工業富聯：富士康工業互聯網股份有限公司2021年社會責任報告（英文版）.PDF

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1、Foxconn Industrial InternetCorporate Social Responsibility Report02Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix Report Preparati

2、on Instructions 01Message from the Chairman 02Message from the CEO and President of CSR Committee 03Performance Highlights 04Social Recognition and Honors 05About Fii 06Sustainable Development Strategy 08Key Quantitative Performance Table 98Appendixes 10207Performance and Appendix 01Pioneer of Green

3、 Reform and InnovationEnvironmentally-friendly Green Products 19Strategy and Application of Clean Technology 21R&D and Innovation Management System 2502Supporter of Harmonious Ecology03Reliable EmployerTalent Attraction and Retention 45Rights and Interests of Commercial Labor 54Talent Development 59

4、Occupational Health and Safety 6304Advocate for Sustainable ProcurementResponsible Supply Chain 67Green Supply Chain 70Responsible Minerals 7205Builder of a Better SocietyProsperous Regional Economy 76Giving Back to Society 77Supporting Rural Revitalization 8006Corporate Governance and OperationsCor

5、porate governance structure 83Overall Risk Management 86Tax Policy 89Anti-corruption Policy and Business Ethics 90Information Security 93ContentsSpecial Topic:Strategy of Global Response to Carbon Neutrality Environmental Management System 35Resource Management 37Emission Management 39Chemical Manag

6、ement 412901Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordReport Preparation InstructionsThis Report is the 2021 Corporate Social

7、 Responsibility(CSR)Report released by Foxconn Industrial Internet Co.,Ltd.(hereinafter referred to as“Foxconn Industrial Internet”,“Company”,“the Company”,“Fii”and“We”)and its subsidiaries,communicating Fiis philosophy,strategies and practices of corporate social responsibilities.This Report is the

8、 fourth CSR report issued by Foxconn Industrial Internet since it was listed on the Shanghai Stock Exchange in 2018.We will continue to publish the CSR report annually to practice our commitment to good corporate citizenship and unveil our performance in the sustainable development strategy as a mea

9、ns of communication with stakeholders.We are intended to innovate and develop the industrial internet,promote industrial transformation and upgrading,serve the vast number of small-and medium-sized enterprises(SMEs),and drive sustainable social development.This Report covers Fii and its subsidiaries

10、.The coverage of financial data keeps consistent with that of the consolidated financial statements in 2021 Annual Report.The data herein related to environmental,social and corporate governance issues(e.g.“Pioneer of Green Reform and Innovation”,“Supporter of Harmonious Ecology”,“Reliable Employer”

11、,“Advocate for Sustainable Procurement”,“Builder of a Better Society”,and“Corporate Governance and Operation”)involves Fii headquarters and 64 subsidiaries of Communication And Mobile Network Equipment Business Scope,Cloud Computing Business Scope and Industrial Internet Business Scope.They are deta

12、iled in the List of Subsidiaries for the CSR Report attached herein.Reporting Period:January 1,2021 to December 31,2021Report ScopeAll information and data disclosed in this Report are from the official documents,statistical reports and annual reports of Foxconn Industrial Internet and its subsidiar

13、ies.Financial information quoted in this Report is denominated in RMB.The financial data herein shall be subject to the annual financial report of the Company.Data SourceReporting cycle:This Report is an annual report.Current release:June 2022Last release:May 2021Expected next release:May 2023Report

14、ing PeriodThis Report is prepared in accordance with the core option in the GRI Standards issued by the Global Sustainability Standards Board(GSSB),and referring to the Guidelines for the Content and Form of Information Disclosure by Companies Publicly Offering Securities-No.2 Document:Content and F

15、orm of Annual Reports(Revised in 2021)(Chapter 5 Environmental and Social Responsibilities)issued by the China Securities Regulatory Commission,the Guidelines of Shanghai Stock Exchange on Self-discipline Supervision of Listed Companies-No.1 Document:Standard-based Operation released by Shanghai Sto

16、ck Exchange(SSE),the Guidance on Social Responsibility of Information and Communication Technology Industry(SJ/T 16000-2016),the Evaluation Index System on Social Responsibility Governance Level of Information and Communication Technology Industry(T/CESA 16003-2021)and other applicable standards.Ref

17、erencesThis Report is published electronically,and can be viewed or downloaded online at the official Fii website(http:/www.fii-).Access to the ReportIf you have any comments,suggestions or questions about this Report,please feel free to contact us at:Address:2nd Floor,C1,Foxconn Technology Park,Lon

18、ghua District,Shenzhen,Guangdong,ChinaTel.:+86-755-2812 9588Email:fii-csrfii-FeedbackIn order to fully respond to the demands from various stakeholders and ensure that the Report is more substantive,TV Rheinland,a third-party testing and certification agency,has specifically been hired by Fii to car

19、ry out an independent,objective and fair assurance in accordance with v3“Type I,Medium Degree”plan in AA1000 Certification Standard,and the Assurance Report is attached herein.Third-party Assurance02Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable Procure

20、mentBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordMessage from the ChairmanFulfilling Social Responsibilities and Promoting Green DevelopmentAmid the changing international situation and the major turn of the world that is unseen in a

21、 century,it is impossible for any organization or any individual to stay out of it.Instead,humans share the common future.As an international leader of digital economy in the full data industry chain,Fii has always applied digital technologies in producing cloud,network and terminal products as a mo

22、ve to promote automatic,digital,network-based and intelligent manufacturing,and achieve energy conservation and carbon emission reduction.Furthermore,as a national cross-industry and cross-field enterprise,Fii is committed to delivering mature,reliable and competitive solutions to green development

23、building on its own advantages,and fulfilling its corporate social responsibility(CSR).While ensuring its sound operation and sustainable growth,Fii takes action to perform its corporate social responsibility and sustainable development strategy.Since its listing,Fii has disclosed corporate social r

24、esponsibility reports for four consecutive years.In this Report,we focus on the issues related to ecological environment,social development and corporate governance.For ecological environment,we give priority to climate change,risk management,energy management,and clean technology innovation.In rece

25、nt years,all countries have paid close attention to green and sustainable development.At the Two Sessions in 2021,the goals of peaking carbon emissions and achieving carbon neutrality were included in the report on the work of the government released by the State Council of the Peoples Republic of C

26、hina for the first time,signaling China has embarked on a new journey of achieving the two goals.Under the guidance of these two national strategic goals,Fii remains committed to a green development featuring high technology content,low resource consumption,and reduced environmental pollution,and to

27、 continuously promoting the use of harmless raw materials,clean production,waste recycling,and low-carbon energy in intensive workshops with a view to energy conservation,carbon emission reduction and sustainable development.For social development,protection of employee rights and interests,health a

28、nd safety,chemical management,and supply chain management are issues of our concern.Fii takes various measures to protect the rights and health of employees,and provide a positive working environment for employees,which are also moves to implement the common prosperity strategy advocated by China.In

29、 2021,Fii was titled 2021 Asia Best Workplace.For chemical management,we adhere to the principle of safety first and the responsibility system in line with laws and regulations.And we introduce digital and intelligent methods into the full life cycle of chemicals to practice scientific management.Fo

30、r corporate governance,we focus on such issues as business ethics,data governance,board composition,risk and compliance management.We have established a sound internal management and control systems,and formulated management regulations in technological development,safety production,sales management

31、,quality control and financial accounting.To conclude,the basis for corporate operation lies in compliance with laws and regulations.Fii not only makes innovation and breakthroughs in technology and products continuously,but also keeps improving the corporate governance structure in accordance with

32、the requirements of regulatory authorities.Looking back on 2021,Fii,as a responsible A-share listed company,actively fulfilled its social responsibilities and made fresh progress in CSR.In 2021,Henan and Shanxi were hit by devastating floods that were the worst in a millennium.Fii donated 100 millio

33、n yuan and 30 million yuan timely to the disaster-stricken areas in Henan and Shanxi provinces,and encouraged dozens of companies to contribute to flood fighting and disaster relief,fulfilling its social responsibility as a leading enterprise.Due to the contribution,Fii was tilted as one of Top 500

34、Chinese Enterprises for Charity and of Top 500 Chinese Enterprises for Donation to Flood Fighting and Relief(the third place).Looking to the future,we will continue to adhere to the vision of serving global intelligent manufacturing,and benefiting worldwide industries,and to the mission of facilitat

35、ing the green,intelligent and high-quality development of the manufacturing industry driven by technological innovation,and we will also strive to implement the national strategies of a manufacturing power,a cyberpower and Digital China,and contribute to the 14th Five-Year Plan in progress relying o

36、n our wisdom and strength.Fii Chairman Li Junqi03Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordMessage from the CEO and President

37、 of CSR CommitteePracticing the Goals of Peaking Carbon Emissions and Achieving Carbon Neutrality and Building a Sustainable Future TogetherTo achieve high-quality development,an enterprise is required to practice sustainable development and fulfill social responsibilities.Rooting in China and devel

38、oping globally,Fii,a leading business of digital economy,has always taken sustainable operation and green development as its core concept.Over the past year,we stepped up investment in and construction of sustainable development,and helped the upstream and downstream enterprises of the industrial ch

39、ain in green transformation.We established a sound information security management system to effectively enhance information security in the industry.We practiced full life-cycle management of chemicals to minimize their impact on human health and the environment.We promoted the harmonious developme

40、nt of Fii and its employees,sticking to the people-oriented principle.In recent years,the goals of peaking carbon emissions and achieving carbon neutrality have been the priority for sustainable development.As a response,we have made great attempts and efforts.Under the guidance of the national stra

41、tegy of peaking carbon emissions and achieving carbon neutrality,we will upgrade this strategy to our core development concept.With years of experience in sustainable development,we have taken a series of actions,with certain achievements.Particularly,we just prepared and released the first Fii Whit

42、e Paper of Carbon Neutrality.The document clearly states carbon neutrality goals and specific plans for the first time.We hereby make a solemn commitment:Reduce carbon emissions by 80%over the base year of 2020;achieve operational carbon neutrality by 2035;realize net-zero emissions acrossthe value

43、chain by 2050.For the goal of enabling carbon neutrality in its own operation,we have proposed the 3R principles:reduction of carbon emissions from operation(Reduce);energy structure transformation(Replace);carbon offset and carbon capture(Resolve).We will implement the strategy of giving priority t

44、o carbon emission and renewable energy supply,supplemented by carbon offsets to realize carbon neutrality in its own operation and the entire value chain.Strengthening the strategy of peaking carbon emissions and achieving carbon neutrality in the whole process of business operation,we focus our eff

45、orts on energy conservation and emission reduction,technological innovation,development of and investment in renewable energy,renewable energy procurement and carbon sinks.In order to better carbon reduction and performance efficiency,we have made more technological innovation in renewable energy,en

46、ergy efficiency management,pollution prevention and green buildings to tackle excessive energy consumption problem from the root.As a responsible leading enterprise,Fii still has a long way to go.Apart from accelerating our own carbon neutrality,we also promote carbon neutrality across the value cha

47、in to help the upstream and downstream enterprises of the industrial chain in green and win-win development.Furthermore,in business practices,we establish the carbon emission management system,expand carbon neutrality consulting,and provide digital energy efficiency improvement solutions to deliver

48、carbon neutrality solutions for society.All these efforts are made to create greater spillover effect and make due contributions to the achievement of carbon neutrality goals in the industry,society and the state.Sustainable development is our responsibility and mission.As a pioneer of green reform

49、and innovation and a supporter of harmonious ecology,Fii will continue technological empowerment and team up with partners to build a sustainable future by implementing the goals of peaking carbon emissions and achieving carbon neutrality.CEO and President of CSR Committee of Fii Brand Cheng04Pionee

50、r of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordPerformance Highlights20202021Annual operating income from clean technology(100 million y

51、uan)1,753.061,776.94Annual number of new patents in clean technology190217Accumulated number of patents in clean technology as of the end of this year587804Number of green factories of Fii610Total annual investment in environment,health and safety(EHS)(100 million yuan)3.914.4220202021Operating inco

52、me(100 million yuan)4,317.864,395.57Operating profit(100 million yuan)197.16223.98Year-on-year growth in the operating income of the industrial Internet industry(%)130.8516.92R&D investment(100 million yuan)100.38108.35Social contribution value per share2.232.4620202021Proportion of key suppliers si

53、gning the Code of Conduct(%)100100Collective contract coverage(%)100100Overall average employee satisfaction(points)18.378.44Public welfare funding and supplies(10,000 yuan)2,674.2113,495.041.Employee satisfaction survey is scored on a 10-point scale.EconomyEnvironmentSociety05Pioneer of Green Refor

54、m and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordSocial Recognition and HonorsPrize of 2021 The Best ESG Practices of Chinese Enterprises by the Cailian P

55、ress ESG Summit ForumThe Best Environmental(E)Responsibility Award in 2021 Gold Responsibility AwardsAward of 2021 Asia Best WorkplaceOne of 2021 TOP 50 in Industrial Internet InnovationCertificate of Intelligent Manufacturing Maturity Level 4(for Fiis subsidiary)Among the shortlist of“2021 Top 500

56、Chinese Enterprises for Charity in China”;Ranking the third place in“2021 Top 500 Chinese Enterprises for Donation to Flood Fighting and Relief in China”Application Solution Prize in 2021 China Industrial Internet Security ContestThe Outstanding Science and Technology Innovation Enterprise in 2021 L

57、ist of Top 100 Chinese Enterprises in Science and Technology InnovationGuo Junhong,Chief Financial Officer and Secretary of the Board:the Best Board Secretary Award of Greater China in 202106Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuil

58、der of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordAbout FiiCompany ProfileFounded in 2015,Foxconn Industrial Internet Co.,Ltd.(hereinafter referred to as Fii)has proposed a technology path driven by intelligent manufacturing+industrial intern

59、et since it went public,and is committed to developing into the worlds leading provider of intelligent manufacturing and industrial internet solutions.With the production and business strategy of rooting in China and developing globally,the Company continues to serve as a bridge role in dual circula

60、tion development pattern depending on the years of high-end manufacturing technology experience and the advantage in the whole industrial chain of data elements.Thanks to the years of development and catering to the global digital development trend,the Company takes green development driven by data

61、as its strategic guideline,and strives to expand new fields of technology to foster another growth curve.Facing the rapid changes in global situation,the Company will always serve new domestic infrastructure based on its development pattern in Chinese mainland,and integrate its advantage of global b

62、usiness layout to facilitate the economic and social development of China and the rest of the world.Corporate name富士康工業互聯網股份有限公司English nameFoxconn Industrial Internet Co.,Ltd.Stock code601138Registered capital19.872 billion yuanHeadquarters2nd Floor,C1,Foxconn Technology Park,Longhua District,Shenz

63、hen,Guangdong,China.Total assets266.609 billion yuanOperating income439.557 billion yuanEmployees191,970人2Main businessAdhering to the development strategy driven by“intelligent manufacturing+industrial internet”,the Company has three major business lines,namely communication and mobile network equi

64、pment,cloud computing,and industrial internet.It focuses on the development of seven smart industries,including“cloud computing,mobile terminals,Internet of Things(IoT),big data,artificial intelligence(AI),industrial internet,and automated robots”and green technology applications,combines and uses s

65、ix data streams of“personnel flow,process flow and logistics”on the physical side,and“information flow,financial flow,and technology flow”on the virtual side.It applies 5C messages(Connection,Conversion,Cyber,Cognition,Configuration)as important tools to four F scenarios(Factory,Facility,Field,Fleet

66、)in order to achieve the three goals of“work reduction,worry reduction and waste reduction”.Fii has long been engaged in design,R&D and manufacturing of electronic products.Its core customers include global leading brands in intelligent terminals and wearable devices,communication and mobile network

67、 equipment,and cloud computing.Also,Fii has been introducing the industrial internet ecosystem into various industries and fields by cross-industry and cross-field strategic cooperation.At present,over 50 important customers have introduced industrial internet services.Diversified customer base and

68、solid strategic partner ecosystem continue to promote Fiis sound development.Modular computing and memory cell Edge data center One-stop solution of immersion liquid cooling technology 5G equipment:base station routers,400G switches,base station RUs,small cell sites,mobile routers,household routers,

69、5G modules and Open-RAN solutions 5G Internet of Vehicles Industrial Metaverse construction High-precision mechanical components of smart phones and wearable devices Smart-home technology and products Lighthouse network+digital manufacturing platform overall solution Enterprise-level cloud platform,

70、data center and digital manufacturing platform Self-developed MES,WMS software,industrial App and third-party software products PHM,APS,Smart Andon AGV,IoT and other hardware and software integration productsCloud Computing ProductsCommunication and Mobile Network EquipmentIndustrial Internet Soluti

71、ons2.Statistical Coverage Consolidated financial statements in 2021 Fii Annual Report.07Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerFor

72、ewordBusiness CoverageEconomic ContributionsWith the layout strategy of rooting in China and developing globally,Fii headquarters in Chinese mainland,and expands its business in 12 countries and regions of Asia,Europe and North America.It has set up production bases in 8 countries and regions.Apart

73、from fulfilling its corporate social responsibilities,Fii actively creates economic value and makes great contribution to domestic employment.By the end of 2021,Fiis total operating income reached 439.6 billion yuan,up 1.8%over the previous year;its total profit totaled 22.3 billion yuan;the tax pai

74、d hit 2.83 billion yuan.Table of Main Countries/Regions Fii Financial Performance Items20202021Total operating income(100 million yuan)4,317.864,395.57Operating profit(100 million yuan)197.16223.98Total profit(100 million yuan)197.46223.18Net profit(100 million yuan)174.27200.25Net profit of shareho

75、lders(100 million yuan)174.31200.10Other comprehensive income,net of tax(100 million yuan)-2.04-4.42ContinentsCountries where subsidiaries are locatedCountryCities/regions where industrial parks/factories are locatedAsiaEuropeNorth AmericaChina,Vietnam,Singapore,Republic of Korea,Japan,IndiaShanghai

76、,Beijing,Tianjin,Hangzhou,Nanning,Zhengzhou,Jiyuan,Zhoukou,Langfang,Jincheng,Guiyang,Taiyuan,Chengdu,Chongqing,Hengyang,Hebi,Wuhan,Haining,Fuzhou,Shenzhen,Dongguan,Foshan,Huizhou,Taiwan and Hong KongCzech Republic,HungaryUnited States,MexicoChinaItems20202021Total comprehensive income(100 million yu

77、an)172.23195.82Interest expense(100 million yuan)5.894.92Total tax payment(100 million yuan)30.9328.27Employee expense(100 million yuan)230.22252.73Government subsidy(100 million yuan)15.7813.71Earnings per share(yuan)0.881.01Social contribution value per share(yuan)2.232.4608Pioneer of Green Reform

78、 and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordSustainable Development StrategyConcept of Sustainable DevelopmentWhile investing in and developing intell

79、igent manufacturing and technology services,Fii proactively undertakes and fulfills corporate social responsibilities,continues to contribute technology services and wisdom to customers,peers and society,and keeps committed to achieving sustainable social development powered by innovative technologi

80、es and a better future driven by industrial internet.Keeping the mission of creativity,innovation,and entrepreneurship in mind,Fii spares no effort to play its role and exerts its influence as a leader in the industry.We continue to uphold the philosophy of“data-driven,core interconnection,ecologica

81、l co-construction,value sharing”,effectively promote the transformation and upgrading of intelligent manufacturing,utilizing industrial big data,industrial AI and industrial applications to achieve the strategic goal of building a new industrial internet ecosystem,and ultimately realize the vision o

82、f“serving global intelligent manufacturing,and benefiting worldwide industries”.CreativityInnovationEntrepreneurshipData-drivenCore interconnectionEcological co-constructionValue sharingServing global intelligent manufacturing,Benefiting worldwide industriesFollowing the strategic guidance of green

83、development driven by digital technology,the Company continues to take“smart industry and green technology”as its strategic development direction mainly in seven major industries,including cloud computing,mobile terminals,IoT,big data,AI,industrial internet,and automated robots,so as to achieve the

84、three goals of“work reduction,worry reduction and waste reduction”,and complete the transition from“being beneficial to oneself”to“being helpful for the world”.It helps SMEs to transform and upgrade and continues to realize and consolidate the outcome of sustainable development jointly with them to

85、create shared value for the industry chain.MissionVisionPhilosophy09Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForeword Composition of

86、 Fii Sustainable Development Strategy1 Fii cloud2-mode transition3 goals4F scenarios5C messages6 data streams7 smart industrial applicationsCreate the value of sustainability through Fii cloud platformFrom“Being beneficial to oneself”to“Being helpful for the world”Integrating ESG,worry reduction and

87、 green developmentFactory,facilities,field,fleetConnection,conversion,cyber,cognition and configurationPersonnel flow,process flow,logisitics,information flow,financial flow,and technology flowCloud computing,mobile terminals,IoT,big data,AI,industrial internet,and automated robotsBuilding on existi

88、ng sustainable development strategy and integrating ESG,Fii took supply chain,new energy and carbon neutrality as its business priorities so as to better fulfill its corporate social responsibilities in 2021.For supply chain,the Company has improved the accuracy of equipment and process parameters a

89、nd optimized efficiency as a semiconductor company by building lighthouses.For new energy,the Company has produced products with less negative impact on the environment by full use of lightweight,power-saving and intelligent new energy vehicles.For Industrial Metaverse,the Company has leveraged its

90、existing strength,a large number of lean processes,data collection,transmission and computing as well as artificial intelligence and blockchain to improve the efficiency of production management.For carbon neutrality,the Company has actively promoted product innovation and business development build

91、ing on clean technology to grasp the market opportunity of clean technology,and formulated carbon neutrality goals and commitments to achieve carbon neutrality in operation by 2035(covering emissions in Scope 1 and Scope 2)and net-zero emissions across the value chain by 2050(covering emissions in S

92、cope 1,Scope 2 and Scope 3).10Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordManagement MechanismThe Board of Directors is the ult

93、imate responsibility undertaker for the sustainable development of Fii.It urges the management to adhere to the principles of business ethics,integrates the management of sustainable development issues into business operations,and determines the short-,medium-and long-term strategies,visions,goals a

94、nd operational performance for sustainable development in order to advance and deepen the sustainable development of Fii.The Fii management should report sustainable development plans and work progress and results to the Board of Directors so that the Board performs the responsibility for supervisin

95、g the above-mentioned sustainable development issues timely.Organizational Structure of Fii CSR CommitteeFii Board of DirectorsFii Board of Directors OfficeUnit for Management of Labor AgreementsFii CSR Committee Secretariat Fii CSR CommitteeChairman:CEOFii Labor UnionFii Central DepartmentCSR Branc

96、h Functional GroupExecutive SecretaryCSR BranchCo-chairman/Director-generalEnvironmental Protection/Health/Safety Functional UnitEnergy Conservation and Carbon Emission Reduction Functional UnitGreen Supply Chain Management Functional UnitInformation Network Security Functional UnitLabor Union Funct

97、ional UnitLabor/Human Rights/Ethics Functional UnitStrategyPlanningExecution11Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordHiera

98、rchyDepartmentFunctionsStrategyBoard of Directors Formulate the vision,policy,strategy for sustainable development governance and management,and related work priorities and goals of Fii Evaluate and draw up the risks and opportunities related to the sustainable development of Fii,and incorporate the

99、m into the agenda of the Board of Directors for regular discussion according to the operation policy Ensure the effectiveness of the sustainable development risk management and the internal control mechanism of Fii,as well as the managements adherence to the principles of business ethics,honesty and

100、 integrity,and compliant operation Organize and appoint the members of the Fii CSR Committee Review the sustainable development performance of Fii regularly,receive reports from the management and make repliesHierarchyDepartmentFunctionsExecutionBranch of CSR Committee Set up CSR committee branches

101、for three major business groups(Communication and Mobile Network Equipment Business Group,Cloud Computing Business Group and Industrial Internet Business Group)of Fii respectively Execute policies,objectives,annual plans and management indicators of Fii CSR Committee Inspect its own sustainable mana

102、gement performance Manage functional units under the branch Practice and promote CSR policies and goals Implement risk control and inspection Be responsible for CSR data collection from,communication with and service t customers Report CSR progress to the Executive Secretariat quarterly Implement th

103、e Notification Guideline of Fii Major CSR Events Report potential CSR risks proactively Raise the concerns of stakeholders to the CSR Committee for deliberation and decision-making Follow the rules and regulations,documents of procedures and management measures of the Fii CSR Committee for sustainab

104、le developmentHierarchyDepartmentFunctionsPlanningPresident of CSR Committee Organize a CSR committee and establish a dedicated organisation to integrate resources and supervise CSR policies,and regularly report work progress and results to the Board of Directors Decide emergency plans/risk control

105、specific to major CSR incidents in Fii Assign matters to be handled by the CSR Committee as decided by the Board of DirectorsCentral Administration Department Practice CSR regulations,implement CSR policies and plans,and collaborate with the Committee to execute tasks requiredExecutive Secretariat o

106、f CSR Committee Formulate CSR policies,objectives,management systems,annual plans as well as rules and regulations Identify,implement,and check CSR policies and key issues,and assist with continuous improvement of related management processes Organize branches to jointly prepare and publish CSR repo

107、rts and CSR Newsletter Evaluate the CSR performance management of branches Design CSR activities and training Report the operation and development of the CSR Committee to its president Integrate resources from branches Coordinate the external participation of the Planning Committee and the communica

108、tion with external stakeholders12Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordCommunication with StakeholdersThe Company attache

109、s great importance to the opinions of stakeholders.Considering group size,communication frequency and correlation analysis of important issues,Fii defines seven major stakeholders:employees,government and regulatory agencies,shareholders and investors,suppliers,customers,partners and communities.Fii

110、 establishes smooth communication channels and cooperative relationship with stakeholders,analyzes the needs of stakeholders,identifies its material issues for sustainable development,defines division of internal responsibilities,and implements key management programs in order to achieve its high-qu

111、ality development through its positive impact on the environment and society.Fii actively communicates with stakeholders through websites,media,conferences,reports,activities and other channels and means.Main Stakeholders of Fii and Communication Means with ThemKey stakeholdersConcernsCommunication

112、and responsesEmployeesHealth and safety,protection of employee rights and interests,employee benefits,respect for employee diversity,remuneration and incentives,performance evaluation and promotion mechanism,communication with employees,training system,talent recruitment,talent team building,communi

113、cation with stakeholders,energy,water resources,solid waste,exhaust gas,and chemical managementEmployee activities,employees congress,activities of the labor union,intranet,employee training and employee handbookGovernments and regulatory agenciesBusiness ethics,health and safety,data governance,ris

114、k and compliance management,exhaust gas,solid waste,climate change risk management,chemical management,and communication with stakeholdersInspections,correspondences,policy implementation,and information disclosureShareholders and investorsRisk and compliance management,business ethics,reporting mec

115、hanism,data,executive remuneration management,communication with stakeholders,executive shareholding requirements,related transactions,board composition,and data governanceGeneral meeting of shareholders,financial reports,corporate social responsibility reports,performance reports,roadshows,surveys

116、and teleconferencesSuppliersProduct quality,energy,responsible supply chain,communication with stakeholders,and management of conflict mineralsAnnual general meeting of suppliers,supplier management platform,regular supplier training,supplier verification,strategic cooperation negotiation,exchanges

117、and mutual visitsCustomersProduct quality,intelligent manufacturing,customer service,green products,chemical management,patent management,R&D and innovation,R&D strength,R&D investment,data governance,communication with stakeholders,energy,water resources,solid waste,and exhaust gasCSR activities,pr

118、oduct exhibitions,customer surveys,technical seminars,customer hotlines,customer satisfaction surveys,and regular auditsPartners(such as academic institutions,research institutions and industry associations)Low-carbon economy policy changes,R&D and innovation,and communication with stakeholdersTelep

119、hone communication,irregular visits,CSR activities,academic seminars,industry exhibitions,industry training,and exchange meetingsCommunities(such as media and social organizations)Exhaust gas,energy,water resources,solid waste,green products,climate change risk management,chemical management,communi

120、ty engagement,and communication with stakeholdersPress releases,social media,event participation,questionnaire surveys,community volunteer activities,social welfare projects and other support projects of social undertakings13Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvoca

121、te for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForeword Communicate the outcome of sustainable development of the Company Obtain feedback from stakeholders on company sustainability outcomes Improve the risk contr

122、ol abilities and operation competence of the CompanyAnalysis of Material IssuesStep 1:Set communication goalsStep 2:Identify sustainable development issuesFollowing the Materiality Analysis Process as stated in the Corporate Social Responsibility Report,the Company establishes a systematic analysis

123、model to identify sustainable development issues that stakeholders are concerned about,and takes it as a reference for information disclosure in the Report so as to facilitate effective communication with various stakeholders.Fii has set communication goals and expects the information disclosure of

124、corporate social responsibility reports to achieve the purpose of communicating with stakeholders.Fii identifies 7 key stakeholders.Fii screens out 38 issues according to national and international policies and standards,such as the Guidelines of Shanghai Stock Exchange on Self-discipline Supervisio

125、n of Listed Companies-No.1 Document:Standard-based Operation,GRI Standards,SDGs(Sustainable Development Goals),the rules of the Responsible Business Alliance and ESG rating requirements,while fully considering the concerns of internal and external stakeholders,peer benchmarking analysis as well as t

126、he industrial characteristics and strategic direction of the Company.In order to better communicate with stakeholders through the information disclosure in CSR reports,Fii has worked out three communication goals in delivery of the sustainable development results,acquisition of feedback from stakeho

127、lders,and improvement of corporate risk control and operation competence.Step 1:Set communication goalsCommunication goalsBased on the business development and the results of the materiality analysis in previous years,the Company further improves the Fiis list of sustainable development issues,ident

128、ifies and determines the list of sustainable development issues this year.The list covers 38 issues in environment,society and governance that are highly related to the Fiis business development and are highly concerned by stakeholders.Step 2:Identify sustainable development issuesTaking the issues

129、in the list as the core part in surveys among stakeholders,the Company designs an online survey questionnaire and invites stakeholders to evaluate the importance of the issues and express their views and expectations on Fiis sustainable development through open-ended questions.In 2021,the Company ex

130、panded the survey scope and collected 5,471 valid questionnaires from employees at home and abroad,government and regulatory agencies,shareholders and investors,suppliers,customers,partners and communities.Through the analysis of questionnaire results,the Company evaluates the importance of 38 issue

131、s,prepares the materiality evaluation matrix for this year,reviews the opinions of stakeholders and the results of the materiality evaluation,and discusses with the management over and determines key points of disclosure in the Report and major ways to improve sustainable development performance in

132、the future.Step 3:Conduct surveys among stakeholdersStep 4:Analyze and evaluate material issues14Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable Em

133、ployerForewordCategoriesS/NIssuesDescriptionsReporting boundarySociety1Patent managementImprove its own intellectual property protection system and tap into its own intellectual property value and influence.Customers2R&D strengthActivities of the Company to innovate and introduce new products and se

134、rvices,including internal R&D,standard formulation and patents granted.Customers3R&D and innovationImprove quality,performance and user experience through R&D and application of science and technology.Customers and partners4R&D investmentEstablish R&D teams and set R&D investment growth goals.Custom

135、ers5Product qualityImprove product quality management continuously,find out,follow up and tackle quality problems timely.Customers and suppliers6Customer serviceMaintain and manage close relationship with customers actively,provide effective communication channels,respond to customers opinions and c

136、omplaints timely,and protect customer data privacy.Customers7Community engagementProvide resources and assistance for community development(e.g.poverty alleviation,education,and enhancement of environmental awareness).Communities8Responsible supply chainFormulate and continuously improve management

137、policies and mechanisms for environmental and social risks in the supply chain.Suppliers9Management of conflict mineralsIdentify and evaluate conflict mineral risks in the supply chain regularly to ensure products do not contain conflict minerals.Suppliers10Chemical managementCheck and monitor the r

138、estricted chemical substances contained in products,and formulate plans of replacing restricted chemical substances.Launch environmental and human health impact evaluation at R&D stage,and make every effort to reduce the impact of restricted chemical substances on the environment and human health.Em

139、ployees,customers,communities,governments and regulatory agenciesCategoriesS/NIssuesDescriptionsReporting boundarySociety11Health and safetyImplement occupational safety and health policies,regulations and monitoring and evaluation mechanisms,and pay attention to the physical and psychological healt

140、h of employees.Employees12Talent recruitmentHow well the recruitment strategy and performance match the strategic development direction of the Company.Employees13Remuneration and incentivesMotivate employees at all levels effectively through a scientific and reasonable remuneration mechanism.Employe

141、es14Employee benefitsFull benefits:vacations,paid medical and parental leaves,flexible work arrangements,health plans,and pensions.Employees15Talent cultivationDevelop talent strategies to attract and retain key talents and reserve talents for the management team.Employees16Training systemProvide em

142、ployees with training related to skills and knowledge required for posts and career development.Employees17Performance evaluation and promotion mechanismReview and optimize the functional system,promotion mechanism,career management and performance appraisal management continuously.Employees18Protec

143、tion of employee rights and interestsEstablish a negotiation mechanism,ensure compliance with labor protection laws in terms of salary payment,labor and social insurances,and prevent the employment of child labor and forced labor.Employees19Respect for employee diversityRespect for the diverse backg

144、rounds of employees,and give them equal access to recruitment,promotion,remuneration and benefits,free from any discrimination.Employees20Communication with employeesEstablish effective channels of communication with employees to allow employees to propose opinions on employment system,remuneration

145、and benefits,personal development and working environment,and respond to their opinions and needs timely.Employees 38 Issues to be Communicated with Stakeholders15Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorpo

146、rate Governance and OperationsPerformance and Appendix Reliable EmployerForewordCategoriesS/NIssuesDescriptionsReporting boundaryEnvironment21Management of climate change risksIdentify and manage the opportunities and risks that climate changes bring to the Company,such as greenhouse gases:Evaluate

147、and reduce greenhouse gas emissions throughout the business development process.Governments,regulatory agencies,and communities22Low-carbon economy policy changesPay attention to regional warming and national policy changes to promote low-carbon economy,and work out response plans.Partners23Energy m

148、anagementReduce fuel and power consumption during production and operation,and improve energy efficiency.Customers,employees,suppliers and communities24Water resourcesReduce the consumption of fresh water resources,decrease waste water generated in production and operation,and ensure proper waste wa

149、ter treatment to lessen environmental pollution.Customers,employees and communities25Solid wasteReduce hazardous waste and general waste generated in production and operation,and ensure proper disposal of waste to reduce environmental pollution.Customers,employees,communities,governments and regulat

150、ory agencies26Exhaust gasReduce unorganized emissions to the atmosphere.Customers,employees,communities,governments and regulatory agencies27Green productsProducts that are helpful to customers low-carbon transition and circular economy.Customers and communities28Clean technology innovationDevelop c

151、lean technology vigorously by seizing the market opportunities of green development,and introduce technologies internally and externally.CustomersGovernance29Business ethicsPromote strict business ethics,and act with integrity,honesty,fairness and transparency in all markets we involve in when coope

152、rating with business partners.Governments,regulatory agencies,shareholders and investorsCategoriesS/NIssuesDescriptionsReporting boundaryGovernance30Reporting mechanismProvide confidential reporting channels for internal and external parties to report conducts violating the business ethics of the Co

153、mpany and protect whistle-blowers from retaliation.Shareholders and investors31Sustainable development managementIdentify key issues,set practical goals,work out clear division of responsibilities,and guide the integration of business decisions and key issues.Shareholders and investors32Executive re

154、muneration managementWork out a transparent remuneration decision-making mechanism,relate the performance to the performance of Fiis ESG issues,and implement a remuneration clawback mechanism.Shareholders and investors33Executive shareholding requirementsSet specific multiple requirements on the val

155、ue of Fiis shares held by executives based on their annual fixed remuneration.Shareholders and investors34Related transactionsReduce transactions with related parties.Shareholders and investors35Board compositionIndependence,diversity,professionalism and effectiveness of the Board of Directors.Share

156、holders and investors36Communication with stakeholdersMaintain smooth channels of communication with stakeholders,and enhance sustainable development management by responding to the needs of stakeholders.Employees,governments and regulatory agencies,shareholders and investors,suppliers,customers,par

157、tners and communities37Risk and compliance managementEstablish sound governance mechanisms and systems to ensure that the corporate operation meets the compliance requirements;identify and control risks affecting business activities such as global laws and regulations,global epidemic,and supply chai

158、n disruption.Shareholders and investors38Data governanceSupervise,control,communicate over,and integrate the acquisition,processing and use of data from internal and external parties to ensure the information security of the Company and its customers.Governments,regulatory agencies,customers,shareho

159、lders and investors16Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordStep 3:Conduct surveys among stakeholdersStep 4:Analyze and ev

160、aluate material issuesFii designs an online survey questionnaire over the importance of sustainable development issues with the issues in the list as the core part in surveys among stakeholders,and collects their views and expectations on the sustainable development of the Company through open-ended

161、 question.A total of 5,471 valid questionnaires were collected in 2021.With reference to industry practice,the company evaluates the impact of Fiis business development on various issues through a team of experts combining internal and external factors.In order to identify the material issues that s

162、takeholders are concerned about,the Company charted a significant issue matrix analysis chart from two dimensions:importance of impact on the economy,the environment and society and importance of impact on evaluation and decisions made by stakeholders,on the basis of scores marked by stakeholders an

163、d weight of stakeholders.Following the identification,evaluation and selection procedures,the Company,together with professionals,selected 26 material ESG issuesissues,and within them defined 11 high-material ESG issues as being significicant,as the management and reporting priorities of itself and

164、its related departments.In this Report,we will strengthen the disclosure of our efforts and performance of these issues said,and take the results as an important reference for the sustainable development plan of next year.In 2021,protection of employee rights and interests,health and safety,risk and

165、 compliance management,responsible supply chain,business ethics,data governance,climate change and risk management,energy management,and clean technology innovation were still significant issues,and board composition and chemical management were added as new issues.The Company will constantly update

166、 and adjust the definition of high-material ESG issues upon communication with stakeholders.Fiis Significant Issues and Division of Management ResponsibilitiesConcernsEcological Environment-ESocial Development-SCorporate Governance-GSignificant issues Management of climate change risks Energy manage

167、ment Clean technology innovation Protection of employee rights and interests Health and safety Responsible supply chain Chemical management Business ethics Data governance Board composition Risk and compliance managementMain responsible departments Corporate Sustainable Development Planning Departme

168、nt,Environmental Protection and Energy Management Department,Clean Energy Development Department,Accounting Management Department,and Legal Affairs and Intellectual Property Department Human Resource and General Administration Department and Industrial Safety and Health Department Audit Department,I

169、nformation Security Department,Securities Department,and Legal Affairs and Intellectual Property Department(Fii Global Risk Control and Compliance Committee has been established)Management methods and measures Reduce the impact of production process on the environment Improve energy efficiency Reduc

170、e the impact of corporate production and operation on the environment through chemical management and green product manufacturing Protect the basic rights and interests of employees Promote the occupational safety and health of employees Formulate environmental and social risk management policies an

171、d management mechanisms for the supply chain Strengthen the management of all chemical substances,and evaluate the impact of chemical substances on the environment and human health at R&D stage Implement the management mechanism of business ethics Improve the mechanism,awareness and technological me

172、ans to ensure the information security of the Company and its customers Enhance the board composition continuously Improve sound governance and risk management mechanisms and systems,and strengthen risk identification and control17Pioneer of Green Reform and InnovationSupporter of Harmonious Ecology

173、Advocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsPerformance and Appendix Reliable EmployerForewordSignificant IssuesCorresponding UN Sustainable Development Goals(SDGs)Management of climate change risksBusiness ethicsBoard composition3Data governance

174、 Protection of employee rights and interests Energy managementHealth and safety Clean technology innovationRisk and compliance managementChemical management Responsible supply chain Analysis Matrix of Fiis Significant IssuesHigh LowHigh Importance of impact on evaluation and decisions made by stakeh

175、olders Importance of impact on the economy,environment and societyHigh-material topicsMedium-material topicsTraining systemProduct qualityExhaust gas managementData governanceProtection of employee rights and interestsHealth and safetyChemical managementBoard compositionClean technology innovationCo

176、mmunity engagementPerformance evaluation and promotion mechanismGreen productsTalent recruitmentCommunication with employeesSolid waste managementManagement of conflict mineralsRemuneration and incentivesR&D and innovationTalent cultivationResponsible supply chainRisk and compliance managementEnergy

177、 managementBusiness ethicsManagement of climate change risks3.Note:The Issue Board Composition does not correspond to any SDGs indicators.Sustainable development managementWhistle-blowing mechanism18Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable Procure

178、mentBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix 01Pioneer of Green Reform and Innovation19 Environmentally-friendly Green Products21 Strategy and Application of Clean Technology25 R&D and Innovation Management System19Pioneer of Gre

179、en Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix Environmentally-friendly Green ProductsDesign for Environment(DfE)Through control of the product

180、life cycle from design to production,Fii strives to weaken the negative impact of products on the environment while assuring product quality and safety and builds an environmentally-friendly corporate image for both its customers and itself.Following the principle of design for environment in the Re

181、gulations on Design for Environment in product design,the Company integrates environmental factors into product design,and improves the environmental performance of products throughout the product life cycle.The Company proposes five ecological indicators of“harmless”,“reduction”,“energy conservatio

182、n”,“easy to recycle”,and“ergonomics”for independently-designed products.It carries out product design activities in the full life cycle on the premise of meeting the requirements of technology,safety,function and market so as to minimize the impact of products on the environment.Five Design Indicato

183、rs of FiiEvaluate the hazardous substance control standards for product parts to restrict the use of strictly-regulated substances and ensure that no hazardous substances are released or decomposed throughout the product life cycle.Harmless designReduce product weight and volume in terms of product

184、weight,volume,number of parts,packaging complexity and storage methods.Strengthen energy consumption management,utilize energy reasonably and effectively,promote renewable energy,and reduce energy consumption during production,transportation and use.Consider recycling possibility,recycling value,pro

185、cessing methods and technologies when selecting raw materials,and adopt easily-recycled or reusable materials.Design products catering to human needs to make product use more comfortable,safer and healthier.As the worlds leading provider of intelligent manufacturing and industrial internet solutions

186、,Fii focuses its business on communication and mobile network equipment,cloud computing and industrial internet.Sticking to the business principle of continuous improvement,we transform from meeting social needs to serving society with innovation,continue to develop green products,and reduce the imp

187、act of products and services on the environment relying on clean technology.Following the core strategy of green development driven by data,we expand market opportunities for clean technology applications.With strengthening R&D and management and the intellectual property layout specific to core R&D

188、 technologies,we are committed to empowering the transformation and upgrading of the manufacturing industry and bringing new vitality to global intelligent manufacturing and green manufacturing.Reduction designEnergy conservation designEasy to recycle designErgonomic design20Pioneer of Green Reform

189、and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix Digital Management and Product Quality ImprovementFii adheres to the manufacturing concept of energy conser

190、vation and high quality.Its communication and mobile network equipment sector involves network equipment,telecommunication equipment,high-precision components for communication network,intelligent products,and precision cutting tools.On the one side,we follow the energy-saving design indicators and

191、work out a number of products and solutions to help customers design environmentally-friendly and energy-saving products.On the other side,we continue to develop high-quality and high-safety products in addition to design for environment.ProductsPoints to be improvedResultsRoughing toolsMaterial:fra

192、cture toughness and stability in batchesStructure:cutting force and strengthCoating:abrasion resistance and adhesive force Prolong the lifesapn by 160%after improvement.Profile cutting toolsImprove chipping and chattering problems The lifesapn was extended by 60%after improvement.The product one-tim

193、e yield is increased to 92.5%.Heavy cutting toolsAdopt the chip pocket structure to improve product rigidity and chip removal The lifesapn was extended by 100%after improvement.Breaking and tipping rates are reduced to 3%.Diamond-shaped PCD InsertsImprove the chip breaker groove for better chip brea

194、king effect,product surface roughness and tool quality The lifesapn was extended by 177.8%after improvement.The trial cutting yield is increased to 95%.Recycled aluminum PCD InsertsIncrease the negative chamfer on the cutting edge to reduce the chipping of the end teeth The lifesapn was extended by

195、36.8%after improvement.Tungsten thread forming tapsOptimize cutting edge and select better materials Prolong lifesapn 35 times after improvement.Precise management of tool QR codeWe incorporate cutting tool products in the Enterprise Resource Planning System(ERP)and the Manufacturing Execution Syste

196、m(MES)through QR codes to record tool manufacturing information(e.g.time,equipment and personnel),bills of materials(e.g.raw materials),and quality status for future tracing.The user may incorporate cutting tool products in the tool management system on the client side through QR codes to assign too

197、l identifiers,record tool use information(e.g.time,working condition and service life),and manage tools by classification so as to avoid material mixing and facilitates recycling.Besides,QR codes are used to realize process monitoring,and enable accurate cost analysis and performance optimization an

198、alysis through service life management.During manufacturingDuring applicationTool QR CodeWe expect to develop durable products,maximize the service life of products,and make the best use of resources.The Company has developed a variety of new cutting tools and blades by iteration and upgrading of st

199、ainless steel cutting tools,and optimization and improvement of aluminum alloy cutting tools,which betters product quality,prolongs service life,uses raw materials efficiently and reduces waste.21Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable Procuremen

200、tBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix Strategy and Application of Clean TechnologyFii Clean Technology StrategyWith the core strategy of green development driven by data,Fii continues to deliver clean technology products and

201、services driven by intelligent manufacturing+industrial internet,placing its strategic priority over clean technology innovation.Fii takes clean technology as the new technology and the new business model.It represents a range of products,services and processes with excellent performance at lower co

202、st that are designed to reduce or eliminate negative ecological impact,and improve the production efficiency and responsible use of natural resources.Thanks to continuous investment in technology R&D,Fii has accompanished initial achievements in renewable energy,industrial automation,artificial inte

203、lligence,intelligent manufacturing services,energy efficiency management,and technology application.Fii strengthens its strength of green development and seizes market opportunities of clean technology at the same time,provides a comprehensive variety of clean technology products and services.Achiev

204、e automatic,digital,network-based and intelligent manufacturing process;bring the perceivable,predictable and controllable manufacturing results;enable intelligent worry-free production modes.Build a cross-industry and cross-field industrial internet platform to interconnect with customers and suppl

205、y chains to achieve personalized,customized and optimized resource allocation for manufacturing according to needs,reduce waste and inventory,and cut unnecessary loss in manufacturing and logistics.Inverters and their accessories of solar power systems,solar photovoltaic equipment and accessories,so

206、lar cells and solar battery packsSoftware platform R&D and big data analysis services,intelligent manufacturing system development and solution technical services,industrial internet platform technology development and technical services,industrial automation engineering technology R&D and design,sm

207、art factory digital services,lights-off factories,lighthouses,overall solutions to precision manufacturing and engineering services,excellence consulting services and smart factory solutionsIoT terminal equipment,industrial automatic control electronic equipment,industrial robots,intelligent factori

208、es,automation fixtures,mechanical automation equipment and parts,intelligent robots,intelligent vehicle-mounted electronic products,internet of vehicles terminal equipment,and multi-functional industrial robotsEnvironmental friendly,safe and smart facility monitoring control system,Smart Park EHS Ov

209、erall Solution,core application system for green and energy-saving management,smart grid,computer room for mobile data center,and application system for photovoltaic energy storage serviceAI application integration technology and AI application software developmentLED/smart light posts,intelligent s

210、ewage interception protection system of rainwater pipe network,frequency conversion control of oil contamination purification system,and digital application of smart factoryIntelligent manufacturingIndustrial internetRenewable energySmart manufacturing servicesIndustrial automationEnergy efficiency

211、managementTechnology applicationArtificial intelligence Clean technology products and services22Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance

212、and Appendix Fii attaches great importance to clean technology R&D in different fields with view to improving power and water utilization efficiency and safety in the manufacturing environment.For clean technology,the Company focuses on cloud computing.To be specific,it mainly engages in R&D of and

213、one-stop solutions to new energy-saving air-cooling,liquid-cooling,and immersion servers,remaining the leading position globally in annual sales.In 2021,the cloud computing R&D expenditure accounted for 18%of the total R&D expenditure.Our green income mainly comes from the cloud computing business.I

214、n 2021,its green income measured 177.694 billion yuan,up 1.36%on year-on-year basis,accounting for 40.54%of its gross income.Fii has been fully recognized by FTSE Russell(an international professional investment service provider)in ESG evaluation in terms of its income from clean technology for two

215、consecutive years.Besides,in the communication and mobile network equipment sector,Fii focuses on the development of 5G,WiFi6/6E and other core technologies and the design and manufacturing of basic equipment.The income in the sector registered 258.966 billion yuan in 2021.In the Industrial Internet

216、 sector,the Company mainly delivers overall lighthouse solutions featuring lighthouse+digital manufacturing platform and expands 5G+industrial internet application scenarios.The income in the sector grew by 16.92%on year-on-year basis.As of the end of the reporting period,eight subsidiaries of the C

217、ompany,including Fii Science and Technology(Hebi),Henan Yuzhan and Nanning Foxconn Fugui,obtained the certificate of the Integration of Informatization and Industrialization management system.Immersion liquid-cooled servers and green data centersFii devotes itself to the most advanced cooling techno

218、logies,including liquid cooling(PUE 1.2)and immersion cooling(PUE 1.06)solutions.In 2021,Fii developed immersion liquid-cooling products jointly with customers to provide new solutions for the cloud computing data center.As shown by the statistical data of the Ministry of Industry and Information Te

219、chnology in 2020,the average PUE(total energy consumption of the data center/energy consumption of IT equipment)of large in-service data centers nationwide was 1.55.Comparatively,the average PUE(including electric loss)was not higher than 1.09,and the energy consumption of IT equipment decreased by

220、10%at our immersion liquid-cooling data center.Besides,the new energy-saving server of the Company can switch to the power-saving mode automatically according to its running state.Under heavy load,the server has 100%power consumption;under low-power standby state,it turns to power-saving mode automa

221、tically,saving 20-30%electricity compared with that under heavy load.Fii has 34 R&D servers that have passed a number of domestic and international energy efficiency certifications currently,including certification for energy-saving products in China(China Certification Center for Energy Conservatio

222、n Product,CECP),Energy Star in the United States,ErP Lot9 in the European Union,and Top Runner certification in Japan.High-efficiency and energy-saving servers provide clean technology for the low-carbon transformation of the data center in the future.2021 saw raging epidemic globally.As a result,re

223、mote learning,remote work,and video conferencing have been quite common.Under this background,all industries accelerate digital transformation,with strong demand for cloud services.As shown in the Global Cloud Infrastructure Hardware Spending Report released by IDC in September 2021,the total global

224、 cloud spending will grow from USD 128.2 billion to USD 168.1 billion from 2020 to 2024,with a compound annual growth rate of 6%,signaling increasing market demand.Besides,as the strategy of national computing network to synergize east and west rolls out,the cluster development of data centers natio

225、nwide has increased the demand in the server market.As predicted by IDC,server shipments will reach 14.06 million,with the growth rate of 8.3%,and the market size(in terms of operating income)will hit USD 114.6 billion in 2022.Green and Efficient Computing Data Center in Wisconsin,USAGreen income bi

226、llion yuan177.694Year-on-year revenue growth of Industrial Internet%16.92Green income accounts for%40.54In 2021,Fii achived23Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable

227、 EmployerForewordPerformance and Appendix Operation Screen of Water ChillerOperation Screen of Heat Exchange SystemOperation Screen of Air-conditioning SystemMonitoring Screen of Water Pump RoomOperation Screen of DryerPower Monitoring ScreenDigital intelligent control system effectively reduces com

228、prehensive energy consumptionAiming at energy-intensive equipment,Fii designs the digital intelligent control system by developing the most advanced group control+AI technology,and figuring out the most economical energy supply.The system works to control water chillers,air-conditioning systems,drye

229、rs,heat exchange systems,water pump rooms,and power systems,enhancing the efficiency of safety,power,and water usage as well as environmental protection in the manufacturing environment,and reducing energy consumption by around 20%.In 2021,the system was put into service in Henan Science and Technol

230、ogy Park of the Company.The strict sewage classified management and treatment technology of the digital intelligent control system has increased water resource recycling rate to 80%.Moreover,Lankao Science and Technology Park,Taiyuan Science and Technology Park and Comprehensive Bonded Zone have app

231、lied digital intelligent control system,saving 37,210,20,400 and 13,940 MWh each year.24Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appe

232、ndix Fii Manufacturing LighthouseCreate a new lighthouse model for intelligent manufacturingFii optimizes layout and integrates business segments in lean factories,and combines all scenarios including intelligent production lines,logistics,testing,operation and maintenance,and decision-making to cre

233、ate a new lighthouse model for intelligent manufacturing.Relying on intelligent energy consumption analysis and automatic control,the lighthouse improves energy management efficiency by 80%+and reduces energy consumption by 10%+.The carbon inventory system enables digital full-process carbon footpri

234、nt tracking to facilitate product carbon footprint certification.As of the end of the reporting period,the Company has incubated 10 lighthouses,and its Shenzhen,Chengdu,Wuhan and Zhengzhou factories have been granted the world lighthouse certificates.In October 2021,Fii,together with e-works Researc

235、h Institute and CITIC Dicastal Co.,Ltd.,released the White Paper for Digital Transformation of the Manufacturing Industry Led by Lighthouses,benefiting from our rich experience in the construction and certification of lighthouses.Development Planning Direction of Clean TechnologyBenefiting from the

236、boom of the digital economy,Fii has set foot in the five industrial categories of the digital economy under the strategic guidance of green development driven by data after years of continuous development,and boasts competitive advantages especially in the products,technologies and global market sha

237、res of cloud and edge computing,industrial internet,smart home,5G and network communication equipment,smart phones and smart wearable devices.Following the path of green development driven by data,Fii always takes data,and scientific and technological innovation as its strong drivers.For one thing,w

238、e will focus our efforts to optimize our business portfolio,consolidate our leading edge in the supply chain,enhance our R&D ability,strengthen out talent management and establish a digital management and operation system well.For another,we will expand the industrial layout by seizing opportunities

239、 to promote clean technology in semiconductors,new energy vehicles,Metaverse,and industrial internet with more investment in order to create another growth curve.Planning directionsDescriptionsSpeed up layout in the semiconductor field Help semiconductor design,processing and production,and increase

240、 the value of semiconductor applications building on the experience and technology in high-end precision manufacturing,strong business and product vertical integration and full-process solution planning abilities.Establish a semiconductor industrial internet ecosystem,and extend to core technologies

241、 especially in advanced packaging,testing,equipment and materials,EDA software and chip design by much investment relying on long-term clean and intelligent manufacturing experience and data accumulation as well as automation equipment,high-end precision equipment and technology.Promote the lightwei

242、ght,power-saving and intelligent development of new energy vehicles Develop core components of new energy vehicles and integrate upstream and downstream resources in the supply chain,focusing on three fields related to new energy vehicles,namely electric drive and electronic control,intelligent vehi

243、cle-mounted devices and internet of vehicles.Continue to invest in R&D of electric drives,internet of vehicles,radars,ACUs and control modules for lightweight,power-saving and intelligent development of new energy vehiclesFacilitate the coordinated development of Metaverse infrastructure and industr

244、ial applications Continue its layout in infrastructure,human-computer interaction and decentralization;actively build a network ecology featuring short-delay,high-bandwidth,and high-reliability with 5G and WiFi6 as core technologies to expand Metaverse applications based on the greatest advantages.E

245、xpand the diversified industrial applications of Metaverse depending on abundant virtual reality and simulation technologies,and build the Industrial Metaverse referring to the lighthouse construction blueprint to speed up the implementation of equipment predictive maintenance,remote expert assistan

246、ce and process guidance products.Improve production management efficiency in data collection,transmission,computing,artificial intelligence and blockchain relying on the lean process.In the future,we will empower more companies by launching the Lighthouse Pilot Program,and plan to help 10 leading co

247、mpanies develop into world-class lighthouse transformation pacesetters within 5 years,and 100 leading companies achieve full digital transformation,to introduce digital technologies to 1,000 manufacturing companies,and to provide industrial and technical services for 50,000 SMEs through the platform

248、.With these efforts,we aim to build and discover new lighthouses in more industries,actively enhance the digital production capacity of partners,and drive the sound development of upstream and downstream companies in the industry.25Pioneer of Green Reform and InnovationSupporter of Harmonious Ecolog

249、yAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix R&D and Innovation Management SystemFii attaches great importance to the research and development of new technologies.It has an excellent technology R&

250、D team with outstanding R&D abilities,and concentrates on continuous improvement of process technology according to market needs.Our R&D fields cover smart mobile terminals,smart wearable devices,5G communication network,cloud computing,industrial internet ecosystem,green manufacturing and clean ene

251、rgy.As of the end of the reporting period,our R&D team has over 25,000 members.We have increased R&D investment for many years.In 2021,the Company earmarked 10.8 billion yuan for R&D,a year-on-year rise of 7.94%.We will continue to increase investment in R&D,cultivate more key talents.At the same ti

252、me,we will also implement the global strategic layout and meet the different needs of customers with advanced technology,quality products and professional services.Fii was selected into the China Digital Economy Industry Best Practices 50 by APEC.In order to explore the best practices of leading tec

253、hnological innovation,enabling digital inclusiveness,and assuming the responsibility for the industry,APEC(Asia-Pacific Economic Cooperation)China Business Council released the China Digital Economy Industry Best Practices 50 on December 25.With contribution to empowering digital transformation by i

254、ntelligent manufacturing+industrial internet,Fii was successfully selected into the China Digital Economy Industry Best Practices 50.As a benchmarking enterprise in the digital economy of China,Fii performs its business philosophy of devoting itself to digital economy more firmly.While fully promoti

255、ng the transformation of its own digital industry,the Company also strives to empower other companies by launching overall solutions to communication infrastructure,digital infrastructure and innovation infrastructure in terms of products and manufacturing capacity.Intellectual Property ManagementFi

256、i is committed to improving its global intellectual property layout,and cooperating with the countrys call to build a strong intellectual property country,leading intellectual property to empower the Industrial Internet and create more social,economic and environmental value.Fii pays attentions to p

257、rotecting the intellectual property and trade secrets of others and itself.Its employees are not allowed to obtain,disclose,use and dispose the trade secrets of other illegally.In 2021,the Company promoted the development of intellectual property jointly with China Patent Protection Association and

258、China Intellectual Property Society after its accession to these two agencies.In 2021,the Company established the Fii Intellectual Property Management Committee.The Committee is responsible for improving the intellectual property management system and coordinating intellectual property management in

259、 various technical fields.Fii builds an intellectual property management system in three aspects:data management through data standardization,data analysis and systematization,portfolio management through intellectual property analysis,layout and portfolio;and operation management through integratio

260、n of intellectual property licensing and intellectual property transfer.In terms of R&D and innovation strength,the Company has been granted patents in 13 countries and regions globally,and the number of its patent applications and authorizations has increased year by year.In 2021,the Company had 5,

261、504 effective patents that were applied for or authorized,up 33.4%over the last year.Particularly,patent reserves of cutting-edge technologies accounted for 47.9%and mainly covered cloud computing,big data,mobile terminals,robots,Internet of Things and smart life.The focus of its technological innov

262、ation in industrial internet has been changing from hardware to software,and over 100 patents related to industrial internet reserved by now have covered application layer industrial App,industrial PaaS,edge layer and data collection.In addition,the company has further strengthened its digital intel

263、ligent manufacturing capabilities by investing in chips and industrial software.A solid digital foundation and increasing R&D investment contribute to the powerful product innovation and technology iteration strengths of the Company.Key Performance HighlightsA total of over last yearpatents that hav

264、e been applied and authorized5,504%33.4The total number of authorized patents increases by%47.9Patent reserves of cutting-edge technologies account for R&D team has overEarmarked investment for R&DYear-on-year growthbillion yuanmembers%25,000 10.87.9426Pioneer of Green Reform and InnovationSupporter

265、 of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix Clean Technology PatentsTo enhance the environmental protection awareness of R&D personnel during technology development and encou

266、rage inventors to consider the relevance to clean technology when submitting applications,Fii incorporated clean technology tags into its intellectual property management system in July 2021.At present,the company has mainly set up four categories of clean technology labels,namely renewable energy,e

267、nergy efficiency management,pollution prevention and green building,and subdivided into various sub-categories,such as electricity demand side management,system and process optimization and energy storage Technology,etc.,to facilitate R&D management and data statistics.As of the end of 2021,the Comp

268、any had 804 effective patents related to clean technology,including 217 patents authorized in 2021.New Patents for Clean Technology in 2021Industrial automation:Power demand management:Pollution prevention and control:Process optimization:patentspatentspatentspatents153202816Patent Cases of Clean Te

269、chnologyWe are committed to improving energy efficiency during manufacturing by carrying out automation improvement solutions in all links of the production line,such as cutting manufacturing costs in the entire production process covering loading,clamping,punching,grinding and waste recycling.In th

270、e manufacturing process of electronic products,it is difficult to control the priority of production links due to complex process,extensive factors and massive data.The process control system shows the processing status and time of each work piece,and figures out the manufacturing process that consu

271、mes the least time and energy to improve the efficiency of the surface treatment process.Arrange power demand time reasonably relying on comprehensive utilization techniques,and practice overall system management and coordination to improve terminal power consumption efficiency and power consumption

272、 modes.Here is an instance.With networked handheld devices,we are able to remotely monitor and turn on/off home appliance systems automatically to save electric energy.Multiple links in industrial manufacturing involve the treatment and recycling of pollutants such as exhaust gas,waste residue,and w

273、aste oil.These pollutants and energy consumption can be minimized through pollution prevention and control,and recycling.Recycling devices are set up in production lines to collect waste oil generated during production,which reduces consumption,and controls potential pollution in production.Industri

274、al automationProcess optimizationPower demand managementPollution prevention and control27Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Ap

275、pendix External Cooperation in InnovationFii,including its business groups and subsidiaries,has built and maintained cooperation with scientific research institutions,universities and enterprises at home and abroad,and has made breakthroughs in core technologies in such fields as intelligent applica

276、tion of the building industry,R&D of new materials,ultra-precision machining and high-end technology,which supports its development technically and greatly.PartnersCooperation programsCooperation periodCooperation progressShanghai Jiaotong UniversityIntelligent Punching Die Development ProjectDec.20

277、19 to Oct.2021CompletedPeng Cheng LaboratorySoftware Theory and Key Technology Development for Real-time Industrial Control NetworkJan.2020 to Dec.2022In progressNational Taiwan University of Science and TechnologyProgram 1 Launched Jointly by National Taiwan University of Science and Technology and

278、 Fii in 2019:3D Printing and Laser Technology Improvement and Internship ProgramFeb.2020 to Feb.2022In progressShanghai Jiaotong UniversityArchitecture and Design Method of Industry-purposed On-site Wireless Control SystemNov.2020 to Oct.2023In progressNational Cheng Kung UniversityUltra-rapid Proto

279、typing Technology Consulting ProgramDec.2020 to Jun.2022In progressGuangdong University of TechnologyLaser Stress Strengthening ProgramApr.2021 to Jun.2021CompletedNational Taiwan University of Science and TechnologyProgram 2 Launched Jointly by National Taiwan University of Science and Technology a

280、nd Fii in 2020:Material Testing and Analysis Technology Improvement ProgramMay 2021 to Apr.2022In progressNational Taiwan University of Science and TechnologyProgram 3 Launched Jointly by National Taiwan University of Science and Technology and Fii in 2021:Anode Film Sharp Corner CrackingJun.2021 to

281、 Nov.2022In progressZhejiang Construction Engineering Group Co.,Ltd.Shanghai Jiaotong UniversityR&D of a New Manufacturing and Control Platform Catering to Construction Industrialization Depending on Longyou Intelligent Flexible Production Line to Build a Future Factory Integrating Construction Indu

282、strialization and IntelligenceJun.2021In progressFrontier Manufacturing Science Laboratory,Southern University of Science and TechnologyUltra High-speed Precision Spindle Manufacturing and Machining Technology R&DJul.2021In progressCentral South UniversityComposite Pulse Shaping Spring-back Control

283、TechnologyJul.2021 to Jun.2022In progress28Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix 0229 Special Topic:Strategy of Global Re

284、sponse to Carbon Neutrality 35 Environmental Management System37 Resource Management 39 Emission Management41 Chemical ManagementSupporter of Harmonious Ecology29Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorpor

285、ate Governance and OperationsReliable EmployerForewordPerformance and Appendix 29 Special Topic:Strategy of Global Response to Carbon Neutrality 35 Environmental Management System37 Resource Management 39 Emission Management41 Chemical ManagementSpecial Topic:Strategy of Global Response to Carbon Ne

286、utralityTo ensure permanent business strategies responding to climate change,Fii has developed a climate change response system in terms of governance,strategy,risk management,and goals and performance referring to the suggestions of the Task Force on Climate-related Financial Disclosures(TCFD)4 of

287、the Financial Stability Board(FSB)(See the Fii White Paper of Carbon Neutrality for more details).Fii carbon neutrality path and action plans Facilitate carbon neutrality in the value chain Deliver carbon neutrality solutions to society Risk management system covering the identification of risks and

288、 opportunities for climate change topics Analyze and evaluate the financial impact of climate topics The Board of Directors guide climate change response strategies CSR Committee and CSR branches of business groups participate in planning and implementation of climate change response strategies Set

289、carbon neutrality and net-zero carbon emission goals Disclose carbon emission data regularly to update target implementation progressGovernanceStrategyRisk ManagementIndicators and goals4.TCFD is the worlds most influential climate-related financial information framework standard.With developing a u

290、nified disclosure framework,it helps investors,lenders and insurers in reasonably evaluating climate change risks and opportunities,and making wiser financial decisions.30Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better Soci

291、etyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix In order to strengthen the carbon management competence of the CSR Committee and employees awareness of carbon neutrality,the Company held 2 internal seminars and external exchange meetings on carbon neutrality i

292、n 2021.Management System of Climate Change IssuesThe Company has established a mechanism for the Board of Directors to participate in climate issue governance.The mechanism has a three-level management structure,namely strategy,planning and execution levels which are managed by the Board of Director

293、s,the CSR Committee and its branches of business groups respectively.The details are shown as follows:Function Description of Climate Issues Management FrameworkTheme Seminar among Governmental Authorities,Universities,Research Institutes and FiiBoard of DirectorsThe Board of Directors is the top su

294、pervision and management organization of the sustainable development in Fii.It is responsible for urging the management to integrate management of sustainable development issues into routine business operation and management.Its functions include:Formulate the vision,policy,strategy for sustainable

295、development governance and management,and related work goals and priorities of Fii;Evaluate and draw up the risks and opportunities related to the sustainable development,including climate change issues,and incorporate them into the agenda of the Board of Directors for regular discussion according t

296、o the operation policy;Ensure the effectiveness of the sustainable development risk management and the internal control mechanism of Fii,as well as the managements adherence to the principles of business ethics,honesty and integrity,and compliant operation;Organize and appoint the president and memb

297、ers of Fii CSR Committee;review the sustainable development performance of Fii regularly,including the performance of climate change issues,receive reports from the management and make replies.CSR Committee CSR Committee BranchThe CSR Committee consists of the Secretariat,the Central Department and

298、branches.The Secretariat is responsible for identifying and implementing CSR policies and climate change issues,and helping improve related management processes.The Central Department is responsible for practicing related regulations,policies and plans,and collaborating with the Committee to execute

299、 tasks required.In 2021,the Central Department set up the Clean Energy Development,Environmental Protection and Energy Management Office.The Office is responsible for coordinating and managing the execution of carbon neutrality goals,promoting the implementation of internal carbon emission reduction

300、 tasks and conducting performance management.Each business group has its CSR committee branch.The branch is responsible for holding review meetings regularly,working with the Central Department to promote carbon emission reduction planning,formulate goal monitoring schemes,facilitate digital transfo

301、rmation of carbon peaking and neutrality and external empowerment.31Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix Reduction of ca

302、rbon emissions from operation(Reduce)Take major actions for low-carbon transformation,including energy-saving and emission-reduction measures such as equipment phase-out and replacement and production process improvementEnergy structure transformation(Replace)Continue to increase the proportion of r

303、enewable energyCarbon offset and carbon capture(Resolve)Encourage carbon capture,afforestation and other measures to offset some carbon emissions from operationLighthouse for green manufacturingIntelligent green recycling and manufacturing systemSmart factory energy management systemCarbon accountin

304、g and consulting servicesStrategies for Response to Climate ChangeFii considers the Strategy of Global Response to Carbon Neutrality and formulates the carbon neutrality action plan to improve climate resilience and better adapt to and respond to the impact of climate change on Fii.Besides,the Compa

305、ny incorporates the value chain into its management.It actively promotes carbon neutrality in the supply chain for better development of the industry,and delivers carbon neutrality solutions to society through technological innovation to ensure its business strategies meet the social needs of zero-c

306、arbon development with expanded spillover effect.Fii Strategy of Global Response to Climate ChangeEnable carbon neutrality in its own operationDeliver carbon neutrality solutions to societyFacilitate carbon neutrality in the value chainTeam up with suppliers to improve the emission reduction perform

307、ance of the whole industry chain through supplier access mechanism,supplier management,incentives and other effective measures.32Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReli

308、able EmployerForewordPerformance and Appendix Climate Risk and Opportunity Management PolicyFii has established an Enterprise Risk Management (ERM)system.The Global Risk and Compliance Management Committee(RCMC)is responsible for formulating policies and management procedures,identifying major risk

309、and compliance matters,allocating resources,and reporting work progress to the Board of Directors.The CSR Committee is responsible for climate change risk evaluation and crisis management.In line with the Risk Management Regulations and the Fii Enterprise Crisis Management Plan,the Company has launc

310、hed elaborate risk and opportunity management.Specifically,it regularly conducts analysis and evaluation of risks and opportunities arising from climate change,ranks risks and opportunities,and responds to risks and opportunities at differently levels properly to minimize possible damage caused by r

311、isks and seize potential opportunities.According to the results of management interviews,stakeholder surveys and peer benchmarking,we have identified material climate change risks and opportunities that possibly exert substantial economic or strategic impact on business in terms of probability of oc

312、currence and severity of impact for risks and opportunities.Identify possible risks and opportunities through management interviews,stakeholder surveys and peer benchmarking,and predict their vulnerability and impactAnalyze the probability and severity of occurrence and figure out risk and opportuni

313、ty levelsRanking of risks and opportunities according to applicable criteriaIdentify and evaluate response actions,formulate and execute treatment plans,analyze and evaluate the severity and probability of residual risks,add risk control measures,and analyze and optimize response actions specific to

314、 opportunities Fii Risk and Opportunity Management Process Climate Change Risk and Opportunity MatrixRisk and opportunity identificationRisk and opportunity impact severityRisk and Opportunity ProbabilityLevel 1Level 1Level 3Level 2Level 2Level 3Intense natural factors Resource efficiencyMarkets(tar

315、get market policy)Markets(customer requirements)Products and services(production link)Climate risksClimate opportunitiesNew regulations(Market of Carbon Emissions Trading)Products and services(innovation)Markets(incentives from the public sector)Risk and opportunity analysisRisk and opportunity eval

316、uationResponse to risks and opportunities33Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix Fii takes corresponding measures for ris

317、ks at different levels.If a risk is more likely to deteriorate into a crisis,the Company will incorporate it into the crisis management plan,and formulate crisis notification and response procedures in advance.If a risk is not likely to result in a crisis,the Company will establish proper response p

318、rocedures or adopt general management procedures to prevent and control such risk.CategoriesDescriptionsStatus across the value chainAction plansMarket risksThere is potential financialimpact due to changes in market demands as the Company has to meet various requirements on climate issue management

319、 from downstream customersDownstream Facilitate energy transformation and increase the proportion of renewable energy Work out carbon neutrality goals and path planning as scheduled and disclose implementation progress regularlyRisks from new regulationsEnterprises in China may be affected by new po

320、licies and regulations amid the goals of carbon emission peak by 2030 and carbon neutrality by 2060 set by China.For example,as the carbon emission allowance price will rise in the future,the operating sites included in the carbon emissions trading system face more compliance costs and financial imp

321、act.Direct operationRisks from intense natural factorsExtreme weather conditions due to climate change may impact operating factories.For instance,Fiis Zhengzhou factory was shut down in 2021 due to the heavy rainstorm in Henan province.Direct operation Conduct risk evaluation and crisis management

322、continuously Organize risk response drillsOpportunities of products and servicesThe development of low-carbon or climate-resilient products and services may help Fii set foot in new markets with potential opportunities.For example,the cloud computing business group has developed energy-efficient ser

323、vers.Direct operation,upstream and downstream Develop low-carbon products continuously and conduct product certificationMarket opportunitiesWith starting CSR management earlier,Fii has launched product transformation,upgrading,phase-out and replacement,placing a certain foundation for climate issue

324、management.Therefore,it is more adaptable to climate issues compared with its counterparts.Direct operation Fund CCUS and other related technologies and develop carbon sink projectsResource efficiency opportunitiesThe Company improves resource efficiency by independent development.Digital intelligen

325、t control system is a good example.Building on AI,IoT and sensor network technologies,it provides a series of strategies allowing dynamic adjustment specific to the rational use of resources according to actual production conditions,which improves resource efficiency,saves energy and reduces carbon

326、emissions for customers.Direct operation and downstream Facilitate system iteration to continuously improve energy efficiency and reduce energy consumption Climate Change Risks and Opportunities Facing Fii34Pioneer of Green Reform and InnovationSupporter of Harmonious EcologyAdvocate for Sustainable

327、 ProcurementBuilder of a Better SocietyCorporate Governance and OperationsReliable EmployerForewordPerformance and Appendix Fiis Net-zero Emission GoalsAs a responsible enterprise,Fii actively responds to international initiatives and the calls of the Chinese government,and meets the requirements of

328、 customers at home and abroad.In 2021,Fii set carbon neutrality goals and commitments:Since 2020,Fii has conducted carbon emission data checks by the operation control method.In 2020,Fii collected the fullest carbon emission data from its business groups.Following SBTi and other standards,Fii define

329、d the latest year with full data,i.e.2020,as the base year to set carbon emission goals.It is particularly mentioned that greenhouse gas emissions in Scopes 1 and 2 include those of the six greenhouse gases as specified in the Kyoto Protocol:CO2,CH4,N2O,HFCs,PFCs and SF6.The Company will carry out k

330、ey actions for low-carbon transformation.In the future,we will promote carbon management and energy system optimization by energy-saving and emission reduction measures such as phase-out and replacement of outdated equipment and improvement of production process,supplemented with carbon offset measu

331、res in order to reduce carbon emissions and increase the proportion of renewable energy as an active response to the trend of climate change governance.5.In 2021,the Company conducted full statistics of 2020 greenhouse gas emission data.Hence,the data here was different from that in 2020 CSR Report.

332、6.Data of Scopes 1 and 2:calculated by the UL Turbo Carbon system according to ISO14064 Part 1:2018 Greenhouse Gases-Part 1:Specification with Guidance at the Quantification Level for Qualification and Reporting of Greenhouse Gas Emission and Removal.Global warming potentials(GWP)are the values as r

333、eleased in the Fifth Assessment Report(AR5)of the United Nations Intergovernmental Panel on Climate Change(IPCC).7.Data of Scope 3:According to the GHG Protocol Corporate Value Chain(Scope 3)Accounting and Reporting Standard,statistics and calculations are performed for categories in Scope 3,mainly including indirect carbon emissions from activities in the value chain such as upstream transportati