forward. We also hope to make positive impacts on them through our operations. Yu WANG
Chairman of Board of Management (BoM)
Farasis Energy
06 07Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman CoCloulmumn:n :A A G Glolobbaall LLeader iin PPoowweer rB Baatttetreierises Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Column A Global Leader in Power Batteries
Farasis Energy is one of globally leading producers of pouch power and energy storage batteries as well as one of the first Dedicated to the R&D production and sales of pouch lithium-ion batteries we’ve developed rapidly in application area like
mass producers of NCM pouch batteries in China. In 2009 Farasis Energy was established in Ganzhou to industrialize the transportation energy storage equipment and Energy Internet of Things. No matter at what stage of energy development we
lithium-ion power battery technology for vehicles becoming one of the first lithium battery makers in China. can create clean energy solutions that meet human needs and lead industrial development by leveraging our strength in R&D
and manufacturing.Our History
20022009201120162017
Farasis Energy was Farasis Energy (Ganzhou) Supplied power battery systems Entered China’s Powered Venturi the
established in Silicon was established in to luxury electric motor makers new energy vehicle world’s top racing car
Valley California Ganzhou Jiangxi worldwide market through mass brand in FIA Formula
Officially entered the electric motor shipments of power E Championship
industry and laid a solid foundation battery systems to
for future development domestic car makers
202020192018
Ranked No.1 in China by the quantity of NCM pouch power Ranked No.1 in Farasis Energy started the strategic cooperation with
batteries installed in vehicles for a consecutive four years China by the Mercedes-Benz for over EUR 10 billion kickstarting our
Zhenjiang site was put into operation quantity of NCM globalization journey.pouch power
Farasis Energy went listed on SSE STAR Market the first batteries installed Farasis Energy received CNY 5 billion from investors led by
stock in the power battery sector of STAR Market and the in vehicles for a China State-Owned Capital Venture Capital Fund under
first Jiangxi-based stock traded on STAR Market consecutive three China Reform Holdings Corporation Ltd. which accelerated
years our development
Daimler Greater China Investment Ltd. became a strategic
investor of Farasis Energy through an investment of CNY Farasis Energy commenced construction of our Zhenjiang
904.5 million site scaling up both production capacity and operations
20212022
Began to mass-supply batteries to Capacity layout planning in an orderly manner Farasis Energy achieved tens of billions of revenue and top 10 global
Mercedes-Benz battery product shipment (Note: shipment ranking according to SNE Research)
Jointly found the first joint venture with Farasis Energy released SPS better positioned for future technology landscape
Geely Technology settled in Ganzhou to
scale up both partnership and production “2022 Farasis Energy Strategy and New Product Release Conference” was held in Beijing at which Farasis Energy showcased our history R&D progress and product plans at a release conference for the first time
Funded the 24GWh new energy battery
project in Wuhu Anhui to increase both Farasis Energy announced the 24GWh project located in Anning Yunnan
production and market shares Commenced the construction of the 30GWh site in Ganzhou to enhance our leading position in pouch batteries
08 09Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman CoCloulmumn:n :A A G Glolobbaall LLeader iin PPoowweer rB Baatttetreierises Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Our Products and Businesses Global Business Locations
Focusing on the R&D production and sales of lithium-ion power batteries and battery systems for new energy vehicles Farasis
Energy aims to become a leading provider of power and energy storage battery solutions. Stuttgart | Germany
Domestic Businesses
Zhenjiang | China
Automobiles GAC Geely Voyah JMC Jinpeng Sky-well etc. （24GWh）
Two-wheeled vehicles CFMOTO Surron Brilliance Xinri Yugu etc.USA (Planning)
Wuhu | China
（24GWh）
Overseas Businesses
Mercedes-Benz Lotus TOGG Zero Taiga Joby Ganzhou | China
（46GWh includingSilicon Valley | USA joint venture）
Main products and applications
Technology lines and reserves Ternary battery pouch battery sodium-ion battery prismatic battery lithium iron Guangzhou | China
phosphate battery solid-state battery high-lithium manganese battery （30GWh）
Gemlik | Turkey Yunnan | China
（24GWh）
Cell Module BMS Pack SPS R&D Centers Manufacturing Sites R&D Centers & Manufacturing Sites
Sports Cars Electric Buses Electric Trucks Marine Energy Storage
Electric Cars Electric Motorcycles Drone Rail Transportation Forklift Trucks Construction Machinery Agricultural Vehicles
10 11Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman CoCloulmumn:n :A A G Glolobbaall LLeader iin PPoowweer rB Baatttetreierises Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
SPS（Super Pouch Solution） Our Future Prospects
Super pouch battery cell We adhere to the mission of “Provide clean energy build an intelligent world” and take the vision of “Dedicate totechnology innovation Lead energy transformation Promote a better life for mankind” to serve as a green energy solution
provider.We lay out a core market with green mobility and smart energy while actively expanding into emerging markets for particular
The all-tab and multi-tab super pouch battery cell changes the former design of multiple battery cells in series with industry applications. In future we will take the new energy vehicle and energy storage market as the starting point and
a simpler battery system structure; gradually expand to the smart lithium market.The 2~5C fast charging capacity better supports various new energy vehicles;
Highly compatible with various materials the super pouch battery cells apply to NCM batteries low-nickel and high-
lithium manganese batteries lithium iron phosphate batteries lithium ferromanganese phosphate batteries and
sodium-ion batteries etc. and can meet different customer demands.Our Mission
Super pouch battery system Provide clean energy build an
intelligent world
Our Vision
Both liquid cooling plates and the super pouch battery cell are integrated into the chassis reducing both the
category and the number of components and significantly slashing cost; Dedicate to technology
innovation Lead energy
The super pouch battery cell protected on multiple sides and supported by efficient gas-exhausting path design transformation Promote a
and heat exchanging ability offers better protection against thermal propagation; better life for mankind
The battery system applies to a chassis of 85mm~145mm height and has a capacity ranging from 80kWh to 150kWh
better supporting various types of passenger vehicles in a flexible manner.Super pouch battery manufacturing
The super pouch battery cell produced with advanced technology will significantly lower production investment and
manufacturing costs.Our Spirit
Direct recycling
Innovation and
entrepreneurship for win-win
cooperation
Farasis Energy spent over a decade developing and validating the direct recycling technology for lithium batteries
which can simplify the waste lithium-ion batteries into physical decomposition screening and regeneration
processes with a significantly higher metal recovery rate and the recycled materials can be directly reused further
reducing costs and energy consumption.
12 13Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries FFaararassiiss Energy iinn 2 2002222 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Farasis Energy in 2022
Key Performance in 2022
Financial Performance Environmental Performance
Operating income (Million) 231% Annual tax (Million) 80%
Social contribution Total emissions of Total energy consumption Total PV power generation (kWh)
per share*
11588.10 68.98 greenhouse gas* (equivalent value)
21040600
0.34 CNY 49.80 424786 102882
38.34
3500.08 tCO2e tce 9625760
1119.65
2020 2021 2022 2020 2021 2022 0CO2 2020 2021 2022
Total operating cost (Million) 164% Sales cost (Million) 196% Total assets (Million) 53% * Total emissions of greenhouse gas (including Scope 1 and Scope 2) in 2022 are verified by a third-party in line with ISO 14064. The emissions in Scope 2 were location-based.
12498.0310717.6632127.17
Social Performance
20936.43
4734.13 15422.35 Total number(s) of Number(s) of male Number(s) of female
3617.22 employees* (Persons) 49.28% employees (Persons) 46.24% employees (Persons) 57.08%
1647.74
941.36
711350162097
202020212022202020212022202020212022
476534301335
367024951175
* S ocial contribution per share = Earnings per share + (total tax + employee expenses + interest expenditure + public welfare input - social cost) ÷ Total capital stock
at the end of the period
Governance Performance 2020 2021 2022 2020 2021 2022 2020 2021 2022
Number(s) of anti-corruption and Number(s) of persons covered by anti-corruption
anti-commercial bribery trainings and anti-commercial bribery training (Person times)
for directors/senior management
6114 Proportion of Employee
11 females on senior satisfaction/Proportion of times management 20.0% engagement 77.4%
independent 36.4% Number(s) of anti-corruption and positions survey results
directors 3039
anti-commercial bribery trainings
for ordinary employees
1395
11 * The total number of employees includes full-time equivalents within and outside of China.times 2020 2021 2022 Note: For other financial and business-related data and information please refer to our Annual Report 2022.
14 15Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries FFaararassiiss Energy iinn 2 2002222 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Awards and Honors
National Advanced IPR-Based Water-Saving Enterprise of Excellent Activity Award Excellent Award for Power th
Enterprise in 2022 Jiangxi Province in 2022 of 2022 National Science Assembly of the 7 Lingxuan Popularization Day Award in 2022
China National Intellectual Property Department of Industry and Information Technology Department
Administration of Water Resources Development and Reform Commission
General Office of China Association for Auto Business Review
and Administration for Market Regulation of Jiangxi Province Science and Technology
Manufacturing Champion of Enterprise Observing Contract Annual Technology Prize of GIIC Annual Energy Transformation
Jiangxi Province in 2022 and Valuing Credit of Jiangxi Pioneer by Chuangzhi Industry in Province in 2022 Golden Ball Award in 2022 2022
Department of Industry and Information Administration for Market Regulation of GIIC JIEMIAN
Technology of Jiangxi Province Jiangxi Province
Smart Manufacturing
Brand-Name Exporter of Jiangxi Demonstration Plant of Jiangsu Best Practice Case · Example of Most Promising Listed Company
Province in 2022 Province in 2022 - Lithium- in the New Energy and New ion Power Battery Smart Specialization in 2022 Material Industry in 2022
Manufacturing Plant
Department of Commerce of Jiangxi Department of Industry and Information
Province Technology of Jiangsu Province Yicai National Business Daily
Smart Manufacturing
Demonstration Workshop in 3-Star Enterprise for Industrial
Jiangsu Province in 2022 - Control System Security Top 100 Players of China Best Enterprising IR Team
Lithium-ion Power Battery Protection of Jiangsu Province Automobile Supply Chain in 2022 Award in 2022
Module Smart Manufacturing in 2022
Workshop
Department of Industry and Information Technology Department of Industry and Information
Department of Finance of Jiangsu Province Technology of Jiangsu Province Gasgoo Comein Finance
16 17Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 EESSGG S Sttrraattegy and Goveerrnnaannccee Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
ESG Strategy and Governance
Oversee the ESG performance;
ESG Strategy General Confirm our ESG strategy and objectives identify ESG risks and opportunities and develop action
Manager plan;
Committed to “Provide clean energy build an intelligent world” Farasis Energy pursues sustainable development and plays
a leading role in the process. Review the ESG information disclosure.To echo the global sustainability trends we guide daily work with sustainability and take our economic environmental and
social responsibility to make green transition and create positive impact to the industry value chain and society. We deliver
leading clean energy solutions to the world and promote carbon neutrality by promoting green energy in transportation with
the aim to build a more sustainable world. Set up the ESG Committee which is under OMT (Operation Management Team) and chaired by
General Manager and co-chaired by two senior executives of vice president level;
Identify analyze and evaluate ESG risks and opportunities;
ESG
ESG Governance Committee Lead the integration of ESG strategy and other strategies and define ESG objectives and plans;
Build the ESG policy system and motivation mechanism;
A robust ESG governance structure is crucial to sustainable corporate operations and business success. Farasis Energy builds
up ESG governance structure led by the General Manager and integrates ESG into corporate strategic decision-making process. Report ESG progresses and propose effective suggestions to the General Manager.All of these efforts will ensure our ESG strategy and implementation much more effective and systamtic.Farasis Energy’s ESG Governance Structure
Consist of department heads site managers and ESG representatives with a leading department
to coordinate the efforts among departments and sites so as for the daily implementation;
ESG Working The ESG leading department need to coordinate functions and sites to implement decision from
Decision-
making Level 1 General Manager
Group the management team and supervise the progress.(Secretariat)
Develop our ESG strategy and propose reasonable ESG objectives and plans;
Promote ESG action plans landed in functions and sites.Management
Level 2 ESG Committee
Departments All departments and sites shall execute various ESG decisions made by the management;
3 ESG Working Group (Secretariat) and Track daily work and supervise the progress;
production
sites Collect and summarize ESG data and provide information for decision making.Executive
Level 4 Production Sites ＋ 4 Departments
In 2022 we organized ESG special training for the senior management team through a dedicated consultancy to help us
ESG Practice understand how ESG could value our business and stakeholders’ expectations for us and carry out ESG action plans more
effectively in the future.Now the ESG factors has been taken into consideration in decision making at strategy and implementation level and also
transparently communicate with the public to help them better understand our efforts and ambitions. Moving forward we will
continue to deliver more ESG training for senior management team including basic and specialized contents.
18 19Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 EESSGG S Sttrraattegy and Goveerrnnaannccee Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Materiality Analysis
In 2022 we launched ESG materiality analysis programme through which we conducted online survey covering the
Farasis Energy values ESG materiality analysis and hear the voices from our stakeholders which will help us to identify the most management team all empolyees governments regulators shareholders or directors customers suppliers communities
important ESG issues that we need to focus on and improve our ESG performance. media NGOs and other groups. Based on the feedbacks from the participants we prioritized the issues and disclosed the
progress in this report.Procedures and Results of Materiality Analysis of Farasis Energy in 2022
Category Key Issues
22
1. ESG Governance Structure 5. Anti-money Laundry
2
Identification Governance 2. Business Code of Conduct 6. Whistleblowing and Protection 17 16
and Prioritizing Issues 3. Risk Management System 7. Shareholders’s Rights Protection 23
4. Anti-corruption and Anti-bribery 8. Party Building 9
313
Based on the research on laws and regulations 1
peer practices benchmark public responses 34 7 10
and business strategy we build up the 2022 9. GHG Emission 13. Pollutants and Waste 15
ESG issues pool with an amount up to 45 10. Address to Climate Change Management 29 13
issues and select 34 of them as our priorities. Environmental 12
11. Energy Management 14. Water Management
21
Issues 25 24 30
15. Environment Education 4 1112. Clean-tech introduction 26
and Application 27
28
Materiality Analysis 14 20
and Prioritizing 33
16. Employee Right Protection 26. Customer Right Protection 32
5
17. Health and Safety 27. S upplier Code of Conduct
19
Based on our ESG stratrgy we invite stakehold- 18. Diversity and Inclusion 28. Supplier ESG Management and 8 18
ers from government employees regulators Training 6
customers suppliers communities media 19. Complaint and Communication 29. Conflict Minerals Management
industry association and NGOs to join the
survey and identify the most important issues. 20. Employee Training and 30. Raw Material Supply Risk
Social Promotion Assessment
Issues 21. Employee Benefits and 31. Charity Strategy and
Supports Management
22. Product Quality and Safety 32. Farasis Energy’s Charity
23. Product Research and Programs
Innovation 33. Respond to Public Concerns
24. Green Product 34. S upport Rural Revitalization Importance to Farasis Energy
25. I ntellectual Property
Protection
2021
Importance to StakeholdersFarasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 EESSGG S Sttrraattegy and Goveerrnnaannccee Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Stakeholders Engagement
Fully aware of various expectations from stakeholders for ESG Farasis Energy connects to both internal and external
stakeholders in diverse ways to better meet their appeals. We integrate ESG strategy into daily management and drive a
better balance between ESG management and business operation. Meanwhile we maintain regular communications with
employees governments and regulators shareholders or directors customers suppliers communities and NGOs to create
shared value for them all.Category
Employees Governments and Shareholders and Customers Suppliers Contractors regulators investors Partners Communities Social organizations
All employees Governments and related Investors Domestic and Suppliers Communities around Academia and research
authorities at various levels international customers Contractors our sites institutes
Representative SSE Partners ESG rating agencies
CSRC Media
NGOs
Industrial associations etc.Renumeration and welfare Lawful and compliant Business plan Excellent product Fair and transparent Contributing to Sound cooperation
Individual competence operation Financial performance performance selection procedures community sustainability Timely sharing of corporate
building Carbon peaking and carbon and ESG performance Green products and Steady and long-term Sharing development experience and practice
Open and transparent neutrality strategy and climate change Risk management system
environmental impact partnership outcomes Transparent information
Expectation career paths Investor engagement Timely and efficient Just fair open and communication and
Work-life balance Rights of employees customers customer service transparent procurement sharingand other stakeholders
Steady corporate Overall CSR performance
process Common development
development Stable products and operation Stable financial performance across the industry
Driving economic growth and payment policyWorkplace health and safety
Party Branch Regular information Regular information Pre-sales Supplier trainings Face-to-face meetings Media briefings and
Trade Union disclosure disclosure communication Onsite audit and Charity and donation roundtables
Farasis Core Community Participation in relevant Shareholders’ meetings After-sales communication Regular communication
Employee Exchange Platform meetings Investors’ roadshows and communication
Complaint hotline
Regular visits and feedback
Communication through meetings Regular communication Project cooperation
Engagement E-mail box industry associations such as customer visits
Method Corporate WeChat account etc. Hotline and e-mails Farasis Energy’s official Third-party trainings website WeChat public
Employee suggestion box Onsite visiting account and other open
Farasis Home Business performance
Customer audits channels
briefings and presentations
Social media
22 23Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 EESSGG S Sttrraattegy and Goveerrnnaannccee Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Building Core Competence
Our progress in 2022 Our Achievements
Board of Supervisors
Farasis Energy effectively implements the decisions and plans made at the 20th CPC National Congress. We improve Held Board of Directors meetings shareholders’ meetings meetings
the system and capacity for governance and promote integration among compliance and business ethics in
corporate governance. We have established a sound corporate governance structure where each department
performs its own duties and takes its own responsibilities in a coordinated and effective manner. 20 5 17
We strictly abide by all ESG related laws regulations and standards and push for the transition towards green
operation and intelligent manufacturing so as to promote harmony between humans and nature. Acknowledging
that the talent is the primary resource we protect employee interests through a variety of policies and development Held compliance training sessions Organized online and
programs and assist them in recognizing their own value. 5 130
for management personnel to raise offline exchange meetings which
These efforts provide an important impetus for Farasis Energy in becoming a premier power battery manufacturer. their awareness of risk management helped us attract increasing attention
compliance and anti-corruption from the capital market
Contributing to the UN Sustainable Development Goals All sites achieve
100%100%100%
compliance of off-gas compliance of compliance of hazardous
emission wastewater discharge waste disposal
TM
Achieved "Carbon Neutral Production" certificates
in 2021 and 2022 for the products produced and delivered to Received a “B-” score in CDP climate
Mercedes-Benz Group models respectively
questionnaire
Employed All employees were trained for
7113 persons 29.48% 61503 hours
of whom were female
24 25Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance GGoovveerrnnance and Operraattioionn Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Corporate Governance Mechanism
Corporate Governance
In compliance with applicable laws regulations and regulatory rules including the Company Law of People's Republic of
01 China Securities Law of People's Republic of China Code of Corporate Governance for Listed Companies in China and Rules of Stock Listing on STAR Market of Shanghai Stock Exchange Farasis Energy improves internal rules and systems step by step to standardize corporate governance. As required by the relevant code for listed companies we establish a corporate governance structure that clarifies rights and responsibilities for all and an internal control system that promotes effective supervision. We
run the shareholders’ meetings Board of Directors and Board of Supervisors based on decision-making authority and scientific
procedures.Our Board of Directors has eatablished the Audit Committee Strategy Committee Nomination Committee Remuneration and
Governance Evaluation Committee and Technology and Product Committee. Each committee plays positive roles in decision-making and supervision in revelant areas.and Operation Farasis Energy’s Corporate Governance Structure
Shareholders’
Meetings
Audit Committee
Corporate Governance Mechanism
Board of Supervisors
Operational Risks Strategy Committee
Compliance Management Nomination Committee Board of Directors Office of the Board of Directors
Whistleblowing and Whistleblower
Protection Remuneration and Evaluation Committee
Information Security Management Technology and
Product Committee
Party building
Farasis Energy puts in place a decision-making and operating system governed by shareholders’ meetings Board of Directors
and Board of Supervisors. We strictly adhere to Articles of Association of Farasis Energy(Ganzhou)Co.Ltd Rules of Procedure of
Shareholders’ Meetings Rules of Procedure of the Board and Rules of Procedure of the Board of Supervisors and other relevant
regulations to ensure lawful and compliant operations. The convening procedures resolution contents rules of procedure
and voting results of the shareholders’ meetings Board of Directors and Board of Supervisors are all in compliance with
applicable laws and regulations and our policies. On June 29th 2022 we held the 2021 shareholders’ meeting at which a new
session of Board of Directors and Board of Supervisors was elected. The term of office is three years as approved by the annual
shareholders’ meeting. At present our Board of Directors comprises 11 members including 4 independent directors while the
Board of Supervisors consists of 5 members including 3 females.In 2022 we held 20 Board of Directors meetings 5 shareholders’ meetings and 17 Board of Supervisors meetings which
reviewed our regular operating results interim strategic plans and stock incentive programs etc. to promote sound corporate
governance.
26 27Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance GGoovveerrnnance and Operraattioionn Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Investor Communication Number(s) of Number(s) of independent Number(s) of Number(s) of
Number(s) of
independent directors/non-executive directors directors with legal directors with
directors
directors with risk management expertise expertise accounting expertise
Farasis Energy aims to protect investor rights by complying with disclosure requirements and developing policies such as the
Management Measures for Investor Relations and Management Measures for Information Disclosure to build strong and persons persons persons persons persons
healthy investor relations. We define shareholders’ rights in company information investment returns selection of company 11 4 3 3 7
management members and major decision-making processes. Also we strengthen communication with investors through
the hotline e-mail SSE E-Interactive platform specific target surveys analyst meetings business performance briefings and Number(s) of Board of Directors Number(s) of shareholders’ meetings Number(s) of Board of Supervisors
presentations and site visits to understand and respond to their questions and complaints. meetings (Times) (Times) meetings (Times)
Besides we actively disclose all the information that may materially influence the decisions of shareholders and other 20
stakeholders in time. 17
14
13125
446
Visit to sites 2020 2021 2022 2020 2021 2022 2020 2021 2022
Organize regular visits for investors to our production sites in Ganzhou and Zhenjiang with expert explanations
of the production processes. Operational Risks
Organized 9 offline visits in 2022 involving over 60 investment institutions in total.Internal Control and Risk Management
Investor exchange meetings
Farasis Energy has a comprehensive internal control system in place to regulate the operations and prevent risks. Internal
control enables the timely identification and correction of misconducts frauds and illegal behaviors ensuring the safety and
completeness of assets and delivering true and reliable business results. Additionally the internal control system enhances
Organize strategy meetings roadshows and reverse roadshows to update investors on Farasis Energy’s operating efficiency and helps us deliver on our strategies.production and operation strategic plans and investment & financing in time;
Organized 130 online and offline exchange meetings in 2022 which helped to attract investor attention. In terms of organizational setup and assignment of authority and responsibilities the Board of Directors takes charge of
the establishment improvement and effective implementation of internal control; the Board of Supervisors oversees the
establishment and implementation of internal control by the Board of Directors; the management leads the daily operation
of internal control. We set up an organizational structure to meet our business scale and operational needs. We clearly define
Business performance briefings and presentations the authorities and responsibilities of each unit in compliance with the Company Law of People's Republic of China and
other applicable laws regulations and regulatory requirements. We separate incompatible duties and ensure mutual check
and supervision among different positions. The Internal Control Department is set up especially in charge of planning and
managing the development implementation and day-to-day operations of internal control.Hold regular business performance briefings presentations and investor exchange meetings with a focus on
Farasis Energy’s financial status and fulfillment of business objectives plans and outlook for the next year;
Risk Assessment Risk Control Training
Organized 11 public online investor exchange meetings in 2022.After goal-based risk identification and analysis In July 2022 our Internal Control Department
we emphasize r isk reduction through the organized a training session themed Basic
implementation of risk response strategies which Knowledge about Internal Control with 36
Leverage new media to carry out investor relations activities excludes risk avoidance risk-sharing and risk participants. Contents of the training included
tolerance. To keep the risk within a reasonable an overview of internal control common internal
range we take appropriate steps. We regularly control vulnerabilities and the consequences of
Regularly answer the investor questions on SSE’s public platform to share information with investors and other gather information on changes in risks conduct losing control key factors of effective internal
market participants; risk identification and analysis and promptly control basic codes about internal control and
Answered over 90 investor questions in 2022. modify risk response methods in accordance with Farasis Energy’s internal control system.various business development stages.
28 29Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance GGoovveerrnnance and Operraattioionn Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Tax Governance Compliance Management
Farasis Energy acts in strict compliance with all applicable tax laws and regulations. We establish processes for export rebate
tax declaration annual income tax accounting input tax invoice risk control matrix and tax policy collection and interpretation Code of Conduct for Compliance Operation
risk matrix. Meanwhile we keep close contact with relevant tax authorities to understand local tax standards and requirements
and maximize benefits while ensuring tax compliance. In the case of unconventional businesses we will confirm the handling
process with intermediaries and tax authorities to ensure tax compliance.Farasis Energy conveys to employees and partners the high-standard business ethics and code of conduct that we adhere
The tax shared service center is set up to plan tax-related matters for our parent companies subsidiaries and sub-subsidiaries to. The expectation is included in Farasis Energy’s Code of Conduct for Compliance Operation which covers seven key areas
and collect the latest tax policies and preferential policies at state and local levels to ensure tax practice is in compliance with i.e. upholding integrity and compliance safeguarding fair competition preventing corruption and bribery forbidding insider
regulatory requirements. Meanwhile the tax shared service center keeps close contact with our project application department trading avoiding conflicts of interests keeping confidential business secrets product management and quality & safety
and legal affairs department to understand the requirements for project application and weighted deduction of R&D expenses and provides guidance for daily operations of employees and partners. In 2022 we added more specific clauses to the
for high-tech firms. It also collaborates with the sales department and the order team to organize trainings on invoice issue aforementioned code of conduct on the conflicts of interests to visualize illegal behaviors revised the relevant sections about
practice (accurate invoice information and complete supporting documents) ensuring compliance with our policies and technical compliance and introduced regulations about sexual harassment to better align the code of conduct with our
applicable laws and regulations. operations.We have developed the Management Procedure for Compliance Obligations and Evaluation of Compliance and tCMS
The Management Structure and Functions of Farasis Energy’s Tax Shared Service Center Management Regulations the former of which provides for the establishment and operation mechanism of the technical
compliance management system to ensure technical compliance of products. The latter requires EHS Legal and IPR Internal
Audit and Control HR IT and other special compliance departments to regularly update the List of Legal Obligations and Other
The Group’s tax-related system The Group’s tax evaluation and Requirements and pass it to the applicable departments and to evaluate compliance in EHS intellectual property anti-fraud
and process standardization self-inspection and anti-bribery labor and employment anti-monopoly and information security compliance under the organization and
Tax The Group’s tax forecast and The Group’s related-party coordination of the compliance group of the Legal and IPR Department.Management analysis report transaction management
team Tax-related audit coordination and Tax policy research and training We support compliance culture building with regular trainings and communication. We organize compliance promotional
risk response activities twice a year and utilize quiz article solicitation posters and PC/laptop wallpapers to raise employees’ awareness of
The Group’s tax planning compliance. We trace updated laws regulations and policies and promote them internally through the Compliance Classroom.Meanwhile we organize a compliance training session for all employees each year which focuses on the Farasis Energy’s Code
Tax of Conduct for Compliance Operation and communicates internal policies including the Gift Management Measures Anti-
Management Tax Tax calculation for sites Deferred income management
for sites Fraud Management System and Information Asset Security Management as well as the latest laws and regulations. Department Declaration Tax declaration for sites
for Domestic team Tax settlement for sites Maintenance of relations with We revise contract clauses and improve the Farasis Energy Supplier Code of Conduct to convey the compliance requirements to
Operations tax authorities for sites suppliers service providers and other third parties that operate on behalf of us.Invoice certification and issue Filing and declaration of non-
Bill Export rebate management trade foreign exchange payment
Management Tax-related investigation onsite
team Management of government Building a Clean Business Environment
subsidy materials coordination
As a member of the Enterprise Anti-Fraud Alliance Farasis Energy is a model anti-fraud enterprise that works constantly to
improve the anti-fraud system and promote resource and information sharing and jointly build a clean business environment.Tax Collection of declaration materials from overseas related companies To promote integrity diligence and dedication we develop the Anti-Fraud Management System that prohibits fraudulent
Management Overseas tax policy research and planning behavior in any form including soliciting or accepting briberies kickbacks commissions service charges or other benefits given
Department
for Response to audit of overseas related companies to individuals or small groups. Employees are also prohibited from accepting any unconventional treatment offered under any
International Coordination on tax-related matters of overseas legal entities name such as tourism and entertainment by suppliers or partners. For any employee involved in fraud our HR department will
Operations impose penalties such as public announcement confiscation of gains from fraud fines serious demerit recording demotion
and pay cut or dismissal. We dismiss any employee involved in the solicitation or acceptance of briberies or kickbacks
intentional disclosure of business or technical secrets or theft of assets. In case of a breach of law we transfer the case to
judiciary authorities as required by law.Farasis Energy is dedicated to preventing potentially risky tax problems. We analyze the scenarios and types of related-party
transactions develop corresponding pricing logic for related-party transactions and establish the system for managing We clearly define the anti-fraud responsibilities of employees at various levels in the Anti-Fraud Management System. We
related-party transactions. Meanwhile we audit the authenticity of the services provided by related-parties and the logic of require the Supply Chain Management Center HR Center Financial Affairs Center and Legal and IPR Department to provide
expense sharing and jointly issue letters of explanation for non-trade payment with world-renowned accounting firm to anti-fraud support in order to put in place a complete anti-fraud management system.ensure the tax risk associated with non-trade payment is controllable and compliant.
3031
Tax Shared Service CenterFarasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance GGoovveerrnnance and Operraattioionn Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
It urges the management to build an anti-fraud culture and enhance the anti-fraud internal control
Board of In 2022 Farasis Energy has significant incidents of suspected corruption monopoly or unfair
Directors system; the Board of Directors and the Audit Committee spearhead anti-fraud activities and direct and
zero
oversee anti-fraud operations. competition.Audit and Internal
Control Center A standing organization in charge of anti-fraud work. Case Integrity Education Newsletter
To fulfill the strategy about integrity and intensify education on ethical
It is responsible for establishing improving and implementing internal control to reduce chances practices we have issued a newsletter about integrity for all employees
of fraud. It also should take proper and effective remedial measures for fraud behaviors and be on a quarterly basis since 2020. The aim is to raise their awareness of
Management accountable for the occurrence of fraud. Heads of subsidiaries branches and departments are integrity. Each issue elaborates on a type of corruption shares relevant
primarily responsible for anti-fraud efforts at respective units or departments. cases and offers interpretations in line with our policies.Farasis Energy’s Management Structure for Anti-Fraud Work
the Board of Directors and
the Audit Committee
Audit and Internal Control
Center
Management
Total number(s) of employees covered by the
Supply Chain HR Center Financial Affairs Legal and IPR anti-corruption and commercial bribery training Management Center Center Department Total number(s) of anti-corruption Total number(s) of anti- (Person times)
and commercial bribery training corruption and commercial
sessions targeted at directors/ bribery training sessions 6114
senior executives targeted at ordinary employees
3039
To combat corruption and briberies we ensure all the relevant persons sign the letters of commitment to compliance and times times 1395
organize compliance trainings regularly. In 2022 we held 5 compliance training sessions for management personnel. With a 11 11
focus on corruption and bribery insider trading interest conflicts fair competition integrity and compliance business secrets
confidentiality and quality control and safety the training was aimed at raise their awareness of risk management compliance
and anti-corruption. Also we sent posters newsletters OA bulletins and emails to employees suppliers and other partners to
promote integrity. 2020 2021 2022
32 33Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance GGoovveerrnnance and Operraattioionn Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Whistleblowing and Whistleblower Protection Information Security Management
Farasis Energy’s employees and any third parties have the obligation to report any actual or potential violations of the Code Farasis Energy fully understands that information security concerns the interests of employees customers and other
of Conduct for Compliance Operation which defines employees’ reporting responsibilities and handling procedures specifies stakeholders. We take “Information security Everyone's responsibility” as the information security principal and take safe
the violations. We encourage employees to consult or report promptly to competent compliance department with regard to production as the core security goal to carry out information security and privacy protection work. By far we have passed TISAX
partners’ or colleagues’ behaviors violating applicant laws regulations or our compliance requirements. AL2 certification.In the Employee Reward and Penalty Management System we specify punishments for violation behaviors including We strictly abide by the Personal Information Protection Law of the People’s Republic of China the EU’s General Data Protection
warnings dismissal and zero-tolerance policy. In the Provisions on the Investigation of Responsibilities for Breach of Rules and Regulation (GDPR) and other applicable laws and regulations. Additionally we develop the Information Security Compliance
Disciplines we highlight the principle of accountability. If there are serious violations of discipline personnel included in the list Management System Data Protection Management Method and other internal policies in accordance with advanced
of defaulters the corresponding management department leaders will take joint liability. Meanwhile to strengthen protection international standards including ISO 27001 and VDA-TISAX. Also we set up the Information Security Management Committee
for whistleblowers we promise to keep their identities contents of reports the information about investigators witnesses and to be ultimately accountable for information security which coordinates and oversees the efforts related to information security
investigations confidential through policies including the Anti-Fraud Management System and Code of Conduct for Compliance and privacy protection.Operation. All shall hold back or prevent any whistleblowers from reporting under any excuse or by any means or take revenge
on whistleblowers investigators witnesses or their relatives. The employees will be rewarded as long as they report non- In terms of emergency response we put in place a complete mechanism for response to information security emergencies
compliance behaviors or offer compliance recommendations and thus avoid significant losses for us. regularly carry out emergency response drills and take an active role in the information security emergency response drills
and cyber safety training activities organized by the Ministry of Industry and Information Technology. In 2022 we participated
in an information security emergency response drill organized by Jiangxi Provincial Government. During the drill we actively
identified and stopped the attacker and initially traced the source after the accident with new information security devices.In addition we upgraded the office network security structure at Zhenjiang site by completing the commissioning of two new
security devices - IPS (Intrusion Prevention System) and WAF (Web Application Firewall) and improved the safety and reliability
Reporting Channels of various business systems.In terms of raising awareness we have established an information security training mechanism to ensure that every employee
accurately understands the legal principles of data protection based on respective jobs. In 2022 we organized 158 information
In case of any known or suspected violation of our compliance policies applicable laws regulations or other security training sessions for new employees training 5198 persons and covered basic concepts laws and regulations privacy
requirements regardless of its severity any department employee or business partner may consult or report to protection password protection data protection anti-telecommunication fraud anti-phishing emails and other work-related
the relevant compliance department/authorities under their real names or anonymously or through one of the tips.following channels:
Besides to better serve domestic and international customers and meet their demands for battery information security we
Hotline: 0797-7329850 introduce password-based battery information management. This system generates random passwords that serve as the only
means to manage batteries thereby strengthens battery data protection.E-mail: compliance@farasisenergy.com.cn
In 2022 we organized Training
158 information security training personssessions for new employees 5198
Safety accident(s) that have occurred (Cases) Number(s) of defenses against attacks (Times) Protection rate in 2022
79268502
4756110199.995%
30
24
2021202220212022
34 35Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance GGoovveerrnnance and Operraattioionn Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Party building Currently the Party organization at Farasis Energy Ganzhou site has witnessed the membership increase to 43 from over 10
(three probationary Party members became formal Party members and two new probationary Party members were accepted)
accepted one potential Party member and two Party activists. Additionally three comrades have applied to join the Party. By
Farasis Energy strengthens the Party’s leadership in corporate governance. Serving as the political core and political leadership far we have completed the transfer of Party organization affiliations of 22 Party members from elsewhere and improved and
our Party branch takes actions to improve the quality of Party building by advancing the efforts to standardize regulate integrated Party membership ledgers.and informatize Party building. The branch also develops the work approach of “three promotions three cultivations andthree improvements” based on practice and integrated Party building into production and operation. Farasis Energy has
now established party branches in Ganzhou and Zhenjiang sites respectively. Party members are trained into technical and
Case Setting up the “CPC Provincial Congress Delegate Office” to fully leverage the Exemplary management experts and are encouraged to leverage their advantages and engage in competitions at workshops. We Role of Party Members
motivate non-Party members to work hard and help employees improve their skills. By doing so we not only have built a
stronger workshop team but also have improved cultural building offering a spiritual guide for employees and boosting
efficient production and operation. In April 2022 we set up the “CPC Provincial Congress Delegate Office” which consists of business and technical
experts from major positions. The office is committed to addressing the key technical issues and pinpoints of energy
reform in the field of science and technology of new energy industry in production practice. It aims to train technical
talents to fully utilize the leading role of Party members in tackling challenges. Focusing on technical renovation
We align Party building with corporate development and talent cultivation creating a synergistic relationship technical innovation cost reduction and improvement of efficiency and quality the office will coordinate efforts
between them. We set up “The Vanguard of Party Members” “CPC Member Sentry” and “Party Member Zone to promote technical and management innovation by leveraging technical talents from different disciplines andof Responsibility” in production areas to ensure the presence of Party members in key positions and at the time positions. Annually the office should submit to our research and development (R&D) institute one or two innovation
of difficulties. We encourage Party members who are “model workers” at provincial or municipal levels to play projects for scaling-up including patents published academic papers as well as technical innovation outcomes
their exemplary role to ensure Party members lead the steady growth and promote the improvement of production technical progress awards and typical experience recognized at the municipal/provincial level or above.efficiency and the reduction of management costs. The Party Member Group for Battery Cell Innovation Party Member Group for Pack Innovation and Party Member Group
for Special Projects have been set up under the office. Guided by the craftsmanship spirit the three Party member
Party Building groups will strengthen quality control and address key and difficult issues in our operations:
Party Member Group for Party Member Group for Pack Party Member Group for
In 2022 we worked to informatize Party building by improving the “Jiangxi Party Building Cloud App” a Party building Battery Cell Innovation Innovation Special Projects
information platform. Ten modules of the platform have been improved including “standards in four aspects” i.e.organizational setting leadership building fund guarantee and activity venues and “codes in six aspects” i.e. Party It aims to improve the low-temperature Its main responsibility involves It launches several special projects
member team building organization activities operating mechanism servicing the people work tasks and Party performance and fast-charging overcoming technical difficulties through QCC such as the QCC
building responsibility. We urge Party members to download the App and learn the knowledge. The use and download performance of battery cells. The with a focus on thermal propagation. Special Project for Lowering
group optimizes pole piece parameters It aims to enable packs to pass the Defective Cutting Rate of
rates of the App have reached to 100% creating a strong atmosphere for Party building. by using power-type materials and customers’ thermal propagation the Punching Process and the
designing conductive networks that tests through controlling the Improvement of Reducing Loss in
combine points lines and planes independent thermal conduction Punching Joints. These projects have
Organizational Building which reduce the internal resistance rate of modules and isolating the significantly improved the positive
of battery cell. This improves low- diffusion path. and negative anode first pass yield
temperature performance shortens of the production line.the fast-charging time and enhances
We strictly implement the Party’s organizational activity systems including the “Three Sessions and One Lecture” product competitiveness.system and the “Theme Party Day”. To establish the Party building culture we carry out activities centering onproduction and operation. In 2022 we organized Party Day activities themed “Learning Party History RecallingOriginal Aspiration and Competing to Be Role Models” and “Tracing Martyrs’ Footprints and Obtaining the Courageto Forge Ahead” etc. to make frequent participation in organizational activities a habit of Party members. Meanwhile Party building indicatorin a bid to promote the spirit of patriotism we organized six sessions of red film viewings themed “Rememberingthe Extraordinary Days and Praising the Soul of the Army to Build Greater Glories in the Future” with more than 400 Number(s) of Party Number(s) of people covered by Number(s) of Party members Number(s) of newly increased
participants. These efforts help us establish a correct ideological and political concept among Party members and member activities (Times) Party member activities (Persons) of the year (Persons) Party members of the year (Times)
officials. Our Party branch organized Party members to watch the opening ceremony of the 20th National Congress of 99the CPC. And we carried out a campaign themed “Studying the Guiding Principles of the 20th CPC National Congress 86and Reading Party Constitution” for half a month combining online and offline means to promote the learning and 59 40
implementation of the guiding principles. 53
2026
14
Cultural Building
20212022202120222021202220212022
36 37Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation GGrreeeen Developmeenntt Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Environmental Management System
Farasis Energy honors the commitment to the environment We establish the environmental governance structure with
by pursuing green transition as illustrated in our vision the Board of Directors as the supreme decision-making“Dedicate to technology innovation Lead energy body. Under the structure the Board of Directors authorizestransformation Promote a better life for mankind”. the Safety Committee to coordinate environment related
We exercise scientific management and provide green efforts. The committee ensures the effectiveness of the
energy to protect the environment and build a better life. environment management system leading employees
We integrate green operation into our strategy aiming in contributing to environmental management. The
to minimize the environmental impact of power battery committee also aligns the environmental guidelines and
02 production. objectives with our strategic direction and guarantees the incorporation of environment management into We fol low al l the appl icable environmental laws our operations. And the EHS department takes concrete regulations and standards and develop the List of actions to ensure that the environment management
Applicable Laws Regulations and Other Requirements to system is consistent with ISO 14001:2015 standards and
specify the compliance obligations of environment related reports the results of environment management to the top
departments. Meanwhile we establish the procedures and management.systems including the Environmental Factor Identification
Green and Assessment Management Procedure Management By 2022 our Ganzhou and Zhenjiang sites have passed Procedure of Water Gas and Noise Pollution Waste ISO 14001 environment system certification. We carry out
Management Procedure Management Procedure for suitability monitoring and regular reviews for both sites
Development Energy Resources Environmental Management Scheme to meet internal and external changes and customer Management System of Sewage Treatment Station requirements. In 2022 we not only updated the annual
Management System for the Simultaneous Design objectives for the consumption of water electricity and
Construction and Operation of Occupational Health paper but also monitored the fulfillment of objectives set
Facilities in Project Construction and EHS Responsibility for two sites on a monthly basis and urged them to develop
Management Procedure to improve the environmental corresponding plans. Both sites have achieved relevant
protection mechanism. environmental objectives.Environmental Management System
For more information about environment management please refer to our Environmental Management Statements.Energy and Resources Management
Energy and Resources Management
Prevention and Control of Pollution
Circular Packaging As the operations expand we recognize the importance and urgency of energy conservation in power battery production.Through the use of energy-saving devices reasonable application and off-peak power consumption we improve the energy
efficiency and utilization rate of main energy-consuming devices like double planetary mixers dryers and coating machines.Spotlights: Climate Change
Optimizing the Energy Structure
Seizing opportunities associated with renewable energies we further introduce energy-saving technologies and devices and
plan to build distributed PV systems for plants at the design stage.In 2022 our Zhenjiang site installed PV panels on the rooftop of parking sheds and plants for grid-connected power generation.Following the principle of “generating power as much as possible and consuming self-generated power” we optimize the
structure of energy consumption. Our newly installed roof PV capacity reached 15.4391MW with an annual power generation of
21040600 kWh consumed by the site in 2022 achieving an emission reduction of 14535 tons of CO2. Since 2021 our Zhenjiang
site has signed a cooperation agreement with the State Grid Jiangsu Integrated Energy Service Group Co. Ltd. on distributed
PV power generation. According to the agreement the site provided 240000 sqm of plant rooftops and the State Grid installed
31.4753MW of PV facilities with the annual power generation expected to be 31 million kWh and all of the power generated to
be consumed on-spot. Over the last two years the site has increased the use of PV power reducing the emission of 21185 tons
of CO2 and saving CNY 3.127 million in electricity fees.
38 39Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation GGrreeeen Developmeenntt Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
The hot air exhaust energy conservation
Over the last two years the site has increased the project for the back-end process of battery
use of PV power reducing the emission of saving CNY cells has been initiated. By introducing out-
Hot Air With an investment of CNY
Exhaust Energy door low-temperature fresh air in winter and 3.84 million two projects are
21185 tons of CO2 3.127 million in electricity fees Conservation spring to lower the room temperature for for-mation and capacity grading it reduces en- expected to save 9.85 mil-
ergy consumption in the refrigerating process lion kWh of electricity 1221
of air-conditioning cabinets. tons of coal equivalent and
CNY 7 million of electricity
The pipeline connection for chilled water from fees. With an investment
the power station and chilled water from the return cycle of 0.55 year (6.5
In 2022 Ganzhou site invested The Pipeline battery cell process has been advanced. By months) two projects will
about CNY 24 million in PV proj- Connection
for Chilled introducing the chilled water from the effi-
generate considerable eco-
ects and signed an agreement Water cient refrigerating unit of the power station
nomic benefits.with Ganzhou Xinlang New Ener- it reduces energy consumption from running
gy Development Co. Ltd. to lend inefficient refrigerating unit at the site.our plant rooftops for the latter
to build 5.99MW of distributed PV
facilities. Energy management indicator1
Moving forward we will increase
deployment in PV projects to Total energy consumption Energy consumption density PV power generation (kWh)
generate more PV power and (equivalent value) (tce) (tce/per CNY 1 million of operating income)
drive our green development.
10288221040600
5841233.75
377859625760
16.69
Improving Energy Efficiency 8.88 0
The energy consumption per unit of 2020 2021 2022 2020 2021 2022 2020 2021 2022
To build green and energy-saving plants we not only monitor and control product in 2022 decreased by about
electricity usage in various areas including production areas warehouses
air-conditioning in office areas road lighting and landscape lighting but Investment in environmental
also seek to maximize the energy efficiency of production devices. Also we 35% year-on-year energy conservation projects
implement energy conservation initiatives. The energy consumption per
unit of product in 2022 decreased by about 35% year-on-year.
8.01 million CNY
In 2022 Zhejiang site completed With an investment of CNY Investment in environmental
2
air compressor pipeline connection 4.176 million the project is ex- protection
for five plants reducing the number pected to save 8 million kWh
Air of independent air compressors in of electricity 983 tons of coal million CNY
compressor operation at each plant lowering equivalent and CNY 5.68 mil- 3.81
pipeline invalid unloading of air compressors. lion of electricity fees. With an
connection As a result the load rate of air investment return cycle of 0.73
compressors has improved and the year (8.8 months) the project
energy bills of air compressors have will generate considerable eco- T he data covers both Ganzhou and Zhenjiang sites and the total energy consumption accounting method is mainly based on General rules for calculation of the comprehensive energy consumption (GB/T 2589-2020).been slashed. nomic benefits. 2 Investment in environmental protection mainly includes VOCs treatment environmental self-monitoring hazardous waste treatment β-ray radiation
environmental monitoring personal dose report monitoring and other environmental protection-related project costs in Ganzhou site; and environmental
self-monitoring radiation environmental testing occupational health radiation personal dose testing hazardous waste treatment environmental
emergency response plan technical reform EIA preparation sewage treatment station expansion and renovation and other environmental protection-
related project costs in Zhenjiang site.
40 41Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation GGrreeeen Developmeenntt Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Wastewater and water resources management indicators1
Case “Earth Hour”: Action Taken at Farasis Energy
Total discharge of wastewater (tons) Discharge of industrial wastewater (tons) Discharge of domestic wastewater (tons)
In 2022 we organized energy conservation publicity activities like “Earth Hour” and “Collection of Golden Ideasabout Energy Conservation”. In particular we joined “Earth Hour” the world’s largest-scale “lights off” 843763
campaign with millions of people worldwide at 8:30 p.m. on March 26th 2022 calling for all employees to turn off 110999 732764
lights in offices and at homes for one hour and encouraging them to think about ways to reduce ecological impact 635796 93838 101058
maximize the outcomes of the campaign and honor their commitment to the earth. 589517 534738 495679
202020212022202020212022202020212022
Prevention and Control of Pollution
Farasis Energy presses ahead with environmental pollution prevention and treatment in compliance with national laws and Total water consumption (tons) Water consumed in production (tons) Water consumed in offices (tons)
regulations and industrial standards including the Law of the People’s Republic on Prevention and Control of Environmental
Pollution by Solid Waste Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution
Integrated Emission Standard of Air Pollutants and Emission Standard of Pollutants for Battery Industry . We implement the 1994922 250465
environmental management accountability system identify environmental factors in all aspects develop plans to address 1603817 200647
the environmental matters rated as important and allocate resources in response to accidents to minimize environmental 1240239 151008
pollution. 1063482 738165
370651
Wastewater
202020212022202020212022202020212022
The wastewater generated from sites includes domestic wastewater and production wastewater. To prevent and treat water
pollution we set up sewage treatment stations inspect and maintain the devices on a daily basis and regularly test water
quality to ensure the sewage at the discharge outlet to meet the Emission Standard of Pollutants for Battery Industry after Total consumption of recycled water Wastewater discharge density (tons/ Water consumption density (tons/per
treated. Also the following measures are taken to save water and reduce discharge of wastewater: (tons) per CNY 1 million of operating income) CNY 1 million of operating income)
595969331.04526.52303.85
424544472621172.15
Introduction of Reuse of steam Separation between condensate 181.65
rainwater and sewage recycling devices 72.81
Steam condensate recycling The condensate in the
Domestic sewage and devices are introduced to condensate recycling tanks of
production wastewater are recycle condensate and steam each workshop is recycled and 2020 2021 2022 2020 2021 2022 2020 2021 2022
collected and treated till they and reduce waste of water and reused in the water tanks of
meet discharge standards steam resources; boilers air-conditioners and air-
before discharged. conditioning cooling towers etc.About 250000 tons of water is
expected to be saved every year.
1 The data covers both Ganzhou and Zhenjiang sites.
2 The recycled water is mainly from steam boilers and calculated based on 60% of the municipal steam consumption.
42 43Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation GGrreeeen Developmeenntt Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Waste Gas Waste management indicators1
The waste gas generated from the operation and production of the sites mainly includes NMP and boiler waste gas. We
develop waste gas monitoring plans and regularly monitor waste gas to ensure that the emissions of NMP waste gas at all sites General waste
2 General waste density Hazardous waste3 Hazardous waste density
meet the Emission Standard of Pollutants for Battery Industry (NMP waste gas ≤ 50mg/Nm3) and boiler waste gas meet the
Emission Standard of Air Pollutants for Boiler (nitric oxide ≤ 150 mg/Nm3 PM ≤ 20mg/Nm3 sulfur dioxide ≤ 50mg/Nm3 smoke 10370.08 tons 0.89 tons/per CNY blackness ≤ Level 1). 1 million of 500.70 tons 0.04 tons/per CNY 1 million of
operating income operating income
Meanwhile we step up environmental facility construction and operation introduce NMP recycling devices and transport NMP
materials via pipelines to reduce pollution that waste gas causes to the environment.Waste gas emission dictators1 Circular Packaging
Total emission of waste gas Waste gas emission density
As circular packaging plays a growing role in the logistic operation we prioritize the use of recyclable materials in product
214.1472 million cubic meters 0.0185 million cubic meter/per CNY 1 packaging and require suppliers to use circular packaging as well. Currently the circular packaging materials include paper million of operating income boxes wooden boxes linings foam boxes and preservative films enriching forms of green packaging while greatly reducing
packaging costs.Waste
In line with the Waste Management Procedures we register sources of waste manage waste by categories and recycle
recyclable waste. For general waste we hand it to qualified waste treatment companies for treatment. For hazardous solid
and liquid waste we develop the Annual Management Plan for Hazardous waste set up a special warehouse for hazardous
waste and require the departments that generate the hazardous waste to package and weigh the waste before sending it into
the warehouse. We ensure the hazardous waste to be kept as required and separated from other waste and regularly arrange
hazardous waste treatment companies to treat the waste in compliance with laws and regulations.Besides given the necessity and urgency of promoting a circular economy across the value chain we establish a corporate-
level recycling structure dominated by the Supply Chain team and supported by the Cost Control Center affiliated sites and Packaging management indicator
other tire-1 departments for waste pole pieces and liquid NMP waste. The Supply Chain Center is responsible for the connection
of waste recycling flows selection of suppliers through bid invitation economic calculation business talks and engagement
with strategic partners and aims to reduce cost by recycling the recyclable waste generated from plant production. Ganzhou site
Consumption of Proportion of recyclable
In 2022 all sites have managed wastewater waste gas and waste effectively and in compliance with laws and regulations and Paper box Foam box Preservative film recyclable packaging packaging consumed
enabled the emission of all waste gas discharge of all wastewater and treatment of all hazardous waste that meet required
pieces pieces coils sets
standards. No environmental pollution accidents have occurred and no complaints or punishments by regulators have been 55263 108260 7406 45517 45.2%
received.Zhenjiang site
Off-gas emission and Hazardous waste Consumption of Proportion of recyclable
wastewater descharge disposal Paper box Wooden box Lining recyclable packaging packaging consumed
100% 100% 0 40800 pieces 21813 pieces 40800 pieces 33821 pieces 35.07%compliance compliance environmental 0 complaints or
pollution accidents punishments by regulators
1 The data covers both Ganzhou and Zhenjiang sites.
2 General waste mainly includes the cathode wastes anode wastes battery wastes scrapped modules and materials and liquid NMP waste.
1 The data covers both Ganzhou and Zhenjiang sites. 3 H azardous waste mainly includes wasted electrolyte packaging wastes wasted engine oils refrigeration oils wasted hardening agents liquid residues
wasted achohols wasted active carbon wasted filters wasted adhesives wasted organic solvents.
44 45Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation GGrreeeen Developmeenntt Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Climate change is a challenge facing all mankind. Response ln 2021 and 2022 Farasis Energy has achieved Carbon Neutral Production certificates issued by DEKRA a german third-party
to climate change concerns the sustainability of the Chinese verification organization. The two certificates have respectively confirmed the carbon-neutral production of our total volume
nation and the future of humans. The Paris Agreement called for produced in 2021 and total volume delivered in 2022 for Mercedes-Benz models at the Zhenjiang site and proving Farasis
Spotlights: global efforts to step up response to climate change control the Energy’s leading competence in carbon neutral operation.increase of global average temperature below 2℃ and strive to
limit the temperature rise within 1.5 ℃ . To limit the temperature Meanwhile Farasis Energy has disclosed our performance on the environment through CDP a renowned non-profit
Climate Change rise within 1.5 ℃ worldwide greenhouse gas emissions in 2030 organization that runs a global environmental information disclosure platform to strengthen our environmental information
need to be cut by 45% from 2010; to control the increase of transparency. In 2022 we completed the climate change themed questionnaire designed by CDP and obtained a “B-”rating
global average temperature below 2℃ the emissions need to be demonstrating our leading footing in sustainability and response to climate change.cut by 30%. But the Emissions Gap Report 2022 issued by UNEP
shows according to the nationally determined contributions
made by worldwide countries since COP26 greenhouse gas Achieving Carbon Neutrality in Production Processes
emissions are estimated to be cut by less than 1% by 2030.To achieve carbon neutrality in our production
process Farasis Energy purchases the highest
Response to climate change is crucial to Farasis Energy. As a forerunner in the new energy revolution we commit to standard Voluntary Emission Reductions (VERs)
empowering the green transition of the transport industry through product innovation and driving carbon neutrality in China to offset the difficult-to-reduce carbon emissions
and across the world. during the process and delivers high-quality
carbon-neutral products.Carbon Footprint Stage - Enterprise-Wide Carbon Footprint Identification
We have accumulated rich experience in carbon
neutral operation and model-based calculation
of Scope 1 and Scope 2 GHG emissions after years
of exploration. We have completed the ISO14064
certification of our corporate carbon emissions for
the year 2022 through a third-party certification
agency. In line with the ISO 14064 standards
we organize audit of carbon footprints and
technically improve main energy-consuming
devices and processes to save energy and cut
carbon emissions. Also we seek to standardize
carbon footprints calculation based on practice.Carbon Reduction Stage – Energy Conservation & Carbon Emission
Reduction and in Operation
Our Zhenjiang site incorporates advanced design concepts and mature management experience. To help us achieve carbon
neutrality the site builds the distributed PV facilities on plant rooftops uses excessive steam generated by the co-generators in
surrounding paper-making plants.Zhenjiang site has realized green power production by purchasing international renewable electricity certificates and
generating green electricity through distributed PV facilities within the site. The site promotes the proper disposal and recycling
of waste generated. Supported by various energy-saving facilities it is expected to save nearly 12 GWh of electricity each year.By building the power storage station the annual shifted electrical load is expected to be about 30 GWh. In 2022 Zhenjiang
site reduced unitenergy consumption by more than 35% compared to the previous year. In addition to Zhenjiang site our other
existing site (Ganzhou) and planned sites (Ganzhou Wuhu Fuling and overseas ones) highlight low-carbon or even zero-
carbon production.
46 47Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation GGrreeeen Developmeenntt Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
External Empowerment – Contribution to Low-Carbon Transition Case Leading the Drafting of China’s First Standard on Evaluating the Carbon
Footprints of Lithium-Ion Batteries
of the Industry
As a forerunner in the lithium battery industry Farasis Energy has led several other leading battery producers
In China transportation currently accounts for about 10% of the total CO2 emissions nationwide with road transport making in drafting the Guidelines on the Evaluation of the Carbon Footprints of Lithium-Ion Battery Products a project
up about 80% of the industrial emissions and still growing fast. Thus it’s imperative to make sure the green transition on the initiated and dominated by China Electronic Energy Saving Technology Association. After expert and peer review
transportation industry particularly road transportation.. the Guidelines on the Evaluation of the Carbon Footprints of
th
As a forerunner in the sustainable development of clean energies Farasis Energy started the supply of power battery systems Lithium-Ion Battery Products were released on March 8 2022.to international luxury electric motorcycle makers in 2011 began mass-shipments of power battery systems to the passenger The document is the first standard on evaluating the carbon
vehicle market in 2016 and had strategic cooperation with Mercedes-Benz in 2018. By 2022 we have topped the national list of footprints of lithium-ion batteries in China and will be crucial
NCM pouch power batteries installed in vehicles for six years in a row. to the alignment with international standards the building of
a localized supply chain and the realization of carbon peaking
With the deep accumulation of electrochemical energy storage technology Farasis Energy’s Energy Storage business unit has and carbon neutrality goals.developed a number of energy storage products with excellent performance long life safety stability and reliability by virtue
of the advantages of lithium-ion batteries such as high energy storage density high charging and discharging efficiency fast Leading the drafting of the industry’s first guidelines on the
response speed and complete industrial chain. At present we have established stable cooperative relations with State Grid evaluation of the carbon footprints of batteries is just part
China Tower China Datang and other enterprises in the field of energy storage. of Farasis Energy’s sustainability strategy. Going forward we
will seek for more practical ways to precisely evaluate carbon
In September 2022 Farasis Energy announces to settle its 24GWh lithium iron phosphate production site in Dianzhong New footprints prepare the “fourth annual statements” on
Area. Then we have signed an agreement with Kunming Municipal Government for strategic cooperation on building a new corporate operation empower the industrial chain and build
energy battery industrial cluster and a zero-carbon industrial park as well as the operation and promotion of energy storage. a green industrial alliance together with partners to be well
Also we have reached a framework agreement with GD Power Yunnan New Energy Development Co. Ltd. for the cooperation prepared for the era of green trade.on investment in a range of fields including wind power generation solar power generation new-type energy storage virtual
power plants and new energy vehicles in Yunnan Sichuan and Guizhou provinces.In the days ahead Farasis Energy will support energy use in parks and the building of smart cities. Leveraging our strength in
R&D and manufacturing we will drive power battery development energy storage system integration and other application
area of lithium batteries and increase cooperation with customers in emerging fields to deliver them solutions and empower
more industries in green transition.Greenhouse gas emission indicators1
Total greenhouse gas Total emissions of Scope 1 Total emissions of Scope 2
emissions (tCO2e) greenhouse gas (tCO2e) greenhouse gas (tCO2e)
Total emissions density (tCO2e / per Scope 1 emissions density (tCO2e / per Scope 2 emissions density (tCO2e / per
CNY 1 million of operating income) CNY 1 million of operating income) CNY 1 million of operating income)
131.0020.90110.10
73.228.0736.660.5465.1636.12
424786
418506
256293
14667628243228050
23406123270
6280
202020212022202020212022202020212022
1 The data covers both Ganzhou and Zhenjiang sites. Total emissions of greenhouse gas in 2022 are verified by a third-party in line with ISO 14064. Scope 2
emissions are calculated based on location data while the emissions for other years are estimated internally.
48 49Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Human Capital Management
In compliance with national labor laws regulations and policies Farasis Energy establishes the Remedial Management
Procedure for Preventing the Employment of Child Labor and remediation of Child Labor and other regulations to prohibit child
labor and forced labor. We follow the principles of equal pay for equal work and equal employment and review recruitment
information to ensure compliance in recruitment interview and enrollment. We implement national policies regarding human
03 rights gender age and ethnic groups and others and regulate labor use management. We sign labor contracts with all employees pay social insurance in full for all employees and guarantee the human rights and labor rights of our employees.In light of our status-quo we issue the Employee Manual which covers the company profile corporate culture regulations
code of conduct safe and civilized production and caring for employees to regulate the employees’ behaviors guide their
day-to-day work and help them fully understand their rights and obligations. We have also formulated the HR management
policy to ensure all-round protection of employees.Employee
Comprehensive Management Policies
Development Safety Accident Management Regulations(including
Work-related Injuries or Sudden Illnesses)
Safety Management
Emergency Response Plan for Special Events involving
Employees
Rank Management Regulations
Human Capital Management Measures for the Management of Charity Fund
Employee Welfare Management System
Talent Development Employee Management Employee Attendance Management System
Employee Reward and Penalty Management System
Healthy and Safe
Management & Staff Training Management System
Employee Communication Production Operator Skill Training Management Standard
Employee Care System Complaint Management Management Procedures for Complaints and Prohibition of Abuse
Management Procedure for the Prohibition of Forced Labor
Freedom of Association and Procedure for the Regulation of
Negotiated Assemblies
Employee Protection Management Procedure for the Prevention of Discrimination and
Sexual Harassment
Remedial Management Procedure for Preventing the Employment
of Child Labor and remediation of Child Labor
Protection of Minors Management Procedure for the Protection of Underage Workers
Protection of Women Management Procedures for Labor Protection of Female Workers
50 51Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Total number(s) of Managerials Non-managerials
Male (Persons) Female (Persons)
employees (Persons) (Persons) (Persons) Talent Development
7113 6680 “A Thousand Elite 5016
4765 3430 Program” has finished 4351
3670 Farasis Energy upholds the talent view of “choosing the right people to do 2495
2097 3402 the right job and leveraging excellent people to cultivate even better ones”. 4 training sessions
1335 We build a diversified career development system featuring the integration of
1175 433 teaching materials trainers and training methods and formed a knowledge
268 414 sharing center to output core competence.
2020 2021 2022 2020 2021 2022 2020 2021 2022 In 2022 we completed a talent review and selected the Top 100. In addition with 147 trainees
our “A Thousand Elite Program” has finished four training sessions with 147
trainees.≥ 50 (Persons) 41-50 (Persons) 31-40 (Persons) ≤ 30 (Persons)
2020 32 256 1290 2092 Employee recruitment
20215038121042230
We see talents as the vital booster of our growth. Based on the overarching talent strategy we increase the demand for talents
2022 84 599 3200 3230 in lithium battery research and development intelligent manufacturing and capacity building in line with our growing presence
in the field of Li-ion technology and continuous efforts in capacity building. In 2022 we optimized the recruitment management
system and established the principles of meritocracy fairness and equity in our employment system while ensuring compliance
with national laws and regulations.Doctoral and above (Persons) Master (Persons) Bachelor (Persons) Others (Persons) Entering a critical period of secondary entrepreneurship Farasis Energy builds strong competitiveness in the talent market
through continuous efforts in HR system construction and employer branding and we’ll maintain high speed and standards in
talent recruitment and explore social recruitment websites professional headhunters and internal referral channels to enrich
2020 40 267 921 2442 our talent pool. In 2022 we relied on our technology strength and good reputation to recruit fresh graduates in R&D and
manufacturing.
20213926711603229
20224131514515306
New recruits 5413 Persons
By age By gender
Sales (Persons) Management (Persons) R&D (Persons) Production (Persons)
≤ 30 (Persons) 3552 Male (Persons) 3848
2020 167 464 967 2072 31-40 (Persons) 1733 Female (Persons) 1565
2021 178 541 1160 2886 41-50 (Persons) 121
≥ 50 (Persons) 7 By type
202218161714334882
Social recruitment 5272
(Persons)
Campus recruitment 141
(Persons)
1 The total number of employees includes full-time equivalents within and outside of China.
52 53Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Employee Training Internal Training
Farasis Energy discovers creative responsible and professional internal trainers through selection training and certification to
give tailored training and solve practical issues. In 2022 58 internal trainers have passed certification and developed 51 courses
Farasis Energy regularly provides orientation training that covers rules and regulations information security and plant-level on production management information and safety.safety education and ensures the trainees are examined after each training course.External Training
Case Forging High-performance Team through Training Camp for Managers
On November 2nd 2022 we started the high-performance team training program to enhance comprehensive
The training covers corporate regulations information security and quality of mid-level managers reinforce team building arouse development vitality and compact the management
plant-level safety education. The training on corporate rules and foundation.regulations mainly involves company profile corporate culture and
th
rules and regulations. We also implement institutional education and On November 24 2022 we launched the management excellence improvement program to help managers grasp
safety education for every employee. The closed loop of onboarding basic knowledge of management accurately define their roles form the "mindsets and habits" of an excellent
roadmap examination and internal training helps new recruits learn manager and improve all-round capabilities as a manager.about Farasis Energy and fit into the job quickly.Blue-collar new employee training: We have established a three-level
Orientation training system at company level site level and shift level including
Training basic theory training and job skills training courses. We have built a
skills training dojo (learning island) to help new employees integrate
into the company and improve their skills.Blue-collar Blue-collar on-the-job employee training: We have coordinated the
Training development of standards for each job skill level (L2 L3 L4). We refine
and improve the training content and assessment content for different Case Farasis Energy University
skills of each position providing a clear development path for the skill
improvement of in-service employees. Three-level training In 2022 we held corporate-level training on SPC & MSA and training programs like the training
system camp for managers and the training camp for shift leaders.Training camp for managers: with a focus on “self managementCorporate cultural We held corporate value promotional event and employee dialogues around traditional festivalsTraining for management of others and team management” the training camp
Managerials activities and sense of values.helps existing managers to improve their vision and management
competence by learning professional knowledge and effective Skill competitions
management tools. The second session of the 2022 training camp for We organized skill competitions for front-line workers to improve their professional skills.managers has successfully concluded.Training for Fresh Training camp for shift leaders: The training camp for shift leaders aims
Graduates to improve the educational background and soft skillsets of front-line Skill Training
shift leaders through scenario-based training and coaching. The fourth
session of the training camp on shift leader competency has been Training for Farasis Energy organizes various departments to survey training demands develop training plan
completed. management and budget submit them for approval and then implement the training (internal training or external
and training in view of actual situation and demand) according to the training plans and keep training
functional
The training camp combines training courses and outreach activities records and corresponding examination records based on the Training Sign-in Sheet the Training personnel
to help fresh graduates learn about our corporate culture regulations Feedback Questionnaire and the Level 2 Evaluation Form.and office system develop an awareness of the workplace and good
behaviors and improve professional knowledge to become backup Farasis Energy plans the implementation process and supervision mechanism for skill training in
talents of us. In 2022 138 fresh graduates completed the training and Skill training light of our development. We track and supervise the implementation by production departments
passed the examination. for production validate the training results and issue certificates to qualified staffs. At the same time we follow up
operators and supervise the implementation of skills training in the production departments verify the results
of skill training and issue job certificates to those who are qualified.
54 55Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Career Development
Short-term Incentives Mid- and Long-term Incentives
We adjust salary annually for key personnel We give shares to key personnel. In 2022 410
Managerial Technical based on the situation commend excellent incentive recipients vested their restricted
ladder ladder employees and teams of the year and give stock units and the shares began to circulate
them bonuses. in the market in December.Leader Master Dual ladder career system
Manager Expert
Dual career ladders (Managerial ladder and
Supervisor Specialist technical ladder) for each type of positions Model Selection
Intermediate
Entry Farasis Energy actively holds talent selection activities and extensively recognizes excellent talents to set examples for other
Fellow employees promote mentorship between veteran and new workers and create a sound learning atmosphere. As excellent
talents pass their experience and skills to enterprising employees we could promote mutual learning and exchange between
Master talents enhance employee cohesiveness and enthusiasm and form a positive cycle of talents.Expert Authority in and out of
Expert in a particular the company
Expert in a particular area in and out Specialist promoting area in the company of the company decisions of Case Selection of Excellent Graduates of 2021
capable of solving participating in the company
Capable of independently complicated issues strategy formulation
Intermediate undertaking the planning and or leading mid- and responsible Level 6
for the success We recruit talents from promising fresh graduates to fulfill the great historical missions and the shared dream of all implementation of department scale projects/the
work or project in a certain areas and promoting of large-scale employees and facilitate our next-stage entrepreneurship and high-speed growth. In one year they have made As an experienced
employee capable aspect identifying major and implementing projects/the area notable progress in their positions. Entry
of independently problems in business process major changes in the
solving common of corresponding speciality specialized areas Level 5 The Human Resources Center held the Selection of Excellent Graduates of 2021 on April 20
th 2022 to learn about the
Capable of problems using and proposing reasonable growth of fresh graduates in the previous year. This help us recognize their efforts and achievements and encourage
doing general specialized and effective solutions Level 4 them to devote themselves to the company’s development.work given by knowledge
superiors Level 3 Based on the evaluation and recommendation by department heads 23 candidates stood out of 44 fresh graduates
Level 2 and participated in this selection.Level 1After the presentation and on-site scoring that lasted nearly three hours 13 fresh graduates won the title “ExcellentGraduates of 2021”.Performance Management Case First Selection of Top 10 Outstanding Youths
Farasis Energy establishes a sound performance management system. We carry out performance management every year
setting business goals and interpreting strategy to realize hierarchical management of all employees by business objective. We Since February 2022 our Party branch holds
implement monthly reviews and warning mechanisms for organization performance and place equal emphasis on processes personal interview and communication
and results to promote fulfillment of annual organization goals. Employee performance is evaluated monthly quarterly and/ activity every Friday for the first Top 10
or annually based on job characteristics. The performance appraisal sourcing from a fair and just process is associated with Outstanding Youths of Farasis Energy to set
employee promotion salary adjustment and position change which enables the promotion of capable employees the an example for other employees.replacement of average employees and the dismissal of mediocre ones.To attract and retain talents and enhance employee cohesiveness and competitiveness Farasis Energy has developed short-
mid- and long-term incentive plans.
56 57Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
For strict management of external visitors Farasis Energy has established the Regulations for Safety Management of
Total training hours of all Number of Outsourced Construction and issued the application and approval process for external visitors. External construction personnel
employees employees training may not enter the plant area without examination and approval of the Notification of Safety Risks the safety training records
and the Safety Agreement with Outsourced Company that have been signed or affixed with seal.
61503 hour 15779 person times Safety System Construction
Farasis Energy has been comprehensively improving the occupational safety and health management system. We have passed
ISO45001:2018 certification and are carrying out work safety standardization. Our Ganzhou site has obtained the Grade III
Training coverage 89.41% certificate and the Zhenjiang site is making solid progress in Grade II work safety standardization.By gender By level
ISO 45001 General Principles: Regulatory Compliance Health Protection Assurance of Safety
Male 89.72% Managerials 98.12% All-staff Participation Prevention First Continuous Improvement
Female 88.67% Non-managerials 88.33%
Hazard Carry out hazard identification and risk evaluation every year ensure hazard identification in all
Identification fields all process and all aspects and make risk evaluation of each hazard using the LEC method
and Risk screen out prominent hazards work out specific control measures and urge implementation of
Evaluation the control measures.Healthy and Safe
Objectives & Revise annual objectives and control programs in light of safety accidents hazard identification
Safety Organization Construction Programs and risk evaluation in previous years and break down the objectives to workshop and shift levels.Farasis Energy values workplace safety and employees’ physical and mental health. In 2022 we reinforced occupational health
and safety management and set up a group-level safety committee headed by the president to standardize the occupational For identification update acquisition and evaluation of conformity required by laws regulations
health and safety management system from a top-down approach. The safety committee holds a plenary meeting every Policy
Updates and others we obtain latest laws regulations and standards from official sources and carry out quarter. communication within the company.In line with the all-staff work safety responsibility system proposed in the Work Safety Law of the Peoples’ Republic of China (2021)
Farasis Energy updated the Environmental and Occupational Health and Safety Responsibility Management Procedure to cover
the safety responsibilities of all departments and levels and promoted all employees to sign the Commitment to Work Safety
Responsibility. Operation Carry out safety work such as near-miss investigation and control safety training and emergency
Control drills in accordance with system operation requirements.Conduct accident investigation and issue the accident investigation report according to the
In the beginning of every year we update Every new employee must receive training Accident accident investigation and response procedures and ensure causes of accidents are ascertained
the environmental safety objectives and on the all-staff work safety responsibility Investigation responsible persons are dealt with corrective measures are implemented and revelant people.indicators and organize personnel at system and sign the Commitment to Work
and above the managerial level to attend Safety Responsibility.the annual work safety wrap-up meeting
and sign the Commitment to Work Safety Audit Regularly conduct internal audits management reviews and external audits.Responsibility on the spot.
58 59Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Response to Safety Accidents Safety Education and Training
Farasis Energy has established the Safety Accident Management Regulations (including Work-related Injuries or Sudden Farasis Energy has developed the Regulations on Safety Education and Training and rigorously implements a three-level work
Illnesses) and standardized the emergency response process to ensure immediate investigation and evaluation of accidents safety education and training mechanism which requires all new comers (including dispatched workers and interns) to accept
and identification of fundamental causes by reviewing the working procedures and personnel arrangements. We also have safety training at plant level workshop level and shift level and master essential safety knowledge and skills before starting
an effective accident response mechanism to protect the employees. With strict management and control we have practically work. In line with the Regulations on Safety Education and Training we regularly conduct knowledge and hands-on training for
reduced the number of accidents. In future we will resolutely promote work safety to reduce the number and proportion of fire protection occupational health and safety training and special equipment safety training.accidents. Please refer to our Statement of Occupational Health and Safety Management for more information about health and safety.Ganzhou site has 9 emergency rescue teams with 143 members and Zhenjiang site has 13 Case Health and Safety-related Practice Program Training or Activity
emergency rescue teams with 878 members. Both sites have offered special training and
increased emergency rescue force at plant-level; Safety Knowledge Competition
Ganzhou site has set up 10 micro fire stations equipped with 15 positive pressure respirators and st
10 Type-G428 fire extinguishers (30 Litres each) for lithium battery fire; while Zhenjiang site has June 2022 was the 21 national Safe Production month themed“ ComplyingPrevention set up 15 micro fire stations; with Work Safety Law Being a Competent First Responsible Person”. Our
Ganzhou site organized a safety knowledge competition that included
A number of employees participated in first-aid training given by local Red Cross and obtained Daily Practice from June 10th to June 24th as well as a contest from June
the certificate of rescuer; 27th to June 29th which increased activity participation rate with 4641
Contingency plans for accidents such as food poisoning electric shock and fire rescue are employees participating. 65.39% of them got a full score and 90.08% Ankang Cup competition in Ganzhou
carried out regularly every year. passed. The questions covered General Secretary Xi Jinping's Important
Remarks on Work Safety the Work Safety Law (2021) the Fire Safety Knowledge the Safety Management of Special
Equipment and Special Operations the Occupational Health Management the Regulations on Response to Production
Safety Accidents and the Basic Knowledge of Work Safety. In August 2022 the EHS management department of theGanzhou site organized Ankang Cup competition with the theme “Investigating and Controlling Safety Hazards PromotingThe Safety Accident Management Regulations specifies the reporting process and deadline for allAccident Safe and Healthy Development”. 10 participating teams accepted a 15-day EHS training and the prize winners came out
Reporting kinds of accidents including near-misses slight injuries minor injuries severe injuries and work- after four rounds of fierce competition with compulsory questions optional questions quiz questions and extra questions
related fatalities.respectively. Zhenjiang site organized an online award-winning Safety Knowledge Quiz from June 29th to July 5th with a total
of 766 participants with 10 first-prize winners 20 second-prize winners and 100 third-prize winners which increased the
activity participation rate and the employees’ awareness of safety.After the occurrence of an accident the department head at the scene will initiate the
contingency plan as needed by the situation and organize on-site handling and rescue. During Occupational Health Trainings
the rescue the accident spot shall be protected. When it is necessary to move any objects on the
Emergency th st th
Response sport for the purposes of rescuing people preventing the accident from escalating or dredging
The week from April 25 to May 1 2022 was the 20 national educational
the traffic the emergency response personnel it’s mandatory to mark properly on-spot to take event for the Law on the Prevention and Control of Occupational Diseases
photos to keep detailed records and draw a map of the spot and to properly keep important with the theme “All for the Workers’ Health”. Ganzhou and Zhenjiang
traces and physical evidences. sites put up occupational health promotional posters on bulletin boards
in the plant area distributed communication manuals to workshop
employees and organized occupational health and safety training with
After the occurrence of an accident an investigation team will be set up to investigate the 756 participants. The activities enhanced the employees’ awareness of
the occupational health training in Ganzhou
accident draw a conclusion and issue an investigation report; occupational diseases prevention and control.Accident
Investigation Labor Union members or employee representatives shall join in the accident investigation team; Fire Drills
The investigation report shall be submitted within 7 days for minor injuries and less severe November 9th 2022 was the 31st national Fire Prevention Day themed
accidents or within 30 days for severe injuries and more severe accidents. “Protecting Fire Safety to Ensure High-quality Development”. Ganzhou
site carried out two hands-on fire fighting training sessions and
conducted a raw material warehouse fire emergency drill. The activities
enhanced the employees’ emergency response abilities. Within the year
Ensure causes of accidents are ascertained responsible persons are dealt with corrective Ganzhou site won the Third Prize in the 2021 Fire Fighting Competition
Rectification
measures are implemented and relevant people are educated organized by the Fire Brigade of Ganzhou Economic and Technological Fire drills in Zhenjiang
Development Zone. On July 22nd 2022 Zhenjiang site organized a fire
fighting skill competition with 75 participants from 15 teams.
60 61Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Complaint and Communication Channels
Indicator Unit 2020 2021 2022
By efficiently soliciting the ideas and suggestions of the workforce we established excellent communication with the workforce
in 2022. Regarding meals administration workshop and personnel management we had more than 80 complaints and
Safety drills Frequency 26 28 49 suggestions which we dutifully handled and routinely monitored.Safety trainings Session 57 89 483
Content of Constructive Communication and Complaint
Employees participating in Rewards
1 Person times 2795 5253 17690 Suggestions Channelssafety training
Coverage of employee safety % 100.00 100.00 98.55
training
Suggestions for company Online: Email Suggestions: Reward will
Number(s) of recordable Persons 13 11 14 development: Including but not WeCom Farasis Voice be given to employees
work-related injuries limited to energy saving and Community and Home if their suggestions are
Lost hours due to work injury Hour 2416 3824 2808 consumption reduction revenue of Farasis Energy adopted based on the
increase and expenditure value
Offline: Employee
Rate of recordable work- reduction cost reduction and
2 - - 0.74 0.53 efficiency increase complaint box Complaints: We will related injuries reward claimants
Behaviors detrimental to whose complaints are
company interests: Including substantiated and
but not limited to corruption investigate those who
Employee Communication bribery abuse of power for intend to maliciously personal gain deception frame others undermine
abuse of authority malpractice unity or shift responsibility
infringement of regulations and
Farasis Energy encourages our employees to contribute constructive opinions and suggestions through employee suggestion leakage of company secrets
and complaint channels. We also respond to employee demands without delay help them solve difficulties at work and Suggestions for management
provide them with a comfortable and safe working environment so that they could feel the warmth and care all the time. improvement
Employee Communication and Exchange
Valuing the employees’ voices we hold employee discussion meetings/roundtables regularly for face-to-face communication
between the employees and leaders. In games comedic roasts and activities of various themes the employees talk about
existing issues in the company frankly which relieves their stress at work and builds stronger cohesion.Case Farasis Wonder Night Employee Discussion Meeting
We launched “Farasis Energy Wonder Night” employee discussion meeting to learn how employees at different
levels look at our corporate culture management and regulations build a sound communication platform and
enhance their sense of acceptance and belonging to the company.
1 The data for 2020 and 2021 covers Ganzhou site only and data for 2022 covers both Ganzhou and Zhenjiang sites.
2 Rate of recordable work-related injuries = Number(s) of recordable work-related injuries x 1000000 / Total working hours
62 63Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Employee Care System Caring for Female Employees
Farasis Energy is employee-oriented. In light of our situation and suggestions from strategic partners we set up the Employee
Care Committee established the Employee Care Construction Program and the Employee Care Plan for the biggest concerns of The contribution of female employees is essential to our rapid growth. Respecting the rights and interests of female workers
employees which includes 98 measures covering employee welfare remuneration infrastructure and corporate culture and we sign Collective Contract for Special Protection of Female Workers with the Labor Union. We uphold the principle of equality
promoted the “We Care” program. between men and women and ensure male and female employees get equal pay for equal work. We also offer occupational
health education to female workers to reduce occupational hazards. For women in childbirth breastfeeding and other special
In the Letter to Farasis Energy Employees we introduced the progress of the employee care program and communicated with periods we give extra supports and allowances such as workload reduction and maternity allowance to guarantee the health
employees in a sincere open and transparent manner to solve issues they met at work. of female employees as much as possible.Li Hui an expert in the Cell R&D Department The Women’s Committee of Farasis Energy
Employee Care Activities of Farasis Energy was awarded the title of was awarded the titles of March 8th Red-
March 8th Red-banner Pacesetterof Jiangxi banner Collective of Ganzhou in 2021 and
Province in 2021 March 8th Red-banner Collective of Ganzhou
Farasis Energy actively helps employees in need offers educational assistance to employees’ children and sets up a charity Economic and Technological Development
fund. Caring about the work and life of employees in need we solve concrete problems for them and visit them on holidays Zone in 2021
and festivals to let them feel the warmth.Following the principle of helping people in urgency rather than people in poverty we sent approximately CNY 180 thousand of
charity money to more than 20 families and solved practical problems for employees in need which enhanced their sense of
belonging to the company and made them feel happier at work and in everyday life. Case Caring for Women
Case “Sending Warmth” Activities Women’s Day Knowledge Contest
We held a knowledge contest with a focus on the
legal rights and interests of women before Women’s
Sending Warmth for Spring Festival Day and sent benefits and greetings to all female
workers on the day.In January 2022 we delivered Spring Festival benefits to our employees. The poverty relief products from Ganzhou
embodied our commitment to poverty relief and rural revitalization.Caring for Women in Need
Two volunteer teams visited eight needy families
Student Assistance Activity
with women suffering from cervical or breast cancer
in Hubian Town Panlong Town Fenggang Town
In order to address immediate issues for employees who were in need and to improve their sense of gain and Sanjiang Country and Yangkeng Village and sent
pleasure the Labor Union undertook an activity called “Assisting and helping employees in golden autumn” which Spring Festival greetings and consolation gifts to
demonstrates concern for employees in need and consolidates the outcomes of efforts to ease employees’ difficulties. them. The volunteers talked with the recipients
learned about their family and health conditions
encouraged them to be confident cooperative and
Children of Farasis Energy’s Employees Attend School strong in the treatment and wished them an early
recovery. The recipients were deeply touched. They
To support the education of the employees’ children and arouse their enthusiasm towards the education of the next expressed the determination to overcome the disease
generation we held the first “Children of Farasis Energy’s Employees Attend School” education incentive awarding and live a positive life to repay the care from society.ceremony. The incentives including school bags stationery sets and student grants were given to more than 170
children of our employees that were going to enter a higher school.
64 65Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development EEmmppllooyyee Devellopmeennt t Product and Innovation Responsible Sourcing Corporate Citizenship GRI Standards Index
Diverse Employee Activities
Farasis Energy advocates the balance between work and life. We hold a variety of activities regularly and provide gyms
basketball courts and other sports facilities to promote communication between employees.
2022 Spring Festival Online Friend-making and speed- Snapshot of “My Extraordinary First Swimming ChampionshipAttendance Check dating: Murder Mystery Games Holiday” of Ganzhou Economic and Qixi Starry Night PartyTechnological Development ZoneWe prepared a Spring Festival online We held murder mystery games at We held the “Snapshot of My We organized a swimming team to On the Qixi Festival the Chineseattendance check activity and sent Spring Ganzhou and Zhenjiang sites around Extraordinary Holiday” activity that promote the new style of civilization and Valentine’s Day Farasis Energy andFestival benefits to our employees. the theme “Valentine’s Day Let’s Make encouraged the employees to share the main theme of the era encourage JingLi MAG Rare-Earth Co. Ltd. jointlya Friend and Enjoy the Time together” the beauty of life and promote positive all employees to exercise and enhance held a party themed “better to partyfor employees to enrich their spare time energy via photos and videos. their senses of happiness and gain. On than to be alone” to strengthen
make friends and relax. June 3rd 2022 the swimming team had cultural communication between the
led by the Labor Union participated in two companies and promote exchange
the first swimming championship of between young people.Ganzhou Economic and Technological
Development Zone.Women’s Day Knowledge Employee Painting and Calligraphy Farasis Energy First “May 4th Second session “Top 10 Competition to Welcome the 20th “The Voice of Farasis Energy" Contest CPC National Congress Medal Collective” CompetitionExcellent Youths” Competition Singing Contest Distribution of Employee Benefitsat Farasis EnergyWe organized a knowledge contest with We organized employees to participate To celebrate the centenary of the We held the second session “Top 10 In August 2022 we held "the Voice of Throughout the year we carried outa focus on the legal rights and interests in the Employee Painting and Calligraphy Communist Youth League of China Excellent Youths” competition that Farasis Energy" singing contest at our various employee benefits distributionsof women before Women’s Day and sent Competition for the 20th CPC National we held the first “China Youth May 4th lasted half a month from October 19th Ganzhou base attracting music lovers to including employee car purchasingbenefits and blessings to female workers Congress which was held by the Medal” competition from mid-to-late to implement the important thoughts participate. 81 contestants were judged discount talent house purchasing
on the day. Federation of Labor Unions of the district. April to mid-May 2022 with 16 excellent of General Secretary Xi Jinping on youth by 20 public judges and entered the discount employee team-building
Zeng Qingliang won a third prize for the teams participating. work and celebrate the 101st anniversary final. This activity provided a platform employee welfare distribution.painting group with a paper-cut painting of the founding of the CPC and the for employees to show their style and
titled Filial Piety is the Most Important 100th anniversary of the founding of the enhanced the communication and
of All Virtues and Gu Lipeng won an Communist Youth League of China. The interaction among them.excellence award for the calligraphy competition showcased the spirits and
group with the work titled The Chinese values of youths in the new era actively
Dream. cultivated outstanding young talents
strengthened the exemplary role of youths
and promoted youth models of Farasis
Energy.
66 67Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
关Ab于ou本t T报his告 Repor董t 事长致M辞essage专 fr栏om： th全e球 Ch动ai力rm电an池领军C企ol业umn: A孚 G能lob科al技 Le的ad 2e0r 2in2 PoweErS BGa 战tte略rie与s 治理Faras构is筑 En坚er实gy内 in核 2022 规范E治SG理 S，tra夯te实gy稳 an健d经 Go营ve基rn础ance 节能减Go排ve，rn探an索ce绿 an色d创 Op新e发rat展ion 以人Gr为ee本n D，e促ve进lop员m工en凝t 心聚E力mploy打ee造 D积ev极elo影pm响ent 产品P升ro级du，ct 为an客d 户Inn量ov体at裁ion衣 志Re同sp道on合sib，le共 So筑ur负cin责g任供应Co链rpora社te会 Ci贡tize献n，sh彰ip 显企业GR责I S任ta担nd当ards In附d录exMaking Positive Impact
Our progress in 2022 Our Achievements
Farasis Energy is committed to building strong and sustainable relationship with our customers and ensure high- Realized mass production of the first generation of semi-solid
quality delivering. According to SNE Research Farasis Energy ranks the world’s top 10 by power battery shipment batteries and achieved high-nickel batteries’ safety target of No
and we have the largest installed capacity of NCM pouch power batteries for six consecutive years in China. TP (Non-Thermal-Propagation) shortened charging time from 42
In future upholding the spirit of “innovation entrepreneurship collaboration and win-win” we will continue to minutes to (70% SOC)
persue high-quality operation and expand our production capacity and jointly with our partners to lead the new 18 minutes
era of new energy through which to empower people with a better future. 100%
suppliers covered by the
Meanwhile we also pay attention to fulfilling our social responsibility establishes corporate volunteer team to Farasis Energy Supplier Code
advance the volunteering spirit by various charitable programs. of Conduct Participated in the formulation of industry standards including
the Quality Evaluation of Logistic Service
47 for Waste Power Batteries of New Energy Supporting SDGs Vehicles and the Technical Specifications for
suppliers audited Pouch Li-ion Power Batteries
By 2022
patents granted Donated CNY Launched
213 162.2 thousand 8 volunteer activities
materials worth CNY with
501558
invention patents utility model design patents 120 thousand 59 participants
patents
68 69Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development PPrroodduucctt and Innovvaattioionn Responsible Sourcing Corporate Citizenship GRI Standards Index
Advancement of Innovation
In 2022 Farasis Energy made continuous innovation to improve product performance. Now we have formed a complete life-
cycle low-carbon intelligent production system that integrates product solutions large-scale production sustainable and eco-
friendly plants and end-of-use product management. We have five global R&D sites and the experience of more than 100
million cells in market use.Our key investment and R&D directions include but are not limited to high energy density ultra-long life high rate of fast
04 charging capacity high safety performance low cost etc. In 2022 our key innovation achievements include:
Next-generation pouch power battery pack Mass production of the first-generation
system for vehicles semi-solid battery
Product and
Innovation Our next-generation pouch power battery pack We have realized mass production of the first system is ready for industrialization. Compared generation of semi-solid battery that provides
with current technology it improves the volumetric higher safety performance and achieves NO TP
cell-to-pack ratio by more than 30% reduces of high-nickel batteries. While ensuring safety
structural components by more than 30% and and high energy density the products shorten the
greatly lowers the cost. charging time from 42 minutes to 18 minutes (70%
SOC) and provide outstanding power cycle life
performance (>3000).Advancement of Innovation
Product Quality
Sodium-ion battery technology Technical development of super fast charging Intellectual Property Management Li-ion batteries
Customer Service
We are gradually entering industrialization The project develops Li-ion power batteries
in the development of sodium-ion batteries. featuring high specific-energy super fast charging
Once mass produced sodium-ion batteries are (70% SOC within 10 minutes) and high safety
expected to save at least 30% of cost than lithium to meet the EV market’s demand for safe fast-
iron phosphate batteries. Sodium-ion batteries charging and long-life power batteries. The
could provide basically the same energy density product with industry-leading energy density
as lithium iron phosphate batteries but with and fast charging capacity could address users’
much lower costs and significantly improved low concern on charging.temperature discharge performance.
70 71Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development PPrroodduucctt and Innovvaattioionn Responsible Sourcing Corporate Citizenship GRI Standards Index
In terms of power battery technology innovation Farasis Energy’s Super Pouch Solution (SPS) gained the favor of automakers as In addition to independent R&D Farasis Energy keeps external communication and strengthens R&D investment in thermal
soon as it was released and won the “Annual Technology Prize of GIIC Golden Ball Award in 2022” award at the GIIC Annual propagation protection technology big data analysis and battery lightweighting. And we have made some progresses which
Conference. Its mass-produced 800VTC technology won the “4th Gasgoo Awards for 2022” at the 10th Gasgoo Symposium on secures the technical leadership of our products. In 2022 we participated in the formulation of several industry standardsAutomotive and Environment Innovation and the 14th Global Auto Industry Summit in 2022 and we’re awarded the title “Top including the Quality Evaluation of Logistic Service for Waste Power Batteries of New Energy Vehicles and the Technical
100 Players of China Automobile Supply Chain in 2022”. Specifications for Pouch Li-ion Power Batteries and carried out joint R&D programs with a couple of universities.
In the field of energy storage Farasis Energy won the OFweek Awards for Outstanding Technical Innovation of the Year based
on our profound technical accumulation in electrochemical energy storage and excellent performance of our energy storage
products.Case Farasis Energy’s SPS Won the “2022 GGLB Golden Globe-Technology of the Year” Award
R&D Investment CNY Increase in R&D expenses R&D expenses of total
operating revenueOn November 16th 2022 the 2022 GGLB Annual Conference themed “China Leads the Way in Global New Energy millionIndustry” was successfully concluded in Shenzhen. Over a hundred enterprises participated in the conference
involving every segements of the industry chain such as batteries equipments core components cathode materials 598 11% 5%
anode materials electrolytes separators structural parts and recyclers. Farasis Energy’s SPS won the 2022 Technology
of the Year award with all-round technical innovation in super pouch battery cell super pouch battery system super
pouch battery manufacturing and direct recycling.In order to strengthen our R&D capability Farasis Energy promotes lab construction solid interaction with golal leading
expertise and build up stronger R&D core competency.Upgrading R&D conditions Reinforcing talent introduction and cultivation
To encourage independent R&D Farasis Farasis Energy adopted international
Energy added a pilot line and built a cathode technology development platform includes
and anode materials lab and a solid- experienced experts from China Germany
state battery lab in 2022. We also have a and US. To date our company has more
simulation development platform and digital than 1433 R&D personnel representing
battery data platform jointly developed 20.15% of our total employees. In 2022 we
by the professionals from US Germany organized 8 corporate-level R&D training
and China by which we could strengthen sessions 71 department R&D training
communication with international R&D sessions and over 20 training sessions
teams and improve our innovation capability. to materials and processing equipment
suppliers.
72 73Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development PPrroodduucctt and Innovvaattioionn Responsible Sourcing Corporate Citizenship GRI Standards Index
Product Quality While ensuring product quality and safety Farasis Energy is also committed to minimize our production impact on environment.Quality is the lifeline of enterprises. Upholding our production philosophy of “Quality First” we endeavor to deliver safe and We encourage anode material suppliers to use clean energy including wind energy hydro In terms of
reliable products. Farasis Energy engaged in the R&D production and sales of lithium-ion power batteries for new energy energy and give full consideration to use recycled material such as copper foil aluminum materials
vehicles and EV battery systems and establish solid business relationships with domestic and international automobile foil and ternary materials through these actions to reduce the product carbon emissions.manufacturers. Outside China we offer power batteries solutions for Mercedes-Benz AG Lotus TOGG Zero Taiga and Joby and
our domestic clients include automakers like GAC Geely Voyah JMC Jinpeng and Sky-well and motorcycle manufacturers like
CFMOTO Surron Brilliance Xinri and Yugu.In product
We improve the energy efficiency of equipments to lower energy consumption.It is our responsibility to ensure product quality and safety and we see it as the most fundamental requirement. We follow the manufacturing
Requirements for Prohibited Substances on Automobiles (GB/T 30512-2014) the REACH and the RoHS regulations to control
hazardous and prohibited substances in electronic and electrical products so we could improve the safety and quality of our
products.In terms of energy We build PV station in our plants and increase the use of residual heat to reduce carbon
We have established complete product quality and safety assurance mechanisms. Farasis Energy works out big data operation structure emissions.analysis and control strategies based on a big data monitoring platform that is linked with automakers’ data platforms. All
of these could help us monitor power batteries status on vehicles so that we could send warnings to customers to replace
batteries for root cause analysis and correction plan development. Now we have built up strategic partnership with the
authorised recyclers which are recognized by Ministry of Industry and Information Technology of China to recycle the end-of-
use batteries scraps and ternary cathode materials and create a global model for green recycling of power batteries. Intellectual Property Management
Farasis Energy focuses on patent application in both quantity and quality and improves trademark registration strategy. We
Case Farasis Energy Released Intelligent Power Battery Health Management Platform carry out patent risk analysis and investigation for our major products and technologies and deliver trainings to all employees
to raise their awareness of intellectual property management.Farasis Energy fully respect the intellectual property rights of others and reinforce intellectual property training in R&D
To strengthen battery safety management enable care-free travel of EV users and realize dynamic monitoring and production and sales. We also proactively protect our intellectual property and takes legal actions against intellectual property
proactive protection Farasis Energy has released an intelligent power battery health management platform that infringements.combined big data analysis and deep neural network technologies. The platform monitors battery conditions (such as
voltage current temperature and other parameters) based on real-time data collection and analysis and establishes Farasis Energy has developed a series of management regulations including the Measures for Patent Administration the
a deep neural network prediction model based on massive historical data thus realizing early risk identification Management Measures for Classified Review of Patent Applications and the Patent Reward Measures and established a system
proactive warning-push and handling and life-cycle health management of batteries. of intellectual property management procedures which promotes orderly and efficient management of intellectual property
work.To enhance patent application quality Farasis Energy organized several trainings on patent drafting mining layout and
infringement in 2022. We also have established a sound patent management mode which increases the patent application
efficiency.Case Farasis Energy Won GAC AION“Excellent Quality Award for 2022” To date we have 213 granted patents including 50 invention patents (33 domestic patents and 17 U.S. patents) 155 utility
model patents and 8 design patents. We have a total of 330 patent applications including 152 invention patent applications
170 utility model patent applications and 8 design patent applications.
On January 3rd 2023 the 4th Supply Chain Partners Conference of GAC AION was held at Haikou. Farasis Energy was
invited to the conference as a power battery supplier of GAC AION and won the “Excellent Quality Award for 2022”
with our strong research ability and outstanding quality management ability. Total granted patents (Cases) Total patent applications (Cases) Annual granted patents (Cases) Annual patent applications (Cases)
330
21326781
2138062
In product life-cycle management we have established a comprehensive Product Life-Cycle Management System and Product 56 54157
Data Management System that cover the process of project management and product design. It will manage all product- 120 37
related information and processes and build up a unified and standardized data-sharing and service center to promote
business synergy. In addition we have conducted a life-cycle assessment of product carbon footprint for some production lines 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022
in accordance with ISO 14067 standards.
74 75Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development PPrroodduucctt and Innovvaattioionn Responsible Sourcing Corporate Citizenship GRI Standards Index
Customer Service
Customer Rights Protection
In 2022 we developed an intellectual property training plan in light of function needs and problems found
in previous patent proposals and applications and organized four intellectual property trainings given by
external agencies and internal trainers. The training topics cover the use of the patent proposal system for We implement closed-loop management to cover different stages in product sales and after-sales services. Relative functions
R&D personnel basic knowledge of patent application layout and mining of high-value patents retrieval will be involved to strictly control product quality satisfy customer needs and optimize their experiences.and drafting of patent proposals basic knowledge of patent infringement and case studies. To address In regards to customer engagement and service we report the progress of customer complaints on quality and our action plan
the needs of trademark application use and maintenance in January 2022 we invited external lawyers to at weekly meeting and annual quality report meeting by which to proactively respond their concerns and provide effective
give training on basic knowledge and corporate trademarks protection for relevant functions. solutions to solve the problems.Proactive Response
Internal Farasis Energy pays high attention to customer complaints. We have launched policies including the Control Procedure of
trainings Customer Complaint the Field Failure Analysis Process to make sure that we could respond and handle complaints in a
normative manner. These policies also will guide relative functions for root-cause analysis correct action plan development
External and case closing. In 2022 we analyzed 779 complaints with an actual completion of 758 and closure rate at 97%.trainings We conduct quarterly satisfaction surveys on our customers especially the mass vehicle producers to learn their comments and
expectations on us. In 2022 all survey scores were above 91 which met our internal requirement as well.In 2022 we analyzed with an actual completion of Closure rate
We invite external training agencies to train the patent team on patent retrieval mining and analysis. We
also actively participate in intellectual property training held by government and third-party organizations
including intellectual property training for corporate executives training on intellectual property protection 779 complaints 758 97%
and patent infringement determination and intellectual property compliance.Total numbers of customer complaints1 Customer complaint closure rate
779 cases 97%
In 2022 Farasis Energy was listed as the 2022 National Intellectual Property Advanced Enterprises by the
China National Intellectual Property Administration for our intellectual property management capacity and
performance.
1 The data covers both Ganzhou and Zhenjiang sites.
76 77Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation RReessppoonnssiible Sourrcciningg Corporate Citizenship GRI Standards Index
CSR Risk Management on Suppliers
Complying with global standards and requirements Farasis Energy integrate CSR into supplier management process and
identify environment protection human rights and labor child labor health and safety business ethics as key pillars that
05 suppliers need to focus.First of all we have released Farasis Energy Supplier Code of Conduct which covers our ESG requirements for suppliers in respect of human rights and labor health and safety environment protection and business ethics and all suppliers are required
to sign the Supplier Code of Conduct before entering our supply chain.Framework of Farasis Energy’s Supplier Code of Conduct
Responsible
Sourcing Freedom of Choosing Career Working Hours Discrimination and Harassment
Child Labor and Young Workers Wages and Benefits Freedom of Association and
Collective Bargaining
Labor
Responsible sourcing is a crucial area that we need to Occupational Safety Occupational Injuries Physically Demanding Sanitation Food and
make positive impact we hope to work with ethical and and Illnesses Work Accommodation
responsible partners to jointly empower better life of Emergency Industrial Hygiene Machine Safeguarding Communication for
mankind. Health and Preparedness Health and Safety
safety
We insist on working with suppliers who are ethical
and willing to make sustainable improvement. In this
process Farasis Energy is open to share our expertise Environmental Permits Hazardous Exhaust Emissions Storm Water
and knowledge to support them. We attach great and Report Substances Management
importance to the conflict minerals and build up Pollution Prevention and Wastewater and Material Restrictions Energy Consumption
complete tracking system to make sure that no minerals Resource Conservation Solid Waste and Greenhouse Gas
in our products come from the conflicted areas. Environment Emissions
Corruption Bribery Trade Compliance Fair Dealing Advertising Responsible
and Other Illegal Acts Disclosure of and Competition Sourcing of Minerals
Money Laundering Information Protection of Identity Privacy
CSR Risk Management on Suppliers
Ethics Defending Fair Intellectual Property
and Non-Retaliation
Competition Policy
Training and Capacity Building
Commitment of the Risk Assessment and Employee Feedback Documentation
Responsible Mineral Manangement Company Management and Participation and Record
Management Improvement Objectives Audits and Supplier
Accountability and Training Assessments ResponsibilityResponsibility
Management Communication Corrective Action
System Legal Requirements and Process
Customer Demands
78 79Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation RReessppoonnssiible Sourrcciningg Corporate Citizenship GRI Standards Index
For existing suppliers we will help them to make continuous improvement through monthly performance monitoring and Case Due Diligence Investigation of Cathode Material Suppliers
annual audits. The onsite audit plan will be updated based on the performance review results in last year. The audit frequency
is defined as below:
Due diligence investigates commercial reputational operational and legal risks from the supply chain. It includes child
labor infringement of human rights corruption and other risks. Moreover we also identify risks based on complaints
and feedback from external stakeholders (government associations media clients and suppliers etc.)
Currently our risk identification mainly covers cathode material suppliers. In 2023 we plan to expand the CSR
Grade once every two years Grade twice every year (once every six months) assessment to more than 20 critical suppliers and the assessment will include human rights and labor health and
A C
safety environment protection CSR management system and business ethics.Grade once every year Grade D-rated suppliers will be replaced or not be granted
B D new business.Training and Capacity Building
By December 2022 we have completed annual
audits of 47 suppliers with a total number of 504 Farasis Energy would like to work with suppliers with common sustainability mindsets and provide trainings and capacity
problems found and 100% of which have been By December 2022 Suppliers participating building for them to support the development.corrected. During the on-site supplier audit the we have completed in safety training
audit team leader will discuss with suppliers We aim to find solutions to the problems that faced by all peers such as low-carbon product footprint and recycled materials. annual audits of
about product quality industry trends and CSR at During these processes we will sign strategic partnership agreements and technology development agreements with
the kick-off and close meeting respectively and suppliers. Meanwhile we introduce open innovation mechanism and share intellectual properties with them so as to develop
communicates with them about our requirements 47 suppliers 1404 new technology roadmap planning and producing processes
and expectations on them. In addition we visit suppliers to learn about their awareness on product carbon footprint corporate carbon emission and the
For the fair and transparent procurement we progress to topics including green electricity and recycled materials. As a next step we will further deliver capacity building
have made written requirements to all suppliers program with cathode material suppliers.- including anti-corruption anti-bribery and fair with a total Coverage of supplier
competition to create a transparent and clean number of safety training
sourcing system with our suppliers. In addition
we have established the Bidding Committee to 504 problems found 100% Responsible Mineral Manangement
resolutely eradicate potential irregularities in this
process.Farasis Energy uses minerals including nickel cobalt manganese lithium graphite copper and aluminum in our production
and operation. As one of the global pioneers in the field of clean energy sustainable development we are fully aware of the
potential negative impacts of mining trading processing and exporting minerals in conflict-affected and high-risk areas. We
We also build up a compliance/integrity-related grievance mechanism. All complaints related to responsible sourcing could are a member of the Responsible Critical Mineral Initiative (RCI formally known as Responsible Cobalt Initiative) and obliged tobe made following the grievance process information on our website. The complaint e-mail for supply chain due diligence is take proactive actions with the principles of “reality-based shared responsibility continuous improvement and addressingDue-Diligence@farasisenergy.com.cn both manifestation and root causes” and contribute to high-quality development of global critical minerals supply chains.Against this background Farasis Energy has developed the Supply Chain Due Diligence Policy and continues to carry out due
diligence management of mineral supplies.Our Supply Chain Due Diligence Policy is compiled by reference to regulations on tungsten tin tantalum and gold in conflict
areas in the third edition of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected
and High-Risk Areas (OECD Guidance) the second edition of the Chinese Due Diligence Guidelines for Responsible Mineral
Supply Chains issued by the China Chamber of Commerce of Metals Minerals and Chemicals Importers & Exporters (CCCMC)
(Chinese Guidelines) and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
In addition to conduct self-management and clear communication of requirements to our suppliers this policy has been widely
disseminated to more internal and external stakeholders and could be accessed on our website www.farasis.com.
80 81Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation RReessppoonnssiible Sourrcciningg Corporate Citizenship GRI Standards Index
Due Diligence Management System Risk Management and Response
During the reporting period we updated internal management regulations such as the Due Diligence Management Once the risk is confirmed a timely report must be made to the Responsible Sourcing Committee on relevant
Procedures for Responsible Mineral Supply Chain and optimized the due diligence management system. The information about high-risk supply chains real and potential risks.structure and function of Responsible Sourcing Committee is renewed as well to make it suitable for business
development and manage the due diligence more effectively. We will work out and implement a risk mitigation plan according to established due diligence policy and
communicate with the suppliers to reach an agreement.Apart from the Due Diligence Management Procedures our key documents about responsible minerals management
also include the Farasis Energy Supplier Code of Conduct and the Complaint and Communication Mechanism for Risk mitigation strategies include continuation of cooperation with measurable risk management; temporary
Supply Chain Management. These documents are publicly available on our website and sent to suppliers in written. suspension of cooperation while continuously reducing the risks; and termination of cooperation when risk
We also conduct regular trainings on these documents inside our company. In 2022 our due diligence training mitigation measures are not feasible or acceptable.covered all key departments and positions. We will continuously monitor the risks and conduct new round of risk assessment when the situation changes.In 2022 we did not receive any complaints from our public complaint and communication channel.Risk Identification and Assessment Supervision and Audit
In 2022 Farasis Energy completed and passed all supply chain due diligence audits by external agencies
According to our annual plan we conducted on-site audits on the key suppliers in which due diligence assessment is commissioned by our clients.a very important part. In 2022 all cathode material suppliers were reviewed and audited.In accordance with the OECD Guidance and the Chinese Guidelines we launched cooperation with external
Farasis Energy developed CAHRA (Conflict-Affected and High-risk Areas) Identification Procedure and KYS (Know Your agencies to conduct comprehensive due diligence audits of cobalt and lithium supply chain in 2022. And we plan to
Supplier) process to collect information of suppliers in conflict-affected and high-risk areas. audit and communicate with at least 20 key suppliers in the near future.Based on the processes above we regularly collect supply chain mapping information from suppliers continuously The audit progress and report are regularly submitted to the Responsible Sourcing Committee. Assisted by
carries out annual due diligence audit programs and regularly monitors news media and legal updates from public professional agencies we work out improvement plans for audit findings and continuously track the closure of
channels to identify potential risks in the mineral supply chains. In response to identified potential risks we carry out corrective actions. By the end of 2022 we found no major issues involving child labor inhumane treatment forced
due diligence investigation to ascertain or mitigate the risks. labor armed conflict or ecological damage.The annual audit programs mentioned above are also used to establish and improve supply chain transparency for
critical materials.Records and reports relating to responsible mineral due diligence investigation will be kept for at least five years for
properly using and securely stored in our internal database.
82 83Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing CCoorrppoorratte Citizennsshhipip GRI Standards Index
Community Charity
Caring for Left-behind Children
Farasis Energy cares much for the left-behind children and carries out charity activities consistently for a long time.On April 30th 2022 the Party branch and Labor Union launched a “Children's Love Harbor” program with
06 a donation of CNY 60 thousand to offer free after-school tutoring and psychological service to children in Xiejiao Village Sanjiang Town Ganzhou Economic and Technological Development Zone.
On the occasion of "Children's Day" on June 1st 2022 Farasis Energy donated stationery and gift bags to the
left-behind children in Xiejiao village at Sanjiang town. At "Tongxin Bay" communist party members and
volunteers from Farasis Energy have accompanied some children to complete the kite DIY (Do-It-Yourself)
Corporate and send them fly. Our volunteers visited Emei Elementary School in Ganzhou Economic and Technological Development Zone as well.Citizenship
We have aided two left-behind children in Huangsha Village Gan County with approximately CNY 10
thousand each year for five years.Case Farasis Energy Caring for Left-behind Children Activity
Community Charity
To strengthen caring and protection for left-
behind children and create a warm and cheerful
environment for them the Party branch and
volunteers launched a caring for left-behind
children activity at the “Children's Love Harbor”
in Xiejiao Village Sanjiang Town Ganzhou
Economic and Technological Development Zone.In this activity the left-behind children had a fun
class wrote letters to their parents described
their dreams and made paper airplanes. Having
few opportunities to communicate face-to-face
with their parents they wrote what they wanted
to say in letters with plain sentences pinyin and
hand-drawing. At the end of the activity they
flied the paper airplanes they made from the
letters hoping the airplanes could bring their
words to their parents.
84 85Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing CCoorrppoorratte Citizennsshhipip GRI Standards Index
Support Education Case Heart-warming Charitable Event by Female Employees
A nation will prosper only when the youth thrive. Farasis Energy actively launch charitable activities to help students in need. On the morning of January 24
th 2022 in response to the urge from the Women's Federation of Ganzhou Economic
and Technological Development Zone the Women's Committee at Farasis Energy organizes a dedicated
charitable event for women with breast and cervical cancers – together with the district Women's Federation.Two volunteer teams have formed to deliver seasonal greetings and offerings covering eight poverty families of
Case Farasis Energy Cares for the Youth women patients who suffered aforesaid two cancers in Hubian Panlong Fenggang Sanjiang Yangkeng as well
as other areas of Ganzhou Economic Development Zone.On August 29th 2022 Sanjiang Town held the Conference for the Establishment of Sanjiang Town Education
Assistance Association and the 2022 Scholarships and Student Grants Conference to establish a civilized fashion
in which teachers are respected education is valued. At the activity CNY 154.8 thousand of scholarships and Rural Revitalization
student grants were distributed to 115 students. Farasis Energy contributed half of the amount which was
CNY 77.4 thousand and received a honor of "2022 Education Supporting Charity Enterprise" from the local
government of Sanjiang Town and "Donation for Education with Selfless Love" awarded by the chairman of
Sanjiang Town Education Assistance Association. To respond to the charity fundraising initiative of “One Heart for Common Prosperity” by the United Front Work Department of
the Zhenjiang Municipal Committee of the Communist Party of China and serve rural revitalization Farasis Energy participated
in Tencent’s 99 Giving Day in Jiangsu online and donated CNY 30 thousand on September 9th 2022. That day we visited
Zhenjiang New Area Xingrui Home-based Care for the Aged Service Center with tailor-made Mid-autumn Day gift packages.With Party members taking the lead our employees actively join the volunteer team to exercise the spirit of "dedicationfriendship mutual assistance and progress” through which to demonstrate our dedication and commitment as a good To support poverty relief we have set up employment assistance workshops. In 2022 we helped 14 needy families (offering 14
corporate citizen. jobs) and donated materials worth more than CNY 1.25 million (including salary five insurances and one fund and benefits for
Spring Festival Dragon Boat Festival and Mid-autumn Day to the recipients).Employee Volunteering
External donation Rural revitalization Employee volunteers
Case Our Volunteer Services
Monetary Monetary Volunteer activities
Farasis Energy is committed to promoting positive 2022 162.2 thousand CNY 2021 1000 thousand CNY 2021 7 sessions
energy and creating a volunteering atmosphere. In the
afternoon of January 27th 2022 two volunteer teams 2022 1280 thousand CNY 2022 8 sessions
of our Party branch and Labor Union at Ganzhou and
Zhenjiang respectively visited Jiangxi Lantian Luzhiyou
Sanitation Equipment Technology Co. Ltd. and Zhenjiang Non-monetary Non-monetary Employees participating
New Area Xingrui Home-based Care for the Aged Service (Goods or Materials) (Goods or Materials) in volunteer activities
Center. The volunteers learned about the living condition
of front-line sanitation workers and the seniors without 2021 21 thousand CNY 2021 16 thousand CNY 2021 53 person times
a family and sent Spring Festival gifts and greetings to
them which made them feel warm in the winter and at 2022 120 thousand CNY 2022 419 thousand CNY 2022 59 person times
the Spring Festival.Support for employment
2021 16 persons
2022 14 persons
86 87Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRGIR SI tSatannddaardrdss I Inndex
GRI Standards Index GRI Standard Indicator Contents Sustainable Development Goals Where to Find
3-1 Process to determine material topics ESG Strategy and Governance
GRI Standard Indicator Contents Sustainable Development Goals Where to Find Material Topics 3-2 List of material topics ESG Strategy and Governance
2-1 Organizational details A Global Leader in Power Batteries
3-3 Management of material topics ESG Strategy and Governance
2-2 Entities included in the organization’s sustainability reporting A Global Leader in Power Batteries 201-1 Direct economic value generated and distributed SDG-8、SDG-9 Farasis Energy in 2022
2-3 Reporting period frequency and contact point About this Report
201-2 Financial implications and other risks and
2-4 Restatements of information -- opportunities due to climate change
SDG-13 Green Development
Economic
2-5 External assurance -- Performance
201-3 Defined benefit plan obligations and other
Activities value chain and other business retirement plans
Employee Development
2-6 relationships A Global Leader in Power Batteries
Financial assistance received from
2-7 Employees SDG-8、SDG-10 Employee Development 201-4 government --
2-8 Workers who are not employees SDG-8 Responsible Sourcing
202-1 Ratios of standard entry level wage by SDG-1、SDG-5、SDG-8 --
Market gender compared to local minimum wage
2-9 Governance structure and composition SDG-5、SDG-16 Governance and Operation Presence
Nomination and selection of the highest Proportion of senior management hired 2-10 governance body SDG-5、SDG-16 Governance and Operation
202-2 from the local community SDG-8 Employee Development
Infrastructure investments and services
2-11 Chair of the highest governance body SDG-16 Governance and Operation Indirect 203-1 supported SDG-5、SDG-9、SDG-11 Employee DevelopmentEconomic
Impacts
2-12 Role of the highest governance body in overseeing 203-2 Significant indirect economic impacts SDG-1、SDG-3、SDG-8 --the management of impacts SDG-16 Governance and Operation
Procurement
2-13 Delegation of responsibility for managing impacts Governance and Operation Practices 204-1 Proportion of spending on local suppliers SDG-8 Responsible Sourcing
Role of the highest governance body in 205-1 Operations assessed for risks related to 2-14 sustainability reporting Governance and Operation corruption
SDG-16 Governance and Operation
Anti-
2-15 Conflicts of interest SDG-16 Stakeholders Engagement corruption 205-2
Communication and training about anti-
corruption policies and procedures SDG-16 Governance and Operation
General
Disclosures 205-3 Confirmed incidents of corruption and 2-16 Communication of critical concerns SDG-16 Stakeholders Engagement actions taken SDG-16 Governance and Operation
2-17 Collective knowledge of the highest governance
Anti-
ESG Strategy and Governance competitive 206-1 Legal actions for anti-competitive behavior body anti-trust and monopoly practices SDG-16 Governance and OperationBehavior
2-18 Evaluation of the performance of the highest governance body -- 207-1 Approach to tax SDG-1、SDG-10、SDG-17 Governance and Operation
2-19 Remuneration policies --
207-2 Tax governance control and risk management SDG-1、SDG-10、SDG-17 Governance and Operation
2-20 Process to determine remuneration -- Tax
207-3 Stakeholder engagement and
2-21 Annual total compensation ratio -- management of concerns related to tax
SDG-1、SDG-10、SDG-17 Governance and Operation
2-22 Statement on sustainable development strategy ESG Strategy and Governance 207-4 Country-by-country reporting SDG-1、SDG-10、SDG-17 --
2-23 Policy commitments Governance and Operation 301-1 Materials used by weight or volume SDG-8、SDG-12 Green Development
2-24 Embedding policy commitments -- Materials 301-2 Recycled input materials used SDG-8、SDG-12 Green Development
2-25 Processes to remediate negative impacts Governance and Operation 301-3 Reclaimed products and their packaging materials SDG-8、SDG-12 Green Development
2-26 Mechanisms for seeking advice and raising concerns SDG-16 Governance and Operation 302-1
Energy consumption within the SDG-7、SDG-8、SDG-12、
organization SDG-13 Green Development
2-27 Compliance with laws and regulations Governance and Operation 302-2 Energy consumption outside of the SDG-7、SDG-8、SDG-12、organization SDG-13 Green Development
2-28 Membership associations -- Energy 302-3 Energy intensity SDG-7、SDG-8、SDG-12、SDG-13 Green Development
2-29 Approach to stakeholder engagement ESG Strategy and Governance 302-4 Reduction of energy consumption SDG-7、SDG-8、SDG-12、SDG-13 Green Development
2-30 Collective bargaining agreements SDG-8 Employee Development 302-5 Reductions in energy requirements of SDG-7、SDG-8、SDG-12、products and services SDG-13 Green Development
88 89Farasis Energy (Ganzhou) Co. Ltd. The Environmental Social and Governance (ESG) report
About This Report Message from the Chairman Column: A Global Leader in Power Batteries Farasis Energy in 2022 ESG Strategy and Governance Governance and Operation Green Development Employee Development Product and Innovation Responsible Sourcing Corporate Citizenship GRGIR SI tSatannddaardrdss I Inndex
GRI Standard Indicator Contents Sustainable Development Goals Where to Find GRI Standard Indicator Contents
Sustainable
Development Goals Where to Find
Labor/
303-1 Interactions with water as a shared resource SDG-6、SDG-12 Green Development Management 402-1 Minimum notice periods regarding operational changes SDG-8 --
Relations
303-2 Management of water discharge-related impacts SDG-6 Green Development 403-1 Occupational health and safety management system SDG-8 Employee Development
Water and 403-2 Hazard identification risk assessment and incident investigation SDG-8 Employee Development
Effluents 303-3 Water withdrawal SDG-6 Green Development
403-3 Occupational health services SDG-8 Employee Development
303-4 Water discharge SDG-6 Green Development 403-4 Worker participation consultation and communication on occupational health and safety SDG-8、SDG-16 Employee Development
303-5 Water consumption SDG-6 Green Development Occupational 403-5 Worker training on occupational health and safety SDG-8 Employee Development
Health and
Operational sites owned leased managed in or Safety 403-6 Promotion of worker health SDG-3 Employee Development
304-1 adjacent to protected areas and areas of high SDG-6、SDG-14、SDG- --
biodiversity value outside protected areas 15 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships SDG-8 Employee Development
304-2 Significant impacts of activities products and SDG-6、SDG-14、SDG- -- 403-8 Workers covered by an occupational health and safety services on biodiversity 15 management system SDG-8 Employee Development
Biodiversity SDG-3 SDG-8
SDG-6、SDG-14、SDG- 403-9 Work-related injuries 、 、SDG-16 Employee Development304-3 Habitats protected or restored 15 --
IUCN Red List species and national conservation 403-10 Work-related ill health
SDG-3、SDG-8、
SDG-16 Employee Development
304-4 list species with habitats in areas affected by SDG-6、SDG-14、SDG-
operations 15
--
404-1 Average hours of training per year per employee SDG-4、SDG-5、SDG-8、SDG-10 Employee Development
SDG-3、SDG-12、SDG- Training and 404-2 Programs for upgrading employee skills and transition 305-1 Direct (Scope 1) GHG emissions 13、SDG-14、SDG-15 Green Development Education assistance programs
SDG-8 Employee Development
404-3 Percentage of employees receiving regular performance and SDG-5、SDG-8、SDG-3、SDG-12、SDG- career development reviews SDG-10 Employee Development305-2 Energy indirect (Scope 2) GHG emissions 13、SDG-14、SDG-15 Green Development
Diversity 405-1 Diversity of governance bodies and employees SDG-5、SDG-8 Employee Development
305-3 Other indirect (Scope 3) GHG emissions SDG-3、SDG-12、SDG- Green Development and Equal 13、SDG-14、SDG-15 Opportunity 405-2 Ratio of basic salary and remuneration of women to men SDG-5、SDG-8、SDG-10 --
SDG-13、SDG-14、SDG- Non-Emissions 305-4 GHG emissions intensity 15 Green Development discrimination
406-1 Incidents of discrimination and corrective actions taken SDG-5、SDG-8 Employee Development
Freedom of
305-5 Reduction of GHG emissions SDG-13、SDG-14、SDG- Green Development Association 407-1 Operations and suppliers in which the right to freedom of 15 and Collective association and collective bargaining may be at risk SDG-8 --
Bargaining
305-6 Emissions of ozone-depleting substances (ODS) SDG-3、SDG-12 -- Child Labor 408-1 Operations and suppliers at significant risk for incidents of child SDG-5、SDG-8、labor SDG-16 Employee Development
305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other SDG-3、SDG-12、SDG-
Forced or
significant air emissions 14、SDG-15、 Green Development Compulsory 409-1
Operations and suppliers at significant risk for incidents of forced
or compulsory labor SDG-5、SDG-8 Responsible SourcingLabor
Security
306-1 Waste generation and significant waste-related SDG-3、SDG-6、SDG- Green Development Practices 410-1 Security personnel trained in human rights policies or procedures SDG-16 Employee Developmentimpacts 11、SDG-12
Rights of
SDG-3、SDG-6、SDG-8、 Indigenous 411-1 Incidents of violations involving rights of indigenous peoples SDG-2 --306-2 Management of significant waste-related impacts SDG-11、SDG-12 Green Development Peoples
413-1 Operations with local community engagement impact SDG-3、SDG-6、SDG- assessments and development programs Corporate CitizenshipWaste 306-3 Waste generated 11、SDG-12、SDG-15 Green Development
Local
Communities
413-2 Operations with significant actual and potential negative impacts on local communities SDG-2 Corporate Citizenship
306-4 Waste diverted from disposal SDG-3、SDG-11、SDG-12 Green Development Supplier 414-1 New suppliers that were screened using social criteria SDG-5、SDG-8、SDG-16 Responsible Sourcing
Social
SDG-3、SDG-6、SDG- Assessment 414-2 Negative social impacts in the supply chain and actions taken SDG-5、SDG-8、306-5 Waste directed to disposal Responsible Sourcing11、SDG-12、SDG-15 Green Development SDG-16
308-1 New suppliers that were screened using
Public Policy 415-1 Political contributions SDG-16 --
Supplier environmental criteria Responsible Sourcing
Customer 416-1 Assessment of the health and safety impacts of product and Environmental service categories Product and Innovation
Assessment 308-2 Negative environmental impacts in the supply chain
Health and
and actions taken Responsible Sourcing Safety 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services SDG-16 Product and Innovation
401-1 New employee hires and employee turnover SDG-5、SDG-8、SDG-10 Employee Development 417-1 Requirements for product and service information and labeling SDG-12 Product and Innovation
Marketing and 417-2 Incidents of non-compliance concerning product and service Labeling information and labeling SDG-16 Product and Innovation
Employment 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees SDG-3、SDG-5、SDG-8 Employee Development 417-3 Incidents of non-compliance concerning marketing communications SDG-16 Product and Innovation
401-3 Parental leave SDG-5、SDG-8 -- Customer Substantiated complaints concerning breaches of customer
Privacy 418-1 privacy and losses of customer data SDG-16 Product and Innovation
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