GCL SI's Commitment to Sustainable Development

In August 2023, GCL SI joined the United Nations Global Compact (UNGC). We now reaffirm our support for the UNGC and its ten principles, which guide us in conducting our business responsibly and fulfilling our social obligations.

The UNGC's ten principles cover four areas: human rights, labor, environment, and anti-corruption. This article will outline these ten principles and demonstrate GCL SI's specific measures and achievements in adhering to them.

Part 1: Human Rights

GCL SI is committed to upholding employee rights and endorses the Universal Declaration of Human Rights, implementing international standards related to human rights such as SA 8000. GCL SI promotes a company culture of diversity, equality, and inclusion, respecting individual differences and supporting employees from various backgrounds and industry experiences to realize their potential and self-worth. The company has established and implemented systems such as the "Human Resource Planning Management Standards," adhering to fairness, justice, and transparency in employment and providing equal job opportunities to all employees and candidates according to the law. The Human Resources Center is responsible for setting quantitative goals related to diversity, discussing and agreeing annually on strategies to enhance the diversity of the company’s workforce, including senior management.

In 2023, GCL SI updated and publicly released the "Business Partners Code of Conduct" to ensure that human rights and personal dignity are always respected. The code stipulates that suppliers violating this code will face penalties, including suspension of cooperation and termination of business relations. During the reporting period, cooperation with five suppliers was terminated.

Part 2: Labor

GCL SI has developed and disclosed the ”GCL SI Code of Business Conduct“ and the “Human Rights Principles.” The company firmly prohibits child labor and forced labor and is explicitly committed to protecting employees' legal rights, including the freedom of association and the right to collective bargaining. In 2023, there were no incidents at GCL SI involving the employment of child labor, forced labor, discrimination in employment, or harassment, which would violate labor and human rights regulations.

The company has also formulated and implemented the "Standards for the Rights and Labor Protection of Female Employees" and the "Equality and Diversity Policy." The company is committed to firmly prohibiting any discrimination or harassment based on gender, age, ethnicity, race, nationality, religious belief, disability, or marital and childbearing status. In 2023, the number of female employees in the company increased by 57.52%. Women accounted for 17.50% of middle management, an increase of 9.65% year-over-year, and 11.90% of senior management, a rise of 13.01% year-over-year. The number of minority employees was 88, an increase of 58 from the previous reporting period.

The company provides relevant training to enhance employees' awareness of anti-discrimination, anti-harassment, and diversity issues. It has established multiple reporting and appeal channels to encourage employees to report improper behavior. During the reporting period, the company received no employee complaints about discrimination, harassment, or human rights issues.

Part 3: Environment

GCL SI aligns with the Paris Agreement and the Task Force on Climate-related Financial Disclosures (TCFD) framework, taking multiple measures in energy management, water resource management, biodiversity protection, circular economy, and waste management to reduce the negative environmental impacts of production and operations. In 2023, GCL SI updated its " Business Partners Code of Conduct," including critical principles that require business partners to adhere to environmental standards, minimize resource consumption and environmental impact, and make specific efforts in reducing emissions, minimizing waste and water usage, and implementing sustainable resource recycling and management.

During the reporting period, GCL SI's factories achieved ISO 14001 Environmental Management System certification and ISO 50001 Energy Management System certification. We invested 51.07 million yuan in environmental protection, used 41.1294 million kilowatt-hours of renewable energy, with an electricity consumption per unit of production of 25.38 MWh/MW, greenhouse gas emissions per unit of production of 13.53 tons of CO2 equivalent/MW, and water consumption per unit of production of 88.35 tons/MW. The general waste recycling rate reached 99.93%. During the reporting period, GCL SI did not incur any penalties due to environmental issues.

Part 4: Anti-Corruption

GCL SI firmly opposes corruption and is dedicated to creating an honest, fair, and transparent business environment. During the reporting period, the company formulated and publicly released its "Anti-Corruption Policy." It strictly adheres to relevant laws and regulations, conducts regular anti-corruption audits, and collaborates with customers and other stakeholders to build a clean market environment.

The company established the "Anti-Fraud and Whistleblowing Management Standards" in internal management, clearly defining management regulations for corruption, bribery, unfair competition, and conflicts of interest. The company also conducts regular anti-corruption training for directors and all employees. In external cooperation, the company and its suppliers signed the "Anti-Commercial Bribery and Integrity Agreement," resolutely preventing corruption in procurement, bidding, and tendering processes.

In 2023, all GCL SI directors and employees participated in 26 anti-corruption training sessions, achieving a 100% coverage rate. The company or its employees did not face corruption lawsuits during the reporting period.

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