中信博:Arctech 2022 ESG Report

2022
Environmental Social
and Governance (ESG) Report
Arctech Solar Holding Co. Ltd.Arctech Solar Holding Co. Ltd.Address:No.190 Huayang Road Lujia Town Kunshan city
Tel: 0512-57353472-8088
Email: investor.list@arctechsolar.com
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81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98Basis of Reporting Appendix
About the Report 03 Future Prospects 95
Standards Index 95
Message from the Chairman 07
Feedback Form 97
Report Overview Party Building Products & Sourcing R&D and Innovation
About Arctech 11 Party Building System 25 Product Quality 55 R&D System Building 67
ESG Management 21 Party Building Practice 27 Customer Service 59 Achievements & Protection 71
Responsible Sourcing 61 Values Creation Initiatives 71
Governance & Operation Environmental Protection Employee Development Safety Operations
Corporate Governance 31 Environmental Management System 41 Employee Employment & Structure 81 Production Safety System 80
Investor Relations 33 Energy & Resource Management 43 Employee Rights & Protection 83 Safety Emergency Response 91
Risk Management 35 Prevention & Control of Pollution 44 Training & Career Development 85 Safety Inspections & Governance 93
Compliance Management 37 Green Operation 49 Employee Care & Welfare 86 Safety Education & Training 93
Anti-corruption 38 Green Goals 52
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CO N T ENTSAbout the Report
Report instructions Sources and Reliability Assurance
This is the first Environmental Social & Governance (ESG) report of Arctech Solar Holding Co. L td. All information and data quoted in this report are obtained from official documents statistical reports
to the public aiming to genuinely reflect the achievements and practice performance of the Company and financial reports of Arctech internal data of each functional department and each operating unit
of ESG in 2022 openly report our corporate operations to our shareholders and creditors partners and public information which have been counted summarized and reviewed by the Company. Also
employees and other related stakeholders with an in-depth perspective of our social responsibility the currency types and amounts involved in this report are measured in RMB unless otherwise specified.actions. We expect to reinforce communication with stakeholders and build consensus for sustainable In case of discrepancies between the financial data and the annual report the annual report shall prevail.development through the publication of social responsibility reports.Assess to the report
Reporting period
To practice the concept of low-carbon environmental protection and sustainable development
This is an annual report covering the period from 1 January 2022 to 31 December 2022 and this report can be read online or downloaded electronic version of the report at the Company's
some of contents have been extended to enhance the comparability and forward-looking website (http://www.arctechsolar.cn) and SSE's website (http://www.sse.com.cn). For other
nature of the report. information about the Company besides this report please refer to the Company's annual
financial report or visit the Company's website.Reporting scope
The "Arctech Solar Holding Co.Ltd" is the subject of the report including its subsidiaries. Feedback
Unless otherwise stated the scope of this report is consistent with the scope of the Company's We are very concerned about your opinions on our social responsibility work and this report.annual report. If you have any ideas and suggestions about this report please contact us as below. We
sincerely thank you for your valuable comments.Reporting principles
Sustainable Development Goals Yijun Liu Wenxia Zhang
Global Reporting Initiative Standards (GRI Standards)
Secretary of the Board of Directors Securities Representative
Self-Regulation Guide 1 for Listed Companies on STAR Market-Standard Operation of SHSE; (Representative in the disclosure of information)
Guidelines for Compilation of Chinese Corporate Social Responsibility Report (CASS-ESG 5.0)
Address No.190 Huayang Road Lujia TEL 0512-57353472-8088
of Chinese Academy of Social Sciences; Town Kunshan city
Email investor.list@arctechsolar.com Fax number 0512-57353473
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81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98Definition of terms
In this report for the convenience of expression and reading the terms listed below
shall have the following meanings (unless the context otherwise states):
Abbreviations Interpretation Abbreviations Interpretation
Arctech/Company/We Arctech Solar Holding Co.Ltd The International Electrotechnical Commission the world's first
IEC non-governmental international electrical standardization body has
a series of standards and detailed guidelines.CGNPC China General Nuclear Power Group
The Underwriters Laboratories the most authoritative private institution
A device which increases power generation by adjusting the spatial in the United States which engaged in safety testing and identification UL
angle of the solar module plane relative to the incident sunlight in real in the world mainly engaged in the business of product safety certification
Tracker/Tracking System time to raise the irradiance of sunlight projected onto the solar module and operating safety certification.by the combined action of mechanical electrical and electronic circuits
and programs. The Technical Supervisory Association an officially authorized
governmental supervisory organization in Germany conducts
Building-integrated photovoltaics is a photovoltaic power generation TüV safety certification of industrial equipment and technical products
system that is designed constructed and installed simultaneously as well as assessment and audit of quality assurance systems
with the building and integrates perfectly with the building which not and environmental systems.BIPV only plays the function of building materials (such as wind rain heat
insulation etc.) but also plays the function of power generation making CE marking is a mandatory safety certification mark all products
the building become a green architecture. circulating freely in the EU market must be affixed with the CE mark
CE to show that the product meets the basic requirements of the EU
directive of "New Approach to Technical Harmonization and
A tracking algorithm in which the solar structure operation direction
Standardization".is opposite to the sun operation direction. The non-tracking optimal
Back-tracking
solar radiation angle is designed to avoid solar panel shading when
the solar altitude angle is relatively low
Intertek headquartered in London is one of the world's largest consumer
Intertek goods testing inspection and certification companies providing a
A power generation technology converts solar energy directly into comprehensive range of testing inspection and certification services.Photovoltaic (PV) Power Generation
electricity by the photovoltaic effect
Black & Veatch a global 500 design consulting and construction firm
The core part of a solar power system is to convert solar energy specializing in infrastructure construction in the areas of energy water
Photovoltaic Modules into electricity and send it to the battery for storage or to drive the B&V engineering information industry management consulting government
load and environmental projects.It is the combination of fishery farming and photovoltaic power Engineering Procurement Construction the main contractor enters
generation photovoltaic panel arrays are set up above the fish into a contract with the owner and contracts for the design procurement
ponds and fish and shrimp farming can be carried out in the
Fishery and Light Complementary EPC construction and commissioning of the entire project as agreed and is
waters below the photovoltaic panels providing good shading for fully responsible for the quality progress and cost of the project which
fish farming and creating a new power generation model of is handed over to the owner upon acceptance of the project." power generation above the fish pond and fish farming below it".A global quality assurance and risk management organization provides
It is the combination of agricultural planting and photovoltaic power world-renowned testing and consulting services for the renewable
generation planting vegetables inside the shed photovoltaic power DNV·GL energy value chain including certification of all materials components
Agricultural and Light Complementary
generation outside the shed. In addition to the power generated for and systems related to the safe operation and quality of ships offshore
the use of the shed the balance will be integrated into the public grid. installations industrial equipment and other industrial applications.GW、MW Unit of power one gigawatt (GW) equals 1000 megawatts (MW) CPP Cermak Peterka Petersen Inc.one megawatt (MW) equals 1000000 watts (W)
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81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98Message from the Chairman In 2023 although the global economy is gradually rebounding it is foreseeable that we will still be in an era of uncertainty for a long time. We know that in order to realize our vision of "becoming a
leading enterprise in the global targeted market segment" we must focus on our own development
as well as our corporate social responsibility more than ever and infuse green energy into the
sustainable development of our Company and society.ESG is an essential yardstick to measure the sustainable development of enterprises and
the construction of a high-standard ESG system has become a mandatory course for outstanding
enterprises. We hope that through the following efforts Arctech can become an excellent ESG
practice company in China promoting sustainable corporate development to make a great progress
for the society.Growing towards the sun strengthening the green base. The 20th Party Congress drew a new
blueprint for China's energy development and the photovoltaic (PV) industry is ushering in a golden
era. We must be determined to anchor progress integrate global resources innovate and develop
technology and advanced manufacturing power solidify the green color of enterprise development
with technology at a deeper and higher level empower the industrial ecology promote industrial
upgrading and contribute to the progress of human society.Never forget the original intention and promote integration and win-win cooperation. To face the
new situation of world development we should implement the core values of integrity and wisdom
comprehensively lead and drive the value creation cycle with value always oriented to be able to
provide customers with more valuable services implement customer integration strategy
comprehensively and build a strong international brand influence.Adhering to people-oriented to establish a striving mechanism. The most precious resource of
an enterprise is talent and the competition of talent is the fundamental of enterprise competitiveness.We firmly adhere to people-oriented and commit to building the contractual spirit between employees
and enterprises. We insist on value-oriented and create a striving mechanism allowing all members
The past year has been an extraordinary year for Arctech. Despite the complex and of Arctech to grow and realize themselves.ever-changing global macro environment Arctech has firmly committed to our corporate mission
and vision with high-quality innovation as the cornerstone and with a high-level service as
the grip achieving a series of breakthroughs by upgrading our development strategy. Returning to the society and practicing responsibility. As a PV enterprise Arctech is deeply aware
that enterprise society and environment are an inseparable "community of destiny". In order to
develop sustainably enterprises not only need to grow upward but also need to act for good.In 2022 we upgraded our innovation mindset to enhance product competition with high quality Companies must go beyond the traditional concept of profit as the only goal and focus on environmental
innovation throughout the product life cycle. We launched the world's first double-row multi-point and social contributions in the process of development. Arctech always insists on returning to the
parallel synchronous drive and linkage tracking system——Skywings in line with the needs of the society and delivering warmth to society to achieve a dynamic balance of economic social and
times. In 2022 we improved our competitive consciousness and service competitiveness by integrating environmental responsibilities of the enterprise and enhance its good reputation and image.project full-cycle services into the customer value chain and we won a series of large GW-level orders
with cumulative global shipments reaching 50GW. In 2022 we enhanced our intelligent manufacturing In the future we will focus on our main business achieve combined innovation by superimposing
and scale advantages and built a global supply chain to ensure leading corporate performance. Our different technologies enhance customer value and reduce costs and increase efficiency for
joint venture factory in India was officially opened laying a solid foundation for Arctech to further develop photovoltaics. Meanwhile we are going to implement the core values of "Passion Integrity Persistence
the international markets. Cooperation" assume social responsibility and contribute green power to social development.
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81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98Report Overview
Arctech Solar Holding Co. Ltd.
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81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Report Overview
About Arctech Our history
Company profile
2009
Founded in 2009 Arctech was listed on Shanghai Stock Exchange (SSE-STAR: 688408.SH) Arctech was founded.on 28 August 2020 its headquarters is located at Kunshan Jiangsu.Started solar structure business. 2012
With the mission of “Empowering Technology Leading Industry Development” Arctech is a
high-tech enterprise and a world-leading manufacturer and supplier of intelligent solar trackers fixed 2013 Expanded to overseas markets.structures and BIPV solutions insisting on a global perspective adhering to the core values of "Passion Manufacturing base in ChangzhouSet up subsidiary in Shanghai.
2014 Jiangsu put into operation.
Integrity Persistence cooperation" making global layout in the field of photovoltaic structures integrating Launched the first tracker product.global resources and forging global competitiveness with the main business of research and development
Selected as a national high-tech
Entered into the India market.design production and sales of intelligent solar trackers fixed structures and BIPV solutions. enterprise. 2015
Undertook a single large project
The major products and services of Company include PV power generation system trackers fixed
of over 500MW.structure industrial and commercial BIPV system solutions and key components supporting products
2016
etc. there are three major manufacturing bases in Changzhou Jiangsu Fanchang Anhui and Gujarat Established the global R&D center.Ranked No. 4 in the world for tracker
India with an annual manufacturing capacity of over 12GW. Arctech is among the top in the world with Ranked No. 1 in the world for solar structure supplier.supplier reaching 10GW.shipments of trackers the No. 1 in Asia Pacific for consecutive years and the first in China for installations 2017 Ranked No.1 in Asia-Pacific for tracker
Launched BIPV system.of large-scale BIPV commercial and industrial rooftop projects. supplier.Jiangsu Solar Intelligent Tracker and
Support Engineering Technology
Established a R&D center in Spain. Research center was set up.Organizational structure of Arctech Set up Jiangsu Graduate Workstation. Jiangsu Postdoctoral Innovation Practice2018
base was established.Selected as a Jiangsu Province
Service-oriented Manufacturing
demonstration Enterprise. 2019 Created the world's first Multi-point
Marketing Center Sourcing Management Technology of Product Management Center
Center Center parallel drive technology.Signed the Qinghai 1.3GW tracking
R&D Center Quality & Service Center Finance Center Listed on the Science and Technology system project.2020
Innovation Board (stock code: 688408)
Established 16 branch service The Wind Tunnel Laboratory was founded.organizations worldwide. 2021
Manufacturing base in Fanchang Anhui
Signed 1.7GW tracker project in India.Global business layout was put into operation.Jointly built Jiangsu enterprise
Arctech is committed to be a leading enterprise in the global targeted market segment. As of the end academician workstation.of 2022 Arctech has supplied over 50GW of tracking systems to nearly 1500 PV plants in more than The joint venture factory in India was put 2022 Selected as a National Intelligent PV Pilot
into operation. demonstration Enterprise.
40 countries with the rapid development the Company has set up Subsidiaries branches and service The CFD calculation center was established.
Signed a 2.1GW tracking project in Abu
centers in China Japan India the U.S. Spain Australia UAE Mexico chile brazil Vietnam and 2.8GW tracker project in India was signed.dhabi India.Argentina. The cumulative shipment of rack exceeded Undertook the largest BIPV project in
50GW.
China (120MW).
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81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Report Overview
Products & solutions BIPV solutions
Building Integrated Photovoltaic (BIPV) is a power generation system which is usually integrated
The Company has three major product categories: PV trackers fixed structures and BIPV solutions. or combined with the building structure as part of the building. BIPV can achieve the traditional
purposes of sheltering the roof of a building from wind rain heat and water but also play the role
Solar structures
of photovoltaic power generation to realize the green energy-saving and environmental protection
The solar structure/tracker is known as the bone structure of photovoltaic power plant its performance functions of the building continuously generate economic benefits and realize the dual carbon
directly affects the power generation efficiency and investment income of photovoltaic power plant strategy.and it is one of the main equipments of all ground photovoltaic power plants. The tracker is the core
product of the Company. The tracker is significantly higher than the fixed structure in terms of technical
threshold and power generation efficiency which can achieve the effect of tracking the sun's altitude BIPV solutions
angle and azimuth angle by motor control to obtain more solar radiation and thus increase the power
generation.Trackers/Tracking systems
Independent row 1P tracker Independent row 2P tracker Independent row 1P tracker Two-rows linkage tracking
single-point drive multi-point parallel drive multi-point parallel drive multi-point parallel drive
Smart Rooftop BIPV Ruiding BIPV
Fixed structures
Horizontal Dual-Pole Fixed Vertically Dual-Pole Fixed Horizontal Single-Pole Vertically Single-Pole Fixed
Structure Structure Fixed Structure Structure
Wireless Synchronous Electric stepless adjustable Actuator+Circular Square Movable Arm Mechanism Dual Rooftop BIPV Solar Carport BIPV
Seasonal-tilt Structure seasonal-tilt Structure Tube Seasonal-tilt Structure Seasonal-tilt Structure
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81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Report Overview
Our culture
Fair and Honest Faith in the original aspiration Fighting for the Future
Mission Vision Core Values
Empowered by technology To be a leading enterprise in Passion Integrity Persistence
Arctech Solar strives to lead the global targeted market cooperation
the industry development. segment.Honors and awards
Serial Award Honor
Awarded by
number time name
2022 Leading China Renewable Energy "PV Top 100" Renewable Energy Industry
1 Feb 2023
Excellent PV material/equipment enterprises Association of Jiangsu
2022 China Good Photovoltaic "Top 10 brands of PV International Energy Network
2 Feb 2023
Rack of the Year" International Energy Research Institute
International Energy Network
3 Feb 2023 2022 China Good PV "Top 10 BIPV brands of the Year"
International Energy Research Institute
4 Dec 2022 2022 Most Influential PV Rack Enterprise Light Energy Cup Selection Committee
5 Dec 2022 PVBL2022 Global PV Technology Innovation Award PVBL PV Brand Lab
6 Dec 2022 PVBL2022 Global PV Brand Top 100 PVBL PV Brand Lab
7 Nov 2022 OFweek 2022 Annual Excellence PV Rack Enterprise OFweek Network
OFweek 2022 Outstanding BIPV Solution Company of
8 Nov 2022 OFweek Network
the Year
2022 Star PV building Integrated Photovoltaic (BIPV) The 3rd China Industrial and Commercial
9 Nov 2022
Technology Leadership PV Conference Organizing Committee
The 11th "Polaris Cup" 2022 Annual Influential PV
10 Sep 2022 Polaris Solar PV Network
Racking Brand
The 11th Polaris cup 2022 Annual Influential BIPV
11 Sep 2022 Polaris Solar PV Network
Solution Company
12 Jul 2022 2021 China Good PV "Excellent PV Racking Supplier" International Energy Network
13 Jul 2022 2021 Top 500 New Economy Enterprises in China China Enterprise Evaluation Association
14 May 2022 "2021 China Renewable Energy Society Science and
Technology Award The Chinese Renewable Energy Institute
Vice Chairman of China Photovoltaic Industry Association China Photovoltaic Industry Association
15 Jan 2022
Photovoltaic Building Professional Committee Photovoltaic building Professional
Committee
16 Jan 2022 2021 Hurun China Top 500 Hurun Research Institute
17 China Machinery Industry EnterpriseDec 2021 2021 China Machinery Top 500
Management Association Honors overview
18 Dec 2020 The 10th Global Top 500 New Energy Enterprises China Energy News
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81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Report Overview
2022 Major events
Key Performance
March: Arctech's 2022 whitepaper was released
Economic Performance Arctech's 2022 whitepaper was released to explore the new path
of "Increase PV Energy Yield with Superior Stow Parameters
Net profit attributable to
shareholders of the listed Enabled by Rigid Trackers".Operating income Company Total assets R&D investment
3720.59 million 44.43 million 5592.36million 127.39 million April: Built the largest fishery and lightcomplementary power plant in Shanghai
R&D revenue ratio Total granted patents Annual granted patents Arctech teamed up with CGNPC to build Shanghai's largest
fishery and light complementary power plant helping Chongming
3.44 % 413 Cases 121C ases to build a world-class ecological island. This new project is
another practice of green economy development and another
benchmark case of "PV+" application of Arctech.Environmental Performance
May: SkyLine II made its debuts at Intersolar Germany
The debut of SkyLine II at Intersolar Germany gained great
Installed photovoltaic capacity Environmental investment Greenhouse gas emissions attention from many developers EPcs investors and other
partners in Europe and around the world. As the world's largest
23.65 MW 2.87million 15950988.78 tCO2e and most influential solar energy professional exhibition so far
Intersolar Europe gathered a lot of international well-known
Carbon emissions reduction
Major Environmental Violations companies in the filed providing a great platform for Arctech to
with green electricity
communicate with European and global customers and more
13014.69 0 overseas customers have a more in-depth understanding of tCO2e Case
Arctech through this exhibition.June: Participated in the construction of China's
first tidal and light complementary power plant
Social Performance China's first tidal and light complementary power plant the
100MW tidal and light complementary intelligent PV power
Proportion of Employee medical
Total employees R&D personnel plant in Wenling Zhejiang was successfully connected to the
R&D personnel examination coverage rate
grid which means that China's new energy development and
1290Persons 161Persons 12.48% 100% utilization has reached a new level. Arctech's participation in
Incidence rate of the construction of this power plant has further enriched the
Employee training Overall employee Employee training Employee
employee occupational Company's PV tracking system solution and accumulated
investment turnover rate coverage rate satisfaction
disease sufficient experience for maximizing the exploitation of marine
0% 1.20million 4.2% 91% 90% resources in the future.
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Report Overview
120MW BIPV project connected to the grid in the first phase Solar structures supplied to Latin America reached 3GW
June November
The first phase of a 120MW rooftop distributed PV project in
Arctech has obtained two major orders in brazil for a total
Gaoan Jiangxi was successfully connected to the grid. The
of 468 MW and with its excellent performance and optimal
project not only meets the design requirements of conventional
solutions Arctech is one of the leading solar structure
buildings in terms of leakage resistance settlement resistance
suppliers in the Latin America reaching 3GW by the end of
and expansion resistance but also has various advantages
2022.
such as saving roof tiles easy module adaptation strong
anti-vibration excellent pressure resistance good lighting and
ventilation and high installed capacity.Escorted the world's largest water and light complementary PV plant
Launched SkyWings tracking system
December
August
Arctech fully escorted the world's largest water and light
Arctech’s SkyWings tracking system is the world premiere complementary project. The Yalong River hydropower plant
which adopts Arctech's exclusive patented bi-directional drive is the world's largest and highest altitude water and light
design and Arctech's exclusively developed triple?D?torque? complementary power plant Arctech provided a 430MW
tube. It also adopts Arctech's first multi-point parallel drive racking solution for the Yalong River project including 246MW
technology to explore the optimal solution for the era of large SkySmart II tracking system which can ensure the stability
bases with higher safety higher adaptability and higher of system operation under extreme weather (especially
profitability. strong wind) conditions and the wind resistance of a single
system is effectively increased by 200% completely solving
India joint venture plant officially starts production the problem of instability of traditional 2P system in extreme
August weather conditions.Jash Energy Arctech’s first joint venture manufacturing
base in Mundra Gujarat India covering 16 acres of land
with an annual capacity of 3GW is the first base in India 2.8GW tracker project in India was signed
dedicated to the production of solar trackers. The commissioning
December
of the joint venture plant marks a new step in Arctech's global
strategy and lays a solid foundation for Arctech to further Arctech has signed a 2.8GW supply agreement for SkyLine
develop the international market. II tracking system with the largest project developer in
Gujarat India. With this superb order Arctech will ship a total
R&D Center Lab was qualified by national accreditation of 7GW of solar structures to the Indian market while marking
October the Company's unquestionable leading position in the region.Arctech's R&D Center Lab was awarded the laboratory
accreditation certificate by China National Accreditation
Service for Conformity Assessment (CNAS) which means
that Lab has national and international level testing capability.
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Report Overview
Materiality issue analysis
ESG Management
The Company carried out a materiality issue analysis to deeply understand the core expectations
and demands of internal and external stakeholders on the Company's sustainable development
ESG concept scientifically conducted stakeholder questionnaire surveys and statistically analyzed and assessed
Arctech positively implements the concept of sustainable development continuously pursues sustainable sustainable development issues of significant importance to the Company.development and contributes to the construction of China's economy. The Company ensures compliance
with the law actively fulfills our social responsibility with an altruistic heart and insists on treating partners
Materiality issue identification process
with an open and cooperative attitude to establish an industrial ecology of common progress and win-win
situation. Our development will never be at the cost of environmental damage and we will be a "resource-saving Analyzing policies and industry trends as well as Company development strategies
and environment-friendly" enterprise. Issue screening on the basis of various international standards
Communication with stakeholders Identifying stakeholders according to the Company's operation and business Identifying stakeholders
characteristics
The Company attaches importance to communication with stakeholders such as government customers
employees public environment partners and investors. We have built an effective communication Conducting questionnaires by means of online questionnaires and departmental
mechanism to actively understand the concerns of our stakeholders obtain their expectations Conducting questionnaire interviews inviting stakeholders to evaluate the level of importance of materiality
issues
and requirements and provide corresponding feedback so as to jointly build a win-win industrial ecology.Understanding materiality issue to the Company and stakeholders through the
Materiality judgement
Stakeholders Concerns Communication Format Responses results of the research and forming a matrix of materiality issues
Based on the high materiality importance issues identified the key points to be
Law-abiding and compliance Compliant operation Define reporting boundaries
Supervision and inspection reported in this report are identified
Paying taxes legally Proactive taxation
Government Information submissionSupporting development Promoting economic development
E S G
Product quality Customer service system General materiality issues
Providing quality services and products
Service quality New product launch 9.Product Liability
Customer satisfaction survey
Customers 5Business ethics Customer visits 11. Supplier Management 4 8 16
12.Social Welfare 6
1514
Compensation and benefits Staff congress Improving the compensation mechanism 2
Basic rights Satisfaction survey Protection of employee rights and interests Relative materiality issues 7 18
17
Employees Occupational health Employee care activities Occupational health management 1.Waste & Hazardous Materials Management
Career development Learning and training Graded training and promotion 3. Environmental and Climate Impact
15.Anti-corruption and Integrity Promotion 3
10
Social participation Public welfare activities Poverty alleviation and disaster relief 19.ESG Management
13
Community development
Public Talent development Employment promotion Highly materiality issues 1
2.Resource and Energy Management
Compliance with environmental
Pollution prevention Sustainable development 4.Green Operation 19regulations
Environment Green and low-carbon Energy saving and emission Reduce energy consumption
5. Employee Development
development reduction 6.Employee Rights & Benefits Protection
7.Employment of Employees 12
Integrity building 8.Occupational Health and Safety 9
Business ethics Business negotiation
Leading the healthy development of the 10. Product & Innovation 11
Partners Growing together Industry seminars industry 13.Protection of Shareholders' Rights and Interests
14.Governance of Three Meetings
Corporate governance Shareholders' meeting Improving corporate governance 16.Investor Relations Management
Information communication Information disclosure Regulation of information disclosure
17. Information Disclosure
18. Tax Payment Importance to the CompanyInvestors Return on equity Investor hotline Improving profitability
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Importance to Stakeholders03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Party Building
The Party organization of Arctech has always been fully implementing the Party's path line policy and guidelines
earnestly studying the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era embracing the Party building
vision of "insisting on Party building to lead and empower enterprise development" continuously promoting the development of the
Party organization improving the level of Party building work forming a Party building culture of "Passion Integrity Persistence
cooperation" and making continuous efforts to the Party building goal of "helping the enterprise to become a global
leader in segmented areas".Party building vision Insisting on party building to lead and empower enterprise development
Party building goal To be a leading enterprise in the global targeted market segment
Party building culture Passion Integrity Persistence Cooperation
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Party Building
Party Building System Party building system construction
In 2022 the Party branch of the Company focused on establishing the standard system of branch
Party building organization construction work implementing the "Five Basic Requirements"of Party building focusing on the "Three Meetings
The Company's Party organization set up the Arctech Party Branch Committee to organize division and One Lesson" theme Party day organizational life meeting democratic evaluation of Party
of labor and cooperation promote organizational construction play the leading role of the Party members heart-to-heart talks etc. and vigorously promoting the standardization of the branch
Branch Committee and focus on building a strong organizational fighting fortress. construction.Party Branch Committee
History of Party organization development
Party Branch Chief Secretary
Organizing Discipline Inspection Publicity Group Work 2014 2020
Committee Committee Committee Committee
In 2020 the Company's the project of
Party organization structure "Party building to help the high-quality
In 2014 the Company's Party development of enterprise" was selected
branch was established. as an excellent project of "Non-public
economic organizations and social
organizations" Party building in Lujia
Team of Party building 10Person 25Person Town Kunshan City.The Company's Party Branch currently has 10 Partymembers
and 25 mobile members.
20222021
Case Setting up the Party Building Alliance In 2022 the Company's Party building
service center was established. Party
In June 2022 the Company set up a Party Building Alliance with Kunshan Industrial Technology
Building Alliance was established In 2021 the Company established
Research Institute Kunshan Municipal Bureau of Market Supervision Cheng Shin Tire and Lujia including Kunshan Industrial Technology
a "Party Branch Committee".comprehensive Law Enforcement Bureau adhering to the leadership of Party building integrating Research Institute Kunshan Market
and progressing the Party building work with all daily business work helping to create a good Supervision Bureau Cheng Shin Tire
Lujia Comprehensive Law Enforcement
market environment and promoting healthy development of enterprise.Bureau etc.党建联盟签约仪式
Party building alliance signing ceremony
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Party Building
Party building learning and education activities
Party Building Practice In 2022 the Company's Party branch continued to recommend the standardization of branch construction
putting forth effort on the implementation of the basic system such as the theme Party day adhering to the study
Party building sites construction of Party building theory holding the regular branch Party meetings and theme Party day activities organize Party
members to strengthen theoretical learning enhance the combination of centralized learning and individual
In 2022 the Party branch of the Company carried out the construction of Party building sites and many self-study of Party members and cadres combine political learning with business and management summarize
Party building learning and education activities insisted on leading the development of the enterprise the experience and promote continuous innovation of ideas and working concepts.with Party building and promoted the deep integration of Party building and business.Case 1 Regularly held branch Party meetings
Case The construction of the exhibition hall of the Company's Party Group Service Center On 9 Jan 2022 the Party branch of the Company held a Party members conference to organize the learning of
General Secretary Xi's Speech at the Summary Meeting of Party History Learning and Education. The conference
In March 2022 the hardware decoration construction was completed in the exhibition hall of the implemented the spirit of the Second Plenary Session of the 13th Suzhou Municipal Party Committeeand the
Party service center of the Company. There is a book reading bar in the exhibition hall and the Second Plenary Session of the 14th Kunshan Municipal Party Committee and the Economic Work Conference
books are from the cooperation between book subscription and book rental cooperation with Lujia of the Municipal Party Committee.Library. The exhibition hall was officially opened for trial operation on July 1. On 20 Feb 2022 the Party branch of the Company held a Party meeting to organize the study of General Secretary
Xi 's speech of Keeping making our digital economy stronger better and bigger.Party Branch Conference Study
Case 2 Regularly held theme Party day activities
On 23 Mar 2022 the Party branch of the Company held a theme
Party day activity to organize the study of General Secretary Xi
Party Service Center Exhibition Hall Jinping's speech of "Striving to become a pillar of great use and
be able to bear heavy responsibility".On 25 May 2022 the Party branch of the Company held a theme
Party day activity and organized to study the spirit of General
Secretary Xi 's "Important Speech during the Inspection at Renmin
University of China".On 16 Jun 2022 the Party branch of the Company held a theme
Party day activity to organize the study the speeches of General
Secretary Xi 's "Promoting the high-quality development and
sustainable development of China's social security" and
"Accelerating the construction of a strong science and technology
country to achieve a high level of scientific and technological
self-reliance and self-improvement" in addition the participants
visited the exhibition hall of the Party group service center and
Party Branch Activity Site
Wang Zongxing secretary of the Party branch explained the
Book Reading Bar content and equipment of the exhibition hall.
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Governance & SDOGs peration
Our philosophy Our actions SDGs
Arctech operates in compliance with the law and in good faith with Corporate Governance
the core values of "Passion Integrity Persistence cooperation" to Investor Relations
protect shareholders' rights maximize corporate value and create Risk Management
benefits for economics and society. Compliance Management
Anti-corruption
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Governance & Operation
Corporate Governance Board of Directors & Specialized Committees
Arctech strictly complies with the laws regulations and regulatory requirements such as the Company Law of the The Board of Directors is the decision-making body of the Company and is accountable to the Shareholders'
People's Republic of China (Company Law) the Securities Law of the People's Republic of China (Securities Law) the Code of Meeting. The Board members attend the meeting of the Board of Directors carefully consider the proposals
Corporate Governance for Listed Companies in China and Shanghai Stock Exchange Rules for Listing Shares on the Science and and carry out its work diligently and conscientiously in strict accordance with the requirements of the Company
Law the Articles of Association the Rules of Procedure of the Board of Directors and the Working System for
Technology Board ( Rules Governing the Listing of Shares) standardizes and optimizes the corporate governance system
Independent directors. The independent directors perform their duties independently actively safeguard the
continuously improves the corporate governance structure consisting of the Shareholders' Meetingsthe Board of
overall interests of the Company and its shareholders and express independent opinions on relevant matters.Directors the Board of Supervisory and the management and enhances the management of information
disclosure and investor relations. The Company's Shareholders' Meetings Board of Directors Board of
Supervisory and management are clear about their duties and responsibilities and coordinate with Number of Board of Directors Number of independent directors Number of female director
effective balance to ensure the standardized operation of the Company and the scientific standard- 7 3 1
ized and transparent corporate governance.Number of board meetings Percentage of board attendance Number of considered proposals
Corporate Governance Structure 14 100% 75
Shareholders' Meetings The Board of Directors is the decision-making body of the Company and is accountable to the Shareholders' Corporate Strategy Committee
Meeting. The Board members attend the meeting of the Board of Directors carefully consider the proposals
Board of Supervisory and carry out its work diligently and conscientiously in strict accordance with the requirements of the Company
Remuneration and Appraisal Committee
Law the Articles of Association the Rules of Procedure of the Board of Directors and the Working System for
Board of Directors Independent directors. The independent directors perform their duties independently actively safeguard the
Nomination Committee overall interests of the Company and its shareholders and express independent opinions on relevant matters.Management Audit Committee
Number of Strategy Number of Compensation and Number of Nomination Number of Audit
Committee meetings Appraisal Committee meetings Committee meetings Committee meetings
3326
Shareholders' Meetings
The Shareholders' Meetings is the highest authority of the Company. During the reporting period the Company
held Shareholders' Meetings in accordance with the relevant provisions of the Company Law the Articles of Board of Supervisory
Association and the Rules of Procedure for Shareholders' Meetings of Shareholders and facilitated shareholders' The Board of Supervisory is the supervisory body of the Company. In accordance with the Company Law the
participation in Shareholders' Meetings as far as possible.We protect the equal rights of all shareholders Articles of Association and the Rules of Procedure of the Board of Supervisory the Board of Supervisory
(especially minority shareholders) and allow all shareholders to exercise their right of access to information and conscientiously performs its duties and effectively supervises the Company's material matters related party
participation in corporate matters in accordance with the law. transactions and the lawfulness and compliance of the directors and senior management in the performance of
their duties and actively safeguards the relevant interests of the Company and its shareholders.Number of Shareholders' Meetings Total deliberated proposals
Number of Board of Number of employee Number of female Number of supervisory Number of deliberated Supervisory memberf supervisor supervisor meetings proposals
8433111243
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Governance & Operation
Investor Relations Shareholders' return
The Company strictly implements the profit distribution policy as stipulated in the Articles of Association.Information disclosure Meanwhile the Board of Directors has formulated the "Dividend Return Plan for Shareholders for the Next
Three Years (2022-2024)" based on the actual situation. This plan has taken into account the long-term
The Company strictly complies with laws regulations and regulatory requirements such as the Securities
interests and sustainable development of the Company kept the principle of continuity and stability of profit
Law and the Stock Listing Rules truthfully accurately and completely fulfills information disclosure obligations
distribution policy and fully considered the reasonable investment return for investors. Independent directors
without any false records misleading statements or significant omissions ensuring that all investors have
can solicit the opinions of minority shareholders to put forward dividend proposals. Before considering the profit
fair access to the Company's information. Meanwhile the Company has formulated the Information Disclosure
distribution proposal at the Shareholders' Meetings the Company will take the initiative to communicate and
Management System Insiders Registration Management System and other systems to regulate the work of
exchange views with shareholders especially minority shareholders through various channels to listen to their
disclosure and confidentiality before disclosure of the Company information.views and demands and effectively protect legitimate rights and interests of minority shareholders. Since being
listed the Company has continuously implemented cash dividends every year distributing a total of RMB 76.00
Number of disclosed periodic reports Number of interim reports million in cash dividends with a cumulative dividend distribution rate of 22.03%.
464
Company's cash dividends for the last 3 years
Investor communication
202220212020
The Company has formulated and strictly followed the Investor Relations Management System and carried
out investor communication and has maintained communication with investors through holding performance
briefings receiving specific targets for research and on-site visits answering investor hotlines setting up Cash dividend per share 0.10 0.03 0.43
investor columns on the Company's official website and the "SSE e-interaction" platform to enhance inves- (RMB)
tors' understanding and recognition of the Company.Number of financial Received about calls Number of interactions on Response rate on on the
performance presentations from investors "SSE e-Interaction" platform "SSE e-Interaction" platform
Total cash dividend payout 1357.15 407.15 5835.77
2 56 18 100% (RMB million)
Percentage of net profit
attributable to shareholders
30.55%27.08%20.44%
of the listed Company in the
consolidated statements (%)
Live Meeting Receiving Institutional Investors
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Governance & Operation
Risk Management Crisis management
The Company has established the early warning system crisis prevention plan and rapid response mechanism.Risk management system
In the event of major emergencies caused by various reasons that affect the Company's image or encounter
Focusing on the two themes of "Risk and Efficiency" the Company has built a risk management system with risk losses due to unavoidable risk we will be the first to take effective measures to stop losses and reduce the
control and improvement of organizational efficiency as the core comprehensively monitoring the Company's scope of risk impact.business activities to avoid business risks including but not limited to environmental risks occupational health
and safety risks product quality risks and implementing risk prevention. The Company has formulated the
Procedures of Risk and Opportunity Response Measures Management which clarifies the responsibilities of Audit and inspection
each department risk identification assessment and response processes to reduce the probability of risk
During the reporting period the members of the Audit Committee of the Company had professional knowledge
occurrence and minimize losses.and business experience capable of performing the work duties of the committee and they are dedicated and
Responsibilities of risk management department
diligent in their duties. The Audit Committee has an audit department which conducts internal audit and supervises
the design and implementation of internal control of the Company under the guidance of the Audit Committee.Management Functional vice
Departments
center president
Responsible for the provision of The audit department monitors the authenticity legality and efficiency of business activities checks the work
resources for risk management effectiveness of each departments and business units reviews verifies and evaluates the scientificity and
Responsible for assessing Follow up on the implementation
and the determinat ion of
risks and opportunities of the measures taken in the effectiveness of various systems. We execute special audits for key risk control businesses and departments
guidelines for risk acceptance
and developing and risk and opportunity assessment and conduct in-service and out-service audits of senior management and personnel in important positions.and maintaining reviews of risk
implementing measures and the effectiveness of the
and opportunity management
to avoid or mitigate risks. measures.according to the established
review cycle.Identifying and
assessing risks
Developing a risk
Taking risk response management plan
measures
Establishing a risk
Monitoring and
management team
improving risk
management Risk Management Process
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Governance & Operation
Compliance Management Anti-corruption
Arctech continuously strengthens compliance management constantly improves and implements rules and The Company strictly abides by the Anti-Unfair Competition Law of the People's Republic of China Temporary Provisions
regulations clarifies compliance responsibilities and compliance management processes and carries out on Prohibition of Commercial Bribery and other laws and regulations attaches importance to the construction of
compliance publicity and training on a regular basis to form a compliance culture that abides by the law and anti-corruption system puts integrity management throughout the Company's business process and is
emphasizes the system and to promote sound corporate development. committed to creating a working atmosphere of "compliance integrity and honesty".The Company's legal department is responsible for acquiring and managing compliance matters related to Anti-corruption prevention mechanism
quality environment and occupational health and safety management of the Company and identifying and The Company builds a corruption prevention system and has formulated rules and regulations such as
confirming their applicability together with relevant departments registering and issuing the applicable compliance Measures for the Management of Employee Complaints and Appeals and employee manuals to clearly
obligations in a unified manner and each department of the Company is responsible for the implementation of regulate the process of employee complaints and appeals and the rules of supervision rewards and
relevant laws regulations standards and other requirements as well as self-evaluation of their compliance punishments. At the same time the Company regularly conducts anti-corruption training to cultivate
and the legal department is responsible for setting up an evaluation team to evaluate the overall compliance employees' awareness on anti-corruption and promote the healthy development of the Company.with applicable laws regulations and other requirements of the Company as a whole so that non-compliance
can be detected and thus effectively controlled. Supervision and prosecution mechanism
The Company has established a supervision and prosecution mechanism by setting up a whistle-blowing lines
Arctech strictly abides by all national tax laws and regulations including the Corporate Income Tax Law of the
e-mail and suggestion box as the channel to report and expose actual or suspected fraud cases. The Human
People's Republic of China and follows the principle of "operating in accordance with the law and paying taxes in
Resources Department of the Company is responsible for receiving and investigating complaints and appeals
good faith" to pay taxes in full and on time. At the same time Arctech constantly improves the Company's tax
raised by employees coordinating with relevant departments for discussion and improvement and providing
management level and does a good job in all taxation work to avoid tax risks. During the reporting period the
feedback on the processing results. If the complainant disagrees with the processing result the feedback can
Company and its subsidiaries were not involved in any tax-related penalties. In 2022 the Company paid tax
be sent to the highest level - President's Office to ensure that the complaints and appeals are handled
amounted to RMB77.49 million.effectively. After the conclusion of the complaint and grievance is obtained the human resource department
follows up and monitors the implementation of the conclusion.In 2022 the Company paid tax amounted
77.49 million Punishment and rewards
The Company takes a "No Tolerance" attitude to
strictly investigate and deal with corruption and
fraud. Employees who commit fraud accept bribes
or commissions conceal and shelter or do not report
fraud when they know the relevant personnel have
evidence of fraud or neglect to supervise and cause
the relevant personnel to commit fraud will be
punished and those who are serious wi l l be
dismissed. Anti-corruption and prevention training
session for private enterprise
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Environmental Protection
Our philosophy Our actions SDGs
Protecting the environment is our responsibility our development Environmental Management System
will never be at the cost of environmental damage firmly striving to Energy & Resource Management
be "resource-saving and environment-friendly" enterprises and Prevention & Control of Pollution
building a bright green future with photovoltaic development. Green Operation
Green Goals
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Environmental Protection
Environmental Management System
Amount of environmental protection input
Environmental policies
2.87 million
Arctech strictly adheres to the relevant national environmental laws and regulations establishes implements
and improves the environmental management system in accordance with the ISO14001:2015 standards and The Company's total greenhouse gas
has obtained the ISO14001 environmental management system certification. emissions were approximately
We follow the environmental management guidelines of "Energy saving pollution prevention and leading green 15950988.78 tCO2e
photovoltaic" develop and implement the Management Manual and a series of environmental systems. By
setting environmental objectives identifying significant environmental factors and regulating the operation The Company's use of green power
reduced carbon emissions
monitoring and control of activities related to the Company's significant environmental factors in order to
achieve a closed-loop control environmental management system and the construction of a green and 13014.69 tCO2e
beautiful homeland. During the reporting period the Company had no serious environmental accidents and
was not subject to any significant complaints or penalties related to the environment. compared to last year an increase of
9.59%
Key control areas Environment-relatedsystem procedures Main content Certificate of Environmental Management
System Certification
Each department conducts the identification
Identification of significant Management Procedures of and evaluation of significant environmental
environmental factors Environmental Factors factors and forms the Environmental Factor
Summary Evaluation Form etc. Environmental emergency management
The Company has formulated the Emergency Preparation and Response Management Procedures Emergency
Each department carries out environmental
Response Plan Guideline for Emergencies Accident Management Regulations and other systems according to
management activities based on the
Operation and control of Management Procedures of environmental objectives and management the actual production to clarify the responsibilities of environmental accident emergency related parties and
activities related to important Environmental Operation plans environmental management requirements emergency work matters such as prevention and warning emergency response emergency measures as well
environmental factors Planning and Control and environmental management procedures as emergency training and drills to continuously improve the environmental emergency management system
issued by the Company and keeps
corresponding records. and regularly carry out emergency drills for environmental emergencies so as to effectively prevent
reduce and resolve the hazards of sudden environmental accidents and protect the green homeland.Each department records the implementation of
its environmental objectives targets and
management programs and conducts
self-inspection and self-correction on a
Management of Management Procedures of
quarterly basis. Meanwhile the Administration
environmental monitoring Environmental Monitoring and Department inspects the implementation of
and measurement Measurement environmental management in each department
as well as the compliance with applicable laws
and regulations etc. and supervises the relevant
departments to make corrections.
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Environmental Protection
Energy & Resource Management Prevention & Control of Pollution
Arctech adheres to the resource usage policy of "source saving and pollution control compliance with the law Arctech strives to regulate the emission and management procedures of waste. The main pollutants involved in
continuous improvement and green development" and has formulated the Guideline on Energy Resource the production and operation of the Company are waste water waste gas noise and solid waste. The waste
Management to standardize the procedures of internal energy and resource saving management and conduct water is mostly domestic sewage; the waste gas is mainly welding fume and canteen oil smoke; the noise is
daily supervision and inspection to continuously improve the efficiency of resource usage and contribute to the
generated from the operation of molding machines punching machines sawing machines and air compressors;
sustainable development of the enterprise.the solid waste is largely domestic garbage metal trimmings from machining and galvanizing processes waste
Energy management hydraulic oil waste emulsion and waste gloves. The Company strictly controls and handles the pollution
The Company abides the relevant provisions of the Law of the People's Republic of China on Energy Conservation. In generated from production and operation implements routine monitoring of pollutants and commissions
our daily operation the Company exerts our best efforts to control electricity consumption and improve
CMA-qualified third-party institutions to monitor and continuously improves the management of waste water
energy efficiency. The Company's main production processes include stamping sawing welding molding
automated packaging and inspection which mainly consume energy of electricity water and natural gas. waste gas and solid waste discharges to ensure the sustainability of production and operation.Electricity and water required for the Company's production are supplied by the relevant departments of the
Sources and types of pollutants
Company's business location.Total energy consumption
Indicator Unit 2022 2021
diesel Ton 166.05 140.26 quality management raw and auxiliary vehicle noise
material procurement
exhaust emission
Natural gas 10000 cubic meters 738100.36 627385.30 equipment
management oil unloading/storage/ waste mat board
Electricity used by purchased plants kWh 6194522.00 7019507.00 transportation
other management domestic waste
Annual photovoltaic power usage kWh 15642660.58 14273864.33 activities other purchasing
(office business etc.) activities waste thermometer
Clean energy production
The type of
Indicator Unit 2022 pollutants
The type of pollutants
Photovoltaic power generation kWh 22640100.00
machining galvanization noise
noise
Note: "Annual photovoltaic power generation" is the statistical data of the power generation of three self-built power stations in 2022 including
Kunshan headquarters distributed photovoltaic power station Changzhou photovoltaic power station and Fanchang photovoltaic power station. domestic sewage metal trimmings
waste paper solar structure waste hydraulic oil
Water conservation waste lamps production
fume
We strictly comply with the Law of Water of the People's Republic of China waste electronic parts and other laws and regulations advo-
defective waste
cate the concept of water conservation establish the consciousness of conservation among all employees and waste emulsionother production
waste meters
continuously improve the efficiency of water recycling. We have built water-saving facilities in our activities waste gloves
headquarters plant and office building adopted water-saving appliances and designed rainwater utilization facilities.
2022Water Usage
Office water consumption Total water consumption
11469.70 Tons 215094.30 Tons
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Purchasing Process Production Process
Sources and types of pollutants
Management Process03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
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Discharges Concentration Attainment of Implementation
Types of Discharges
of Company Standards Standards
Management Process Purchasing Process Production Process
PH value 7.2~7.4 Attainment
quality management raw and auxiliary material procurement solar structure production Suspended matter 12~23 Attainment
equipment management oil unloading/storage/transportation (machining galvanization etc.) Integrated Wastewater
other management activities other purchasing activities other production activities
(office business etc.) Chemical oxygen demand 21~61 Attainment Discharge Standard（GB8978-1996）
noise domestic sewage waste vehicle noise exhaust emission noise metal trimmings waste Animal and vegetable oils 0.06~0.23 Attainment
paper waste lamps waste waste mat board domestic waste hydraulic oil fume waste
electronic parts defective waste waste thermometer etc. emulsion waste gloves etc. Ammonia Nitrogen 2.96~5.30 Attainment
waste meters etc.Total phosphorus 0.26~0.64 Attainment
Sources of pollutants produced The type of pollutants
Unit: mg/L (pH dimensionless) Note: Data from the Company's environmental testing report ( 26 July 2022)
Wastewater management
The Company strictly follows the relevant provisions of the Law of Water Pollution Prevention and Control of the People's
Republic of China applies for sewage discharge permits and pays sewage charges in accordance with the Waste gas management
requirements of national and local governments and strictly implements sewage declaration and registration.The Company strictly abides by the Law of Prevention and Control of Air Pollution of the People's Republic
of China and regulates the management of waste gas emissions. We introduce cloth bag dust removal
The Company implements the mode of "rainwater and sewage diversion" rainwater is discharged into the
facilities and mobile welding fume purifier to treat the waste gas dust and welding fume mainly generated
regional rainwater pipe network; restaurant wastewater is discharged into the municipal sewage pipe network
in the production process which are discharged after purification. For canteen fumes they are treated
after treatment by grease trap and domestic sewage is discharged into the municipal sewage pipe network
by degassing fume hood and discharged through special flue to meet the standards. In 2022 we
after treatment by sedimentation tank to meet the standards and is discharged into the sewage treatment plant
commissioned a third-party qualified organization to test the Company's waste gas and the disorganized
through the sewage pipe network. In 2022 we commissioned a third-party qualified organization to test the
waste gas emissions were tested to meet the relevant standards.four domestic wastewater outfalls and the domestic wastewater of each outfall was passed the testing.Implementation
Types of Emissions Emission Concentration Unit Attainment of
of Company Standards Standards
Non-methane total
mg/m3
hydrocarbons 1.02~2.86 Attainment
Total suspended Air pollutant comprehensive
0.151~0.208 mg/m3 Attainment
particulate matter emission standards
GB 16297-1996
Volatile organic 1.90~8.90 μg/m3 Attainment
compounds
Note: Data from the Company's environmental testing report ( 26 July 2022)
Sewage Discharge Permit
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Environmental Protection
Solid waste management Noise control
The Company strictly complies with the provisions of the Law of Prevention and Control of Solid Waste Pollution Arctech strictly follows the provisions of the Law of Prevention and Control of Noise Pollut ion of the People's
of the People's Republic of China and has formulated the Solid Waste Management System which follows the Republic of China and formulates the Guideline on Noise Management to reduce noise pollution and protect
principles of reduction resourcefulness and harmless disposal to standardize the process of handling general the interests of the public by identifying controlling monitoring and analyzing and rectifying noise. During the
solid waste and hazardous solid waste in the production process of the Company and reduce the impact of reporting period the daytime noise of the Company's factory boundary was tested by a qualified third-party to
generation of solid waste and its pollution to the environment. meet the standards and comply with the Noise Discharge Standards for Industrial Enterprises and Factory
Boundary (GB 12348-2008).We dispose of waste by different categories such as recyclable industrial waste non-recyclable industrial
waste and hazardous waste and set up hazardous waste signs in obvious locations establish waste dumps
separately. We stipulate that the disposal of solid waste should be recorded in the solid waste disposal sheet Noise Management
and the storage and disposal of solid waste should be checked quarterly by the Safety and Environment
Noise Identification Noise Control Noise Monitoring Analysis and Rectification
Department to maximize the recycling of recyclable resources.Use low-noise A written report on the
monitoring of noise
In 2022 the Company disposed of domestic waste with the solid waste disposal rate Based on the equipment; use Regular monitoring
identification procedure vibration damping and discharges is of noise and
36Tons 100% of environmental factor vibration isolation submitted to the reduction of noise
to determine the noise measures when management which discharges based
discharge sources in installing the noisy analyzes and reviews on monitoring
each production and equipment and regular the real situation and
Scope of Discharges resultsTypes of Discharges Disposal operation chain maintenance and develops the
upgrading improvement plan.Metal trimmings waste cartons
Recyclable waste will be sorted
Recyclable general waste wooden boxes glass bottles
by each unit and resold to the
solid waste and cans waste plastics waste
material recovery department
paper
Transported by the sanitation
Non-recyclable general
Construction waste household waste department to the landfill for
solid waste
disposal
Waste emulsion waste hydraulic oil
waste ink cartridges waste sun
drums waste batteries waste pen Collected in categories and
refills waste ink cartridges waste delivered to qualified
pens waste copy paper waste organizations for disposal
paper with ink waste correction
Hazardous solid waste fluid waste fluorescent tubes etc.Waste discs waste disks and other Specially gathered and handled
waste electronic products by our Company
Handed over to the pharmacy
Drug waste from first aid kits
for processing
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Environmental Protection
The Company has always adhered to the concept of "technology-enabled green building" using its own BIPV
Green Operation photovoltaic technology advantages responding to the national carbon emission reduction development trend
in-depth understanding of the customer's needs for low-carbon development and the sustainable development
Green products of the use of clean energy to create a circular economy industrial base for customers to help more enterprises to
achieve zero carbon transformation effective implementation of energy saving and emission reduction action.As a promoter and leader of clean energy solutions and a faithful practitioner and promoter of carbon emission
reduction actions Arctech is positively launches internal energy conservation and emission reduction while case Jiangxi Gaoan pottery base (Phase I) project creates a "circular economy" demonstration
using its own clean energy properties in the photovoltaic industry to provide solutions for corporate customers In June 2022 the first stage of the Jiangxi Gao'an pottery base (Phase I)
to achieve low-carbon emission transition and make contributions to the national goal of "carbon peak and project was successfully connected to the grid for power generation. This
carbon neutrality"and build up a new electricity system. project adopted the BIPV intelligent top solution from Arctech taking the
basic functions and power generation needs of the building into account
Supporting zero carbon emission building by building BIPV rooftop power achieving a perfect integration of the building and photovoltaic technology.Case station on factory area and BIPV carport The installed capacity of the project is 120MW with an annual PV green
power generation of nearly 120 million KWH which will become the world's
The Company adopts the way of building BIPV rooftop power station and BIPV shed on the roof of its own largest single capacity BIPV project after completion. After the project is
production plant to reduce the Company's electricity consumption of standard coal and help the Company's connected to the grid it is expected to reduce carbon dioxide emissions by
production and operation to achieve carbon emission reduction. nearly 120000 tons per year and save over 43000 tons of standard coal
BIPV (building Integrated Photovoltaic) entirely integrates buildings and photovoltaic power generation to which will promote the optimization of energy structure and green Jiangxi Gaoan pottery building base projectcreate a combination of low-carbon emission buildings and energy-saving buildings and can efficiently low-carbon development and help the country achieve the goal of“ carbonpopularize the use of clean energy. Photovoltaic carport is an important application of distributed peak and carbon neutrality”.photovoltaic with the characteristics of no additional land occupation short construction period and low
investment self-generation and self-consumption through simply transforming the existing parking space
Low carbon action Arctech supports China's first tidal-photovoltaic
the surplus power is integrated into the national grid and optional charging piles can be installed to case complementary intelligent photovoltaic power plant
effectively solve the daily charging problem of electric vehicles creating a green cycle of system power
consumption and realizing a low-carbon and environmentally friendly energy pattern.On June 8 2022 Arctech was invited to participate in the completion and
operation ceremony of the 100MW tidal-photovoltaic complementary
intelligent photovoltaic power project in Wenling Zhejiang of Longyuan
Power of National Energy Group.Project completion and
Arctech the provider of the PV rack system for this project has been operation ceremony
overcoming various terrain constraints and optimizing the construction
plan to ensure the project is put into operation. It is the first new energy
power plant in Zhejiang Province to implement "photovoltaic + energy
Exterior view of the BIPV roof of the plant Inside the BIPV roof of the plant
storage" combined with frequency control technology and is another
important practice of Arctech to promote green economy. Compared to
thermal power plants of the same capacity the plant can save 31654 tons
of standard coal and reduce 84479 tons of CO2 emissions per year. Tidal and light complementary
photovoltaic power plant
Arctech always adheres to the national green and low-carbon
development strategy insists on innovation and R&D in the field of new
energy and continuously implements and contributes to green initiatives
to accelerate China's energy restructuring and industrial upgrading.Headquarters carport CCTV news related reports
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Environmental Protection
Case Online environmental protection promotionGreen office
The Company has formulated the Office Area Environmental Safety Management Guideline to standardize and We actively carry out online environmental protection publicity activities to undertake the responsibility of
control the environmental management of the office area in order to reduce the sources of pollution in the office environmental protection and practice the concept of environmental protection. In 2022 we conducted public
awareness campaigns for Arbor day World Earth day Earth Hour and World Environment day to call for
area decrease the emission of pollutants in the Company protect the environment of the office area effectively
all to contribute to a green home together.practice the concept of green office and realize green operation.When lighting up the office area it is appropriate to adjust brightness to meet the work needs
and choose to open and close the light;
Electricity-saving Turning off all power switches at the end of office hours;
Turning off the power consciously after finishing the meetings;
Turning off the power after the projector has cooled down after use.General document records are used on both sides and when writing documents for drafts
scrap paper is used whenever possible;
Paper-saving Keeping a monthly count of the amount of paper used and submitting requests in advance
for projects that use large amounts of paper in order to consider savings options;
Faxes are collected electronically to the extent possible;
Follow the Vienna convention for the Protection of the Ozone Layer and establish a special
management system for air conditioners; Environmental protection publicity on official account
Air conditioner-using Reasonably control of air conditioner opening and closing timing and wind speed and
reasonable selection of temperature differences;
When air conditioner units are renewed priority is given to fluorine-free air conditioners.Green Goals
Place the copier as close to a door or window for ventilation as possible; We actively fulfill our environmental responsibilities set up monthly environmental targets for waste gas and
Photocopier-using Operators avoid facing the ozone emission site; noise as well as annual environmental targets for the standardized disposal rate of solid waste and energy
Avoid continuous mass copying. conservation and consumption reduction to organize training related to environmental targets and ensure that
employees are aware of environmental targets the contribution of various employees to environmental targets
Green initiatives and the consequences of deviating from environmental targets to promote the sustainable development with
our own practices and reduce our inordinate demands on the earth and the damage to environment. We will
We focus on strengthening the awareness of environmental protection advocate the concept of environmental continue achieving harmonious coexistence between human beings and nature.protection and take active action to build a clean and beautiful environment and low-carbon world.Department Target Name Specific Objectives
case Arctech joined the “carbon peak and carbon neutrality” service federation in Suzhou Waste gas and noise 100% meet Waste gas and noise emissions in
EHS the standards accordance with national standards
On 15 November 2022 the first group of member units of Suzhou“ carbon peak and carbon neutrality” service
EHS Solid waste management and 100%
federation (hereinafter referred to as "the Federation") was held as scheduled. The conference approved the disposal rate
list of representative units for the first group of member units of the Federation and Arctech became the first Comprehensive Management Energy saving and
0.02%
group of members of the Federation. Department consumption reduction
Arctech will follow the six principles of "government-led market-led equal consultation innovative cooperation
complementary advantages mutual benefit and win-win cooperations" in the future work of "carbon peak and Company-wide environmental objectives
carbon neutrality" and continue to help build a service platform covering information exchange trade management
technological innovation talent training and international cooperation etc. We will actively make an exemplary Daytime noise Noise at night Domestic sewage discharge
effort to drive the green and low-carbon transformation of enterprises promote the green and low-carbon cycle meets the requirements of the local
environmental protection bureau
of industrial development and contribute to the realization of the goal of“ carbon peak and carbon neutrality”. 65 db 55 db
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Products & Sourcing
Our philosophy Our actions SDGs
Arctech provides high quality products to customers without sacrificing Product Quality
quality gathers global partners with an open and cooperative attitude Customer Service
empowers the strategic ecological chain with technology and works
Responsible Sourcing
together to build a sustainable ecological chain and share the value of
development.
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Product Quality
The Company's product Compared with last year
Arctech firmly follow the path of high quality development carry out quality management adhere to the quality strategy of qualification rate was increase of
whole life cycle management and quality management of all employees commit to creating a quality culture of all employees' 95.4% 2.5%
participation and continuous improvement and cultivating all employees' quality awareness while strengthening the control
of quality factors and the control of production process to enhance product quality.Quality Goal of the Company Quality management
system certification
Quality management measures
Customer satisfaction rate Settlement rate of customer complaint
90 % 90% Whole life cycle quality management
We continue strengthening the control of product quality quality management through the understanding of customer needs
Quality management system research and development process procurement production until the end of the product life to effectively ensure product
quality.The Company strictly abides by the laws and regulations such as the Law of Product Quality of the People's Republic of
China and follows the quality management policy of "quality-oriented constantly surpass and ensure customer satisfaction".We have established a sound quality management system in accordance with the ISO9001:2015 standard and obtained the Operation phase Quality measures
ISO9001 quality system certification. We have formulated quality management systems such as Quality Operation Planning
and control Management Procedures Product and Service Release Management Procedures and unqualified Product To verify the quality of external supply processes products and services we will execute inspection
Management Procedures implemented project life-cycle management and quality management for all staff and continuously Sourcing procedures according to the Inbound Material Inspection Guideline to sign Quality Assurance
Agreements with suppliers etc. and to stop problematic materials from entering the Company.pursued new breakthroughs in product quality.The Company formulates quality plan based on the specific conditions of the project continuously monitors the quality target
Through a series of reviews and testing activities during the design of development process such as
status during the implementation of the quality plan strictly executes inbound material inspection operation inspection design reviews small batch reviews and mass production introduction review meetings we verify the
manufacturing process inspection and outbound inspection in order to continuously strengthen product quality inspection and R&D compliance with other quality requirements such as product reliability stability and critical process
control the unqualified output including isolation restriction return or suspension of the provision of products and services yields.obtaining authorization for concession acceptance etc.. The Company regularly conducts annual quality management
system operation review and sets up a continuous improvement project team for retrospective rectification steadily realizes Personnel: organize training for relevant personnel on quality management and quality inspection
basics;
the cycle of product quality improvement and creates high-quality products with craftsmanship.Inspection: each department carries out self-inspection and self-correction of production nodes in
Production accordance with the Qc Engineering chart; the Quality department conducts daily production
inspection and supervises the rectification of unqualified places found in accordance with relevant
The Flow Chart of Arctech's procedures to ensure the quality of production products.Quality Management System
Unqualified processing: marking recording isolating and organizing reviews of unqualified products
to prevent unintended use and delivery of products.Support and
Operation
Logistics The Supply Chain Management Center evaluates and monitors the quality of transport units in terms of
Organizations and transport capacity and service quality during the process of transport.their contexts Customer
satisfaction
On-site After the installation and commissioning of the equipment the equipment management department Customer Performance
requirements Planning Leadership Quality system installation and the person in charge of the use of the equipment will accept and fill out the Equipment Installation evaluation
management Acceptance Sheet before use.results
Expectations and
needs of interested Products and After-sales
parties services inspection Conducting regular on-site inspections to ensure efficient and stable operation of the facilities.Improvement
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Construction of quality culture for all employees
Arctech always holds that quality is a key component for all links and departments of the value chain and is the
common responsibility for all employees. The Company is committed to building quality management system for
all employees continuously strengthening quality training creating a quality culture of full participation and
continuous improvement embedding the concept of quality in the heart of every employee effectively taking
responsibility for quality and ensuring product quality.Legal and regulatory training (such as product quality law training)
All personnel "Skysmart Tracking System" CE certification TüV certification ULcertification
Quality objective training
was certified by B&V
Management Quality management knowledge training In 2022 the Company won a series of awards in the industry for its excellent product and brand power.These awards are the affirmation of Arctech's products but also the encouragement for the future of
Arctech.Inspection personnel (including Training on quality management quality inspection basic knowledge
measurement personnel product Training related to quality environment and occupational health and
quality inspection/testing etc.) safety
the Company conducted 4 with 100% of4 quality inspection times correction rate100%
Qualifications and honors of products
The 17th China International Solar Energy Arctech won the awards of "2021 Excellent PV
After many years of efforts market expansion and R&D investment the Company and its main products have obtained
Conference Arctech obtained the award of Racking Supplier" and "Top 10 BIPV Supplier"
several authoritative international certifications including CE UL TüV CPP DVN-GL B&V Intertek etc. Especially
"2022 China best Rooftop Energy System at the 2022 PV Industry Development Forum.B&V financing certification is the threshold for overseas market access in various countries.Solution Provider"
Arctech won the awards of 2022 "Polaris Cup" Arctech won the awards of " Cup-OFweek 2022
Influential PV Racking Brand and"2022 Outstanding PV Racking Company" and
Influential BIPV Solution Company" "Cup-OFweek 2022 Outstanding BIPV Solution
Company"
Overview of product certification qualification
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Products & Sourcing
case Arctech received a pennant from Huanghe Hydropower Dvelopment Co. Ltd.Customer Service
As the main supplier of tracker for the project Arctech provided nearly 1.3GW of trackers
Arctech committed to providing quality services to global customers Arctech has actively established a global and solutions for the extra-high voltage transmission base power configuration project
in Hainan Qinghai Province. In order to ensure the progress of the project the senior
service network there are 4 service centers in Asia Pacific Europe America and South Asia Middle East and management of Arctech was directly involved in the formulation of the plan at the beginning
Africa and 17 branches to serve more global customers with stable and quality products. of the project and designed the skyline tracking system to match the special terrain. After
the arrival of the tracker on schedule 8-10 technical engineers are always maintained
4 Service Centers 17 Branches at the project site to give installation guidance continuously helping the project to be
connected to the grid as scheduled.Arctech was awarded a pennant of appreciation from the Engineering Company of Huanghe
Europe Service Center Hydropower Development Company of State Power Investment Group for "high quality and
Asia Pacific Service Center
Arctech Spain Arctech Japan Arctech US
Arctech China efficiency excellent service" thanking for keeping the delivery time providing efficient America Service Center
Arctech UAE
Arctech India Arctech Mexico service and ensuring the project to be connected to the grid as scheduled. Arctech received a
Arctech Vietnam Arctech Colombia pennant of appreciation
South Asia Middle East
and Africa Service Center Arctech Brazil
Arctech Australia
Arctech Argentina
Arctech Chile
Global business layout of the Company
Whole life-cycle services
The Company has formulated the Procedures of Product and Service Requirements Management and established Project site
a sound triangle service system for pre-sales in-sales and after-sales. We keep optimizing the whole life cycle
service system covering six links of service support solution design quality assurance delivery guarantee Customer satisfaction survey
installation and construction and operation and maintenance guarantee establishing the consciousness of
The Company attaches great importance to the customer satisfaction survey and has formulated the Procedures
wholeheartedly serving customers and polishing the product quality in order to continuously improve the service of Customer Satisfaction Information Management the marketing center is responsible for collecting information
experience of customers and gain their trust.Provide 24/7 response for urgent request. related to customer satisfaction the investigation of customer satisfaction information and in-depth understanding
of customer needs. Based on the results of the survey to track and improve their own products and services we
We make an in-depth analysis of project requirements such as project
topography soil conditions array layout inverters and communication
Technical proposal continuously improve customer satisfaction.conditions and provide a design solution that can meet both technical and Customer satisfaction information management
commercial needs.Create a register of customer feedback on processing of delivering products or services
Customer satisfaction
Engineers are requested by the customers to visit the project site to conduct Occasional customer visits and meetings
Pre-Sales Support On-site research ratefield research in order to provide targeted technical solutions. Send Customer Satisfaction Information Questionnaire to the customers and conduct statistical analysis
85% Obtain information on customer satisfaction through market share warranty claim analysis etc.
We will recommend the best design solution to the customers after comparing Analyze the performance statistics of distributors and agents around the world
Financial analysis
the economic benefits of different technical solutions.Engineers will provide on-site Internet and teleconference training for the Customer feedback processing
Multiple training
installation operation and maintenance of the tracking system.We take customer feedback seriously actively communicate with customers to formulate Customer Complaint
Engineers visit the construction site to guide the work of construction workers
Field support Management Guideline and Client Return Guideline clarify the responsible departments and customer complaint
In-Sales Service to ensure the project progress. handling process to guide relevant departments to deal with customer complaints and rectify unqulified products
The intelligent monitoring cloud platform developed independently by Arctech
Intelligent monitoring can provide real-time feedback of operation and maintenance data diagnose and protect customer rights and interests.cloud platform system operation status and carry out remote operation and maintenance
through intelligent tracking system on site.Number of received With a complaint With a complaint
With an decrease of
Regular return visits complaints response rate of handling rate ofReturn to the project site for inspection after delivery to ensure proper
for inspection operation of the equipment.After-Sales Service 238 2% 100% 96.64 %
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Products & Sourcing
Responsible Sourcing Supplier classification
The Company classifies external suppliers into three categories based on the classification of the purchased
products and after the initial selection of external suppliers.Supply chain management
Supplier categories Products offered Re-evaluation of qualified suppliers
Arctech insists on responsible procurement implements the open procurement strategy and localized
procurement strategy integrates the concept of sustainability into the whole process of procurement develops External suppliers of key critical raw
a series of systems and procedures such as Procedures for the Management of Process Products and Services Category A materials (e.g. steel) and key critical Re-evaluated annually
components (e.g. rotary motors) to
Provided by External Suppliers Procedures for the Management System of Supplier Development and Procedures the Company
for the Management of Procurement Audit to standardize the procurement process establish and improve the
supplier management system and build a sustainable supply chain together with its suppliers. External suppliers of purchased
Category B products for the Company other Re-evaluated annually
than those in categories A and C
Systems Aims
External suppliers who provide the
Company with auxiliary materials or
Control the external suppliers and the processes products and
Procedures for the Management of Category C processes that are not directly used Exemption from re-evaluationservices they provided to ensure that the processes products
Process Products and Services in the product such as packaging and services provided by external suppliers meet the specified
Provided by External Suppliers materials ancillary services etc.requirements
Supplier evaluation
Regulate the selection of suppliers to ensure the quality of products
Procedures for the Management
and cost reduction as well as the stability of the supply of goods and
System of Supplier Development We evaluate and re-evaluate qualified external suppliers in accordance with regulations with the aims of
the selection of reliable suppliers
reducing supplier risk and improving delivery capability. The types of external supplier assessment include
Strengthen the management of the procurement of the Company sample inspections performance assessments capability or qualification surveys and on-site evaluations.and the subsidiaries and branches regulate the procurement
Procedures for the Management of
behavior manage the procurement price reduce the procurement
Procurement Audit
cost plug the loopholes in the procurement process and safeguard
Qualified suppliers Re-evaluation of
the legitimate rights and interests of the Company evaluation qualified suppliers
The Company conducts capability The Company keeps statistics on the
Standardizing supplier management qualification surveys and on-site performance and quality compliance
evaluation of suppliers as well as of former qualified suppliers in terms
Arctech persists in integrating the concept of sustainable development into the management of suppliers. By inspection or testing of samples or of price of supply timeliness of delivery
standardizing the supplier development process and strengthening supplier assessment and re-assessment specimens provided by suppliers degree of cooperation etc. and records
Arctech works together with reliable suppliers to build and maintain a good business environment and share and records the results on the the results on the External Supplier
Qualified Supplier Assessment Performance Statistics Form which is
green value.Record which is submitted to the submit ted to the management
Supplier development management representative for representative for approval before
approval before being added to the re-entry into the list of qualified
The Company strictly implements the relevant supplier system incorporates the supplier's product quality personnel
list of qualified suppliers. suppliers.capability effectiveness of its own control impact on the environment occupational health and safety system
etc. into the indicator system to be considered for supplier development implements the supplier development
process and selects qualified suppliers and counts them in the Qualified Supplier List. For new qualified suppliers
a small trial period is required before they can be transferred to normal procurement. By the end of 2022 the total
number of suppliers of the Company was 2376.
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Arctech Solar Holding Co. Ltd.丨2022(ESG) Report Products & Sourcing
Implementing sunshine sourcing
Grade
Arctech actively practices the concept of sunshine procurement and incorporates it into its procurement
Score ≥90 points ≥80 points ≥60 points