2
Mission
Enabling a Safer Society and Smarter Living
Vision
The World-leading Video-centric
Smart IoT Solutions and Service Provider
Core Concepts
Customer-oriented Employee-basedTable of Contents
1. Foreword/04
About This Report
Statement from the Chairman
Introduction to Dahua
2. ESG Management/10
ESG Architecture
Interested Party Participation
Focus on Substantive Issues
3. Environment/13
Environmental Management Systems
Empowerment by Digital Intelligence
Environment-friendly and Low-carbon
Products 4. Social/31
Green Operation
Social Management Systems
Awareness of Green Development
Employee
Internal Management
Customer
Supplier
Open Ecosystem
Cooperation and Exchanges
5. Governance/51 Public Welfare Activities
Corporate Governance
Internal Control and Risk Management
Compliance with Law
Secure and Reliable IT Architecture
6. Appendix/58
Appendix 1: Enterprise Honor
Appendix 2: Key Performance Indicators
for Sustainable Development
Appendix 3: GRI IndexForeword ESG Management Environment Social Governance Appendix 4
About This Report
This report describes the actual practice of Zhejiang Dahua Technology Co. Ltd. (hereinafter referred to as the Company or Dahua) in
environment society and governance in 2022. It also details the Company's efforts at corporate governance integrity management the
protection of shareholders' rights and interests technological innovation environmental protection and public service activities so as to
strengthen the communication and connection between interested parties and the Company.· Basis of Preparation
This report has been prepared in accordance with GRI standards of the Global Sustainability Standards Board (GSSB) and the
content of the 2022 Corporate Environmental Social and Governance (ESG) Report has been finalized with reference to "Shenzhen
Stock Exchange Social Responsibility Instructions to Listed Companies".· Time Scope
The reporting period is January 1 2022 through December 31 2022 and some information may be beyond this scope. The report
covers the information of Zhejiang Dahua Technology Co. Ltd. and its major subsidiaries.· Data Source
Information and cases disclosed in this report are mainly from the official documents reports and relevant open data of Dahua and its
major subsidiaries. The Company's board of directors is responsible for the authenticity accuracy and completeness of this report.· Data Description
The Company's financial statements of this year the related documents and the company's statistics. Zhejiang Dahua Technology
Co. Ltd. reserves the right to interpret this report.· Release Method
This report can be downloaded from Juchao Information Network (www.cninfo.com.cn) and the website of Dahua (www.dahuatech.com). For more information beyond this report refer to the Company's annual report or visit the Company's website.Foreword ESG Management Environment Social Governance Appendix 5
Statement from the Chairman
2022 was a remarkable year when Dahua strove to empower the industry
with digital intelligence and pursued high-quality development. Due to
geopolitical conflicts high inflation and other factors global economy
was under downward pressure. In the face of the complex economic and
business environment the Company has focused on city-oriented strategy
and enterprise-oriented strategy as the two key business strategies and
AIoT and IoT digital intelligence platform as the two key technical strategies
gathering partners to jointly build a smart IoT ecological community of co-
construction win-win outcome and symbiosis so as to empower cities
through digital innovation and enterprises through digital transformation.We have put forward the vision of "harmonious coexistence between man and nature man and society and man and the city" and come
up with innovative ways to facilitate pollution prevention and control through digital intelligence. We have enhanced forest fire prevention
efficiency through a variety of fire monitoring and perception technologies built an all-round perception system to protect arable land helped
upgrade elderly care services and make them become more considerate and reduced carbon emissions through science and technology.We have committed ourselves to 13 business areas and worked on scenarios with quantifiable and measurable value while optimizing
clients’ security systems improving their production efficiency assisting their business management and facilitating the digital upgrade of
thousands of industries. Focusing on the five nodes of "generator grid load storage and charging" in power supply the Company has
facilitated the fine management of energy consumption in building spaces with intelligence to implement the "carbon peaking and carbon
neutrality goals". We have developed a smart video tracking system for competitive events that was able to capture the exciting moments
during Winter Olympic games. We have provided solutions for scenarios related to electricity petrochemical coal iron and steel to
guarantee the safe production of energy enterprises. We will actively apply the power of digital intelligence to protect nature and biodiversity
safeguard our green mountains and clear waters and build a better world together.The Company has continuously optimized governance systems and governance efficiency. With an efficient reasonable decision-making
mechanism a supervision mechanism of checks and balances and a stable and long-term incentive mechanism we have ensured the
healthy stable and sustainable development of the Company. To prevent and respond to compliance risks in the Company’s business
around the world and further enhance its global competitiveness the Company has established an ethics and compliance management
organization to systematically improve its compliance management capabilities.The Company has paid close attention to the protection of human rights of employees in itself and its supply chain and respected and
valued the hard work of every employee. We have taken great care of both business growth and public welfare actively participated in
public service activities organized donations blood drives volunteering activities events that provide handy service to the public to cultivate
and disseminate the virtues of solidarity friendship helpfulness courage and selfless dedication.We are embracing 2023 with excitement and also with dreams and high morale. There is a lot of work to be done and so much awaiting
us ahead! In the new year the keyword for the Company’s development will shift from "stability" to "progress" and we aim to deepen
high-quality development. Development and growth are the most important and the most wonderful goals. They are the key to solving all
problems and difficulties.There is a lot to expect in 2023! We look forward to an amazing 2023!
Chairman and President:Foreword ESG Management Environment Social Governance Appendix 6
Introduction to Dahua
Zhejiang Dahua Technology Holdings Co. Ltd. is a world-leading video-centric smart IoT solutions and service provider. According to
the Dahua Think# strategy the Company has focused on city-oriented strategy and enterprise-oriented strategy as the two key business
strategies and AIoT and the IoT digital intelligence platform as the two key technical strategies empowering cities through digital
innovation and enterprises through digital transformation based on customer needs to create more value for thousands of industries
through their digital transformation.The Company has more than 23000 employees over 50% of which are engaged in R&D. Around 10% of its sales revenue is invested
in R&D each year. We have made continuous efforts in technological innovation. Currently Dahua has established the Advanced
Technology Research Institute Big Data Institute Central Institute Cyber Security Research Institute and Smart City Institute. Based on
the insight into the smart IoT and the relevant planning Dahua has continuously explored new business opportunities and extended its
business scope to machine vision robots smart life smart fire protection automotive electronics smart storage smart security check
smart display control smart control and smart thermal imaging among others.NO. 2* 23000+ 51
market share in employees domestic and
the world overseas branches
8000+180200+
patents countries and domestic offices
regions covered
* Data source: 2021 Global Intelligent Video Surveillance Market Information Service Report released by Omdia a market research organizationForeword ESG Management Environment Social Governance Appendix 7
Introduction to Dahua
Global Service Network
Dahua has a global marketing and service network with 51 domestic and overseas branches in Asia North America South America
Europe Africa and Oceania and more than 200 offices in China to provide fast and high-quality services to customers. Dahua products
are available in over 180 countries and regions around the world. They have been widely applied to multiple fields such as smart city
traffic livelihood manufacturing education energy finance and environment protection enabling a safer society and smarter living.
3 manufacturing and supply centers 6 continents covered
Hangzhou (China) Changsha (China) Asia Europe Africa North America
Vietnam South America Oceania
5 research centers 160+ global service outlets
Hangzhou (China) Xi'an (China) Hangzhou (China) Hong Kong (China)
Chengdu (China) Poland Poland Dubai India Indonesia
Mexico South Africa Brazil Mexico etc.Foreword ESG Management Environment Social Governance Appendix 8
Introduction to Dahua
History
20012002200320072008
Established Zhejiang Invented the Expanded Launched the intelligent Listed on the
Dahua Technology 8-channel audio-video overseas all-in-one transportation Shenzhen
Co. Ltd. and synchronization embedded businesses solution the records of Stock
entered the video DVR and created the No.1 which became the de Exchange in
surveillance industry brand of embedded DVR facto standard of China's May 20
electronic police
201320122010
Launched the technology Launched the independently developed · Brought in the CMOS technology and launched the
of "Hardware-like Software HDCVI technology which was high-definition high-magnification camera
Platforms" making large- subsequently adopted by the HDcctv · Established the first post-doctoral mobile station in
scale deployment and Alliance and became the first international China's security industry
maintenance easy standard in the domestic security industry · Established Zhejiang Dahua Security Network
Operation Service Co. Ltd.
2014201620172018
· Brought in the IT common cloud Obtained the CMMI5 Dahua · L aunched Dahua Heart of
technology certification Intelligence (IoT) City (HoC) a new smart city
· S et up the Imou (formerly Lechange) which established the Industrial Park architecture
brand to enter the civilian video Company's global leading was put into use · L aunched the European
surveillance market position in software Supply Center
· Established the first overseas branch development
20202019
· Launched the ultra-high precision thermal imaging body temperature · Released the AIoT and SDTV strategies
measurement solution in a week to facilitate pandemic prevention and · Launched the GAIA big data platform
control
· Built 8 domestic regional software development centers to accelerate
regional application of software
2021 2022 Future
Held the summitentitled “Internet of Provide video-centric smart IoT solutions and servicesReleased the brand-new Things for a Future of to facilitate digital innovation of cities and digitalDahua Think# Strategy Digital Intelligence” intelligence transformation of enterprisesForeword ESG Management Environment Social Governance Appendix 9
Development Strategy of the Company
The Company adheres to "driving technology iteration with business operation and driving business upgrade with technology iteration" and continues to
develop and increase investment in the two key technology strategies: AIoT and the IoT digital intelligence platform. By building video-centric full-stack AIoT
capabilities the Company has provided more diversified perception connection computing and intelligent services for the market. By developing its IoT
digital intelligence platform the Company has accelerated the launch of comprehensive solutions and services and built its agile development capabilities
accumulated more business scenarios and paradigm applications and laid a foundation for digital transformation that involved private cloud public cloud
and the entire technology development ecology to enhance the Company’s business value. With the development and maturity of multimodal and foundation
model technologies etc. the video-centric multimodal fusion perception technology will lead to higher-quality more efficient and more useful technologies
products and solutions for markets needing digital transformation such as cities and enterprises.Innovated
Businesses Full Ecosystem
Machine Vision Service
and Robots Ecosystem
IoT Digital
Smart Living Intelligence Platform Business
Automotive Ecosystem
electronics
Smart Security Software
Check Ecosystem
Smart Fire
Protection Algorithm E cosystem
Smart Storage
Hardware
Ecosystem
Thermal Imaging
Full Sensing Full Intelligence Full Connection Full Computing
Facilitate urban digital innovation Facilitate digital upgrade of enterprises
Based on the Company's four business directions of social security urban In the fields of construction education manufacturing petrochemical
order governance efficiency and livelihood the Company commits itself coal electric power iron and steel agricultural products logistics cultural
to urban scenarios provides leading in IoT solutions for various industries tourism medical care finance commercial chain and other fields Dahua
and sectors in the city and helps realize the vision of harmonious is committed to becoming the most trustworthy digital upgrade partner of
coexistence between man and nature man and society and man and city. its clients by ensuring production safety improving production capacity
promoting business efficiency and optimizing its service!
Accumulate scenarios of Launch solutions for Accumulate scenarios of Develop specific solutions
various business areas various industries various business areas for various industries
5000+200+3000+300+
Enterprise
CityForeword ESG Management Environment Social Governance Appendix 10
ESG Architecture
As a world-leading video-centric smart IoT solutions and service provider Dahua is committed to building a green environment-friendly and safe world of
intelligence empowering industries with the five capabilities of "full perception full intelligence full connection full computing and full ecosystem" striving for
the digital transformation of cities enterprises and families creating greater value for customers and playing a greater role in the sustainable development of
society. These are captured by Dahua's mission of "Enabling a safer society and smarter living" that it advocates and makes great effort to realize.The Company has built a clear and transparent ESG structure based on the overall strategy of "digital intelligence empowerment low-carbon future
shared ecology and compliant operation". Following a top-down management structure all functional centers and subsidiaries have strengthened corporate
governance and sustainable business development in a more systematic way to ensure the effective implementation of ESG-related work.
01 Board of Directors
Oversees all ESG matters and makes decisions on corporate
ESG strategic planning risk management policy formulation etc.
02 Environmental Social and Governance Management Committee
Be responsible for formulating the Company's sustainable development
guidelines and policies and continuously improving the sustainable
development management framework
Be responsible for clarifying the sustainable development strategy and
goals of the Company's environmental social and governance policies
and continuing to promote green and low-carbon development
03 Executive Working Group of the Environmental Social and Governance Management Committee
Be responsible for coordinating the implementation of all ESG-related tasks
and facilitating the implementation of key projects
Be responsible for organizing the preparation of ESG reports based on
international standards and the industry’s best practices
04 Functional Departments
Be responsible for the implementation of ESG-
related work in this moduleForeword ESG Management Environment Social Governance Appendix 11
Interested Party Participation
The main interested parties of Dahua include customers partners employees governments investors etc. The trust and support of stakeholders are the
basis for the survival and development of the Company. The Company has established communication mechanisms with interested parties. Understanding
interested parties' expectations of the Company and their major ESG issues of concern which can help the Company plan for its long-term ES development.The Company actively works on building the bridge of communication with interested parties as well as identify and respond to the expectations of
interested parties in multiple dimensions and through multiple channels.Interested Main Communication and
Interested Party Expectations Enterprise Response
Party Participation Mechanisms
* Shareholders’ meeting information * Timely accurate and truthful disclosure of business
* Transparent and compliant
disclosure the Company’s website information
information disclosure * irm.cninfo.com.cn investor * Improve the governance structure and regulate the
Shareholder/ * Optimize corporate governance hotlines investor meetings field operation of the general meeting of shareholders the board
and improve profitability
Investor research strategy meetings of directors the board of supervisors regularly* Increase value of investments
investor presentations etc. * Strengthen compliance and internal control systems
in sustainable development to
* Questionnaires official accounts * Find more ways to communicate with investors and
protect shareholders' interests
for investor relations maintain stable investment dividends
* Insist on customer-centric quality-backed craftsman spirit
that seeks opportunities from customer demands and boost
* Product safety and service
the success of customers
quality * 400 customer service hotlines * Establish a strict product safety control mechanism
* Customer health and safety * Customer satisfaction survey
implement strict product safety standards
Customer * Cyber security and user * Customer meeting and provide consumers with safe and reliable products and
privacy protection * Customer evaluation research
services
* R&D and innovation and cooperation projects
* Integrate sustainability requirements into the whole life
* Scenario-based customer * Questionnaires
cycle of products and advocate circular economy
solutions
* Regard cyber security and user privacy protection as an
important guiding principle for the Company
* Establish sound management and safeguard systems for
* Employee representative
employee health and safety
communication meeting
* Adhere to the striver-awarded principle encourage all
* Employee survey
* Health and safety at work kinds of talents to make the greatest contribution at the best
* Manager feedback
Employee * Compensation and welfare time at the best position and ensure they get the biggest * Dahua Staff electronic magazine
* Career development returns
* Complaints suggestions reports
* Humanistic care * Establish a sound training system and a clear path for
and complaints
career development
for receiving complaints
* Pay attention to diversification establish good work
suggestions reports and complaints
conditions and create a healthy work atmosphere
* Field Investigation * Adhere to ethical and transparent procurement and zero
* Win-Win Cooperation * Supplier Conference
* Training and Empowerment tolerance for bribery and corruption
Partner * Supplier Training * Conduct supplier training and coaching and carry out * Integrity and Trustworthiness
* Channel conference supplier development program
* Supplier Management
* Cloud-ecommerce platform * Adhere to the sinking strategy continuously empower
* Sustainable Development
* Questionnaires partners and achieve co-construction and sharing
* Abide by business ethics international conventions and
relevant laws and regulations of various countries
* Compliance with Law
* Employment and Wealth * Policy Consultation
* Engage local labor force in employment process and
Governments * Governmental Meetings local suppliers in procurement process and pay taxes in Creation
and * Compliance management accordance with laws* Safe Production
* Fill in various forms as required * Step up campaigns on production safety and strengthen
Regulators * Green Production and attend related trainings and oversight
* Tax Payment According to Law
meetings * Make effort to reduce total emissions of industrial pollution
* Environmental Protection
* Reduce carbon emissions advocate circular economy and
increase the use of renewable energy
* Communication with * Community activities
Community * Community ActivitiesCommunities * Waste classification in the park
* Interviews and investigations
* Environmental Protection * Rectification and treatment of sewage dischargeForeword ESG Management Environment Social Governance Appendix 12
Focus on Substantive Issues
Substantive assessment is an important step in Dahua's ESG work. The Company launched the assessment in 2022 to ensure that the assessment results
reflect stakeholders' weighting and considerations on ESG issues. Through the process of "review identification analysis and deliberation" of substantive
issues information of more than 150 internal and external stakeholders were collected through interviews or questionnaires and 24 substantive issues were
identified and ranked.Review Identification Analyze Deliberation
* Review the substantive issues of * Determine the scope of * Conduct substantive * Based on expert opinions
the previous year interested parties issue analysis based on the Company deliberates and
* Conduct benchmarking analysis * Produce the questionnaires on stakeholders’ feedback and identifies substantive issues.based on the performance of substantive issues rank issues by degree of Disclose more details of very
leading enterprises * Conduct surveys and give out importance important issues
* Compare with the Company’s questionnaires
strategy
High
Low Importance to the sustainable development of enterprises High
Degree of Importance Category Environment Issues Degree of Importance Category Environment Issues
Environment Energy Management Environment Photovoltaic power station construction
Carbon Emission Reduction and Carbon
Environment Environment Biodiversity
Neutrality
Social Respect for Human and Labor Rights Environment Chemicals Management
Social Product Safety and Quality Environment Water Management
Social Innovation and Research Social Diversity and Inclusiveness
Very Important Win-Win Cooperation Sustainable Moderately ImportantSocial Social Manufacturing Digitalization
Development
Occupational Health and Safety
Social Social Employee Benefits
Management
Corporate Anti-corruption and Anti-commercial
Social Solution of Social Issues
Governance Bribery
Corporate
Compliance with Law Social Local Economic Impact
Governance
Corporate Corporate
Data Security and Privacy Protection Fair Competition
Governance Governance
Environment Hazardous Substance Management Social Public Welfare
Moderately Important Less Important
Environment Clean Technology and Applications Social Community Participation
Importance for interested partiesForeword ESG Management Environment Social Governance Appendix 13
Environmental Management Systems
Environmental Management System The Company adheres to the strategy of creating green development low-carbon
development and sustainable development builds office parks in accordance
Dahua has established and obtained the ISO14001:2015 Environmental Management with national green construction standards builds green factories featuring smart
System Certification and the Company has fully recognized national and local laws manufacturing. Meanwhile it continuously improves employees' awareness of energy
regulations and other requirements and formulated the Company's internal document conservation and environmental protection encourages employees to contribute
List of Laws Regulations and Other Requirements Recognized and Evaluated. The ideas gives full play to the wisdom of all employees asks employees to shut down
document Regulation on the Recognition and Evaluation of Environmental Factors equipment turn off the lights and save water and practices energy conservation and
has been formulated to comprehensively identify evaluate control and update the environmental protection within the Company to make green development and energy
environmental factors involved in the Company's business activities. The Company conservation take root in the mind of everyone in the Company.adjusts the operational activities at risk and conducts regular internal and external
audits to reduce or eliminate environmental risks. The Company’s environmental plans
are reviewed annually and professional third-party organizations are invited to issue
environmental supervision and evaluation reports to ensure that the Company's various
operation in all areas meet the requirements of environmental protection policies and
objectives.Environmental Management System Guideline
* Safe and environment-friendly green and healthy
* Compliance with laws and regulations continuous improvement Hazardous Substance Process
Management System
The Company's Environmental Protection Indicators for 2022 Considering the global trend of diversified green development and the continuous trade
barriers created due to environmental management standards in various countries
* Environmental emergencies: 0 cases
* Annual environmental monitoring completion rate: 100% Dahua strives to create a green and safe harmonious environment and continue
* Penalties from environmental-protection-related authorities: 0 cases to promote the sustainable development of the Company. It has established and
* Environmental-protection-related training completion rate: 100% obtained IECQ QC080000:2017 Hazardous Substances Process Management System
Certification and fully recognized relevant laws and regulations of environmental
protection actively promoted environmental protection requirements to all employees
and external suppliers and created a working environment and atmosphere that
support green development.In terms of regulating waste treatment the Company has formulated the Regulation
on Solid Waste Pollution Prevention and Control Management which classifies solid The Company's Hazardous Substance Process Control Indicators in 2022
waste according to relevant national laws regulations and standards; in terms of
regulating environmental management the Regulation on Environmental Management * Environmental compliance rate of finished products: 96%
Throughout Products’ Life Cycle has been formulated and the Company has
developed schemes and requirements to achieve best practices in different stages * HSF sampling pass rate (high-risk materials): 95%
of products’ life cycle including design and development process design production * HSF sampling pass rate (low-risk materials): 96%
logistics and transportation sales use and maintenance recycling etc. to reduce or
avoid environmental pollution and establish standards. * Rate of suppliers signing for environmental agreements (production suppliers): 86%
* Rate of suppliers signing for environmental agreements (construction suppliers): 85%
* PCBA wave soldering furnace qualification rate: 100%
* Number of HSF-related customer complaints: 0
During the reporting period no external complaints were found regarding
environmental management.Energy Management System
Dahua has established and obtained the ISO50001:2018 Energy Management System
Certification integrating energy conservation into the Company's daily operation and
management process.The Company regularly checks and monitors the equipment showing high power
usage and according to the use of power tracks down the manufacturing processes
and manufacturing equipment to reduce power consumption. The Company has
formulated the Energy Review Management Procedures and established a decision-
making system based on data and it conducts regular energy reviews and formulate
energy management plans. The Company encourages all employees to take the
initiative to improve energy utilization efficiency set up energy-saving projects and
implements refined energy management approaches to further improve energy
management and reduce energy consumption during production and operation.The monitoring and measuring equipment used for energy management should be
calibrated and maintained according to the Monitoring and Measuring Equipment
Control Procedures to ensure that the data provided by the monitoring and measuring
equipment is accurate and reproducible.Foreword ESG Management Environment Social Governance Appendix 14
Environmental Management Systems
The environmental compliance management team of Dahua is a cross departmental organization led by senior managers and is
responsible for dealing with environmental protection issues in business activities and formulating sustainable environmental policies
and medium and long-term reduction objectives.Environmental Compliance Group: Responsible for following up the interpretation update process transformation management
Environmental and implementation of all environmental regulations and requirements as well as regularly reviewing the suitability of environmental
compliance management compliance management policies and making timely adjustments when necessary.organization Procurement supply chain and other departments: Responsible for the formulation and implementation of the overall requirements for environmental compliance of suppliers carrying out relevant business activities in strict accordance with the requirements and
identifying environmental protection risks in time.In addition Dahua has established a unified business interchange window for environmental compliance to connect with external
environmental compliance requirements suppliers' technical support and internal process management consulting as the
supplement to the compliance management system.According to the identified domestic and overseas regulations and standards including RoHS REACH CA65 PAHs and other
representative environmental protection requirements DH QP 055 Dahua General Hazardous Substances Restriction Requirements
Green design of have been formulated. These requirements are synchronized internally and externally in the Suppliers' Portals and supplier quality
products agreements.In the early stage of product design and production relevant regulatory requirements should be fully identified. Also as one of the
input requirements for the design and production of Dahua's own products it is necessary to meet relevant requirements such as
the limit of hazardous substances.Each material in the material management system has its independent environmental protection property/ label (including
finished products). In addition to providing the necessary RoHS inspection report and completing REACH substance declaration
Environmental protection requirements material introduction shall carry out sampling inspection by the third party according to the environmental protection
properties of materials risk level.and products The environmental protection label of finished products is convoluted by the material BOM and bound to the sales area and target customers in the CRM sales system. Ordering of products that do not meet the environmental protection requirements is restricted by
the system to ensure compliance with the relevant policy requirements of the company's product compliance and trade compliance
and ensure the smooth global delivery of products in terms of environmental compliance.Supplier environmental protection requirements: In order to be included as official suppliers all suppliers shall be inspected by
SQE procurement and R&D on the site for supplier environmental protection review and sign EHS and Environmental Protection
Commitment when being introduced into the supply chain. The on-site inspection includes but is not limited to whether environmental
Supply chain introduction protection management requirements of raw materials and consumable materials applied in the manufacturing process and key
and environmental technologies meet the environmental protection requirements and the implementation of other internal environmental protection
protection risk management process of the supplier.identification Supplier introduction: The review group composed of Procurement R&D SQE and other departments shall grade the assessment
requirements including environmental compliance requirements according to the classification of suppliers which can be included
in the supplier system after passing the review. All suppliers are required to sign and comply with the relevant provisions of EHS and
Environmental Protection Commitment in the Supplier Quality Agreement.The Company independently developed the Green Product Management Platform (GPM) an environmental protection system
Environmental protection forming an environmental compliance management mechanism from the material source. Trigger the update mechanism: Update
information update and the environmental protection information of the materials which are still in mass production and delivery every two years. Compliance
self-declaration declaration mechanism: Establish compliance declaration procedure based on different regulations to complete the collection and
confirmation of substance information and compliance status.In 2018 Dahua founded a professional chemical analysis laboratory and put it into use to undertake the detection of components in
hazardous substances and other testing and analysis for the environmental protection of internal products as well as the verification
of the environmental compliance for incoming material after mass production and delivery.Chemical analysis Testing capability coverage: The chemical analysis laboratory conducts physical testing and chemical testing which is mainly
laboratory composed of XRF (X-ray fluorescence spectrometry) GC-MS (gas chromatography-mass spectrometer) and other core devices. The experiment operators can only operate after receiving a series of training in standards operation and safety awareness and
passing the examination. Meanwhile in order to ensure the continued accuracy and effectiveness of internal test results it is required
to tighten internally the standard limit requirements increase the quality control samples and irregularly carry out the blind sample
comparison tests in third-party laboratories.Environmental protection On the premise of full assessment of the environmental protection risks of materials Dahua has developed an efficient sampling
random inspection and inspection mechanism for incoming materials. Meanwhile Dahua has conducted environmental compliance monitoring of the
control of critical process processes of high risk and relevant consumables in the production process to eliminate environmental compliance risks of mass
(CCP) production to the greatest extent.
Improvement of Establish internal and external environmental compliance standard libraries respectively conduct training on management
environmental requirements for relevant employees in the environmental compliance management system and reinforce the education on external
compliance awareness suppliers at the same time to jointly enhance internal and external environmental compliance awareness.Dahua reviews the environmental protection objectives set every year including material introduction signing of environmental
protection agreement by suppliers achievement rate of sampling inspection qualification rate of environmental protection quality
customer satisfaction reduction achievement progress and other environmental indicators which will be included in the performance
appraisal and has established the HSPM management system review mechanism.Green sustainable HSPM management system review mechanism: By combining the Hazardous Substances Process Management System with the
management Quality Management System Dahua formulates its annual internal audit plan conducts cross-departmental audit by professionally trained auditors and fully verifies the effectiveness of the system operation.Internal auditor team: In strict accordance with the Environmental Compliance Management System QC080000:2017 conduct
internal review and regular management review every year according to the review plan and correct the non-conformance items
and items to be improved. Currently there are more than 40 certified internal auditors specializing in environmental management in
Dahua and working in various departments.Foreword ESG Management Environment Social Governance Appendix 15
Environmental Management Systems
Green Factory
Dahua has successively obtained the national green supply chain spaces separated with sound-absorbing materials and third-party testing
certificate and green factory certificate issued by the Ministry of Industry is carried out every year to ensure that noise control meets relevant
and Information Technology and has met the requirements in plant requirements.intensification harmless raw materials clean production waste recycling
and low-carbon energy use. Every year Dahua supervises audits and Dahua practices "green warehousing" and adopts automated guided
evaluates the operation of its factories to ensure that its venues and vehicles (AGV) robots that deliver materials to realize unmanned
facilities as well as its business operation are environment-friendly. operations in dark environment in the warehouse area. When an order
is ready for delivery from the warehouse there will be no paper version
of the order information slip. Carton containers are replaced by reusable
plastic containers. With "put wall" a smart device for secondary sorting of
orders ready to be delivered orders for the same customer will be put in
one package or sent in the same batch to reduce the number of cartons
used.Dahua practices "green logistics" and integrates logistics and labeling
for the entire transportation process to deliver orders faster and improve
customer satisfaction. All stages in the delivery process including dispatch
In 2022 Dahua won the honor of "Leading Green Enterprise" product information arrival adopt electronic signature. Entrance permits for
delivery vehicles are reserved electronically. The electricity consumption of
Dahua's vehicles is monitored through an on-board platform.Dahua practices "green manufacturing" and has established an advanced
wastewater recycling system to achieve zero discharge of industrial
Dahua's green development strategy is kept in line with international and
wastewater. Its manufacturing process adopts fully automatic lead-
domestic environmental protection requirements customers' requirements
free soldering that does not produce waste lead gas. The workshop is
and its own high-quality development needs and Dahua insists on
equipped with a fresh air system capable of Class-100000 dust-free
achieving green development through innovation. The application of
purification through airflow and dust control. Exhaust gases are treated by
intelligent IoT technology in the design and management of parks can
UV photolysis and activated carbon and after thorough adsorption the
improve energy efficiency which is conducive to building smart parks that
exhaust gases reach the acceptable standard for discharge. Low-noise
meet China's carbon peak and carbon neutrality goals.equipment is used in workshops and high-noise equipment is placed in
Empowerment by Digital Intelligence
Protect forests with comprehensive monitoring and sensing technology
In addition to setting up a forest fire prevention system capable of monitoring situations and win more time for fire fighting so that customers can identify
a large area of forests to improve monitoring efficiency and accelerate incident the fire at an early time fight the fire before it goes out of control and finally put
response Dahua has upgraded the system with digital intelligence to solve the out the fire. In addition based on IoT sensing and big data analysis Dahua's
problems of false alarms and alarm inaccuracy in many scenarios during the system can give daily forecast of fire risk levels provide auxiliary fire spread
actual use by customers and to improve the system's functions needs based analysis after fire occurrence swiftly execute fire fighting plans and quickly
on the characteristics of forest protection in different places. Dahua has created notify fire experts and connect them into the system to provide guidance so
through digital intelligence a full-coverage full-intelligent and full-process as to help customers prevent and extinguish fire in a closed loop efficiently.forest fire prevention monitoring and analysis system capable of real-time early More than ten real cases of mountain fires were found within half a year after
warning of fire in midair in tall buildings and on the ground. It can accurately the use of the system and the number of false fire alarms decreased by 88%
locate fire thoroughly analyze the fire situation and complete the fire-related compared with the previous period. This means the accuracy of early warnings
task in a closed loop to improve the accuracy of forest fire monitoring and of fire has been improved and forests have been better protected.alarm and emergency response in fire prevention and fire fighting.Based on the new needs and new problems found during the use of the
forest fire prevention intelligent monitoring system in one place Dahua has
upgraded its pyrotechnic detection function with artificial intelligence algorithm
and thermal imaging technology. Meanwhile Dahua streamlined the process
of fire analysis greatly reduced the occurrence of false alarms brought by
various complicated scenarios and workload of manual analysis to improve
the accuracy of fire alarm identify the real fire alarm at the earliest time
possible improve the efficiency of forest fire prevention reduce the workload
of management personnel accelerate the circulation of information on real fireForeword ESG Management Environment Social Governance Appendix 16
Empowerment by Digital Intelligence
Protect biodiversity with ecological Tackle pollution with technological
sensing powered by digital intelligence innovation powered by digital intelligence
To observe and record of wild animals and plants in protected areas more Protect the ecological environment with digital intelligence technology and
intuitively and efficiently with the purpose of biodiversity conservation Dahua has practice the social responsibility of enterprises. All along Dahua has been
built an intelligent monitoring system with full coverage from the sky to the ground vigorously promoting digital green technology innovation in the field of ecological
and to underwater capable of all-round accurate observation and evaluation of environment aiming to improve the ecological environment monitoring system
wild animal and plant activities ecological factor changes and events caused by enhance the modernization of monitoring capacity and promote the development
human activities in various types of protected areas. The system has identified of a beautiful China!
hundreds of protected animal species provided technological assistance for
better protection of species preservation ecological balance and biodiversity. Through the integration of video AI and IoT sensing application technology
In order to protect and observe gibbons a typical species in the rainforests achieving the intelligent monitoring and early warning of various scenarios
Dahua has assisted local authorities to build an intelligent gibbon monitoring especially that of sewage outlets Dahua has prevented the occurrence of various
system that adapts to the characteristics of rainforests. The system can monitor incidents such as illegal discharge excessive discharge and human interference
the main habitats of gibbons in the rainforest reserve and identify gibbons active on online monitoring improved the intelligent application level of prevention
there. Unlike traditional infrared cameras that can hardly observe gibbons active and regulation of fixed pollution sources and accelerated the transformation of
on trees the system is capable of long-distance observation so that human pollution prevention from post-event processing to proactive early warning and
observation is less needed and the impact of human activities can be reduced prevention.and as a result gibbons' habitats and their activities are less affected.Dahua has assisted a province in central and western China in realizing intelligent
visual monitoring of the discharge of more than 800 key pollution enterprises in 11
prefectures and cities in the province. The province can manage the enterprises'
pollution discharge in a comprehensive way as Dahua's system can monitor
pollution discharge in real time give warnings of abnormal pollution discharge at
an early time and conduct analysis based on the data collected. It can detect and
giving warns about suspected abnormal behaviors at the sampling site of sewage
outlets to prevent interference with the sampling process to ensure the authenticity
and accuracy of the monitoring data. The intelligent visual monitoring and early
warning function has changed the traditional management mode of pollution
discharge improving management capabilities and efficiency. Meanwhile the
system is capable of online sharing of pollution source videos across provinces
cities and counties so that AI management system for pollution sources can
be built. With the help of digital intelligence the province has realized precise
pollution control in a scientific way and carried out in-depth pollution prevention
and control.Protect arable land with digital intelligence
and safeguard critical land resources
To protect arable land on the basis of satellites-based remote sensing unmanned
aerial vehicles high-point lookout and video monitoring on the ground as well as
artificial intelligence big data analysis and other technologies Dahua has built a
visualized 3D management system for arable land which includes functions such
as service vehicle detection illegal construction detection and warning connection
to ground video monitoring and key land management. The system has realized a
closed-loop process of intelligent identification interlinked review task distribution
on-site disposal review and recording and statistical analysis covering various
business scenarios. Customers can grasp information about land use within
their jurisdiction in real time and improve their ability of arable land resource
management and protection. Dahua has participated in the intelligent protection Execute the "10-year ban on fishing in the
of arable land across Zhejiang Province and provided all-weather all-day and Yangtze River" with technological supports
visual monitoring covering key arable land with a 3D sensing system. By adopting
intelligent algorithms to monitor and give warnings in real time the system To help implement China's "ten-year fishing ban" policy Dahua has launched a
can help discover activities damaging arable land at the earliest time possible set of fishing ban supervision solutions for key waters adopting video visualization
detect and make response early and reduce the occurrence of irreversible large and AI and has built an integrated monitoring and early warning system featuring
impacts on arable land. Meanwhile all work in the process including analysis and high-point monitoring water surface supervision and manual ground inspection.judgment task distribution and disposal and problem feedback and rectification It can detect and give warning of vessels and fishing behaviors perform visual
can be completed online and the role and responsibility of each person are supervision on one single map alarm and analysis and incident response so as
clarified to ensure efficient arable land protection. to realize timely detection fast analysis and judgment and swift law enforcement.This system provides strong technical support for improving the ability to prevent
prohibited fishing behaviors in key waters and to respond to daily illegal behaviors.In a county in Chengdu Dahua and the fishery administration aimed to build
a system that can monitor the entire rivers give warnings fully automatically
realize unified scheduling throughout the process and create a closed loop of all
business segments. For this purpose Dahua and the fishery administration have
determined the surveillance points in key water areas and key areas and have
set up intelligent video surveillance cameras with binocular thermal imaging as
the core in areas where fishing was prohibited so as to monitor the entire waters
in real time. 145 messages regarding illegal fishing personnel invasion vessel
intrusion etc. have been generated since the trial use of the system starting from
March 2022. Through further review and screening a number of people violating
the fishing ban have been added to the blacklist database and 14 illegal fishingForeword ESG Management Environment Social Governance Appendix 17
Empowerment by Digital Intelligence
cases and 3 illegal fishing cases have been handled. The management effect in the solution which includes 1 set of KPIs for traffic police and 7 core modules
obtained praises from the leaders of the Ministry of Agriculture and Rural Affairs such as traffic directing comprehensive traffic management and online order
making this county becoming a good example in the execution of the 10-year maintenance. This system supports different practical tasks by providing a
fishing ban in the Yangtze River. number of useful functions. It is an important basis and effective tool for the
comprehensive upgrade of the city's traffic police.After the application of the system the police arrival rate in the main urban
area within 5 minutes after an accident happens has increased to 81% and the
Manage water with digital intelligence police arrival rate on expressways within 5 minutes after an accident happens
has increased to 92.8%. This has ensured smooth traffic and road safety. More
based on different scenarios than 9 million drivers' traffic safety codes more than 3000 village community
risk indication maps and nearly 10000 transportation enterprises risk indication
Water is the source of life. Dahua has been continuously exploring a new path maps are generated for targeted governance. More than 1500 emergency
of water management through digital intelligence and accelerating the adoption parking spots have been built to provide 26000 times of convenient parking
of digital technology in diverse water conservancy scenarios. Dahua has actively services every day significantly improving transportation service efficiency.participated in the compilation of the Technical Guidelines for the Construction
of Digital Twins of Water Networks led by the Ministry of Water Resources to
strengthen cooperation between industries universities and research institutes.Dahua has taken practical actions to provide technological assistance in
the fields of digital sensing and intelligence. Dahua has undertaken projects Use technologies to improve service quality
including the video safety monitoring of canals used for the Yangtze River-Huai
River water diversion project the monitoring of a small reservoir in a central and efficiency in expressway service areas
province the modernization of a state-level hydrological station in Shandong
and the construction of the digital twin of Wanjiazhai.Today an expressway service area is no longer just a place to fuel vehicles and
In the Yangtze River-Huai River water diversion project Dahua quickly take a rest but has become a tourist destination that shows local culture and
collected data to build models with its algorithm training ability and provided 13 features and gives passers-by a good time.abnormal behavior recognition algorithms such as clothes washing identification
fishing identification and service vehicle detection along the river canal to Dahua has implemented video IoT AI big data and other technologies in service
guarantee the smooth progress of the water diversion project. At a hydropower areas created a new mechanism and management mode featuring "Internet +
station in North China Dahua leveraged its expertise in video intelligence to service area" and provided services automatically throughout the process for
replace traditional sensors with video cameras for water level recognition and drivers and passengers so as to realize efficient management quality service
flow measurement increasing the monitoring coverage scope enhancing and operation upgrade of service areas.the timeliness of data and providing a more solid foundation of data for the
construction of digital twins for water conservancy. Dahua has been deeply involved in the transformation and upgrade of an
expressway service area known as the "South Gate" of Zhejiang. Based on the
concept of "5C+1E" (short for Clear Clean Comfortable Convenient Charming
Benefit people's livelihood with digital wisdom and Ecology) a total of 240 toilet units have been built which can automatically switch themselves between toilets for men and those for women according
and make elderly care more considerate to the number of people using the toilets. Temperatures humidity levels and
other indicators can be monitored to meet the diverse needs of drivers and
With the aging of China's population and the great challenges faced by the passengers.elderly welfare system Dahua has launched solutions powered by IoT AI
Internet+ and other technologies to provide services to institutions communities The intelligent parking guidance system can plan a space layout where
and households. The application scenarios include living rooms activity rooms the driving routes for passenger vehicles and those for freight vehicles are
canteens community activity centers etc. where upgrade elderly care services separated and the walking paths and driving routes are separated. The number
are upgraded in terms of elderly safety elderly health and medical services of parking places has been increased from 185 to 289 and the day/night mode
including monitoring in real time the physical health of the elderly giving alarm switching function can meet the parking needs of passenger vehicles and
of abnormal behaviors and alert to emergencies. freight vehicles at different periods. Information on the vacant parking places fueling tourist attractions and other first-hand travel services is sent to drivers
In a district of Nanjing by adopting Dahua's smart elderly care service platform and passengers prolonging the overall user's stay by 1 hour and enhancing the
and using technological means to give warnings of falling and monitor people overall reception capacity by 10%. At the same time the intelligent early warning
leaving nursing homes at night 24-hour full-cycle smart supervision has been system of the service area is used to timely warn the entry of vehicles carrying
made possible in more than 30 elderly care institutions in the district. This hazardous chemicals and illegal parking of vehicles in the service area through
has greatly improved the safety and efficiency of the institution built a safety video identification technology powered by AI to comprehensively improve the
protection network for the elderly and made their life healthier safer and more efficiency of daily management and ensure the area's orderly operation. Also it
convenient. This project has been highly praised by provincial and municipal can timely detect congested areas in the lobby to facilitate staff to quickly divert
government departments. traffic improving customer experience and ensuring public safety.Realize traffic management powered by AI
Aiming for safe smooth and convenient traffic through management Dahua
has applied video AI technology to various traffic management scenarios
and helped traffic management departments build a smart modern flexible
command mechanism featuring analysis and judgment efficient traffic directing
flexible and precise scheduling and real-time supervision. By empowering traffic
management with AI Dahua has helped build a digital governance system for
urban traffic management and improve the digital governance capability of traffic
management.To meet the needs for modernizing traffic police in a city in Zhejiang strengthen
traffic congestion control improve traffic services for the public and build a
traffic safety governance system Dahua has adopted the "1+7+N" architectureForeword ESG Management Environment Social Governance Appendix 18
Empowerment by Digital Intelligence
Rely on technologies to manage overloaded Make new energy vehicles a beautiful urban
vehicles and guarantee road safety view
Every year about 70% of road traffic safety accidents are caused by overloading Dahua has built an immersive digital experience center for many domestic new
and 50% of fatal road traffic accidents are directly related to overloading. energy vehicle manufacturers using technology to create a pleasant car buying
Overloaded vehicles are major hidden dangers to the life and property of drivers experience and help these brands become known by more people.and pedestrians road facilities and smooth traffic operation and overloading has
always been in the spotlight of supervision in the transportation sector. Dahua has provided the brands' exhibition halls with curved large-screen cinema-
level audio equipment that fits the design of the exhibition halls to better display
Dahua has provided scenario-based overloading supervision solutions for brand history advertise promotional activities show user feedback etc. in real
highway checkpoints key freight enterprises important sections of state-level and time. These high-quality pictures and interactive content can be shared through
provincial-level roads. By collecting evidence from overloaded vehicles in multiple a cloud-based platform and can be used in various exhibition halls of the brands
aspects Dahua has helped customers enforce relevant laws and regulations across the country. The tech-infused style of display can enhance customers' car
without visiting the site in person create "one real-time digital map" that monitors purchase experience and save more than 50% of the cost of display materials.overloaded vehicles and share relevant information in time with other competent At the entrances and exits of stores the customer flows can be detected in real
departments. Two months after the launch of the overloading control system in a time and this data can be imported to the management platforms at the brands'
place the occurrence of truck overloading was reduced and the occurrence of headquarters for analysis. Based on the analysis of customer flows the brands
ex-works overloading of trucks was reduced from 40% to 15.7%. The supervision can make adjustments to shift arrangements in stores to make sure that even
on overloaded trucks ensures the safety of road transportation protects in peak time there are staff members to provide services. Also by collecting
people's lives and property improves the service life of highways reduces the information on the amount of heat near vehicles on exhibition and in other areas
occurrence of accidents and improves the ability of competent departments in of the exhibition halls brands can adjust the locations of different vehicles send
the transportation sector to manage vehicle overloading. more staff members to populated areas optimize customer visit routes so that
customers can have a better experience and the conversion rate can be improved.From vehicle production to digital design and smart operation of exhibition halls
to transparent after-sales service Dahua has fully participated in the production
sales and service of new energy vehicles to create the most wonderful experience
for customers.Fully participate in constructing new energy
stations to boost industrial development
In terms of new energy sources Dahua has fully participated in the digitalization
of new energy stations supporting power generation enterprises through high Promote the digital reform of teaching in
technology helping them reduce costs and increase profits improve resource
utilization and optimize facility and business operation efficiency. higher education institutions
In the wind power field Dahua has built a comprehensive sensing system with
remote production inspection for core wind power providers which can help Dahua's solution for accelerating the digital transformation and upgrade of higher
them achieve intensive management and facilitate visualization digitalization education has been developed based on real needs. It easy to use and can
and automation in the production process with useful data. In the photovoltaics be applied in many education scenarios. The solution integrates itself with the
field Dahua has adopted thermal imaging technology to carry out auto-inspection existing teaching modes in depth and teachers and students are willing to adopt
in large-scale photovoltaic power plants through drones to accurately locate the solution in classrooms. Through the upgrade of traditional classrooms in
defects in components so that the operating efficiency of photovoltaic plants teaching environment teaching mode teaching data and teaching management
can be greatly improved. In the hydropower field at the Wudongde Hydropower the solution features closed-loop teaching which includes pre-class preparation
Station the fourth largest in China and the seventh largest in the world home in-class teaching and after-school homework assignment. Students can book
to the world's thinnest 300-meter-class ultra-high arch dam Dahua has adopted multi-functional classrooms easily online discuss in groups and interact with
machine vision technology to examine the process quality of the dam and monitor each other in real time remotely and play online courses anywhere they want. By
the construction quality of the dam throughout the entire process. providing this solution Dahua has contributed to the digital reform of teaching in higher education institutions.Foreword ESG Management Environment Social Governance Appendix 19
Empowerment by Digital Intelligence
Turn waste into treasure and facilitate the Dahua has joined hands with Shanghai Pudong Development Bank to build green
digital transformation of steel enterprises bank outlets spread green low-carbon measures to serve green enterprises. By using air switches water meters electricity meters and other equipment with
IoT functions the bank outlet can monitor its electricity use. The status of air
During the production and processing of steel with the increasing consumption conditioning and lighting can be adjusted through IoT equipment. Lights will turn
of non-renewable resources such as iron ore it is necessary to gradually shift to themselves off when people leave the area. Back-up lights are available when an
renewable resources such as scrap iron and scrap steel. Compared with the lengthy emergency happens. More electricity can be saved from adjusting air conditioner
steelmaking process using iron ore and coal steelmaking using scrap steel as settings reducing the overall energy use in bank outlets. Bank outlets provide
raw material has obvious advantages in terms of environment protection energy green finance information and environmental protection information to customers
consumption and cost. using low-power-consumption LED and smart screens. With the goal of helping
Shanghai Pudong Development Bank provide green finance services Dahua has
Dahua has launched in collaboration with a large domestic special steel corporation successfully transformed the outlets into green outlets by enabling the outlets to
an automatic scrap grading system to take on the responsibility of scrap purchase spread information on environmental protection hold environmental protection
yard personnel. Dahua has realized the full-process supervision of scrap unloading. activities and save energy and reduce emissions etc. enabling Shanghai
By adopting the AI scrap analysis algorithm trained by deep learning and following a Pudong Development Bank to better serve green enterprises.quality inspection and grading process similar to the steps a human inspector would
take Dahua has helped the corporation conduct layer-by-layer grading vehicle
grading non-steel substance identification and alarming and deduction of non-steel
substances from vehicles.After the completion of the system the working environment of scrap quality
inspectors and the overall work efficiency have been significantly improved.Moreover the automatic grading of scrap steel has greatly reduced disputes and
accelerated the digital transformation of steel enterprises through the automatic
grading and automatic deduction functions of the system.Create environment-friendly buildings
where source network load storage and
charging are integrated
Develop smart cultural tourism and show
In the new energy consumption field Dahua has built digital solutions in terms of the charm of speed skating through
the source grid load storage and charging and realized the refined management
of energy use in and around buildings. In terms of the source the empty space of technological support
buildings is used for solar power generation and the utilization rate of clean energy
in the buildings can be improved. In terms of the grid based on the peak-valley Located in Yanqing the National Sliding Center hosted three events during the Winter
electricity price difference transformer capacity and electricity demand estimates Olympics: bobsled skeleton and luge. The 1.9 km long track boasts the world's top
Dahua has realized flexible adjustment of buildings' energy consumption to reduce design and features a vertical drop of more than 120 meters. The theoretical sliding
energy cost. Through the application of smart air conditioning and smart lighting speed is up to 130 kilometers per hour which made the events among the fastest
solutions in buildings and the adoption of energy conservation strategy the energy sports events during the Winter Olympics. As athletes would pass the complex and
consumption expenditure for buildings can be reduced by 30%. In terms of storage narrow courses at super fast speeds huge pressure would be brought to the judges'
the energy absorption capacity of buildings has been enhanced and the peak race decisions and team support .electricity load and frequency of the power grid can be adjusted to realize the value
of electric energy. In terms of charging Dahua's solution enables electricity storage in Through thorough verification of the environment and the racing process by virtue
vehicles and makes the electricity stored in vehicles a buffer for the buildings' power of its powerful video sensing ability imaging technology and digital intelligence
grid and renewable energy. The electricity stored in vehicles can be used during technology Dahua developed an innovative video tracking system for the racing event
the peak price period and supplemented during the valley price period. Energy to realize the seamless connection and orderly display of the videos recording athletes
consumption data is monitored in real time and suitable strategies are automatically sliding at high speeds between different ramps record every detail of the event
deployed so that the entire microgrid of the buildings can adapt itself automatically. ensure that the wonderful moments of athlete swooping at high speeds are recorded.The use of electricity and the carbon footprints are tracked to ensure the efficient Without any interference with the setting of the track Dahua's intelligent video tracking
use of energy in the entire buildings. This can help enterprises save energy reduce system provided a strong basis for judges' decision making and maintaining fairness
emissions and contribute to China's carbon peak and carbon neutrality goals. and made contribution to the success of the Winter Olympic Games.Build green bank outlets to facilitate
digital green finance Protect the safety of miners using digital
intelligence and upgrade coal mine production
The Fintech Development Plan (2022-2025) puts forward environment-
friendliness as a priority in development aiming at carbon peak and carbon With safety and efficiency being its primary goals Dahua has closely followed the
neutrality deepening the integration of fintech and green finance and developing latest standards for inspection through digital technology in key coal mine provinces
innovative ideas to boost digital green finance. continued to explore the key scenarios of coal production and worked on theForeword ESG Management Environment Social Governance Appendix 20
Empowerment by Digital Intelligence
key tasks such as multidimensional underground awareness main coal stream status predict equipment failure and check or repair equipment in time to reduce
monitoring and major rule-breaking incident management and coal mine digital losses caused by equipment failure. At the same time Dahua's systems can
governance. Dahua has worked with regulatory bodies and coal mining enterprises enhance production efficiency and reduce labor costs playing a crucial role in
to build a management mode featuring co-governance and digital intelligence. the transformation of the equipment manufacturing industry.Based on its video monitoring data visualization and product and equipment
integration capabilities and rich experience in intelligent coal production Dahua has
developed nearly 100 types of algorithms for the coal industry in business scenarios
such as supervision of water prospecting and release operations linkage operations
of coal cutter drag conveyor and hydraulic support foreign matter detection on belt
coal stream information major violations control in coal mines and coal washing and
selection plants intelligent parks above mines exchange of scheduling information
illegal mining etc. Through a series of intelligent mining applications Dahua provides
one-stop solutions capable of AI video assisted management of coal mines video
chat for emergencies and identification and analysis of non-compliance behaviors.This has reduced the workload of miners improved the working environment
guaranteed the safety of coal production improved production quality and efficiency
and provided a new direction for intelligent management in the coal mine industry.Risk identification to ensure safe production Reinforce the bottom line and give timely
in the petroleum and chemical industry warning to ensure logistics compliance
Petroleum and chemical industry is an important basic and pillar industry in Dahua has joined hands with the State Post Bureau to launch a smart logistics
China. Dahua adheres to providing digital intelligence services for all scenarios compliance solution covering all operations in the business processes of
of the industry to promote new production and practice technology-powered distribution centers outlets and vehicle transportation. This solution is capable
safety. By creating digital scenarios for safe production based on Al optics and of video monitoring and automatic analysis in the scenario of logistics-related
multidimensional awareness technology Dahua is committed to the prediction operations. A comprehensive intelligent analysis and application center for
and early warning of major hazards risks hidden dangers etc. so as to make violations of regulations has been built to identify illegal operations threatening
production safer and management more intelligent. Dahua has joined hands parcel safety and even personal safety such as rough handling leaving posts
with Sinopec to empower the intelligent upgrading and construction of its major at will causing fire hazards and going beyond one's working platform. This
oil depots with science and technology. By building a provincial-level AI central intelligent supervision solution for logistics companies can give timely warning to
console Dahua can help Sinopec identify hidden risks in its oil depots to protect the employees and urge them to act in line with industry standards. At the same
its personnel and the environment. time by connecting their systems with the system of the State Post Bureau
logistics companies have their logistics delivery operations automatically
In terms of oil and gas sales Dahua has provided safety upgrading construction analyzed thus improving the quality of transportation and delivery and better
with the theme of "Promoting new production and practicing new safety" for protecting the legitimate rights and interests of consumers.nationwide oil/gas stations. Dahua has provided safety protection through AI
optical technology for nearly 1000 oil/gas stations guarantee the safety of loading
and unloading operations and assure the society the safe use of oil and gas.Dahua has empowered enterprises handling hazardous chemicals with science
and technology guarded energy security and production safety with actions and
contributed to the stable operation of petroleum and chemical enterprises.Digital intelligence technologies-
empowered breeding
In response to the needs of a corporation in the breeding industry Dahua aims
to achieve three targets: unified management of all the corporation's platforms
Facilitate lean production and deliver first- closed-loop business management on each breeding site and integration of various
class products production data. With the aid of the Internet of Things AI big data and other technical
means Dahua has helped the corporation better supervise its breeding sites through
videos remotely and improve its ability in closed-loop management. With Dahua's
Manufacturing is a key growth driver of China's economy. It is the foundation smart applications for accurate temperature measurement inventory counting pig
of the country and an essential contributor to national rejuvenation. Equipment weight estimation and pig counting fewer employees are needed on breeding sites
is the key to ensuring stable production and also an important precondition for and more efforts can be made in stepping up production. Dahua's solution has
the business growth and development of enterprises. Dahua has developed improved the corporation's breeding technology and realized digital management for
intelligent equipment management systems for key production locations such them. Based on the "3+2" five-level prevention and control principle sterilization zone
as workshops and production lines. Information about on-site work orders crossing and all operations related to people vehicles items pigs and breeding areas
production load first-pass yield equipment failure and fault warnings recorded are under closed-loop management for disease prevention and control throughout
in videos shot by panoramic cameras shown in the systems to help enterprises the process to strengthen biosafety on breeding sites in all rounds. In terms of
manage workshops remotely and give warning in real time. Using Dahua's management the digital solutions developed by Dahua for the breeding industry have
intelligent sensing equipment enterprises can obtain data on equipment improved production efficiency guaranteed the safety and good quality of meat and
vibration temperature speed etc. in real time analyze equipment operating further promoted the digital transformation of the traditional breeding industry.Foreword ESG Management Environment Social Governance Appendix 21
Empowerment by Digital Intelligence
Facilitate the digital management of a Facilitate Antarctic research and
Mexican industrial park conservation with high-tech products
In response to the needs of Haitian International Industrial Park in Mexico that Antarctica located at the southernmost point of the earth is the last continent in
requires perimeter protection access control and on-site video surveillance the world to be discovered. Glaciers extreme cold and penguins are its unique
Dahua has helped the park install a plant-wide video security system. With features. In 2022 Dahua stepped into the Antarctic region for the first time
perimeter protection visualization tool safe and efficient pedestrian and vehicle and donated 15 smart devices to local scientific bases facilitating research on
traffic guidance and professional weak current system integration design and local fauna and meteorology with intelligent video sensing capabilities to better
services the safety of the park is guaranteed and the park can be managed protect the cute penguins! The lowest temperature in Antarctica can reach -57
efficiently. degrees Celsius. The wind velocity can reach up to 320km/h. To cope with the
extremely cold climate conditions there Dahua engineers in Argentine pushed
With the aid of Dahua's fully integrated security system Haitian International's beyond their limits. During their in-depth field investigation they overcame many
management personnel can now move to this highly secure park with difficulties and finally developed intelligent equipment systems suitable for the
confidence. In addition Haitian International is now adopting state-of-the-art extremely cold region to help scientists observe Antarctica in real time for a long
technology for efficient and secure operations and its facilities are running time.smoothly with the help of Dahua's access control and vehicle management
solutions. The project has brought advanced security technology to Antarctica an
unprecedented initiative on the white continent. In addition to facilitating field
research and assessing the environment where plants and animals grow the
system can provide security to runways upon arrival laying the foundation for in-
depth research in the region.So far Dahua has provided products on all the seven continents protecting
biodiversity with digital technology and making every effort to protect species
and ecological balance. In the future Dahua will continue to innovate and
explore digital technology to share knowledge for global environmental
protection!
Provide car auctioneers with extensive
perimeter protection
The Great Northern Auction (TGNA) is the largest bus auction company in
eastern Canada and currently has state-of-the-art facilities on its compound of
more than 50 acres. Due to the need to protect its vast inventory of vehicles
TGNA needed a cost-effective way to reduce losses due to the high rate of theft
at its compound. In response the local Centurion Alarm & Lock was introduced
to address TGNA's security needs for such a large area. The all-in-one solution
includes remote connection to Maximum's video surveillance center (third-party
monitoring center) using Dahua's DSS server and VMS main platform capable
of remote video verification targeted scheduling of security personnel etc.As a result Dahua's affordable all-in-one solution puts TGNA at the forefront of
the trend of adopting video surveillance technology.Foreword ESG Management Environment Social Governance Appendix 22
Environment-friendly and Low-carbon Products
Dahua always adheres to the responsibility of protecting the environment and practicing green development. In the report period Dahua actively carried out innovative
green design for products reduced product energy consumption and promoted green expansion and business upgrading in the global market through clean
technologies.Low-power-consuming design of products
On the basis of ensuring the stability of product functions Dahua has adopted low-power-consuming design and added sleep and wake-up schemes
according to application scenarios to automatically switch to energy-saving modes at an appropriate time. This design has improved energy efficiency and
reduced energy consumption during product use to a large extent.Low-power-consuming wireless Smart access control Low-power-consuming Low-power-consuming
alarm keypad products wireless alarm keypad multi-camera PTZ
Product power consumption Product power consumption Product power consumption Product power consumption
↓96%↓15%↓60%↓66%
Solar system design
While developing extreme low-power-consumption solutions Dahua has actively adopted solar power system design in various application scenarios which
not only reduces the energy consumption of the product itself but also reduces the consumption of installation materials and long cables needed in the
application environment to reduce the carbon footprint in the process of product use.Small-ball solar power supply system 6-inch-ball solar power supply system
For every 10000 products it saves For every 10000 products It saves
350000 kWh of electricity every year 530000 kWh of electricity every year
Design driven by Internet of Things
Based on the planning for IoT solution development Dahua has actively explored the application scenarios of energy-saving products adopted intelligent
energy-saving and emission reduction design in various IoT solutions and promoted the application of green solutions recognized across the globe to help
reduce global carbon emissions.The smart lighting solution supports the transformation of traditional The smart air conditioning solution is uniformly deployed and managed
lighting and the one-stop smart lighting installation in new projects through the platform and the equipment automatically turns itself turn on
determines whether to turn on the light and to adjust illuminance through and off according to the application scenario. The solution allows users
environment light sensing saves energy as the solution automatically to set instructions to the air conditioner so that it will automatic adjust its
turns light off when people leave with the aid of infrared sensing and radar operating temperature according to the room temperature it monitors in
detection and formulates energy-saving strategies through data analysis real time. It also uses temperature humidity and human body sensing
to further improve intelligent lighting control and achieve better energy- radars for linkage control to guarantee comfort and reduce energy
saving effect. consumption.Smart warehousing solution Smart air conditioning solution
Energy consumption after application ↓20% Energy consumption after application ↓30%Foreword ESG Management Environment Social Governance Appendix 23
Green Operation
Green Design
Green Product Management Platform (GPM platform)
The Green Product Management Platform (GPM) is a cross-platform IT system independently developed by Dahua Technology dedicated to more effectively and
comprehensively managing the green pro-environment features of products. This tool has fully realized the transition from the previous passive manual and fragmented
environmental protection management to an intelligent and open environmental management platform fully integrated with existing business processes greatly
promoting the standardization and systematic process of environmental protection design avoiding negligence caused by manual operations improving the efficiency
of green product management reducing the risk of excessive harmful substances in products lowering management costs and enhancing customer satisfaction. By
connecting the upstream actors and downstream actors in the supply chain Dahua has created a one-stop self-declaration process that involves suppliers Dahua
primary-level markets and regulators. This process can meet the needs of typical compliance application scenarios such as REACH SCIP declaration conflict minerals
investigation and preliminary research into new regulations.Product
Development Business Opportunity Design Development and Verification of Designs Manufacturing Product Life Cycle (PLC)
Demand Management Visualized Data Integration Environmental Quality Management Customer Support
Collection of regulations
Material import Component BOM Change
Supplier approval Customer environmental
identification convolution management management protection agreement review
Diversified customer demands Sampling Regular sampling inspection Online environmental
for environmental protection Regulation inspection of chemical substances protection declaration
trend
update PLM
for incoming materials
Industry-specific environmental Basic Compliance information
requirements database Disposal process for output
Online abnormal incoming
substance
Compliance Reports and environmental goodsDynamic tracking declaration information update statistics Technical
EBS documentation delivery
SCP Substance Data update Environmental Data interaction OAdeclaration process process knowledge base
Packaging Material Management Packaging Standardization
Following the principles of lightweight recyclable and sustainable all packaging Dahua has always acted in line with the principle of "standardization" for
materials used by Dahua including paper plastic wood and metal as well packaging design and development actively promoted the standardization of
as auxiliary materials such as packing straps and tapes are regulated for packaging materials specifications and materials improved concentration and
hazardous substances according to the requirements of the EU 2005/20/EC standardization in production and processing realizing the low cost and high
Packaging and Packaging Waste Directive to ensure that the total content of efficiency of packaging material management.lead mercury cadmium and hexavalent chromium therein does not exceed
100mg/kg. Carton products strictly follow the relevant requirements of GB/ The innovative film packaging technology can partially replace the traditional
T 12123-2008 General Requirements for Packaging Design GB/T 6544 buffer inner packaging and increase the reuse rate of product packaging by
Corrugated Board and GB/T 13024 Carton Board. According to the actual 30% significantly reducing consumption of materials. Based on the standardized
functional requirements and material property standards Dahua has determined design of basic logistics modules Dahua has developed modular packaging
corresponding carton material schemes and performance indicators to improved technology featuring 1 standard box specification and 22 packaging solutions.standardization. Dahua has released the standards T/ZJAF 9-2021 Technical The packaging technology can be used to package more than 1000 types of
Specification for Green Packaging of Electronic Protection Products and DH components so as to reduce the use of packaging materials and improve the
JS 1728 Packaging Materials - Paper and Paperboard Technical Standard to utilization efficiency of storage and transportation space.provide specifications and standards for the design production and inspection
of suppliers manufacturers and engineers so as to improve production in scale Adaptive to standard pallets
and production consistency and to reduce design redundancy.
1.1x1.1m 1.2x1.0m
Green Packaging Design
Packaging is designed to be lightweight standardized green and sustainable.Suitable packaging materials are selected to provide products with safe reliable Modular solutions adaptive to Technology incubation &
simple and lightweight green and environment-friendly packaging solutions different components transportation safety studies
through ingenious design and technological means so as to achieve the optimal
balance between functionality quality and cost of product packaging. Through
innovation in technology and design environment-friendly packaging can be
developed as alternative new materials that can be recycled; through innovation
in design the reuse of packaging solutions and automated adaptation can
be strengthened. Dahua aims to achieve standardization and automation in
packaging design improve the efficiency of storage and transportation space
reduce the use of plastics packaging materials and the energy consumption of
upstream actors and downstream actors in the packaging industry supply chain.Data interaction
GPM Green Product Management PlatformForeword ESG Management Environment Social Governance Appendix 24
Green Operation
Five types of durable recyclable boxes of standard specifications are used
in the delivery of materials (components) from suppliers and transportation Simulation Design
of materials in the park. They are convenient for transportation through large
containers or in batches and can greatly improve the utilization efficiency of Based on its leading simulation capabilities and years of research by its
storage and transportation space saving about 128 tons of paper per year. Engineering Experiment Center Dahua has built Galaxy Cloud Simulation
Management Platform a powerful interdisciplinary simulation platform by
integrating various disciplines. It can greatly improve the accuracy and
Less Packaging efficiency of simulation accelerate R&D progress and better ensure product
quality and reliability. By integrating thermal mechanical electrical and other
Dahua has implemented the packaging reduction strategy and under the premise multidisciplinary simulation capabilities Dahua can simulate extreme physical
of ensuring the protective effect of packaging on products use of packaging environments. Dahua has gained dozens of interdisciplinary simulation
materials is minimized and the weight of packaging materials is reduced to the capabilities achieved 100% simulation coverage in the development of new
greatest extent so as to save more resources and reduce carbon emissions. products and reduced a large number of real tests or experiments to facilitate
green design build more powerful technical capabilities for R&D better ensure
that products withstand various extreme environments and improve both
product reliability and quality. Dahua's interdisciplinary simulation platform
The innovative self-developed film composite packaging technology featuring project won the Excellence Award of the Engineering Simulation Innovation
high-strength new material film and sheetboard when applied to electronic Design Competition. Using the simulation platform Dahua has developed
product packaging can reduce the use of packaging materials by 40% an a full-stack digital R&D system for the construction of an intelligent digital
average of about 12.5 tons of cardboard per 1 million sets of products. factory which was awarded Model Digital Factory 2022 in Zhejiang Province
(Certification Category).
40
% Quantity of packaging materials used
Thermal simulation Mechanical simulation
By using self-developed EHS ecological pallet with paper replacing plastic
in products delivered by one-time pallet Dahua has replaced plastic and
wood (pallet) with paper. This can improve the packaging recycling efficiency
in the scenario of one-time pallet shipment achieve more than 50% weight
reduction and reduce energy consumption and carbon emissions during
product transportation.
50
% Pallet weight Electrical simulation
Green Manufacturing
Power saved: 1.783 million kWh
Current assembly / heavy Assembly / heavy load packaging 7 low-cost solutions
load packaging using EHS ecological pallet with Emission reduced: 15T of waste cleaning liquid /
paper replacing plastic 4 high-cost solutions 170.64kg of VOCs
Green and Sustainable Dahua attaches great importance to green manufacturing focusing on energy
saving pollution reduction and efficiency improvement. By taking actions
Dahua has always been committed to using more environment-friendly including energy consumption platform construction equipment upgrading plant
packaging materials reducing plastic in product packaging materials and transformation waste gas purification testing and upgrading Dahua practices
the consumption of non-renewable resources. The non-degradable plastic green manufacturing improves the effective use of resources and continues to
in packaging is replaced by green plastic-free packaging technologies such create a green manufacturing model that takes good consideration of customer
as high-strength all-paper cushioned lining plastic-free color printing curing needs enterprise benefits resource utilization and environmental impact.technology and novel-coating moisture-proof box to realize green degradable
packaging overall. The plastic in packaging has been reduced by 9% and In May 2022 based on the strategic planning of environmental protection
75 tons of disposable plastic have been saved throughout the year. Dahua established a clean production team to maximize resource utilization
and reduce waste generation by cutting down waste from its source to reduce
or eliminate adverse impact on the environment and human health. 7 low-cost
High-strength Plastic-free color Automated paper Novel-coating solutions and 4 high-cost solutions have been implemented saving a total of
all-paper printing film composite moisture-proof 1.783 million kWh of electricity and reducing 15t of waste cleaning liquid and
cushioned lining curing technology screw package box 170.64kg of VOCs.Foreword ESG Management Environment Social Governance Appendix 25
Green Operation
Energy Saving Pollution Reduction
Establishment of an intelligent energy consumption platform To effectively improve air quality Dahua as a high-tech research and
development enterprise actively explores and upgrades the means of
In order to refine power use in production bases Dahua has established air prevention and control. During the reporting period Dahua's factory
the intelligent energy consumption platform in production bases. Real-time environmental impact assessment was upgraded from level one to level two.monitoring of electricity consumption data of each workshop and statistical
analysis can help identify issues for improvement precisely. Reducing environmental pollution through technological applications
Intelligent energy consumption platform Dahua has installed an exhaust system to collect exhaust gases and discharge
them after testing that they meet national standards. For PCBA conformal
coating and screen printing photo-curing workshops that use pollution-causing
materials Dahua has installed an exhaust gas treatment and purification unit
to effectively remove toxic and harmful substances such as hydrocarbons
chlorocarbons and oxy hydrocarbons through photocatalysis and activated
carbon adsorption.Distribution system drawings
for buildings and parks Intelligent Reducing waste at source by using clean materialselectricity
use Dahua prioritizes the use of non-polluting and less polluting raw materials. We
use lead-free solder pastes and environmentally friendly polyurethane conformal
Sense ahead
of time & Nip coatings. Their hazardous substance levels tested by SGS are lower than the
problems in international standard range.the bud
Circuit monitoring (temperature
Energy consumption arc fault residual current leakage etc.) Schematic diagram of the exhaust gas treatment devicestatistics
Digital upgrade of lens module assembly and testing lines
Through the monitoring and analysis of energy consumption it was found that if the
equipment for lens module assembly and testing lines was upgraded the assembly
testing and packaging efficiency could be improved and the energy consumption
per unit product could be reduced. After design research and development testing
2 assembling and testing lines have been updated to the fourth generation which
can meet the need for automatic high-flexibility production of 15 types of sheet metal
and more than 7000 models. The average annual electricity saved has amounted
to 1.081 million kWh generating a total revenue of RMB 2.667 million.Lens material PCB assembling Sheet metal
loading module module assembling module
* A utomatic fetching of * A utomatic picking and * V isual sheet metal position
materials by robots placing by robots verification and sending of UV photo oxygen Activated carbon Centrifugal fan
* A utomatic visual code * Automatic screw locking coordinates to robots
scanning and MES * S uction and automatic catalytic equipment adsorption equipment
linkage locking by robots
Finished product Automated lens focus
cutting module adjustment module
* Interconnection with MES * Fully automatic focusing
* Docking AGV for and dispensing
transportation technology Exhaust emission pre-test report
Dust-proof workshop renovation
During daylight saving time a water-cooling screw chiller with a host power
of 256kW usually needs to be turned on separately to guarantee the smooth
operation of dust-proof workshops. The chiller is in particular used for the
1000-class dust-proof workshop for modules which consumes a large amount
of energy consumption yet still cannot effectively control the temperature. Dahua
has set up a separate internal circulation air conditioning unit in each dust-proof
workshop connecting the central air conditioning drain line so that separate
water-cooling units can be turned off. The average annual electricity saved has
amounted to 638000 kWh generating a total revenue of RMB 606000.Annual electricity saving: 638000 kWh; economic saving: RMB 606000Foreword ESG Management Environment Social Governance Appendix 26
Green Operation
Better Efficiency Green Logistics
Dahua continues to improve its intelligent manufacturing capacity develop Under the "carbon peaking and carbon neutrality" goals the transportation
and upgrade its automated testing platform and constantly break through the industry as a key field of carbon emission reduction is in urgent need of green
bottlenecks of industry testing technology. The coverage of fully automated transformation. Based on the strategic requirements of green transportation and
testing technology of core products has reached 94.51%. sustainable resource allocation in 2022 Dahua planned the green development
of logistics linking suppliers factories and customers comprehensively
Equipment for proactive prevention and control promoting green transportation and green warehousing helping the whole industry chain improve quality and efficiency and reduce low carbon emissions
and leading partners to build a green intelligent logistics system.Dahua encourages its suppliers to use automation and visual inspection
equipment for the proactive quality control of suppliers' materials. The overall
PPM level of materials has been reduced by 16%. Green Transportation
Upgrading algorithms to improve efficiency Transportation is a key link in green logistics. Dahua monitored and analyzed
the GPS trajectory electronic fence positioning fuel consumption and other
The MTF algorithm was upgraded for the compatibility testing of super starlight data of transporting vehicles and used big data analysis and cloud computing
high-resolution IPCs. The visual AI algorithm realized test card fool-proofing. to optimize transport routes reduce transport transfers and improve transport
The automated testing rate of core product lines increased from 61% to 75%. efficiency. On this basis the waybill and integrated logistics sorting and network
The Extreme Mart algorithm could dynamically adjust the inspection method logistics labeling are optimized. Through the WMS and TMS system data
improving the IQC inspection efficiency by 10%.Data-driven models Transportation vehicle GPS positioning and monitoring platform
The first-pass yield was data-driven. Resources were concentrated to improve
top defective items. Test failures were reduced through product structure
optimization and the application of test models. Big data loading enabled real-
time warning and greatly reduced time of response to exceptions. The first-
pass yield of core products increased by 1.5% and the two-year repair rate of
domestic products was reduced by 0.13%.Materials
The coverage rate of fully automated testing of core
products reached 95.51%.interaction the order information is pushed directly to a logistics company
eliminating the need for secondary labeling by the logistics company. Dahua
Equipment for proactive prevention and control managed to shorten the delivery time speed up the efficiency of logistics
transfer and improve the overall logistics timeliness.Online defect rate (PPM) ↓16%
Before and after waybill optimization
Upgrading algorithms to improve efficiency
Before
IQC inspection efficiency ↑16%
Warehouse
outbound Warehouse Logistics Transit depot Logistics
process labeling labeling sorting distribution
Data-driven models
First-pass yield ↑1.5%
Repair rate ↓0.13% After
Warehouse
outbound Warehouse Logisticslabeling distribution Labeling integration:
Continuous improvement of human efficiency and time process Integrating Dahua labeling and
efficiency regarding materials manufacturing and products logistics labeling to reduce logistics handovers
ProductsForeword ESG Management Environment Social Governance Appendix 27
Green Operation
Green Storage Recycle and reuse
Dahua followed the concept of "ecological development". It vigorously developed
Taking "digital intelligence" and "energy saving and consumption reduction" as reverse logistics and accurate sorting and recycling to reduce environmental
the starting point in the reporting year Dahua completed the construction of pollution.the phase II intelligent distribution center. The center created algorithm models
for inventory distribution wave formation AGV scheduling etc. The center Construction of an integrated platform for domestic returned goods: The
used automated transmission lines AGVs elevators automated measurement platform connected all the business links such as the in-and-out management
thermoplastic packaging RFID and other automation equipment. The raw of returned goods the disassembling process of scrap materials and the sale
material and finished product warehouses had a total of 210 hand hydraulic and recycling of scrap products. It enhanced data transparency and traceability
carrier AGVs and 62 latent lifting AGVs realizing unmanned operations in the enabling sophisticated and compliant business management. During the
warehouse area. Fully automated areas reached 100000 square meters. Dahua reporting period returned products were collected and processed. There were
realized the efficient operation of automated diversion of incoming materials mainly 13 kinds of recycled scrap and the recycled weight was 1700 tons.into storage separation of storage and sorting intelligent transfer of storage
intelligent scheduling wave-balanced production scheduling automated
measurement of finished products and automated outbound scanning. The on- 2022 scrap recycling data (supply chain only)
site operation mode changed from "people looking for materials" to "materials
looking for people" which improved operation efficiency by 10% and saved Recovery classification (2022) Unit Quantity
3.13 million kWh of electricity annually.
Wave soldering slag KG 29916.46
Automated racking of finished products by AGVs
Manual solder slag KG 2403.855
Waste solder paste KG 108.275
Stainless steel KG 41971
Inbound transmission Automated palletizing Handling of full pallets Automated racking and
lines by robotic arms by AGVs + automated storage by AGVs
film wrapping Power supply KG 9707
AGV workflow Waste tray KG 220526
Plastics KG 57287
Aluminum KG 86363
Iron KG 18318
Copper wire KG 2271
Cable Piece 33858
Zinc alloy KG 16772
Green Circulation Carton KG 1181297
In response to the advocacy for a circular economy Dahua continued to
promote the material circulation system. It focused on shared packaging and
material recycling forming a positive cycle of material reuse between suppliers Safe Production
and customers and reducing the use of packaging materials and solid waste.Shared packaging Dahua continued to strengthen the input of production resources in safety
Statistics of incoming management. During the reporting period it identified 32 new major hazards formulated corresponding control measures and implemented strict risk level-
With suppliers: Dahua continued to turnover boxes based management. According to the effectiveness of risk control measures the
promote the recycling of turnover boxes Safety Management Department conducted routine investigations treatment
between suppliers and the park. At present and regular analysis of hidden hazards. The rate of timely hidden hazard
70% of the commonly used materials rectification was 100%. Focusing on the characteristics of business risks Dahua
purchased by Dahua are delivered with established a comprehensive level 3 emergency plan and organized employees
turnover boxes a year-on-year increase of to carry out regular on-site drills. Dahua's incident response mechanism and
20% achieving a win-win situation between employees' emergency response capabilities have been continuously improved.
Dahua and suppliers while protecting the
environment.Taking the China Safety Production Month as an opportunity Dahua Safety
With customers: Intelligent merging and Committee and the Dahua Fuyang production base jointly organized a series
packaging of orders goods-to-person AGVs of relevant activities. Under the theme of "Be Responsible and Abide by the
and put walls allowed for the merging and Safety Production Law" various activities were organized such as safety
packaging of multiple SKUs under the same knowledge contest fire emergency drills safety knowledge promotion all-staff
order and the same handling order thus safety knowledge tests and work meetings of the safety committee. The safety
reducing the usage of cartons. In November awareness of employees was further enhanced and the initiative of all staff to
2022 alone Dahua saved 12477 cartons. participate in safety management was continuously enhanced.
It was estimated that Dahua saved 149000
cartons throughout the year.Foreword ESG Management Environment Social Governance Appendix 28
Green Operation
Taking the China Safety Production Month as an opportunity Green environmental protection certifications
to promote the construction of a safe production culture
In 2022 Dahua obtained a number of green enterprise and green product
certifications at home and abroad. In terms of environmental compliance
management it received green product certif ications such as China
Environmental Labeling Certification (Type I) and the title of "China
Environmental Labeling Outstanding Enterprise". Some certificates are
displayed as follows:
Safety pledge signing Safety advisory day Safety quizzes with prizes
Dahua used its security technologies to facilitate safe production. Safety
management covered every employee. The number of serious or large production
safety accidents in the year was 0. Dahua promoted the construction of green
and safe factories: It integrated traditional fire protection to construct an integrated
platform for safety and fire protection. High-risk areas such as the packaging China Environmental China Environmental China Certification of
material warehouse charging area and nitrogen tank area had automated real- Labeling Certification Labeling Certification Environmental Products
time monitoring in place: fire warning in the packaging material warehouse (Type I) (Type II) (CCEP)
for timely detection and handling of fire dangers; 72 positions for intelligent
identification of abnormal situations in the charging area; monitoring and warning
of temperature pressure level and gas leakage in the nitrogen tank area.China Environmental Labelling
Outstanding Enterprises
The safety and fire protection Real-time monitoring of abnormal Energy Management
platform dynamically monitoring temperature in the charging area
the high-risk areas of the parks and firefighting
Dahua takes energy saving and consumption reduction and maximization of benefits
as its core objectives adheres to the sustainable development concept of low energy
Environmental Protection Assurance consumption low emission and recycling comprehensively plans and implements energy saving and emission reduction from a strategic perspective of long-term
and Certification for Products development. Through the improvement of management technology progress and
industrial structure adjustment Dahua has achieved continuous and reasonable
Dahua adhered to stable and effective system management and control reduction of overall energy consumption provided comprehensive benefits of energy
continuously optimized management and control mechanisms and processes saving and emission reduction and recycling economy and maintained continuous
and dynamically updated and introduced new compliance requirements. Based improvement. Dahua has established a favorable social image of observing laws
on the HSPM system and compliance requirements Dahua used the Green and disciplines and became the benchmark of energy consumption. The Company
Product Management (GPM) platform to continuously improve operational is dedicated to making greater contribution to promote the development of the
efficiencies such as improving the overall environmental protection data enterprise and the common development of local economy. During the reporting
management and control mechanism developing multiple material library period Dahua has always insisted on the sustainable development concept and
functions adding compliance checks for test reports and combining green energy saving and consumption reduction to promote intelligent production aiming
manufacturer identification rules for more efficient environmental management to build the green and intelligent factory. To better follow the principle of continuous
and control. improvement of energy performance and the systematization of the energy management system Dahua has established an energy management system
During the reporting period the Hazardous Substances Process Management and formulated the Energy Review Management Procedures. All departments
System (HSPM) was working well. There were no noticeable non-conformance shall compile the Identification Table of Energy Management Factors according to
items. All relevant processes and management measures operated effectively the actual situation implement the responsibility system for energy consumption
and there were no recalls or customer complaints caused by abnormal product reduction and regularly invite qualified third parties to identify and check energy
environmental compliance. management factors. We propose to post energy saving and consumption reduction signs in the park advocating "Achieve multiple use of water to reduce waste from
All of the over 40000 types of raw materials used by Dahua had RoHS test the source" "Save energy by turning off lights to reduce residential electricity
reports. Dahua realized the normalization of RoHS certification updates in consumption" "Promote double-sided printing to reduce waste from the source" and
the supply chain. More than 8000 RoHS reports were updated in 2022. More "We are in action for low carbon service". In addition the Company also proposes to
than 30000 reports were updated in total. These reports covered more than carry out multiple energy saving and consumption reduction projects aiming to build
97% of production materials. At the same time based on existing sampling a green and intelligent park.
inspection rules of more than 1600 types of production materials in 2021-2022
the RoHS sampling inspection pass rate of self-developed products exceeded Dahua Technology has adopted a series of energy management measures to define
99%. The coverage rate and pass rate continued to increase. The REACH energy-saving controls over the entire consumption of energy such as electricity
declaration coverage of various material types reached 100%. The SCIP and natural gas in the main production process supporting production process
declaration for thousands of product models sold in Europe was completed. The and auxiliary production process. A decision system based on objective data is
overall recovery rate of WEEE (Waste Electrical & Electronic Equipment of the established to comprehensively and meticulously improve energy efficiency from the
European Union) products reached 80% exceeding the standard requirements macro to the micro management to implementation. Refined energy management
by more than 10%. is practiced to further enhance energy management and reduce production and operation energy consumption.Foreword ESG Management Environment Social Governance Appendix 29
Green Operation
Energy reservation and consumption reduction 6. A total of 1389800 kWh was saved through smart air-conditioning lamp
replacement basketball court/football field light source renovation and
Power and Environment Supervision System underground garage light source adjustment. A total of 6000 tons of water was
In addition to the basic functions of electricity and gas consumption metering saved thanks to the precision air conditioner renovation.billing and statement analysis the system also provides online real-time
monitoring of energy consumption energy consumption diagnosis and analysis
and other functions to offer comprehensive energy consumption management to
managers improve the efficiency and level of energy consumption management
and reduce operation cost.Energy Control Center Photovoltaic Power Station Construction
It includes the functions used by the energy consumption detection system and
facilitates the reduction of energy cost and the establishment of a decision- Dahua fully embraced green energy in 2022 installing solar photovoltaic panels
making system based on objective data and provides users with more in-depth on the roofs of the buildings in its new park.functions and services from energy saving control and energy consumption
management. Fuyang Phase II Park plans to install a rooftop photovoltaic area of 60000
square meters. The photovoltaic power generation system will be connected
The Company enables functions such as electricity and gas energy consumption to the power grid which can eliminate the need for storage batteries greatly
metering and billing report analysis constant online monitoring of energy reduce construction costs and improve power generation efficiency and
consumption and energy diagnosis and analysis providing managers with environmental protection. The new park is expected to come into use in 2023.comprehensive energy management services to improve their efficiency and
level of energy management and reduce operation and maintenance costs.The monitoring and measuring equipment required for energy management are
calibrated and maintained in accordance with the Monitoring and Measuring
Equipment Control Procedures and relevant records shall be saved to ensure
that the data provided by these equipment for monitoring key features is
accurate and reproducible. As an industrial enterprise the company accounts
a relatively large proportion in energy consumption. Dahua shall focus on
strengthening energy management fully tap into enterprise's potential in energy-
saving and emission-reduction and effectively improve resource utilization
so as to put energy saving and emission reduction into practice Dahua has
conducted a thorough investigation of the public electrical devices and facilities
in the parks and formulated energy-saving renovation plans or suggestions to
gradually carry out the renovation which has made outstanding achievements.
1. Street lamp renovation: The street lamps in Park 1187 were changed from
48W energy-saving lamps to 26W LED lamps providing lighting for twelve
hours a day and saving 3083.5 kWh (32 lamps) a year. The street lamps in Park
1199 were changed from 55W fluorescent lamps to 26W LED lamps (85 lamps)
providing lighting for 12 hours a day and saving 10796.7 kWh each year. Total:
13880.2 kWh Solar photovoltaic panels have been widely used in building construction due
to their inherent advantages: clean pollution-free convenient stable and
2. The lighting was changed from 54W fluorescent lamps to 122 sets of 24W renewable. In response to the call of the government Dahua fully embraces
LED lamps. Assuming they provide lighting for 16 hours a day they could save green electricity based on energy-saving and consumption-reducing renovation.
21374.4 kWh each year. The fluorescent lamps on two floors were changed to The panels are connected to the park's microgrids. Based on the peak-valley
500 pcs of 18W LED lamps (intelligent sensor control). Assuming they provide electricity difference transformer capacity and electricity demand forecast
lighting for 10 hours a day they could save 32850 kWh each year. Total: they enable energy data visualization flexible energy scheduling energy cost
542244 kWh optimization and carbon emissions reduction in line with the national "carbon
peaking and carbon neutrality" strategy.
3. Energy-saving printing: The rated power of a printer is 1300W. The park
printers enter energy-saving mode if there is no operation for half an hour.Energy consumption is only 0.9W for each printer. A built-in motion sensor
detects when someone is nearby and automatically exits sleep mode reducing
the wait time before the operation begins. Installation of solar photovoltaic panels in the Dahua's new park
4. The new park uses intelligent lighting including dimmable lamps with human-
body sensors. In public spaces such as elevator halls tea room aisles and
conference rooms the illumination of lamps is adjustable according to the
ambient light so that the lights are on when people are around and out when
people are absent. In underground garages when people or vehicles are
detected the lamps within the visible range (30-50 meters) will automatically
turn on. When people or vehicles have left the lamps will return to the sleep
mode brightness. Light follows the people or vehicles to ensure the traffic
lighting in garages.
5. More than 140 KW photovoltaic panels are installed on the roofs of the
buildings in Dahua's new park and are connected to the park microgrids. Based
on the peak-valley electricity difference transformer capacity and electricity
demand forecast they enable energy data visualization flexible energy
scheduling energy cost optimization and carbon emissions reduction according
to the national "carbon peaking and carbon neutrality" strategy.Foreword ESG Management Environment Social Governance Appendix 30
Green Operation
Emission Management Hazardous Wastes Unit Total in 2021 Total in 2022
Total disposal amount of Ton 52.4 50.63
Dahua is a high-tech research and development enterprise and uses hazardous waste
international advanced equipment and technology for production. Its workshops
are equipped with exhaust systems to collect waste gas uniformly. Testing
agencies regularly conduct on-site inspections and output the Industrial
Exhaust Gas Inspection Report showing that all indicators have met national Water Management
relevant standards. Dahua has installed fume purification devices certified by
the environmental protection department to deal with oil fumes from canteens Dahua Technology has established a strict water management system in
which is fully processed before being discharged. The measures adopted by accordance with the production process and relevant local laws regulations
Dahua to eliminate pollution sources are in accord with industrial policies and and standards to use water in a scientific and rational way and improve the
clean production requirements. The pollutant emission meets the corresponding efficiency of water utilization comprehensively. The Company actively adopts
national standard Therefore the quality of the environment is not affected and advanced water-saving technologies selects water-saving equipment and
the ecological environment will not be changed. appliances installs water-saving and spill-proof devices to reduce water
consumption and increase the reuse rate of water resources. Meanwhile the
Exhaust gas detection: Wastewater and noise detection: Company also actively advocates the water-saving culture and creates the
water-saving atmosphere to further strengthen the conservation of water
resources. Dahua starts with staff awareness by training all its new and
old employees on water-saving awareness and methods and continuously
promoting energy saving and emission reduction within Dahua. Meanwhile
designated persons are assigned for patrol so that any problem once found can
be rectified in a timely manner. The wastewater of Dahua is mainly domestic
sewage and the canteen oily wastewater is discharged to the municipal
water pipe network after being treated in oil separation tanks according to the
Integrated Sewage Discharge Standard. The discharged water body is annually
detected and analyzed by the Binjiang Water Quality Analysis and Monitoring
Solid Waste Management Station and all indicators turn out to meet the relevant national standards. The automatic flushing mode in bathrooms is changed to manual flushing mode due
to the waste of water caused by repeated flushing.Dahua has specifically formulated the exclusive site management system for
hazardous wastes and account management system according to Law of the Type of Water Resource Unit Total in 2021 Total in 2022
People's Republic of China on the Prevention and Control of Environmental
Pollution by Solid Waste to ensure the reasonable standardized and effective Municipal water Ton 790857 807292
management of hazardous wastes.Awareness of Green Development
Environmental Compliance Promotion
Dahua strives to create a green safe and harmonious environment since the corporate sustainable development is inseparable from the enhancement of employees'
environmental protection awareness. An energy-saving and emission-reduction atmosphere is created through ways such as announcing its environmental management
strategy through the corporate portal setting up office computer screen savers to publicize its pro-environment policy releasing energy conservation and consumption
reduction initiatives optimizing equipment operating parameters and setting up energy-saving and consumption-reduction administrators to help employees improve
their awareness of environmental protection in a subtle way and enable employees to work in a robust and sound environment.In the reporting period Dahua has established a highly professional library of environmental protection laws and regulations a universal library of internal standard
cases and a document library of related external suppliers. At the same time based on Dahua's annual Green Seedling Plan Green Pine Plan and other new employee
training plans Dahua learning platform pushed learning plans and examinations for more than 6000 employees in environmental compliance-related posts forming
a systematic publicity channel fully covered by the multi-dimensional closed-loop of "three libraries and one examination" so as to convey the rigorous concept of
environmental compliance of Dahua internally and externally and further improve the business skills and environmental awareness of relevant parties.Dahua supply chain solicited suggestions for better management and control of consumables generating an economic benefit of RMB 1.68 million. A total of 160
improvement suggestions were collected including 17 excellent cases generating an economic benefit of RMB 460000. The promotion of excellent cases generated
an economic benefit of RMB 1.22 million. Dahua's environmental protection training for suppliers included live streaming and offline training camps covering more than
400 suppliers with an attendance of 800. It sets up an environmental protection column on the suppliers' portals and occasionally published management and control
experience Dahua regulations interpretations and compliance programs.Environmental compliance promotion journal
EU RoHS EU RoHS EU RoHS Dahua
core control requirements exemption mechanism identification and Green Manufacturer
The ABC of Consumables control
self-declaration certification EU REACH improvementForeword ESG Management Environment Social Governance Appendix 31
Social Management Systems
Occupational Health and Safety
Management System Safety Production Committee
Dahua strictly complies with the Work Safety Law of the People's Republic
of China the Law of the People's Republic of China on the Prevention and
Treatment of Occupational Diseases and the Environmental Protection Law Safety Manage-
of the People's Republic of China among other national and local laws and ment Department
regulations on occupational health in its operations. Dahua has built a top-down
systematic prevention management mechanism to minimize the occurrence of
accidents in production environmental pollution and occupational diseases.Dahua has established a certified ISO45001:2018 Occupational Health and
Safety Management System and conducts internal and external audits on a
regular basis to effectively control the risk factors to the occupational health &
safety and the environment as well as running activities relating thereto so as
to fundamentally eliminate or lower the risks to the occupational health & safety
and the environment and ensure compliance with the policies and objectives for
occupational health & safety and environmental protection.Medium- and long-term plan for safety management Supply Chain Security Management
System
2022-2023: Improvement of the safety management system To better guarantee supply chain security and reduce potential risks in the
2023-2024: In-depth management of safety risks trade process Dahua has passed the ISO28000:2007 supply chain security
management system certification established a supply chain security
2024-2025: Safe production informatization construction management system framework identified and evaluated the security threats
and risks related to supply chain security management formulated necessary
management control measures and created a Supply Chain Security Risk
Identification Report Form for security risks including natural environment
Main indicators of safety management incidents failure of externally supplied equipment and services design and
installation of security equipment information data management. Dahua adopts
effective security management control measures to monitor security threats and
risks to ensure that they are controlled in a timely and effective manner ensuring
Accidents with serious injuries or higher severity: 0 the healthy and orderly development of the industry.Occupational diseases: 0
Hidden danger rectification rate: 100%
Safety education and training coverage: 100%
Three simultaneities: 100%
Emergency drills: 100%
Business Continuity Management System
Safety Management Organization and To better guarantee business continuity and reduce business interruption risks
Operation Mechanism Dahua has passed the ISO22301:2019 business continuity management
system certification established a business continuity management system
Dahua has established a safe production management committee to coordinate framework and carried out risk evaluations for the activities of each business
its safety management efforts. Each business unit is responsible for the link. It formulates countermeasures for the key issues of risk evaluations
implementation of specific tasks according to its internal functions. Dahua follows establishes corresponding emergency plans and carries out regular exercise
the requirements of "a safe production responsibility system for all staff" and activities to ensure business continuity."no business management without safety management". Its documents specify
that the business leaders of each department are the first person responsible
for safety management the overall coordination of safety management in their
business scopes and the allocation of responsibilities based on job levels.During regular safety committee meetings Dahua analyzes the safe production
situation in the industry and within Dahua and evaluates the safety risks of
equipment operation activities and production sites. Dahua uses a level-based
hazard control and prevention mechanism to achieve safety management goals
and indicators.Safety leadership groups
of other departments and
subsidiaries
Zhejiang Dahua System
Engineering Co. Ltd. Safety
Leadership Group
Zhejiang Dahua Zhilian Co.Ltd. Safety Leadership Group
Overseas Marketing Center
Safety Leadership Group
Domestic Marketing Center
Safety Leadership Group
HR Center Safety Leadership
Group
Delivery and Service Center
Safety Leadership Group
Administration Center Safety
Leadership Group
Research Center Safety
Leadership GroupForeword ESG Management Environment Social Governance Appendix 32
Employee
Organizational Structure Human Rights Management
A Business-Oriented Three-Pillar Model As of December 31 2022 Dahua had a total of 23000+ employees worldwide.In business practice Dahua values principles of human rights as stipulated in
Modeled on the Three-Pillar Model from the HRM master David Ulrich Dahua Universal Declaration of Human Rights International Conventions on Economic
has designed the structure of COE HRBP and SSC which emphasizes the Social and Cultural Rights International Conventions on Civil and Political
concept of satisfactory business and customer demand orientation. During Rights and United Nations Guiding Principles for Business and Human Rights.the daily operation business customers are classified into different kinds of The internal Social Responsibility Management Manual is developed according
objects and the "Three-Pillar" working operation mode is formed by combining to policies and objectives listed in SA8000 International Standard and Social
the standardized personnel service and HR system with the characteristic Accountability and efforts are made to incorporate these regulations into daily
requirements of business departments so as to better support the business. workflow and policies so as to improve the value of Dahua's overall business
More attention is paid to the import of customer demands and the speed of activities. The company respects employees' rights of freedom of association
achieving and responding to customer demands which is in line with the and collective bargaining that are in accordance with national laws and under
requirements for HR in the VUCA era. voluntary conditions protects employees' personal information and privacy and
clearly prohibits all possible illegal employment practices such as employment of
HR Service Center child labor forced labor and restraint of freedom.* Handling HR affairs in each module In order to maintain the harmonious and stable development and protect the
* Using informatization and self-service to rights and interests of employees Dahua has established the Dahua Labor
improve efficiency
* Strengthening line managers' basic competence Union to actively organize activities to motivate the employees and to act as
Focus: a bridge between Dahua and the employees to listen to their opinions and
Operation
effectiveness protect their rights and interests. The company continues to innovate format of
Delivery Design democratic management provide employees with relevant information through
* Talent management: staff more channels and enable immediate interactions and feedbacks. When setting
* Business understanding training and development cadre
* Giving advice Excellent talent management up rules and regulations related to attendance appraisal performance appraisal * Providing assistance
Leadership * Organizational for managers employee rewards and punishments salary payment social insurance welfare development: culture building
Focus: Focus: organizational efficiency incentive treatment labor contract and safety production the company will seek inputs
Customer Value system from labor union and employee representatives by making information public
Closeness on company office system or in written format. An employee forum has been
launched enabling employees to express their views and participate in online
Human resources Identification HR communications and discussions. And also the company culture are promoted
Partner COE to employees in ways that are welcomed by them. The Company has also
launched the project of "Reporting Once at Most" set up a suggestion box
* Organization and Cadre Department * Compensation and Performance Department for employees and opened a message board in its WeChat public account
* Talent Management Department * Recruitment Department * Employee Relations Department "FangHua Club" to listen to employees' suggestions.The overall responsibilities of Dahua's Human
Resources Center include:
* Formulating and implementing various strategic plans for HR medium and
long-term HR development plans; Employee Recruitment
* Establishing and improving HR-related policies systems and processes;
* Deepening core HR imperatives such as organizational management job With its commitment to "Customer-oriented Employee-based" principle Dahua
qualification management talent pipeline construction cadre management has been actively attracting external talents so as to provide strategic support
recruitment management corporate culture performance management for its development.employee care and training management.* P romoting organizational transformation and innovation to boost organizational In 2022 Dahua launched the Top Talents Program for doctoral candidates the
performance. Starburst Program for high-potential fresh graduates and the StarForce (Global
* Other corporate HR-related special tasks. Campus Recruitment) Program. Dahua established the Dahua Scholarship
in many universities and organized a series of activities themed Coming
Based on the Three-Pillar Model and overall responsibilities Dahua's Human from Campus and Going to Campus including Open Day events University-
Resources Center is divided into seven divisions according to functions: HRBP Enterprise Forums and Alumni and Experts into Campus.Management Division SSC Shared Services Division Organization and
Cadre Division Talent Management Division Employee Relations Division
Recruitment Division and Compensation and Performance Division to
undertake corresponding responsibilities.Dahua Scholarship
Goals for employee rights and interests protection
Child labor 0 throughout the year
Forced or compulsory labor 0 throughout the year
Wages of workers for 100% of the regular pay for statutory workers with full
regular shifts attendance ≧ the minimum wage set by the government
Employment Overview
Dahua always believes that employees are one of the most valuable assets
respects and pays attention to the hard work of every employee protects
their rights and interests clarifies the goal and vision and strives to create a Dahua has joined hands with several universities to set up the Dahua Scholarship and carry out in-depth cooperation in talent cultivation scientific research cooperation joint
comfortable and inviting working environment for employees so that they can project filing student competitions and experts into campus so as to nurture talents
grow together with Dahua. together.Foreword ESG Management Environment Social Governance Appendix 33
Employee
Compensation and Welfare
Open Day
Dahua always dedicates itself to constant improvement of the comprehensive
incentive system that takes full consideration of employees' material and
spiritual needs as well as short-term and long-term needs providing them with
competitive salaries and comprehensive welfare guarantees. Dahua advocates
"strivers-orientation" and encourages resources to be directed to hard-working
people. Some of the outstanding key employees are also entitled to stock option
incentives and innovative business follow-on investment plans. In accordance
with relevant national and local laws and regulations Dahua pays employees'
labor compensation in full and on time and provides them with legal benefits
such as "five social insurances and one housing fund" as well as additional work
benefits including supplementary holidays supplementary medical insurance
meals communications and interest-free loan for house purchase. In terms
Dahua Open Day is open to students and teaching staff worldwide. of talent incentive we strive to share the fruits of the Company's development
Through in-depth visits and communications in Dahua visitors can get hands- with employees who grow with and continue to contribute to the Company by
on experience of Dahua's first-class high-tech atmosphere comfortable working creating a continuous material incentive system through stock option incentives
environment and dynamic corporate culture. year-end bonus and venture capital platform. For employees with excellent
performance the Star of Endeavor award is also set up for them together with
Alumni and Experts into Campus written publicity and experience sharing to continuously create a motivated and
upbeat organizational atmosphere.In addition the Company continues to improve the quality of life of its employees
through interest-free loan for house purchase annual health check-up meal
allowance high temperature allowance and communication allowance.The Company has allocated special funds for team building and set up
commemorative awards for employees according to their time of joining the
Company. The headquarters zone has opened leisure facilities such as physical
therapy rooms coffee bars gymnasiums badminton hall billiards room and sky
running tracks and regularly holds various featured activities and club activities
to enrich the spare time of employees.In order to enable students to understand the prospects and trends of enterprises
and industries earlier and also to better clarify their career choices Dahua regularly
organizes alumni and experts into campus for communications with students.Dahua also carried out large-scale and standardized cloud campus recruitment
activities adopting a full contactless process from cloud presentation cloud
written test to cloud interview and cloud offer ensuring the efficient and orderly
progress of the overall recruitment process. During the campus recruitment for
students who would graduate in 2023 we attracted students from more than
1400 universities in more than 30 countries with over 75% of them holding Physiotherapy room Cafeteria
master's or doctoral degrees.Global Campus Recruitment
Gymnasium Sky running track
In 2022 Dahua's in-the-park kindergarten officially started enrolling children.Focusing on "friendly environments friendly courses friendly services and
friendly mechanisms" Dahua Kindergarten capitalizes on Dahua's technological
advantages to create a template of smart classrooms promote the digital and
intelligent management mechanism of kindergartens and constantly explore new
Dahua provides an excellent career development forms of high-quality education in an embedded kindergarten. The kindergarten
platform and career choice plans for all job seekers is useful in the "introduction cultivation retention and employment" of talents
and won the honors such as King's Ark Employer with and is the perfect combination of "technology talents and innovation".the Most Love for Talents (awarded by BOSS Direct
Recruitment) and the Most Popular Employer among The kindergarten is located in the new park of Dahua Headquarters with an
Graduates (Zhejiang University of Technology) in 2022 indoor area of 7000 square meters and an outdoor activity area of 3600 square
realizing a virtuous cycle of talent management while meters. Currently there are four nursery classes and three classes for children
reaching a win-win situation with employees. aged 3 to 4 years old. It is an embedded kindergarten jointly organized by
families the kindergarten the society and Dahua. The kindergarten has an openForeword ESG Management Environment Social Governance Appendix 34
Employee
Enhancing team cohesion through exciting
activities
With concern for the physical and mental health of every employee Dahua
creates a good working environment for its employees respects them
encourages them to actively participate in all aspects of Dahua's operation
maintains good communication channels and inspires them to recognize the
mission and value of work.In 2022 Dahua continued to explore the themes of "The Road Ahead Five+"
(happiness+ health+ achievement+ security+ mission+) to enrich the spare
time of employees.In 2022 Dahua created the "Hua Xiao Zhi" cultural IP and launched related
Lego area immersive experience classrooms 3D naked-eye spaces a creative products online and offline such as emoticons stickers and backpacks which
playhouse a wood playhouse an everyday life room a science discovery were popular among employees.room and other function rooms. It has a role-playing space for children a
parent-child reading space and other large shared spaces. The outdoor area "Hua Xiao Zhi" cultural IP
includes a planting area an ecological area and a physical challenge area with
diverse terrains and functions. The kindergarten "hides" 19 high technologies.For example classroom lighting is eye-friendly and can intelligently adjust
brightness according to the ambient light. The kindergarten has also introduced
high-level expert projects. Its outstanding teacher workshop has been licensed.Dahua will fully support the development of the kindergarten present a perfect
combination of technology talents and innovation and provide an environment
for the growth of the children of Dahua employees.Performance Management
The Company has established a reasonable and comprehensive performance management system which closely integrates strategic planning with performance
management and forms a closed virtuous cycle system through several processes such as assessment plan formulation process counseling performance evaluation
assessment result application and performance improvement cycle. Through scientific management methods the individual performance of employees and the overall
performance of the Company are organically combined to closely follow Dahua's strategic development direction.Performance breakdown process
0 -Company Strategy Map
Financial
Customer Operation
Company 1.1 - Company 1.2 - Corporate Personnel
Company level objectiveKey Performance quantitative KPI (Finance+ + strategic initiatives
Indicator (KPI) Operation+Customer)
breakdown (strategic
events)
Organiza-
tion
Perfor-
Breakdown Undertake Breakdown Undertake mance
Department 2.1 - Department 2.2 - Department Operational business level
objective KPI quantitative KPI (Finance+ + strategic initiatives
Indicators Operation+Customer) breakdown (strategic events)
Breakdown Undertake Breakdown Undertake Breakdown
Staff objective 3.1 - KPI 3.2 - Personnel 3.3 - IndividualStaff level Key Performance + Personal performance Management development Individual
Indicator (KPI) contribution Goal objective Perfor-
mance
The Company carries out performance appraisal based on the principles of fairness openness impartiality scientification clarity and objectivity and evaluates the
actual achievement of the performance target of the appraised based on key results and performance by a combination of absolute and relative evaluation. The absolute
evaluation is the "ratio to targets" scored by direct superiors and project managers while the relative evaluation is the "ratio to others" in which employees of the same
position and rank are compared and ranked together on the basis of the absolute evaluation to generate a certain proportion of normal distribution and evaluate the
performance level so as to inspire employees to catch up with each other and strive to become best performers.Foreword ESG Management Environment Social Governance Appendix 35
Employee
Employee Growth
Dahua regards talent as valuable assets. Talent strategy is an integral part of the * Differentiated employee development program
Company's strategy and also a key cornerstone and guarantee for the long-term During the reporting period through multiple talent development solutions
development of the Company. "Breaking the boundary of ability and cultivating Dahua launched a number of differentiated development programs for
more talent" is the main keynote of staff training and development in Dahua. different employees to help them with career development and fully support
The development of Dahua is inseparable from the efforts and contributions of their development needs. For example the "Cadre Reserve Plan" "General
all Dahua employees. While growing Dahua strives to improve the platform and Plan" and "Spark Project" aiming at the development and training of excellent
mechanism for talent development so that employees can develop faster and managers; the "Leader Plan" supporting the breakthrough development of
create more values for Dahua and also for themselves achieving a state where experts in various fields; the "Starburst Program" aiming at high-potential
stars gather and talents emerge. employees; the "Dandelion Plan" based on the will of employees aiming at
the mobility and rotation practice of technical staff; the HTTP Program targeted
Career Development at the training of fresh graduates; the "Morning Star Mentor Training" and
"Inspiration Lecturer Training" for the development of internal trainers; internal
The company has established a sophisticated mechanism for talent training and talent markets.development a qualification management system guiding employees on career
planning. * Employee career development guidance
The Company conducts career development planning and design for employees
In terms of the career development of employees Dahua provides dual jointly formulates career development goals and action plans for employees
channels of management and expertise and constantly develops a qualification and provides corresponding support For example individual development
system with "ability" as the core a job appointment and removal procedure with plans on-the-job training programs performance-based development and open
"responsibility" as the core and a job matching procedure with "contribution" as competitive employment.the core. Dahua also provides timely incentives through the salary system so
as to fully enable employees to develop their abilities undertake responsibilities * Building a professional atmosphere
and realize values and obtain continuous improvement. Through the establishment and operation of Professional Committee/Technical
Committee Dahua plans for the development of its professional/technical
* Give full play to employees' potential and initiatives system precipitates its knowledge and experience and provides employees
In order to establish itself as a learning-based organization the Company with clear professional competence standards and learning resources so
has built an employee qualification mechanism to prompt employees to as to continuously and comprehensively improve the professional/technical
continuously learn and take the initiative to exert their strengths. With explicit job competence of employees and lay a solid foundation for them to undertake
responsibilities and full authorization employees are guided to work creatively "responsibility" and continue to "contribute" on their posts.and independently to give full play to their potential.Dahua also attaches great importance to the cultivation and incentive of the
* Establish a multi-channel talent training system to provide employees expert team defining experts as an important guarantee for the sustainable
with opportunities for learning and development development of the business. Leading experts in each professional field are
According to employee capabil i t ies occupational interests and the encouraged to break the boundaries focus on core technology breakthroughs
characteristics of various positions Dahua provides two channels for their career and guide more excellent professionals through subject research practice
development: the channel of technology and the channel of management so as application and knowledge and experience accumulation. In addition external
to get them fully motivated. Based on the dual channels of development Dahua training expert allowance subject bonus expert conference and exclusive
sets up posting standards and learning resources to enhance the competence car parking incentive plan are provided to them for their development and
of employees. Meanwhile Dahua adopts the mode of separated evaluation incentives.and employment and provides sustainable development possibilities and
opportunities for employees on the basis of their abilities shown through job Training
performance in the form of organizational nomination competitive recruitment
internal recruitment and various resource pools. Dahua has established a complete training system with the concept of "business
success as the orientation organizational development as the focus and
personal growth as the foundation''. It has carried out various management
training professional training new employee training general training internal
Employee Career Development Channel trainer and mentor training etc. covering cultural values professionalism and
skills management capability business capability skills transfer capability etc.Its goal is to enhance the capabilities of employees from multiple aspects.Management channel Professional technology channel
Senior manager Senior expert
Leadership and Business Scenario
Management Training Training
Middle and senior managers Experts
The Spark Project Youth Training System
Junior and middle managers Backbone staff
New Employee Training
Junior staff
Course Library Question Bank Case Library Lecturer Pool Mentor Pool
E-learning Platform Operation Implementation Beginner Specification and Operation
Learning Section for
Training Platform Leaders
Professional
Qualification StudyForeword ESG Management Environment Social Governance Appendix 36
Employee
During the reporting period Dahua's managers and business backbones at all For employees who have been working in Dahua for one three five ten fifteen
levels actively participated in the development and teaching of training programs and twenty years Dahua rewards them with commemorative prizes to enhance
as well as on-the-job mentoring thus "cultivating better employees with the their sense of belonging and enhance the atmosphere of mutual development
best employees". There were 2737 lecturers in the year with a total of 15500 and prosperity between employees and Dahua.teaching hours. A total of 3114 mentors also joined in training.The Company employs a combination of "learning training practice and
examination" to develop employees' ability and experience in a multi- Anniversary employee care
dimensional manner. Dahua builds learning resources based on the qualification
system and business development. During the reporting period employee
training attendance reached 571000 with 600000 class hours combined.Trained employees accounted for 96% of the total number of employees. The
total training cost was RMB 4.947 million.Special training for new managers
Special Training for Fresh Graduates
Dahua cares about its employees. Dahua labor union provides help for
employees in need and addresses their difficulties. The labor union visits
employees in need express appreciation to the families of employees working
abroad during the Spring Festival and to employees on duty during the Spring
Festival and writes letters to the families of outstanding employees.Visiting employees in need
Employee Care
Dahua attaches great importance to the physical and mental health of
employees and regularly organizes activities such as free weekend medical
consultations and door-to-door medical consultations. In 2022 Dahua
introduced EAP counseling and established a mental health workshop to offer
free mental health counseling to employees. Dahua builds a mental health team
and formulates employee mental health crisis intervention manuals to further
protect the mental health of employees.Occupational Health Management
To ensure that employees work happily and healthily Dahua put in efforts to
ensure occupational health from multiple dimensions:
* According to relevant laws and regulations as well as system standards
Dahua regularly commissions third-party institutions to check all occupational
disease hazards equips relevant employees with labor protection supplies and
organizes regular occupational health checks.Foreword ESG Management Environment Social Governance Appendix 37
Employee
* Through publicity and education Dahua has actively taken a number Occupational health management measures
of occupational health prevention and protection measures carried out
corresponding operation guidance for all employees exposed to and using
chemicals posted occupational hazard and safety notification cards and safety Adopting new Replacing toxic Ventilation and Isolation Personal
instruction signs at production sites to clarify the protection requirements and technology and highly purification for procedures protection
emergency handling requirements. to improve toxic materials enclosed space Automated measures
outdated with non-toxic production control regular health
production and low-toxic checks
process materials
No. Indicator Actual value
1 The coverage percentage of safety 1 2 3 4 5education for on-the-job personnel 100%
2 The percentage of special operators holding certificates 100% Source Management
3 The percentage of occupational hazard factor detection 100%
Main workflow of occupational health management and control
* Dahua continues to optimize the production processes and reduce or avoid
employees' direct exposure to occupational disease hazards through intelligent
transformation.* Dahua pays close attention to social developments and adopts corresponding 1 2 3 4 5
control measures according to national policies to provide employees with a safe
and healthy working environment. Occupational Occupational Occupational Occupational Occupational
hazard Health hazard Health health records
During the reporting period no cases of occupational accidents were reported in Identification Notification Regular Regular health
detection checks
Dahua.Safety Management Monitoring System
Safety management system is an important branch of safety governance. Based on the ''five elements'' of people machine material environment and management a
safety management system for park safety is established in compliance with requirements such as safety standardization and EHS offering real-time highly integrated
and classified management and enabling timely warning of dangers to quickly locate the exception and reduce the scope and level of dangers.Intelligent elevator control system: Smart apartment management system
Combined with the characteristics of the park the system can handle check-
The system can realize online subject identification management active in and check-out online in batches and delicately manage dormitories and
identification of trailing and blacklist alarm background log query and beds. Through the linkage of all-in-one human-ID card machine and entrance
anomaly monitoring. and exit gate machine the safety of employees is ensured.Integrated security and fire protection management system: Smart park integrated management platform:
Nearly 8000 points in the park including detection points water tanks Elevator control apartment management integrated security and fire
and liquid levels are effectively monitored. Abnormal power consumption protection management energy management access control gate vehicle
is effectively monitored to eliminate the potential safety hazards of power management perimeter management and other systems are integrated to
consumption. Through the cooperation with ICC visual monitoring on the key protect the safety of personnel and property in the park.fire control areas is achieved.Security Practices
In order to effectively maintain normal operation order of the park and ensure property interests personnel safety and R&D safety at the park Dahua Technology has
established Security rules and regulations based on Regulations on the Supervision and Inspection of the Internal Security and Safeguard for Enterprises and Public
Institutions by Public Security Organizations Regulation on Internal Security and Safeguard for Enterprises and Public Institutions and others. The main contents
include:
1. Regulations: Security guard responsibility duty system handover system and rewards and punishments system;
2. Security guard manual;
3. Emergency response of security guard;
4. Service courtesies and more.Foreword ESG Management Environment Social Governance Appendix 38
Internal management
Innovation and Research
Technology propels innovation and innovation drives development. In the OJ league and technology contests by field to create a favorable atmosphere of
process of rapid enterprise development Dahua insists on scientific and daring to break through and innovate and constantly stimulates the innovation
technological innovation as the strategic support for high-quality enterprise vitality of talents so as to always keep competent talents in place to guarantee
development and about 10% of Dahua's annual sales revenue is invested in Dahua's high-quality development.research and development. In 2022 Dahua continued to allocate research
and development resources. It has developed a global R&D system covering
Hangzhou (the headquarters) Xi'an Chengdu Poland Mexico etc. Dahua has
built six provincial development centers across the country. Dahua continues to
improve its technological innovation capabilities competitive advantages and
IoT technology capabilities. Following the philosophy of "creating business value
based on customer demands" Dahua continues to energize itself with digital
intelligence and focus on digital intelligence transformation.R&D Innovation System
Dahua follows the strategy of "Dahua Think#: A Future of IoT Cloud and Digital
Intelligence" and bases its development on an intelligent IoT technology system Engineering Experiment Center
with AIoT and IoT digital intelligence platforms as the core. Dahua continues to
focus on areas that are closer to user needs. It has built five research institutes Dahua strives for innovation-based research and development. Dahua
of advanced technology big data central government cyber security and smart Engineering Experiment Center provides strong support for in-depth technology
city two product R&D centers of software and hardware and a comprehensive research and development and mass innovation. The center has more than
R&D system of solutions for cities and enterprises. Markets and technologies 30 laboratories including a fusion simulation laboratory acoustic laboratory
jointly drive forward Dahua's high-quality development. electromagnetic compatibility laboratory wireless laboratory device laboratory
and reliability laboratory. This enables Dahua to be capable of conducting nearly
200 experiments and carrying out basic research on raw materials devices single
boards and complete machines laying the foundation for a system of multiple
capabilities. In 2022 Dahua's laboratories focused on enhancing their capabilities
in millimeter-wave radar and 5G application technologies. For example measures
such as the addition of a millimeter-wave radar test system and the upgrade
of the OTA system have further strengthened the basic technology research of
perception and connectivity in the IoT field. This innovation chain planning is
closely based on the industrial chain and supply chain.As an important part of Dahua's research and development the center continues
to deepen basic technology research break through industry challenges and
build technical competitiveness of products. The CNAS-certified center has won
important honors and qualifications such as National Industrial Design Center
Zhejiang Province Key Laboratory. Adhering to the strategy of innovation-
driven industrialization development the center continues to expand industrial
development channels promotes the plans to strengthen Dahua through
technological innovation enhances technological support capabilities and
provides a solid guarantee for the realization of high-quality development.Innovative Talent Strategy
Dahua never stops innovation. Dahua attaches great importance to its talent
strategy insists on building an innovation system with a strong engineering
culture and encourages employees to participate in and contribute to innovations. Standard Development and Intellectual Property Rights
Dahua continues to cultivate high-quality innovative talents through teaching and
practicing activities of innovation methods (TRIZ for example). In 2022 Dahua Dahua implements the national standardization strategy and continuously
won the first prize in the National China Innovation Methods Competition and the deepens standardization cooperation. It integrates new-generation information
first prize in the Zhejiang Region of China Innovation Methods Competition for six technologies such as the Internet of Things and artificial intelligence to expand
consecutive years. Dahua has launched the Leader Plan to break through core the internationalization of standards and promote the coordinated development
technologies and enhance its industry competitiveness and leading position. of domestic and international standardization. During the reporting period
Dahua led and participated in the preparation of 22 standards.Dahua believes that craftsmanship is the future. It adheres to innovation-
driven quality-oriented development and advocates a culture of science and Dahua attaches great importance to the protection of intellectual property rights
technology craftsmanship with dedication and pursuit of excellence. In 2022 and constantly improves the intellectual property management mechanism.Dahua employees were awarded the honorary titles of "Zhejiang Craftsman" and It provides a strong guarantee for R&D innovation through strategic patent
"Hangzhou Craftsman". Dahua holds internal competitions such as the software planning of core technologies and in-depth exploration of high-quality patents.Foreword ESG Management Environment Social Governance Appendix 39
Internal management
Cyber Security Safety Cyber Security Privacy Protection
Management Management System Management System
The integrated development of such technologies as cloud computing big data
IoT AI and 5G pushes human society into the era of AIoT. While emerging Security Core Security Technology Emerging Privacy Technology
technologies are driving human progress the open and heterogeneous network Technology
architecture also poses new threats and challenges. In order to cope with cyber
security threats and challenges Dahua has established the Cyber Security Security Engineering Security Engineering Capability
Research Institute which focuses on the continuous development of core security
technologies emerging privacy technologies security engineering capabilities Security
and security ecological cooperation and is committed to providing customers Incident Response Security EcologyService
with more secure products and solutions and rapid security emergency services.Security Organization and Structure
Dahua has established a systematic professional security team to secure cyber security in all execution units through the hierarchical organization structure covering
R&D market supply chain and delivery and service.Research center Cyber Security Committee
Cyber Security Research
Institute DPO......- As a supreme decision-making organization of cyber security the Cyber Security Committee is responsible for the overall planning coordination
guidance and monitoring of cyber security work at a strategic level.- As a joint executive team across businesses the Cyber Security Execution Group is responsible for leading discussion and formulating mechanisms
and strategies relevant to cyber security at a tactical level and for developing tracking and processing daily cyber security at an executive level. It
covers research market supply chain delivery and service and legal service and quickly implements Dahua's cyber security resolutions in every of its
business systems.- The Cyber Security Research Institute as an entity organization undertakes research on key security and privacy technologies security
engineering capacity building and security ecology construction responsible for the implementation of security and privacy requirements security and
privacy risk assessment security and privacy design penetration testing vulnerability management and incident response as well as the development
of security process systems and security compliance systems.- A cyber security engineering group is set up for every product line to closely interact with the Cyber Security Research Institute so as to achieve the
rapid implementation of security standards and regulations security and privacy technologies and vulnerability repair and handling across all products.Delivery and Service
Center
Securities Investment
Department
Legal Department
Supply Chain Manage-
ment Center
Overseas Market-
ing Center
Domestic Marketing
Center
Research center
Big Data
Security Engineering
Group
Software platform
Security Engineer-
ing Group
Storage Product Line
Security Engineering
Group
Front Product Line
Security Engineering
GroupForeword ESG Management Environment Social Governance Appendix 40
Internal management
Security Engineering
With introduction of the best security practices in the industry Dahua has established a full set of sSDLC security software development processes and fully
implemented them in the R&D center. Through efforts of the professional security team the capabilities on the whole process of security management covering the
security and privacy demand assessment design coding and testing of products and solutions are realized and the security strategies are implemented to ensure that
all products are developed in compliance with high-standard security requirements and pass rigorous offensive and defensive testing and verification.Security Governance & Risk Management (Policies Strategies Measures)
Policy and Compliance Strategy and Measurement
sSDLC (Security Software Development Life Cycle)
Charter PDR ADR LDR
CDP Design and Development Verification and Life Cycle
Initialization Concept Planning and Test Release
TR1 TR2 TR3 TR4B TR4 TR5 TR6
Security Demand Security Design Security Realization Security Test
Security
Review
Privacy Demand Privacy Design Privacy Penetration TestRealization
Configuration Management (Security Consistency End-to-end Traceability)
Security Training
Security Capability Supports
Security Standards and Specifications Security Technology and Security Supporting PlatformCapability Library
Security Baseline
Since the launch of the "Security Baseline" plan in 2016 Dahua has been adhering to the core principles of "Security by Design" and "Security by Default" digging deep
into product security technologies and dedicating to providing comprehensive security guarantee for users. Based on the Security Baseline and practicing the design
principle centering on security and privacy Dahua has designed an architecture that takes identity authenticity authorization consistency non-repudiation confidentiality
integrity availability and privacy as security elements forming a systematic AIoT product security framework covering physical security system security application
security data security cyber security and privacy protection.Dahua has carried out a series of activities such as "Compliance with Laws and Regulations" "Standards and Specifications Study" "Tracking Industry Dynamics"
"Threat Modeling Analysis" "Key Technology Pre-research" and "Security Demand Survey" to continuously update the Security Baseline standards upgrade the AIoT
product security framework and ensure adequate and cutting-edge security protection. During the reporting period the Security Baseline was iterated to V2.3.As one of the important corporate standards of Dahua the Security Baseline has been an integral part of Dahua's life-cycle management process of security software
development and deeply integrated into the product quality assurance system to make sure default security technology guarantee for the full series of products.AIoT Product Security Baseline
Laws and
Regulations
+ Security Authentication + Secure Start CONTINUOUS ITERATION
Security + Service Minimizing Strategy + Encrypted Video Transmission +...Standards + Digital Envelope + Secure Alarm Linkage
+ Encrypted Storage + Wireless Security
Industry
Development + Built-in Firewall + Privacy Masking
+ Reliable Operating Environment + Privacy-friendly Settings
Technological + Privacy Protection +… Security Baseline Vx.x
Change +…
Security Baseline V2.x
Customer
Demands Security Baseline V1.x
Identity Permission Non-
Threat Modeling Authenticity Consistency repudiation Confidentiality Integrity Availability Privacy
Vulnerability
Management
Incident Response
Integration of Full Range of Products
Security and Privacy DemandsForeword ESG Management Environment Social Governance Appendix 41
Internal management
Security Culture Security Talent Cultivation
During the reporting period Dahua actively responded to the national call and held Dahua attaches great importance to the cultivation of cyber
the 2nd Dahua Cyber Security Promotion Month in September 2022 with the theme of security talents and continues to step up investment in cyber
"Cyber Security for the People Cyber Security by the People and Dahua Cyber Security security development. In 2022 Dahua's anti-infiltration team
by You and Me". This Cyber Security Promotion Month adopted both online and offline was approved as a "Xie Zhihe Network and Information Security
posters and on-site interactions to convey global cyber security laws and regulations Administrator Specialist Studio" in Binjiang District Hangzhou. In
standards and policies to all employees of Dahua and to enhance their awareness and August of the same year the person in charge of the studio was
vision of cyber security through Q&A suggestion collection lectures and other activities. selected as "New Era Zhejiang Craftsman" and in December
the core members of the studio were selected as "Zhejiang
Young Craftsmen".Security Incident Response
Dahua Product Security Incident Response Team (PSIRT) is responsible for receiving processing and publicly disclosing security vulnerabilities related to Dahua
products and solutions. It is Dahua's only channel for the disclosure of vulnerability information.Dahua PSIRT handles security vulnerabilities according to ISO/IEC 30111:2019 and other standards strictly controlling the scope of the vulnerability information
restricting it to be passed only between relevant personnel who handle vulnerabilities and requiring the vulnerability reporter to keep the vulnerability information
confidential until the vulnerability is publicly disclosed.
1. Reception 2. Verification 3. Solution 4. Disclosure 5. Summary
It proactively monitors and It coordinates with the It conducts vulnerability When a vulnerability fix It conducts vulnerability
receives vulnerabilities and product line to verify analysis and fixes design or patch is available it reviews includes them
security issues initiates whether it is a vulnerability defects. After the repair of discloses the vulnerability in security requirements
the vulnerability handling or a security problem and the pilot product is verified information as required by draws lessons from past
process and identifies the evaluates the risk level. it applies the solution to the the vulnerability disclosure events and continuously
vulnerability reporters. vulnerabilities. mechanism. improves the vulnerability
management process.Dahua PSIRT discloses vulnerabilities according to ISO/IEC 29147:2018 and other standards. Disclosure methods include the following:
- Security notices: Used to publish security vulnerability information related to Dahua products and solutions including but not limited to vulnerability
descriptions repair patches etc.- Security notice: Used to respond to security topics related to Dahua products and solutions including but not limited to vulnerabilities security incidents etc.Dahua PSIRT actively participates in industry and public activities and has joined encourages end users partners suppliers government agencies industry
several authoritative vulnerability management and technical organizations organizations and independent researchers to proactively communicate with
including the China National Vulnerability Database (CNVD) China National Dahua if they discover potential risks or vulnerabilities.Vulnerability Database of Information Security (CNNVD) and China Industrial
Control System Vulnerability Database (CICSVD) etc. It plays an active role in
organizations to help establish a collaborative and sharing mechanism for cyber
security threat information. During the reporting period Dahua was awarded the
title of "Advanced Enterprise in Vulnerability Management Practice in 2022" by
the MIIT Cyber Security Threat Information Sharing Platform.Dahua PSIRT provides global users with security notice and 7-24 security
incident response services to better protect the security rights of users. DahuaForeword ESG Management Environment Social Governance Appendix 42
Internal management
Quality Control
Dahua will carry forward the ''customer-oriented and striver-based'' core value fulfill the mission of ''enabling a safer society and smarter living'' and keep a foothold in
the market with outstanding quality and services.End-to-end Whole Process Quality Control System
Dahua has established a whole process quality management system covering five core processes (LTC IPD ISC ISD and ITR) and other supporting processes.Driven by customer demands Dahua integrates quality requirements and standards into business process management and promotes a quality improvement culture
among all employees and across the entire value chain. It continuously optimizes the quality of research and development manufacturing service etc. forming eight
core capabilities of quality management. And it constantly improves its quality management to boost customer satisfaction.Demand Research
Quality Material Quality
Manufacturing
Quality Delivery and Service QualityQuality
Quality Culture Organization & Capabilities Quality Performance Management
Mature Large-scale Quality System Global Product Safety Compliance End-to-end IPD Quality
Management and Control Capability Management Capability Assurance Capability
Reliability testing Prevention-oriented Win-win supplier quality Standardized project Continuous all-
capability for materials intelligent manufacturing control capability construction and service staff-participation
and finished products quality assurance quality management improvement capability
throughout the life cycle capability capability
Quality Management with Digital Intelligence
Quality Management Organizational Structure
Dahua Quality Management Center coordinates quality management according to the requirements of ISO 9001 and IATF 16949 and carries out quality management on
R&D supply chain and delivery services.Quality Management Center
Quality System Quality Safety Research Supply Chain Delivery and
Operations Certification Improvement Management Quality Quality Service Quality
Digital Intelligence-based Quality Management Mode
Based on the complete end-to-end process system and the whole process business digitalization Dahua adopts the intelligent "operation command platform" for
operation analysis and decision-making and has established a digital intelligence-based quality management mode driven by demand and innovation as well as the
pursuit of "four perfections".* Quality philosophy: Dahua pursues technology perfection product perfection service perfection and process perfection insisting on doing things right
in one attempt.* Demand-driven: Based on customer demands Dahua establishes a process system that focuses on the realization of customer demands covering the
whole process from market demand research to providing products and services that meet customer demands.* Innovation-driven: Dahua promotes core technology innovation and management innovation to create values for customers.* Digital intelligence-based quality management: Dahua promotes the digitalization of whole business processes. It uses the quality management
platform to connect the quality data of various businesses create quality reports and carry out quality alerts analyses and decision-making. It realizes the
digital intelligence-based quality management of "process online results online personnel online management online" improving quality and efficiency and
continuously creating values for customers.Customer Demands
Customer satisfactionForeword ESG Management Environment Social Governance Appendix 43
Internal Management
Quality Culture
Taking the excellent performance management model as the starting point Dahua has formulated the quality policy of "listening to customers building quality into
products providing satisfactory services creating values for customers" creating an atmosphere of "all-staff participation and continuous improvement".Quality Vision: Setting the Bar of Quality in the Industry
Quality Policy
Listening to customers Providing satisfactory services Building quality into products Creating values for customers
All-staff participation and continuous improvement
Dahua uses multi-channel publicity and various quality activities to promote a quality culture and enhance the quality awareness of all employees.* Dahua has established quality culture promotion platforms. Quality knowledge and activity information are shared on the "Dahua Quality" WeChat official account and
the "Quality Site" website.* Dahua carries out a variety of quality activities such as quality essay contests quality knowledge contests quality keynote speeches quality skills competitions etc.* Dahua carries out monthly/quarterly quality activities every year. In 2022 the quarterly quality improvement activities had one focus (customer) and three major themes.The three major themes were "Doing It Right in One attempt" "Better Quality and Efficiency" "Risk Prediction Problem Prevention and Customer Protection".* Dahua develops Green Belt Yellow Belt and QC courses. In 2022 Dahua trained 26 green belt-titled employees 41 yellow belt-titled employees and 52 QC experts.Operation Efficiency Manager Product R&D Improvement Essays on Quality Knowledge Contest
Competition Experience Project
Speech Contest Delivery Competition IQC Measurement Case Sharing on Forum on Advanced
Contest Customer Complaints Practices
No. Certificate name Awarded on Awarded by No. Certificate name Awarded on Awarded by
1 Asia Quality Improvement and 2022 Asia Quality Function Deployment and 6 National Quality Technology Award November Innovation Case First Prize Innovation Committee Excellence Award 2022 China Association for Quality
Asia Quality Improvement and Asia Quality Function Deployment and National Manufacturing Key Process 2 2022 7 Capability Improvement December The Fifth Electronics Research Institute of the Innovation Case Second Prize (3) Innovation Committee Excellent Cases (2) 2022 Ministry of Industry and Information Technology
3 National Quality Benchmark 2022 China Association for Quality 8 Zhejiang Excellent QC Achievement September Release Award 2022 Zhejiang Quality Association
4 China User Experience Competition November China Quality Management Association for 9 Zhejiang Excellent QC Achievement September Second Prize 2022 Electronics Industry First Prize 2022 Zhejiang Quality Association
5 National Quality Technology Award November China Association for Quality 10 Zhejiang Excellent QC Achievement September Second Prize (2) 2022 Second Prize 2022 Zhejiang Quality AssociationForeword ESG Management Environment Social Governance Appendix 44
Customer
Service Support
With the customer-oriented service concept Dahua has been gradually building four service systems covering the whole market and the full business including the
integrated delivery system technical support system operation and maintenance management system and training and certification system; meanwhile by integrating
its corporate resources and pooling the power of the ecology Dahua provides full life-cycle services of products and solutions to the market. Our vision is to build a
world-class efficient and professional delivery platform and become a superb service value creator.Integrated Delivery Technical support O&M management Training and certification
Integrated Delivery Service organization construction
Network Framework Competence Training Service Provincial National Regional Headquarters Scheduling
layout design standards certification supervision and municipal organizations organizations organizations organizations operation
Service Network Coverage
Dahua has formed a three-tier service network to provide technical services
to customers worldwide with 51 branches worldwide and a service network
covering 180 countries. It has 9 spare parts distribution centers and 173 spare
parts stations (46 spare parts stations in China) with 4000+ project managers
and technical service personnel and over 1000 service partners offering
efficient service support for customers and markets.Service Capacity Building
Internal technical capacity building:
Continuously build and improve the technical service company platform and
accomplish project service delivery support through 400 hotline service online
service and on-site support for customers with rapid response and closed-
loop solutions. For internal staff capacity building we set up different skill
levels according to business scenarios and products and define corresponding
knowledge ability map empowerment and certification for each level to
continuously enhance their technical capabilities. Digital platform support:
We have built a multi-channel multi-touch efficient and convenient digital
External cooperation ecosystem empowerment: platform for service delivery around project delivery management technical
In addition to a scenario-based field training facility at the headquarters Dahua support problem solving empowerment training and service ecology
has established field training centers in 32 Chinese provinces and 5 overseas construction realizing the upgrade from service informationization to
regions to create a "doorstep" field training setting for customers and partners digitalization. During the reporting period we completed the construction of
facilitating training and certification. By combining theories with practice Dahua Delivery APP and the upgrade of the technical support website providing
Dahua provides the best talent training schemes supported by its training and customers with a more convenient service portal and swift service support and
certification system and continuously improves its own service capacity as well realizing the real-time sharing of technical service resources between Dahua
as that of its partners and customers. and its partners through the online digital platform.Talent Development
Client training
University-enterprise
cooperation
Certification management
Training management
Incident Response
Fault handling
Routing inspection for
operation and maintenance
Major incident coverage
O&M solutions
Customer care
Spare parts
Troubleshooting
Technical support
Problem solving
Resource management
Operation Management
Quality control
Plan management
Consultation and designForeword ESG Management Environment Social Governance Appendix 45
Customer
Service Quality Improvement responsible department gives handling suggestions within 2 hours. Our customer
complaint rate has been decreasing year by year for the past three years indicating
Efficient service process: We have built the Integrated Service Delivery (ISD) our good relationship with our customers.full-process management process and the Issue-to-Resolution (ITR) process. By
upgrading and refining these processes during the reporting period we achieved Meanwhile the WeChat public accounts of Dahua Dahua Customer Service and
normalized and standardized management of customers' delivery requirements Dahua SME Business have set up service modules to facilitate customers' fast and
high-quality and rapid delivery and closed-loop management of end-to-end convenient consultation and problem feedback.quick response processing and feedback of customers' issues to promote their
efficient resolution.Professional service team: Through sound technical training assessment and
on-boarding management mechanisms we have set up professional technical
service teams for different industries and products with empowerment and
competence level certification for service technical capabilities to ensure that 400 Call Service Service Technical Customer Care Exception
technicians are qualified to provide customers with standardized professional Support Center Handling Center
technical services. In addition we have established an end-to-end problem
solving process and set SLA (response time) and service specifications * 7X24H service * Official website * Follow-up on * 400 repair and * Business consulting online support repaired devices logistics exception
operation rules and customer feedback mechanisms to boost problem processing * QQ remote service * 400 follow-up calls handling
processing timelines and customer satisfaction. * Maintenance service * WeChat online * Follow-up on core * Customer complaint consultation support customers handling
Reliable service guarantee: We provide 7X24H service hotline support and * Customer complaint * FAQ training * Regular customer * Order exception
multi-format and multi-lingual online support. Our hardware maintenance service acceptance * Key issue handling follow-up handling
includes maintenance appointment and door-to-door maintenance. We ensure * On-site service exception handling
the fastest and most comprehensive response to customers' service needs. center
* Customer information
and relationship
management center
Customer Satisfaction
Growth of Distributors
With great emphasis on customers' satisfactory experience Dahua has crafted an
all-round and all-process end-to-end process experience and adopted different The Company takes "joint construction and sharing" as the concept for the
assessment components and methods for different customers with regular and cooperation with distributors and always takes mutual growth with distributors as a
irregular customer satisfaction surveys conducted every year. We have formulated strategic focus.the Customer Satisfaction Survey Methods and formed a cross-departmental
satisfaction survey team to organize questionnaire surveys every year distributed In China we have established a comprehensive empowerment mechanism
at the specified time. For the collected satisfaction questionnaires we conduct for our distributor partners in the areas of vocational and technical certification
the scores and analyze them specifically for various problems to form customer contract management and common development. In terms of vocational and
satisfaction survey reports which summarize the problems fed back by customers technical certification with video surveillance technologies as the primary
and urge relevant departments to draw up corresponding improvement measures focus and relying on Dahua's training and certification system we completed a
and follow up the improvement results so as to continuously improve customer total of 5600+ training sessions in 2022 with about 2500+ engineers certified
satisfaction. nationwide covering 1000+ primary distributors and 50000+ secondary
distributors thus effectively boosting customer satisfaction and market sales.Dahua has established major channels to engage with customers including the Meanwhile 200+ online live-streaming and online courses were held in 2022
website exhibitions door-to-door visits 400 call center e-commerce hotline and relying on the Dahua Cloud-ecommerce Platform with a total of 460+ sessions
fax to facilitate customers' information inquiries transactions and complaints. and 210000+ participants covering such topics as products SMB solutions
technical empowerment technical certification delivery and after-sales.After learning about customers' requirements for consultation and complaints
we provide both conventional and special channels for customer complaints In terms of contract operation and common development the Company regularly
and consultation. Conventional channels are mainly to facilitate the inquiries organized its distributor partners to conduct five major empowerment systems
consultations and complaints of general customers; special channels are to meet namely business strategy benchmarking organization benchmarking purchase
the requirements of important customers for communication and complaints which sales and inventory benchmarking and resource input benchmarking and product
are directly negotiated and solved by the functional departments and relevant structure benchmarking. Meanwhile we conducted training and seminars on
personnel of both sides with fewer steps higher response and processing speed finance legal affairs contract business and sales management to continuously
so as to improve the satisfaction of important customers. We obtain customer improve the overall management and risk control ability of distributors and build
complaint information timely through our service hotline email fax and website a collaborative ecosystem of distributors to achieve sustainable high-quality and
comments and standardize the customer complaint handling process through steady development.the "Customer Complaint Management Platform" to ensure effective and rapid
resolution of complaints. For overseas markets a total of 80000+ training sessions were held in 1900+
medium and large cities around the world in 2022 with the purpose of building
According to the customer complaint records and processing results we have distributors' product and solution capacities with a year-on-year increase of 90%+
established and improved the "Customer Complaint Processing Archives" so that in the training sessions covering primary distributors secondary distributors and
their contents can be traced. Within three months after the processing of customer small and medium-sized engineering contractors with a 150%+ year-on-year
complaints the 400 call center will make customer-specific return visits and fill increase in the number of customers covered at each level. Besides via channels
out the Customer Revisit Form to better understand their feelings. The Company including the distributor conferences promotion meetings workshops exhibition
conducts regular general analysis and evaluation of the handling of customer vehicles and online live steaming the course covered topics of products SMB
complaints and analyzes the causes of common problems with proposed solutions technical empowerment technical certification delivery and after-sales.improvement methods in order to continuously improve the quality of products and The total number of participants in training exceeded 150000 in 2022 an increase
services. of 100%+ year-on-year. In terms of joint operation and common development the
The Company keeps building its customer interaction platforms including the Company actively carried out five empowering systems of strategic benchmarking
channel marketing platform WeChat and mobile phone APP as well as its service organization benchmarking purchase sales and inventory benchmarking
feedback mechanism. The Company's 400 call center provides 7X24 service resource investment benchmarking and product structure benchmarking so as
and divides received customer problems into consultation problems failure to jointly build the cooperation ecology with suppliers and achieve a sustainable
problems and complaint problems. It provides response within 30 minutes and the high-quality and steady development.Foreword ESG Management Environment Social Governance Appendix 46
Supplier
Supplier Management
Following the principle of "win-win cooperation transparency and compliance" Dahua has established and continuously maintained good partnerships with suppliers
banks and other stakeholders by adopting a contract-based business model. It insists on standardizing and continuously optimizing the supplier incorporation process
system with the establishment of a sound contract system to ensure the stable compliant and efficient operation of the supply system. In the selection of suppliers we
enforce the incorporation threshold requirements and strictly require suppliers to sign key agreements such as Material Procurement Framework Agreement Supplier
Social Responsibility Agreement Supplier Compliance Commitment Letter Supplier Commitment Letter on Environmental Protection and Integrity Commitment Letter
with ongoing review of relevant agreements to ensure the sound and sustainable development of both parties.Intensive Exploration and Responsible Procurement
As an international listed company Dahua has been adhering to the concept of "Fostering Accompanying Growing" in the management and cultivation of suppliers
realizing online visual management of the whole business across the entire supplier management. With great efforts from supplier identification and selection
collaboration management and support we have formulated business standards and rules to build a supply chain ecosystem through collaboration between upstream
and downstream supply chain systems.Supplier Development Supplier Collaboration
* Customize supplier development strategies by category and * Suppliers participate in the whole process from early development
establish a hierarchical management mechanism based on and verification to the certification of new components
category defining the incorporation threshold standard and the
red line one vote * The supplier collaboration platform supports supplier incorporation
and order tracking to improve the fulfillment rate of delivery
* Form a team of procurement quality control and R&D to requirements
conduct on-site inspection and evaluation for new suppliers
covering ROHS/REACH compliance hazardous substances * IT system supports the key process parameters production delivery
control EHS and social responsibility among others and quality data of suppliers' devices
* Clarify environmental protection qualif ications social * Build a cost model to achieve cost coordination between suppliers
responsibility integrity and confidentiality requirements and Supplier Supplier and demanders
sign environmental protection integrity and confidentiality development collaboration
commitments and social responsibility agreements
Supplier Supplier Supplier Support
Supplier Management management support
* Provide lean guidance for suppliers with poor performance and
* Conduct monthly and quarterly performance evaluations of incentives for suppliers with good performance to motivate suppliers
suppliers.Develop red and black lists on performance as well as and achieve win-win results
reward and punishment mechanisms to motivate suppliers
* Leveraging Dahua's own automation development capability and
* Develop an annual audit plan and conduct routine audits Dahua's system integration capability we set up dedicated support
accordingly including but not l imited to ROHS/REACH teams to provide targeted support to our main suppliers annually to
compliance hazardous substances control EHS and social enhance their information management.responsibility to ensure that risks of cooperative suppliers are
controllable * During the reporting period we completed the system interfacing
with EDI/SMES interfacing for 20 suppliers.We helped 2 companies
* Implement a strict supplier phase-out mechanism that replaces to deploy automation and upgrade their automated manufacturing
or phases out suppliers who violate the red line or remain capabilities and specially supported 4 companies in enhancing their
incompetent after guidance in time to optimize the supply management capabilities
resource pool
High-quality Development and Continuous Stable Procurement
Facing the complex and changing international landscape it has been our core strategic policy to address the uncertainty of the supply chain and ensure the security of
supply. Through continuous practice and exploration we have established a complete supply security system and a risk warning and risk coordination mechanism. By
building and promoting Dahua's own supply security platform we share risk information identify risk items in time and improve the risk prevention capability of the entire
supply chain.Build a supply security platform Optimize the ecological layout Enhance the anti-risk capability Enforce strategies against risks
of strategic collaboration of suppliesForeword ESG Management Environment Social Governance Appendix 47
Supplier
Proactive Common Progress and Harmonious Procurement
As a socially responsible enterprise Dahua has been responding to the national call and advocating the harmonious development within the human group and between
human and nature. In terms of the environment Dahua requires all the incorporated suppliers to follow the requirements of the ISO14000 environment management
system and strictly implement RoHS2.0 for all the materials including process production. All suppliers shall sign the Commitment Letter on Environmental Protection. A
red threshold is set for suppliers with no system management or not satisfying the basic terms on environmental protection. Training for improvement is also provided to
help our partners improve their source allocation capacity.In terms of humanity and social responsibility Dahua emphasizes equality among people and races. Handicapped persons have the priority for humanistic care and
suitable jobs to give play to their social value. While being self-disciplined we also require all the partners to fulfill their responsibilities and sign the Supplier Social
Responsibility Agreement. Taking safety as the starting point Dahua requires all the partners to carry out safe production and operations and sign the EHS commitment
avoid intentional delay of salary payment and avoid harsh working environment taking the lead to build a safe and stable social business environment.
1. Supplier development and qualification review 2. Agreement signing and effectiveness management
* Suppliers provide preliminary evaluation reports * All suppliers are required to sign the ROHS/REACH Commitment
* Review the environmental system operating personnel and production Letter on Environmental Protection
process documents * All suppliers are required to sign the Supplier Social Responsibility
* Conduct three-party review of manufacturing suppliers and secondary Agreement with a signing rate of 100%
suppliers with a focus on compliance of environmental health and * Automatically remind suppliers to update their environmental RoHS
safety management with national requirements in addition to their reports in advance through the system and audit the validity of the
manufacturing capabilities environmental RoHS reports
3. Regular and unannounced inspection 4. Regular review and summary for improvement
* Perform sampling inspections on materials provided by suppliers to * Solve identified problems which can be improved
see whether they meet the environmental requirements Social responsibility * Regularly review agreements for suitability and completeness update
* Build the Dahua RoHS testing lab and develop a materials lab testing Harmonious agreements promptly and complete signings of new agreements
procurement
plan in line with the EU directive to expand the coverage of RoHS testing * In case of serious non-compliance the supplier shall be punished
* Perform unannounced inspections on suppliers from time to time to accordingly
see whether the working environment and on-site management meet the
requirements of agreements
Regional Coordination and Local Presence
As a forerunner for the concept of a world economic community Dahua the "Responsible Minerals Initiative" and the relevant resources provided by
enhances cooperation with worldwide material suppliers and processing Responsible Minerals Initiative organizations to jointly fulfill the corporate social
plants: With each manufacturing base as the center we actively develop local responsibilities.resources enhance the penetration rate of local resources and promote
the coordinated growth of enterprises and regional development through Meanwhile we ask suppliers to:
the reasonable layout of resources and suppliers in each region. Moreover * Sign the Declaration of Minerals Conflict-Free to make sure that products
as a leading technology enterprise in Hangzhou Dahua is also committed supplied to Dahua and its affiliates contain no conflict minerals or metals.to promoting the surrounding economic ecosystem so that the surrounding * Fill in the Conflict Minerals Reporting Template (CMRT) to disclose information
ecosystem can maximize economic benefits of resources and the highest about origins of minerals used smelting plants refineries and their downstream
efficiency of energy use. For example: Major suppliers for packing materials supply chains.injection-moulded materials and die casting components are controlled * Develop their own due diligence plans and policies of conflict-free minerals
within the 4-hour supply cycle and the Just-in-time (JIT) mode is effectively purchasing.implemented. * Provide conflict-free minerals compliance documents of the products as
required by Dahua.Control of Conflict Minerals
Dahua carries out periodic investigations on the suppliers. If any information
Dahua keeps fulfilling its social responsibility as an enterprise citizen adheres provided by the suppliers fails to be verified or suppliers do not take effective
to ethical sourcing and promotes the sustainable development of the industry measures to comply with the conflict minerals policy of Dahua Dahua reserves
chain. Not purchasing and using conflict minerals is our corporate social the right to terminate cooperation with the suppliers. Dahua will continue
responsibility. We will do our best to make sure that we only purchase and to guarantee supply from conflict-free smelters. We also offer training and
use conflict-free minerals in the supply chain in a commercially reasonable guidance on the supply chain to further raise their awareness on the conflict
range. According to Due Diligence Guidance for Responsible Supply Chains of minerals laws and regulations and effectively avoid any conflict minerals to be
Minerals from Conflict-Affected and High-Risk Areas issued by the Organization used in the supply chain through cooperation with customers business partners
for Economic Cooperation and Development (OECD) Dahua continuously and and governments and by promoting smelters to join in Responsible Minerals
comprehensively manages any potential risks in the supply chain and assists Assurance Process (RMAP).the suppliers in purchasing and using conflict-free minerals with the help ofForeword ESG Management Environment Social Governance Appendix 48
Supplier
Conflict minerals management framework
General Provisions:
Considering the possible product compliance risks or impacts caused by conflict minerals Dahua has listed conflict minerals in the Company's
Compliance Committee for overall management formulated management and control strategies and monitored operational risks and listed
conflict metals in Dahua General Hazardous Substances Control Requirements at the same time. Identify and follow up the dynamic updates of
conflict minerals initiatives and review internal control requirements regularly.* Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict-Affected and High-Risk Regions - Organization for Economic
Co-operation and Development (OECD)
* Dodd-Frank Wall Street Reform and Consumer Protection Act (Section 1502: Conflict Minerals) - Securities and Exchange Commission (SEC)
* Supply chain due diligence obligations for Union importers of tin tantalum and tungsten their ores and gold originating from conflict-affected
and high-risk areas (entering into force on January 1 2021) - European Union (EU) 2017/821
* Responsible Minerals Initiative (RMI) - Responsible Business Alliance (RBA)
Supplier import:
Key The management and control of conflict minerals is listed in the Supplier Approval Management Process as one of the baselines for supplier
control introduction and all production suppliers are required to sign and comply with the Declaration of Conflict-Free Minerals in the Procurement Framework Agreement to ensure that the products provided to Dahua and its affiliates do not contain conflict minerals or metals.elements
for conflict Due diligence for the supply chain:
Dahua conducts due diligence on conflict minerals in the supply chain through the supplier portal on an annual basis and requires its lower-
minerals level supply chain to effectively disclose the relevant information of the country of origin of the minerals smelters and refineries used and their
downstream supply chains according to the report template of the Responsible Minerals Initiative: Conflict Minerals (Cobalt) Questionnaire (CRT)
and Conflict Minerals (Gold Tantalum Tungsten Tin) Questionnaire (CMRT).Supply chain collaboration:
Dahua has set up an environmental protection interface window on the supplier portal to further improve the understanding of regulations on
conflict minerals through training and promotion of the supply chain assist suppliers in completing Dahua's due diligence on conflict minerals
quickly and support the formulation of suppliers' internal conflict-free mineral procurement policies carry out sub-level due diligence plans to
jointly practice corporate social responsibilities.Supplier review:
During the supplier introduction review and regular annual quality review the source or procurement channel of relevant mineral raw materials
shall be verified and confirmed. If the information provided by the supplier can't be verified or the supplier fails to take effective measures to
comply with Dahua's conflict minerals policies Dahua reserves the right to stop the cooperation with the supplier.In order to cope with possible conflict minerals risks Dahua has defined the responsible team and formulated the corresponding emergency plan clarified
the response mechanism and processing procedures for conflict minerals-related issues to further improve the emergency response capabilities of conflict
minerals risks. Dahua has fully identified the conflict minerals risks in the supply chain and continuously shares the results of supply chain due diligence with
customers when necessary.Risk warning in advance
Interpret relevant regulations on conflict minerals for each supplier in advance and publicize the impacts of using conflict minerals. If a supplier is
found to have illegal use immediately carry out the suspension investigation of its products and identify and warn early potential risks resulted.Emergency
plan Emergency settlement in the middle of an event
1. Stop using current materials of non-compliant suppliers make rectifications and adjust the quota of its new products;
2.The illegal products shall be destroyed from the market and replaced by reliable products;
3. In case of serious impacts on the Company or customers suppliers should be held legally accountable.
Summary and improvement afterwards
Summarize the reasons and fundamental problems of illegal use of conflict minerals and make adjustment to the relevant product design standards
or supplier management regulations to avoid similar risks during new material selection or supplier selection in the future.In the report period the governance achievements of conflict minerals are as follows:
1. 100% signing rate of the Declaration of Conflict Minerals by new suppliers;
2. 100% response rate from production suppliers;
3. 0 complaints about violations of conflict minerals;
Dahua has released an updated the Declaration of Metal Conflict-Free of Dahua Technology (For more information please visit: https://www.dahuasecurity.com/newsEvents/
DahuaNotice/847)Foreword ESG Management Environment Social Governance Appendix 49
Open Ecosystem
The development of digital economy has been accelerated. Collaborative innovation and open development will become an important guarantee to promote the healthy
development of the digital economy. Adhering to the concept of "Full Ecosystem" Dahua has anchored the realization of customer value built a comprehensive opening
capability from technology business to service joined hands with ecological partners to open up new fields shape new dynamics create and build infinite possibilities
for industrial development and empower the development of digital intelligence in thousands of industries.Software Openness and Cooperative Service Ecosystem
Ecology
Focusing on the Company's strategic development direction Dahua has
Focusing on the three core capabilities of AIoT smart view and smart data the completed the construction of ecological delivery structure. From inclusion
Company's software ecological work has continuously optimized the opening training dispatching acceptance and settlement to end-to-end optimization of
strategy deepened the degree of openness and improved the empowerment ecological management mechanism Dahua has achieved domestic coverage
supporting facilities. We will make a breakthrough in the direction of deeper at the level of municipality and the grid-based deployment overseas. With the
opening wider adaptation and easier application of Dahua's core capabilities. deepening of ecological delivery business Dahua has continuously consolidated
the foundation of global service ecological capability and fully realized the
Based on the Genius Open Platform Dahua provides closed-loop services from localization of ecological delivery.material introduction to algorithm output landing application to the outside world
with AI training tools; Based on ICC Open Platform Dahua has categorized At present Dahua has signed contracts with 600+ domestic companies and 300+
various basic and industrial capabilities of AIoT according to application overseas companies to provide ecological services with 100% coverage at the
scenarios and encapsulated the scenario-based capabilities into standard API level of municipality in China and grid-based deployment overseas and the global
interfaces; Based on the Big Data Open Platform Dahua has encapsulated ecological delivery is gradually becoming mature. The service ecological resources
the view data into an interface in the form of data capability after collision have gradually developed from "available resources" to "excellent resources" the
processing and opened the data capability to the outside. At the same time delivery capability has developed from "single service" to "comprehensive solution
Dahua has organized the development of relevant technical courses offline capability" and the coverage has been extended from local and municipal levels
salons online popular science online lectures capability certification and other to district-and-county levels so as to build a comprehensive domestic ecological
ways for partners provided rich technical empowerment and cultivated business delivery capability and improve customer satisfaction.opportunities for partners to help them grow rapidly as Dahua partners. Dahua
has also develop industrial applications and completed project delivery to cover While improving the capability and quality of ecological delivery the Company
thousands of industries with view capabilities so as to create more and wider pays great attention to the construction of ecological occupational health
view application scenarios. and safety delivery compliance and cyber security so as to achieve healthy
ecosystem sustainable development and cooperation.Dahua WanxiangForeword ESG Management Environment Social Governance Appendix 50
Cooperation and Exchanges
Dahua continues to deepen technical cooperation with domestic well-known
universities to deeply promote scientific and technological innovation and
collaborative development of schools and enterprises. In 2022 the Company
realized a strategic cooperation with Polytechnic Institute of Zhejiang University
and College of Information Science & Electronic Engineering Zhejiang University
to jointly build the Joint Innovation Center for Metaverse to promote major
scientific research projects and engineering technology innovation in the fields of
Metaverse; Dahua built two provincial engineering technology research centers
namely "Zhejiang Engineering Research Center of Building's Digital Carbon
Neutral Technology" and "Zhejiang Engineering Research Center of Radio and
Intelligent Perception Technology" with Zhejiang University City college and
other universities so as to comprehensively deepen the research cooperation
in the fields of radio and perception technology and digital carbon neutral
technology for public buildings; Dahua has cooperated with Zhejiang University
City College Hangzhou Dianzi University and other universities in talent training
and joint innovation to jointly promote the high-quality development of "Industry-
University-Research-Application".Public Welfare Activities
Dahua Huayu Public Welfare
Development Center
Since its establishment Dahua Huayu Public Welfare
Development Center has been a social organization dedicated
to social services and public service activities. With the aim of
"Giving Love Helping Others and Serving the Society" it has
cultivated Dahua people to establish the social fashion of unity
and fraternity willingness to help others courage and selfless
dedication. With the leadership of the Company and the help of
the society it has become a practical organization with emphasis
on teamwork full of volunteer service consciousness and strong
will power.Delivering the light of life with love - Blood Huayu Public Welfare has established special
donation activities in public welfare season mechanisms around "Help ing Farmers
In order to fully show the passion and love of Dahua people Dahua has carried out Students the Elderly and the Disabled".blood donation activities for 6 consecutive years which was carried out simultaneously
in Dahua 1199 Park 1181 Park and Fuyang Base on July 18 2022 with more than Focusing on the purpose of the organization and combined with Dahua's business
400 participants and a total blood donation volume of 94040 ml. Dahua people have Huayu Public Welfare launched special projects in helping farmers students and the
actively promoted the spirit of voluntary blood donation and supported public welfare disabled and started the Common Wealth Action Runner Project Yongquan Student-
activities with practical actions. Every blood donation is a relay of life. Every beat is a Aid Project and Digital Intelligence in Helping the Disabled Project respectively and
spark of hope. continued to promote them as well as exploring new models in helping smart home care.Helping farmers: The "Common Wealth Action Runner Plan" has helped 26 counties in
the mountainous areas established channels with Zhejiang Federation of Industry and
"Clothes for love. Books for warmth" - Clothing Commerce Zhejiang Provincial Committee of the Chinese People's Political Consultative
donation activities in public welfare season Conference Binjiang District Government Zhejiang Satellite TV Qianjiang Channel etc. and helped Guangyuan in Sichuan Lishui Quzhou and Wenzhou in Zhejiang and other
Dahua has donated winter clothes to underdeveloped regions for 9 consecutive years. On regions by means of donation and procurement of agricultural products.October 24 2022 Huayu Public Welfare Development Center and the Company carried Student aid: In September 2022 Huayu Public Welfare launched Yongquan Student-
out a clothing donation activity with the theme of "1+clothing Clothing for Love Clothing Aid Project with the aim of supporting public welfare education building dreams and
for Warmth" for 2 days during which more than 750 pieces of clothing were received. fulfilling dreams. On November 23 2022 Huayu Public Welfare teamed up with
Jushuixiang Primary School and Jianggen Primary School in Qingyuan County Lishui
City sent school supplies and winter clothes to the left-behind children in the school and
donated laptops books and other materials to the school.Helping the disabled: Huayu Public Welfare signed a framework agreement on digital
intelligence in helping the disabled with Hangzhou Disabled Persons' Federation in
2022 to help upgrade the digital intelligence of 10 Homes for the Disabled in Hangzhou
and donate smart locks to 100 disabled families to help the disabled enjoy smart living
as well as cooperating with various disabled persons' federations to strengthen the
integration of cultural and sports undertakings for the disabled. Dahua introduced the
charity sale for the disabled on the company's family day and organized a New Year's
barrier-free integration run.Helping the elderly: Huayu Public Welfare explores a new model of smart home care.On the Mid-Autumn Festival in 2022 Dahua gave Dahua moon cakes representing
blessings to the elderly in Sunshine Home Nursing Home in Binjiang District and held
follow-up cooperation negotiation with the nursing home.Foreword ESG Management Environment Social Governance Appendix 51
Corporate Governance
Corporate Governance Structure
The Company strictly abides by the requirements of laws regulations rules effectively implemented. The convening holding and proposal procedures of the
and normative documents such as Company Law Securities Law Code of Company's general meeting of shareholders comply with the Company Law the
Corporate Governance for Listed Companies Rules Governing the Listing of Articles of Association and the Rules of Procedure of Shareholders' Meeting
Shares on Shenzhen Stock Exchange to continuously improve the corporate ensuring that all shareholders especially small and medium shareholders enjoy
governance structure and regulate the operation of the company. The actual equal status so as to ensure that all shareholders can fully exercise their rights
situation of corporate governance conforms to the requirements of normative and hiring witness lawyers to attend the general meeting of shareholders to
documents such as Code of Corporate Governance for Listed Companies witness on the spot.issued by China Securities Regulatory Commission (CSRC). In strict accordance
with the requirements of the modern enterprise system the Company has Directors and the Board of Directors
established a corporate governance structure consisting of the general
meeting of shareholders the Board of Directors the Board of Supervisors and The responsibilities of the Board of Directors of the Company are clear and the
the management. The Board of Directors has set up special committees for convening and holding procedures comply with the Company Law Articles of
strategies nomination audit remuneration and appraisal forming a governance Association Rules of Procedure for Board of Directors and other relevant laws
mechanism with clear separation of authority and responsibilities mutual regulations and systems. During the reporting period all directors performed
coordination and checks and balances among the authority decision-making their duties diligently and were able to attend the Board of Directors in a serious
body supervisory body and executive body to effectively protect the legitimate and responsible manner and fully exercised and fulfilled their rights obligations
rights and interests of the Company and its shareholders. and responsibilities as directors thus safeguarding the legitimate rights and
interests of the Company and all shareholders. The Board of Directors has
Operation of the three Meetings in 2022 a Strategy Committee an Audit Committee a Nomination Committee and a
Remuneration and Appraisal Committee to ensure that the Company's decision-
During the reporting period the Company organized 3 general meetings of making is more efficient standardized and scientific. The Company currently has
shareholders 13 meetings of the Board of Directors 10 meetings of the Board seven directors including three independent directors all of whom are experts
of Supervisors 4 meetings of Audit Committee of the Board of Directors 1 in the fields of industry corporate management finance and accounting; The
Nomination Committee meeting 2 Remuneration and Appraisal Committee number and composition of the Board of Directors comply with the requirements
meetings and 1 Strategy Committee meeting. The convening and holding of of laws regulations and the Articles of Association. The Board of Directors of
successive general meetings of shareholders the Board of Directors and the the Company has formulated the Rules of Procedure for Board of Directors.Board of Supervisors and the procedures for consideration of proposals are in All directors of the Company are able to attend the Board of Directors and the
compliance with the relevant laws regulations normative documents and the general meeting of shareholders in a conscientious and responsible manner
Articles of Association of the Company and no violations of laws and regulations familiar with relevant laws and regulations and have effectively performed their
have occurred. rights obligations and responsibilities as directors.Supervisors and the Board of Supervisors
The Company currently has three supervisors including two employee
supervisors. The number and composition of the Board of Supervisors comply
with the requirements of laws regulations and the Articles of Association etc.The board of supervisors convenes supervisor meetings in strict accordance
with the Articles of Association and the Rules of Procedure for the Board of
Supervisors. All the supervisors perform their duties conscientiously and
effectively supervise and express independent opinions on the legitimacy and
compliance of the performance of the corporate finance directors and senior
managers in an integral diligent and conscientious manner to safeguard the
legitimate rights and interests of Dahua and shareholders.Information Disclosure
In 2022 the Company diligently fulfilled its information disclosure obligations to
ensure truthful accurate timely complete and fair information disclosure without
selective information disclosure or early disclosure of non-public information
During the reporting period the Company organized the updating and revision thus safeguarding shareholders' right to know and to provide investors with
of various management systems and the drafting of new systems. The revised sufficient basis for investment.systems include Rules of Procedure of Shareholders' Meeting Rules of
Procedure for Board of Directors Rules of Procedure for the Audit Committee In the process of information disclosure management Dahua has strictly
of the Board of Directors Rules of Procedure for the Nomination Committee of implemented the regulations of China Securities Regulatory Commission (CSRC)
the Board of Directors Rules of Procedure of the Remuneration and Appraisal and other national regulatory authorities completed the information disclosure
Committee of the Board of Directors Rules of Procedure for the Strategy of the Company's regular reports and temporary announcements in a truthful
Committee of the Board of Directors Working Rules for Independent Directors accurate timely and complete manner and delivered more effective information
Information Disclosure Management System Insider Information Confidentiality to the market from the perspective of investors. Dahua has been rated as A in
System and Rules of Procedure for the Board of Supervisors. The revision the information disclosure assessment of Shenzhen Stock Exchange for 12
of the above systems ensures that the Company's various management consecutive years.systems are consistent with the current laws and regulations and enhances the
standardization of the Company's management system. In 2022 the overall difficulty and complexity of information disclosure increased.In the whole year 176 announcements were disclosed 87% more than other
Shareholders and Shareholders' Meeting A-share listed companies in the same industry.The responsibilities of the Company's general meeting of shareholders are clear
and the Rules of Procedure of Shareholders' Meeting have been formulated andForeword ESG Management Environment Social Governance Appendix 52
Corporate Governance
Investor Equity
Dahua has always been committed to being a truthful compliant and transparent listed company for investors actively setting up a good communication mechanism
with investors and fully protecting investors' right to know. According to the relevant guidelines of Shenzhen Stock Exchange Dahua has established a comprehensive
Investor Management System to ensure that there are sufficient opportunities and ways to understand the operation of the Company with shareholders and potential
investors.In addition to the release of periodic reports the Company has taken the initiative to hold 4 performance briefings and 1 on-site investor reception day thus ensuring that
investors can obtain the accurate complete and timely interpretation of periodic reports from listed companies immediately. During the reporting period the Company
also actively participated in various types of communication activities including daily research up to more than 40 batches; participated in more than 20 external
brokerage strategy sessions to convey the company's performance highlights and strategic value to the capital market securities on the basis of compliance; Moreover
the Company answered more than 550 calls to the investor hotline and 420 responses to questions on interactive e-business patiently answered the questions of
shareholders' concerns.The Company also implements a continuous and stable profit distribution policy and attaches importance to a reasonable return on investment for investors. Since its
listing Dahua has implemented cash dividends for 14 times with a cumulative cash dividend of RMB 3.926 billion. During the reporting period the Company formulated
and implemented the profit distribution plan for 2021. Based on the total share capital of 2994550730 shares the Company distributed a cash dividend of RMB 2.7
(including tax) to all shareholders for every 10 shares with a total cash dividend of RMB 808528697.10.Internal Control and Risk Management
Based on COSO-ERM framework and BCM business continuity management
systems the Company has established a "1-3-6" risk management system
framework which is "risk-oriented and system-based with process as a bond Foundation building
control as a tool and IT as a support" to provide good support for the realization
of corporate strategies. By identifying risks evaluating risk levels in terms
of severity possibility and effectiveness of existing measures improving the The first line of defenseReporting Risk
Identification
hierarchical decision-making authorization system according to the acceptable mechanism The second line of defense
level of the company's risks creating or optimizing systems and processes and The third line of defense
promoting the IT-based construction of processes and other control activities
the Company has established systems such as Management Specification for Company
Identification and Evaluation of Environmental Factors Management System for Strategy
Safety Training and Education and Management Specification for Prevention
and Control of Solid Waste Pollution so as to comprehensively deal with Risk monitoring Risk
internal and external risks that may be foreseen in production and operation Assessment
activities. In addition the Company emphasizes the cultivation of risk awareness
and regularly organizes risk management training for all departments so as to
strengthen the Company's risk warning and handling capabilities and develop Risk Response
the risk control awareness among all staff.Table Risk Management Mechanism
Risk Category Preventive Measures
· The Company has established risk control groups such as Strategic Decision-making Committee Audit Committee Corporate Ethics Compliance
Organizational Management Organization Information Security Committee Production Safety Committee and Compliance Committee;
· The Company has established a three-line defense model for risks (business department internal control department and internal audit department) to
Guarantee build a risk-oriented internal control framework;
· The Company's major business functional departments branches and subsidiaries set up department-level internal control interface contacts.Foreword ESG Management Environment Social Governance Appendix 53
Internal Control and Risk Management
Table Risk Management Mechanism
Risk Category Preventive Measures
· The Company has identified and reviewed the risks at the level of the Group branches and subsidiaries through interviews special internal audit reports investigation
Risk Identification and evaluation reports on ESG-related fields and has built and continuously enriched the risk databases of various business sectors and departments.Meanwhile
constantly and dynamically identify the dynamic changes of risks according to the latest business adjustments and planning.· Based on the risk database by introducing various sources of risk information such as regulatory tips industry risks research audit findings manager feedback the
Risk Assessment Company evaluates the risk level of the possibility of risk events the degree of impact caused and the vulnerability of response measures and then makes an overall
evaluation in combination with the major risk categories to achieve comprehensive risk analysis and evaluation.· The Company determines the risk response strategies based on the risk evaluation results including risk reporting risk taking risk avoidance risk mitigation and risk
transfer which include:
Risk response compliance: Consolidate the support of internal control management according to the internal control requirements of regulatory authorities at all
levels.Risk Response Scenario-based risk response: Conduct in-depth evaluation on the process and internal control in ESG-related high-risk internal control fields and adopt different risk management modes for different business scenarios;
Hierarchical risk response: Promote the organization of high-risk issues in various fields of ESG gradually establish a hierarchical authorization mechanism and
clarify the authorization contents at all levels;
Risk response specialization: Establish special internal control projects at the company level and the department level for high-risk businesses to closely and
effectively integrate internal control with business processes to avoid or reduce risks.Risk Monitoring · A risk monitoring mechanism is established to routinely monitor and check the response to risks and ensure that the outcomes of risk response are guaranteed both in the design of response plans and in their implementation.· Risk awareness and competency training on a regular basis: Reinforce risk awareness through the sharing of classic cases special training and examinations so as to
Information create an atmosphere of consistent attention from top to bottom.· Reporting mechanism: Establish a risk reporting mechanism in the form of regular routine reports special risk reports and major risk/risk emergency reports to
Communication comprehensively timely and objectively reflect the status of substantive risks faced by the management of subsidiaries and departments during the reporting period in
order to better manage risks.Information Disclosure Compliance
Risk Management and Control
Improve information disclosure mechanism Build the securities compliance risk control system
After continuous attempts the Company has established a compliance
The Company has carried out process construction and optimization meeting mechanism formed a regular meeting system with multi-
specifically for information disclosure striving to ensure the effectiveness department linkage and established a communication mechanism
and timeliness of the system clarify responsibilities and strengthen internal on a regular basis. The professional functional departments have
process control. been empowered to buttress the functional management of risk and
each department clarifies the compliance management process and
The Company has comprehensively revised the existing relevant systems responsibilities to control the whole process of compliance management.in accordance with the latest regulatory requirements further improved
the closed-loop management system of information disclosure process In the process of continuous efforts to improve the company's risk
and investor relations management and consolidated the management prevention and control capabilities Dahua won the honor of "TOP 30 Best
and internal control foundation of the company. Nearly 40 systems for Internal Control Award of Zhejiang Listed Companies in 2022".corporate governance and internal control have been established and
more than 10 management systems have been revised. Dahua has further
improved its internal management level and risk prevention awareness Optimize special governance
and been awarded the "Best Office of Board of Directors Practice in 2022" For major issues key business segments key holding subsidiaries
by China Association for Public Companies. etc. special communication and processing mechanisms have been
established special risk management has been carried out risk monitoring
system and identification system have been improved and early warning
mechanism has been built. Meanwhile it has taken into account the
development of different subjects and integrated resources to help the
Company's business to develop continuously.Foreword ESG Management Environment Social Governance Appendix 54
Compliance with Law
As a global commercial entity Dahua Technology has always practiced legal and compliant operations with strict adherence to the Code of Conduct market discipline
and international rules In order to ensure the Company's standardized development and legal compliance operation effectively prevent and respond to global
compliance risks further enhance the Company's competitiveness in global business development and continuously guarantee the high-quality and steady growth of
the Company's performance Dahua has established an ethics compliance and compliance management organization which specifically includes the Ethics Compliance
and Compliance Management Committee the Compliance Management Office and various Compliance and Compliance Groups. Among them the Compliance
Management Office is the executive body of the Ethics Compliance and Compliance Management Committee and the Compliance and Compliance Group is divided
into the Special Compliance and Compliance Group and the Business Compliance and Compliance Group.Ethics Compliance and Compliance Management Compliance Management Committee after clarifying the handling suggestions.Committee Responsibilities Note: Each regional organization has a compliance representative who is authorized and managed by each Business Compliance and Compliance Group.· Formulate the overall requirements management strategies and organizational
forms of the Company's ethics compliance and compliance management; Organizational Operation Mechanism of Ethics
· Review ethics compliance and compliance operations plan based on the Compliance and Compliance Management
Company's overall requirements for compliance management and periodically
review the implementation of the plan; · Convene quarterly meetings of the Ethics Compliance and Compliance Management
· Decision making for the company's ethics compliance and compliance related Committee and special meetings as needed if temporary or unexpected issues are
major issue. involved;
· Convene regular meetings of the Compliance Management Office on a monthly
Responsibilities of Compliance Management Office basis and special meetings as needed if temporary or unexpected issues are
involved;
As the executive body of ethics compliance and compliance management it shall · Convene the regular operation meetings of the special Compliance and Compliance
perform the following duties: Groups and the Business Compliance and Compliance Groups on a monthly basis
· Track and observe the changes and impacts of external rules analyze the ethics manage the periodic plan and execution of compliance and compliance operation
compliance and compliance obligations the Company is required to abide by based management of each module and report relevant matters to the Ethics Compliance
on the rules and formulate and refresh specific compliance standards; and Compliance Management Committee for consideration and decision if it is beyond
· According to the general requirements and instructions of the Company's Ethics the scope of authority or unable to make judgments and decisions.Compliance and Compliance Management Committee formulate the company's
compliance policies annual compliance objectives and plans and annual compliance Dahua requires all employees to have a full sense of compliance and has
reports and submit them to the Ethics Compliance and Compliance Management established mechanisms such as induction training for new employees regular
Committee for approval; training and examinations for all employees carried out irregular online and offline
· Responsible for managing the implementation of the Company's compliance policies compliance publicity and various compliance-themed months to ensure that senior
and requirements in each business unit; and junior employees are familiar with and abide by compliance requirements
· As the executive body of the Company's Ethics Compliance and Compliance and sign corresponding commitment documents. The Company regularly reviews
Management Committee it is responsible for organizing regular meetings of the compliance of internal personnel sets up a reporting channel for (suspected)
the Committee coordinating the work of various working groups organizing violations and seriously deals with violations found in accordance with regulations.the Committee's decisions on major compliance issues in a timely manner and
implementing the corresponding compliance reward and punishment decisions. Ethics and Integrity
Responsibilities of the Compliance and Dahua upholds the tenet of "Clean Dahua Righteous Success" adheres to the high
Compliance Groups standards of Code of Conduct and ethics aiming at building a transparent fair just
clean and honest business cooperation environment for the Company's employees
1. Special Compliance Group: suppliers and customers and creating a clean upright happy and efficient atmosphere.
· Based on the Company's compliance management requirements formulate the For employees suppliers and customers Dahua continues to promote the culture of
operation plan of the corresponding module and submit it to the Ethics Compliance and integrity and compliance and designs targeted and audience-specific integrity training
Compliance Management Committee for consideration; for the Group's employees so as to create enough deterrence so that employees
· Focus on the compliance operation objectives of the corresponding modules neither dare can nor even think of being corrupt.accumulate professional talents and capabilities in their fields establish systematic
management and control specifications horizontally coordinate with various executive Expand the Publicity Coverage
departments and Compliance and Compliance Groups and promote the effective
implementation of compliance and compliance plans in this special field; During the company's Clean Administration and Compliance Publicity Month
· Conduct routine special audits in the field and promote the improvement; in August 2022 the company's Clean Administration Construction Committee
· Regularly report the work progress to the Ethics Compliance and Compliance and Compliance Management Office jointly created the English version of the
Management Committee; Clean Administration and Compliance Publicity Poster which was delivered to the
· Collect and solve the compliance issues in this module in time report the major issues overseas offices at all levels by e-mail to help build the business card of Dahua's
or other issues which are required to be raised to the Company for decision making global business behavior compliance; In addition the Company made a small book
to the Company's Ethics Compliance and Compliance Management Committee for of integrity cases over the years which is also packaged and sent to each provincial
decision making after clarifying the handling suggestions. and regional office in China so as to facilitate the publicity of clean administration
construction in provincial offices.
2. Business Compliance Group:
· Formulate the overall objectives and work plans of the business compliance and
compliance in this business segment and promote the implementation of the business
compliance in this business segment;
· Collaborate with various special Compliance and Compliance Groups to achieve the
operational objectives in this business segment and ensure the effective implementation
of various compliance plans and initiatives;
· Collect and solve the compliance issues in this business segment in time.For the
issues that can't be solved it is required to cooperate with various special compliance
and compliance groups to promote the resolution. For the issues that still can't
be solved it is required to report them to the Company's Ethics Compliance andForeword ESG Management Environment Social Governance Appendix 55
Compliance with Law
On the basis of on-site lectures for employees in high-risk positions and Governance of Science and
online training examinations for all employees last year the company's
Clean Administration and Compliance Publicity Month also launched an online Technology Ethics
sunshine charity sale and a visit to the Zhejiang Discipline and Law Education Base
to actively promote the culture construction of clean administration. The products The new round of scientific and technological revolution and industrial transformation
of Sunshine Charity Sale mainly came from the gifts or card coupons of suppliers is profoundly changing the face and pattern of world development and the issue of
voluntarily returned by employees over the years which successfully attracted the governance of science and technology ethics has become a common challenge for
attention of colleagues from the headquarters and offices on the requirements of all mankind. The Company is committed to technology for social good and better
the company's integrity-oriented culture and business behavior compliance the final benefit for the mankind so that science and technology can develop within an
proceeds from the charity sale were donated to Huayu Public Welfare Development ethical framework that is available reliable credible and controllable: The Company
Center in Binjiang District Hangzhou. conducts technical research and application on the premise of complying with
applicable laws and regulations business ethics and cultural habits of the business
Integrity reminders keep up with the "times" location; The Company aims to realize the sustainable development and inclusive growth of human society and promote the innovative implementation of advanced
The publicity reminder of "Think twice during the festive season keep in mind the technologies in relevant business fields; The Company has always been committed
integrity and discipline" has been delivered to employees at all levels of the Group to achieving fairness justice security and stability ensuring privacy and ensuring
through various publicity channels before the 7 important national public holidays that the products and solutions developed are helpful to individuals and beneficial to
are approaching to ensure "being in place on time". the society. During the reporting period the Company set up a special Compliance
and Compliance Group for Ethics in Science and Technology to further promote
the improvement of its governance system of science and technology ethics and
enhance the governance capability of science and technology ethics.Trade Compliance
The Company is committed to complying with the laws and regulations of China
the United Nations the United States and the European Union regarding export
control and economic sanctions. The Trade Compliance and Compliance Group is
responsible for formulating the overall strategy of the Company's trade compliance
establishing and improving the compliance system and process combining
risk management preposition with management compliance promoting the
Regularly revise management regulations implementation of trade compliance requirements in all business fields ensuring
the comprehensive and effective implementation of trade compliance policies
Dahua regularly revised the Eight Provisions on the Work Style of Dahua's Cadres and control processes in the Company and continuously updating and optimizing
the Code of Conduct the Anti-Fraud System Administrative Measures for Reporting existing measures and systems according to the internal and external environment.Corrupt Practices the Measures for the Administration of Employees Receiving
Gifts Gifts and Other Vouchers (Cards) the Measures for the Administration of During the reporting period the Company continuously improved the construction
Corporate Accountability and Punishment the Measures for the Administration of of its trade compliance system tracked the trade compliance policies and
Confidentiality the Employee Manual and the Notice on Rewards for Real-name enforcement dynamics of various countries in a timely manner and updated the
Reporting and other normative guidelines. Dahua Export Control Compliance Manual and the supporting export control
compliance operation guidelines of R&D supply chain and sales departments in
The Company encourages real-name reporting combination with the guidance of external resources such as relevant professional
institutions so as to further integrate compliance management requirements into
of fraudulent behaviors. every link of its production operation and management. Based on items end users
destination countries/regions end uses and other factors the Company embeds the
The Company reiterates that corruption is a "high-voltage line" that the Company compliance control points into the process through channels of informationization
can't tolerate and the Company will never be soft on corruption; Meanwhile and digitalization optimizes the identification and management of trade compliance
the Company will continue to improve the system process and build the internal risks in the whole process of R&D procurement sales delivery and service
accountability system and work with everyone to defend the cornerstone of integrity so as to realize informationization guarantee and automatic control. During the
transparency and integrity. reporting period the Company ensured the implementation of its trade compliance
governance requirements and compliance control points by means of inspection
(1) If the complaint information is incorrect the Company will clarify the issue and by the Trade Compliance and Compliance Group self-inspection by business
will not hold any party responsible; departments and investigation and interview by external institutions and optimized
(2) Any real-name reporting if the complaint information is verified plays an and refined the internal policies in a targeted manner to promote the continuous
important role in breaking the case saves or reduces economic losses for the improvement of the trade compliance system.Company or has other outstanding contributions the Company will give rewards
according to the Notice on Rewards for Real-name Reporting. At the same time the Company actively carried out compliance training to
strengthen employees' awareness of compliance through all-staff training and
The Company's complaint reporting channels: precise training of relevant departments. Through the empowerment of compliance
(1) WeChat official account: Fanghua Society - Clean Dahua - Letters and Calls contacts in various departments and the issuance of specific scenario-based
Reporting Channels guidelines relevant positions can be familiar with compliance policy requirements
(2) Report email: jbrx@dahuatech.com control measures and operations and compliance work can be carried out more
(3) Report hotline: 86-0571-28816326 effectively.Foreword ESG Management Environment Social Governance Appendix 56
Compliance with Law
Data Security and Privacy Protection
The Company attaches great importance to data security and privacy protection. Since the promulgation of the Cyber Security Law of the People's Republic of China the
EU General Data Protection Regulation and other laws and regulations the Company has actively responded by setting up a special group on data security and privacy
protection paying close attention to the dynamics of global data protection laws and regulations interpreting them in a timely manner formulating pragmatic compliance
strategies conducting comprehensive compliance audits and strictly complying with legal requirements. In addition the Company has actively cooperated with third-
party authorities introduced external evaluation and certification and has passed ISO 27701 Privacy Information Management System Certification IoT Service Privacy
Protection Certification ETSI EN 303645 Certification and Trusted AI Computing Platform Evaluation.IoT Service Privacy Credible AI Computing
Qualification ISO 27701 ETSI EN 303645
Protection Platform
Certification
authority
In order to further improve the data protection level of products and services and better help customers achieve compliance the special group focused on optimizing
the differentiated security requirements of China the European Union North America Brazil India and other countries or regions and comprehensively upgraded the
Personal Data and Privacy Protection Specification by combining the privacy design principles and the practical experience of privacy impact assessment. The Company
introduced the privacy baseline in the product requirement and design stage designed business-friendly protection measures around the whole life cycle of data
collection transmission storage use and deletion and combined with privacy policies privacy-friendly settings and other adaptations to provide comprehensive data
security protection and ultimate user experience. At the same time privacy protection technologies such as privacy masking trusted computing data desensitization and
data encryption have been continuously integrated in the products to build privacy protection that reaches the entire scenario.During the reporting period the Company actively participated in organizations and activities related to data security and privacy protection and has joined the Data
Security Community Plan Zhuoxin Big Data Plan and Hangzhou Data Security Alliance to further promote the development of industry data security standards.Tax Compliance Fair Competition
Tax compliance refers to the conformity of operation and management behaviors Advocating fair competition and fair trade Dahua always seeks fair and honest
of enterprises and their employees to the laws regulations and regulations on competition and persists in developing its competitive edge through quality
taxation. The Company’s tax department focuses on establishing a standardized products and services rather than unethical or illegal business practices.global tax compliance system for the Company's global business operations The Company pays continuous attention to the development of competition
and on the overall management of tax risks. In order to effectively achieve compliance legislation law enforcement and the administration of justice in the
compliance with tax requirements the Company has carried out corresponding jurisdictions involved in the business and regularly examines and evaluates its
process development including the standardization and formation of a fixed own competition behaviors and business operation compliance.process of tax calculation templates and the documentation of daily tax
work operation manuals and procedures. The relevant information system During the reporting period the Company updated and published the Code
construction is also being continuously optimized including the global tax of Conduct formulated and published a model text of common competition
platform related transaction pricing system reconciliation system and invoicing compliance scenarios of distribution business defined the red line benchmark
system to ensure the tax process implementation and continuous update are in of competition compliance and communicated its competition compliance
place according to regulations. requirements to business partners through the agreement text. In foreign
investment projects the Company has fulfilled its compliance review and
Meanwhile by establishing and improving our electronic file management reporting obligations in strict accordance with local laws and regulations. The
system the Company has effectively managed tax compliance-related Company has continuously introduced high-quality external resources both
documents to meet compliance requirements. In addition the Company domestically and internationally organized various departments to carry out study
regularly examines tax risks and continuously follows up on their resolution. The and training on competition compliance according to the opinions and guidance
Company effectively responds to and manages all kinds of tax disputes that may of professional organizations so as to continuously enhance employees'
occur globally. compliance awareness of fair and honest competition create a stronger
competition compliance culture and continuously strengthen the organization's
In response to the complexity and distinctiveness of compliance in each systematic capability to prevent and respond to relevant compliance risks. During
country and region the Company has set up a special team to build the top- the Clean Administration and Compliance Publicity Month in August 2022 the
level compliance framework in a dedicated form so as to gradually realize the Company publicized its position of compliance competition through offline poster
improvement of the global tax compliance system. promotion email blasts online training and examinations and clearly put an end
to violations of fair trade including commercial bribery.Foreword ESG Management Environment Social Governance Appendix 57
Secure and Reliable IT Architecture
Hardware Network System 2. Through the construction of safety development capacity the Company has realized the safe left shift and achieved the continuous delivery safety.
3. By establishing a sound data compliance system the Company regularly
In order to build a safe stable and sustainable information system environment conducts comprehensive privacy protection and data compliance related audits
Dahua has established multiple data centers: the data center of Hangzhou attaches importance to audit results analyzes processes and takes action in
headquarters the data centers of major third-party operators and the data time so as to build a data security defense line.centers with multiple nodes and multiple available areas on domestic and 4. Through the normalization of information security audit compliance operation
overseas clouds. The office network has realized a global ring and redundant guarantee with business as the core and risk management and control as the
architecture network to ensure the reliability of the data center network. Based guide the Company builds a closed-loop operation mechanism of defense-
on the design of links and hardware redundancy architecture automatic detection-response-eradication.switching of failed single link to standby link is realized enabling backbone
services to be fully online and no perception of automatic switching by users; Table Reliability Security and Ease of Use of Information Systems
based on the deployment of the software management system full coverage of
business scenarios is realized; based on the construction of data lake and data Category Description
warehouse full connection of data and timely access to information is achieved;
through the ITSM hotline service 7*24 services and self-service for internal · The Company adopts dual primary and backup outlets of different
users are provided and through applications such as the portal/App information carriers for Internet access to ensure the security and reliability of
inquiry self-service is provided for external customers suppliers and partners. link access; multiple data centers are established in the same city for
The Company continues to invest in hardware every year to support the growth reciprocal data backup with dual utility and highly reliable UPS power
and stable operation of global business. supply for the server room to ensure the stability of the Company's
network infrastructure and business systems.Software Management System · All key business systems are designed with disaster response solutions
to ensure stable operation of information systems and data security
at any time and under any circumstances.In case of emergency the
At present and in the future the IT architecture of Dahua belongs to the IT application system can be switched and restored quickly.hybrid architecture mode: traditional integrated architecture+micro-service/ · A reliable data backup and recovery plan is adopted for other business
data middle platform architecture+cloud computing base +AI/IoT application. systems with all data kept in off-site storage backups; regular drills are
From the application system level all kinds of shared service centers are performed to check the reliability and recoverability of backups.formed through the business middle platform to realize the digital precipitation · By building such infrastructure as redundancy high availability and
of business capabilities; Through the construction of data center and data lake backup recovery the high availability of performance and smooth
the Company has built a Group data sharing platform to realize centralized and reliable continuous operation of data centers network links and
management of data at most once so as to improve the reuse rate of data computing storage of system applications are ensured.and provide basis for management decision making. The technical architecture
of the data mid-platform adopts a convergence structure to realize the unified
management and implementation of data standards data governance and data
directory while providing data services in the form of microservices to ensure · Dahua has obtained the ISO/IEC27001 Information Security
the data consistency of each application system. Management System Certification and ISO/IEC27701 Privacy
Information Management System Certification as well as the Level 2
Ensure the Reliability and Security of and Level 3 Certification of Cyber Security Protection.· Security devices such as firewalls and WAFs are deployed at the
Software and Hardware borders of the Internet and data centers to shield high-risk ports and
turn on security modules such as IPS AV and WAF as guarantee of
Dahua has formulated DHIS009 Information Asset Confidentiality Management secure and controllable business.System DHIS017 Anti-virus and Malware Management Regulations DHIS022 · Security baseline for terminal device access: Through ID access
Data Backup Management Regulations and other related system documents to anti-virus anti-leakage and watermarking ensure that terminals that
manage data and information to realize the management of data and information access Dahua's network meet security requirements; key positions
and hardware and software and improve the reliability and security of data work through virtual desktops to ensure that data does not reach local
and information management software and hardware and ensure that the terminals.information system infrastructure meets the needs of the company's strategic · By building an information security system architecture defend
development (see the table below). According to the networking construction against external risks prevent internal vulnerabilities and sustain
requirements of the Group's global branches and data centers relying on the security operations so as to ensure the security and solidity of Dahua's
resources of operators and public cloud networks a fully-linked and highly business.reliable global network is established and technical solutions such as SDWAN
network acceleration are used to realize the classified service guarantee of
business traffic and high-bandwidth cross-border exchange performance and
enhance users' access experience to core business systems.Information Security Capability Building
Since the establishment of information security system Dahua has formed a
comprehensive three-dimensional security defense architecture for network
public cloud data center host application development data and office
terminals. Based on the zero-trust security strategy the daily office efficiency
of employees is balanced under the premise of ensuring the prevention of
information security threats and the controllable risk of data leakage. Through
standardized guidance process management and control and technical
management and control the Company has constantly optimized its defense
strategy and formed an active defense line. By subdividing business scenarios
the Company has continuously improved and optimized the more refined
security operation and maintenance support capabilities.
1. Through continuous construction and optimization of security defense
an adaptive security network architecture has been established and the
heterogeneous deployment of different brands of products is linked to accelerate
the security response process.Security ReliabilityForeword ESG Management Environment Social Governance Appendix 58
Appendix 1 Enterprise Honor of Dahua
Name Awarding unit
Golden Bull Award for Social Responsibility China Securities Journal
2022 Best Practices for Board of Directors of Public Companies China Association for Public Companies
2022 Green Sustainable Development Contribution Award 2022 International Green Zero-Carbon Festival
2022 Top 30 Zhejiang Listed Company Best Internal Control Award School of Management of Zhejiang University the Listed Company Association of Zhejiang
China Enterprise Confederation
2022 China Top 500 Manufacturing Enterprises
China Enterprise Directors Association
China Enterprise Confederation
2022 Top 100 Enterprises in China's Strategic Emerging Industries
China Enterprise Directors Association
China Enterprise Confederation
2022 China Top 100 Innovation Enterprises
China Enterprise Directors Association
National Quality and Credit Benchmarking Enterprise China Association for Quality Inspection
National Product and Service Quality Integrity Demonstration Enterprise China Association for Quality Inspection
National Product and Service Quality Integrity Brand China Association for Quality Inspection
National Quality Inspection Integrity Enterprise China Association for Quality Inspection
National Security Industry Quality Leading Brand China Association for Quality Inspection
National Security Industry Quality Leading Enterprise China Association for Quality Inspection
Sixth Vice-Chair of China Security and Protection Industry Association China Security and Protection Industry Association
Zhejiang Top 100 Enterprises Zhejiang Enterprise Federation Zhejiang Enterprise Directors Association and Zhejiang Federation of Industrial Economics
2022 Top 100 Zhejiang Private Enterprises Zhejiang Administration for Market RegulationZhejiang Federation of Industry and Commerce
2021 AI Leader in the Software Industry (issued in May 2022) China Software Industry Association
2021 Typical Demo Case in the Software Industry - Visualized Emergency
Command and Dispatch Platform (issued in May 2022) China Software Industry Association
Top 100 Brand Software Enterprises in the Yangtze River Delta 2022 China Software Industry Innovation and Development Conference
Zhejiang Red Cross Fraternity Contribution Award Advanced Group Zhejiang Red Cross SocietyForeword ESG Management Environment Social Governance Appendix 59
Appendix 2 Key Performance Indicators
for Sustainable Development
Key Performance Indicators for Annual Operations
Unit 2020 2021 2022
Direct economic value RMB 100 million 264.66 328.35 305.65
Cash dividends RMB 100 million 8.03 8.09 8.02
Tax revenue RMB 100 million 11.96 12.04 20.69*
*Note: The 2022 statistical caliber includes the contribution factors of software tax rebate and offshore tax revenue.Key Performance Indicators for Environmental Protection
Unit 2020 2021 2022
Comprehensive Energy Consumption kg standard coal 7680545 10440394 13730087
Direct Energy Consumption kg standard coal 1340994 1529811 2053365
Indirect Energy Consumption kg standard coal 6339551 8910584 11676721
Purchased power 10000 kWh 5158 7250 9501
Natural gas Liter 919163 1040392 1088363
Gasoline Liter 42551 34316 36004
Diesel oil Liter 24741 42955 55142
Total Greenhouse Gas Emissions
(including Scope 1 and Scope 2) Tons of CO2 38473 53489 69505
Scope 1 Tons of CO2 2184 2483 2665
Scope 2 Tons of CO2 36289 51006 66840
Municipal water supply Ton 545530 790857 807292
Number of accidents involving excessive
emissions of waste water Cases 0 0 0
waste gas and noise
Number of accidents involving chemical spills Cases 0 0 0
Number of accidents involving excessive
emissions and chemical spills Times 0 0 0
Number of products with China Energy
Conservation Certification pcs 20 60 56
Number of new RoHS compliant production
materials pcs 19544 18697 42759
Materials REACH SVHC
Coverage of material information % 70% 75% 90%
declaration confirmation
Total recyclable waste Ton / / 1524
Total non-recyclable waste Ton / 568 1228
Total disposal amount of hazardous waste Ton / 52 51
Legal transfer rate of hazardous waste % 100% 100% 100%
Controlled rate of hazardous wastes % 100% 100% 100%Foreword ESG Management Environment Social Governance Appendix 60
Appendix 2 Key Performance Indicators
for Sustainable Development
Key Social Performance Indicators
Unit 2020 2021 2022
Number of employees worldwide People 17251 22864 23587
Total staff training hours 10000 hours 58 97.5 60
Average staff training hours 10000 hours 33.6 42.6 25.4
Child labor % 0 0 0
Forced or compulsory labor Cases 0 0 0
Wages of workers for regular shifts % 100 100 100
Deaths in Service Cases 0 0 0
Occupational disease cases Cases 0 0 0
Safety education coverage % 100 100 100
Number of people covered by domestic
distributor training People 2023 2600+ 5600+
R&D investment RMB 100 million 29.98 34.52 38.83
Coverage rate of new suppliers screened
by environmental standards % / 95 95.75
Number of new patents during the
reporting period pcs 610 762 1322
Number of new software copyrights during
the reporting period pcs 99 61 83
Number of new trademarks during the
reporting period pcs 80 35 53
Cumulative number of patents and
software copyrights pcs 2751 3574 4979Foreword ESG Management Environment Social Governance Appendix 61
Appendix 3 GRI Standards Index
Standards Disclosure Topics/Disclosure Items Disclosure Item Chapter index Page index
GRI 2: General Disclosures 2021
2-1 Organizational details Introduction to Dahua 6-9
2-2 Entities included in the organization’s About This Report 4
The organization and its sustainability reporting
reporting practices 2-3 Reporting period frequency and contact point About This Report 4
2-4 Restatements of information Appendix 2: Key Performance Indicators for Sustainable Development 59-60
Innovation and Research 38
2-6 Activities value chain and other business relationships Supplier 46-48
Activities and workers Open ecosystem 49
Employee 32-37
2-7 Employee Appendix 2: Key Performance
Indicators for Sustainable Development 59-60
2-9 Governance structure and composition Corporate governance structure 51
2-10 Nomination and selection of the highest governance body Corporate governance structure 51
2-12 Role of the highest governance body in overseeing the management of impacts Corporate governance structure 51Governance
2-13 Delegation of responsibility for managing impacts Corporate governance structure 51
2-14 Role of the highest governance body
Corporate governance structure 51
in sustainability reporting About This Report 4
Statement on sustainable Statement from the Chairman 52-22 development strategy ESG Management 10-12
Compliance with Law 54-56
Corporate Governance 51-52
2-23 Policy commitments
Employee 32-37
Supplier 46-48
Compliance with Law 54-56
Strategy policies and practices
Corporate Governance 51-52
2-24 Embedding policy commitments
Employee 32-37
Supplier 46-48
2-25 Processes to remediate negative impacts Compliance with Law 54-56
2-26 Mechanisms for seeking advice and raising concerns Compliance with Law 54-56
2-27 Compliance with laws and regulations No major violations occurred
2-28 Membership of the Association Appendix 1: Enterprise Honor 58
2-29 Approach to stakeholder engagement Interested Party Participation 11
Interested Party Participation
2-30 Collective Bargaining Agreement Human Rights Management 32Foreword ESG Management Environment Social Governance Appendix 62
Appendix 3 GRI Standards Index
Standards Disclosure Topics/Disclosure Items Disclosure Item Chapter index Page index
GRI 3: Material Topics 2021
3-1 Process to determine material topics Focus on Substantive Issues 12
Material Topics
3-2 List of material topics Focus on Substantive Issues 12
Economy
Compliance with Law 54-56
3-3 Management of material topics
Supplier 46-48
GRI 201: Economic Performance 2016
201-1 Economic value directly generated Appendix 2: Key Performance Indicators for and distributed Sustainable Development 59-60
201-3 Defined benefit plan obligations and other retirement plans Compensation and welfare 31
Empowerment by Digital Intelligence 15-21
3-3 Management of material topics
Public Welfare Activities 50
Empowerment by Digital Intelligence 15-21
GRI 203: Indirect Economic Impacts 2016 203-1 Infrastructure investments and services supported
Public Welfare Activities 50
Empowerment by Digital Intelligence 15-21
203-2 Significant indirect economic impacts
Public Welfare Activities 50
GRI 204: Procurement Practices 2016 3-3 Management of material topics Supplier 46-48
3-3 Management of material topics Compliance with Law 54-56
GRI 205: Anti-corruption 2016 Communication and training of the policies
205-2 and procedures of anti-corruption and Compliance with Law 54-56
anti-commercial bribery
GRI 206: Anti-competitive Behavior 2016 3-3 Management of material topics Compliance with Law 54-56
3-3 Management of material topics Compliance with Law 54-56
207-1 Approach to tax Compliance with Law 54-56
GRI 207: Tax 2019
207-2 Tax governance control and risk management Compliance with Law 54-56
207-4 Country-by-country reporting Compliance with Law 54-56
Environment
Environmental Management Systems 13-15
3-3 Management of material topics
Green Operation 23-30
GRI 301: Materials 2016
Green Operation 23-30
301-3 Reclaimed products and their packaging materials Appendix 2: Key Performance Indicators
for Sustainable Development 59-60
3-3 Management of material topics Energy Management 28-29
302-1 Energy consumption within the organization Appendix 2: Key Performance Indicators for Sustainable Development 59-60
GRI 302: Energy 2016
302-4 Reduction of energy consumption Energy Management 28-29
302-5 Reduction of energy demand for products Environment-friendly and Low-carbon and services Products 22
3-3 Management of material topics Water Management 30
GRI 303: Water and Effluents 2018 303-1 Interactions with water as a shared resource Water Management 30
303-4 Water discharge Water Management 30Foreword ESG Management Environment Social Governance Appendix 63
Appendix 3 GRI Standards Index
Standards Disclosure Topics/Disclosure Items Disclosure Item Chapter index Page index
3-3 Management of material topics Emission Management 30
305-1 Direct (Scope 1) GHG emissions Appendix 2: Key Performance Indicators for Sustainable Development 59-60
GRI 305: Emissions 2016 305-2 Energy indirect (Scope 2) GHG emissions Appendix 2: Key Performance Indicators for Sustainable Development 59-60
Environment-friendly and
Low-carbon Products 22
305-5 Reduction of GHG emissions
Energy Management 28-29
Solid Waste Management 30
3-3 Management of material topics
Green circulation 27
Solid Waste Management 30
306-1 Waste generationand significant waste-related impacts
Green circulation 27
GRI 306: Waste 2020
Solid Waste Management 30
306-2 Management of significant waste-related impacts
Green circulation 27
306-3 Waste generated Appendix 2: Key Performance Indicators for Sustainable Development 59-60
306-5 Waste directed to disposal Appendix 2: Key Performance Indicators for Sustainable Development 59-60
3-3 Management of material topics Supplier 46-48
GRI 308: Supplier Environmental 308-1 New suppliers that were screened using Assessment 2016 environmental criteria Supplier 46-48
308-2 Negative environmental impacts in the supply chain and actions taken Supplier 46-48
Social
3-3 Management of material topics Employee 32-37
401-1 New employee hires and employee turnover Employee 32-37
GRI 401: Employment 2016 Benefits provided to full-time employees that
401-2 are not provided to temporary or part-time Employee 32-37
employees
401-3 Parental leave Employee 32-37
GRI 402: Labor/Management
Relations 2016 3-3 Management of material topics Employee 32-37
3-3 Management of material topics Occupational health management 36-37
403-1 Occupational health and safety Occupational health and safety management system management system 31
403-2 Hazard identification risk assessment and incident investigation Occupational health management 36-37
403-3 Occupational health services Occupational health management 36-37
Worker participation consultation
403-4 and communication on occupational health Occupational health management 36-37
and safety
GRI 403: Occupational Health and 403-5 Worker training on occupational health Safety 2018 and safety Occupational health management 36-37
403-6 Promotion of worker health Occupational health management 36-37
Prevention and mitigation of occupational
403-7 health and safety impacts directly linked by Occupational health management 36-37
business relationships
403-8 Workers covered by an occupational health and safety management system Occupational health management 36-37
403-9 Work-related injuries Occupational health management 36-37
403-10 Work-related ill health Occupational health management 36-37Foreword ESG Management Environment Social Governance Appendix 64
Appendix 3 GRI Standards Index
Standards Disclosure Topics/Disclosure Items Disclosure Item Chapter index Page index
3-3 Management of material topics Employee 32-37
404-1 Average hours of trainingper year per employee Employee 32-37
GRI 404: Training and Education 2016
404-2 Programs for upgrading employee skills and transition assistance programs Employee 32-37
Percentage of employees receiving
404-3 regular performance and career Employee 32-37
development reviews
3-3 Management of material topics Employee 32-37
GRI 405: Diversity and Equal
Opportunity 2016
405-1 Diversity of governance bodies and employees Employee 32-37
GRI 406: Non-discrimination 2016 3-3 Management of material topics Employee 32-37
GRI 407: Freedom of Association and
Collective Bargaining 2016 3-3 Management of material topics Employee 32-37
GRI 408: Child Labor 2016 3-3 Management of material topics Employee 32-37
GRI 409: Forced or Compulsory
Labor 2016 3-3 Management of material topics Employee 32-37
3-3 Management of material topics Security Practices 37
GRI 410: Security Practices 2016
410-1 Security personnel trained in human rights policies or procedures Security Practices 37
Cooperation and Exchanges 50
3-3 Management of material topics
Public Welfare Activities 50
GRI 413: Local Communities 2016
Operations with local community Cooperation and Exchanges 50
413-1 engagement impact assessments
and development programs Public Welfare Activities 50
3-3 Management of material topics Supplier 46-48
GRI 414: Supplier Social 414-1 New suppliers that were screened
Assessment 2016 using social criteria
Supplier 46-48
414-2 Negative social impacts in the supply chain and actions taken Supplier 46-48
Innovation and Research 38
Cyber Security 39-41
3-3 Management of material topics
Quality control 42-43
Customer satisfaction 45
GRI 416: Customer Health and
Safety 2016
Innovation and Research 38
Cyber Security 39-41
416-1 Assessment of the health and safety impacts of product and service categories
Quality control 42-43
Customer satisfaction 45
Customer 44-45
3-3 Management of material topics
Open ecosystem 49
GRI 417: Marketing and
Labeling 2016
Customer 44-45
417-1 Information and identification requirements of products and services
Open ecosystem 49
GRI 418: Customer Privacy 2016 3-3 Management of material topics Cyber Security 39-41" Enabling a Safer Society and Smarter Living "
ENABLING A SAFER SOCIETY AND SMARTER LIVING
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