HY SOLAR "2022 ESG Report"

Recently, HY SOLAR released "2022 ESG Report", which is the first ESG report disclosed by HY SOLAR. The report details the management methods and practical achievements of the Company in the environment, society and governance in 2022, shares the achievements of the Company in deep cultivation of main business, green development, leading innovation, caring for employees and public welfare activities, and expresses the Company’s vision and development direction on the road of sustainable development.

The report is in accordance with the internationally accepted ESG disclosure standards, "Global Reporting Initiative (GRI) Sustainability Report Standard 2021", "United Nations Sustainable Development Goals (UN SDGS)", "United Nations Global Compact (UNGC) Ten Principles", and has passed the independent authentication of TüV SüD. Through industry benchmarking analysis and stakeholder survey, the report prioritizes the issues in accordance with the three principles of inclusiveness, materiality and responsiveness of AA1000 SES, and takes high and medium substantive issues as the focus of disclosure.

During the reporting period, HY SOLAR introduced green and low carbon into the core development strategy of the enterprise: in 2022, the company carried out environmental management in accordance with ISO 14001 standards and invested over 84 million yuan in environmental protection funds; through energy-saving and consumption-reducing technological innovation, CO2 emissions were reduced by more than 40 million tons throughout the year; the whole series of silicon wafer products have passed the French ECS carbon footprint certification. covering the whole life cycle, and the certification data ranks among the top in the world; After obtaining the national green factory in 2021, In 2022, the company was selected into the list of enterprises with “standard conditions for photovoltaic manufacturing industry” in China. It has been recognized at the national level in terms of process technology, comprehensive utilization of resources and energy consumption, intelligent manufacturing and green manufacturing, and environmental protection.

At the same time, HY SOLAR focuses on the field of clean energy, continues to lay out the whole N-type photovoltaic industry chain, and has built a green energy ecosystem covering high-end intelligent equipment manufacturing, industrial silicon and polycrystalline silicon materials, monocrystalline silicon wafers, solar cells, photovoltaic modules and other sectors, realizing the ecological closed loop from the upper, middle and lower reaches and growing into a competitive third-party supplier of N-type photovoltaic products.

Focus on scientific?and technological innovation and?enable the industrial development

HY SOLAR adheres to empowering “HY Power” with scientific and technological innovation, and its R&D investment has been increasing year by year. In 2022, the investment exceeds 974 million yuan, with a year-on-year growth of 152%. Relying on its technical strength, it continuously proposes smarter and cleaner green energy solutions, and was selected into Forbes 2022 Top 50 Innovative Enterprises in China.

In the monocrystalline silicon business sector, the technology and production process are linked to continuously improve the crystal pulling rate and the unit yield level, and meet the large-size and diversified trend of the silicon wafer market. In the high-end equipment business sector, the silicon carbide cutting equipment independently researched and developed by the company has the competitive advantage of domestic substitution. At the same time, the company grasps the opportunity of technical transformation of silicon battery, and utilizes its own experience and advantages in N-type silicon wafers to lay out TOPCon's high-efficiency battery production capacity. . At present, the mass production efficiency has exceeded 25.6%, laying a solid foundation for the excellent performance of downstream HY SOLAR HT series components.

In addition, HY SOLAR can attach importance to the cooperation of industry, education and research, extends the talent construction, strengthens the scientific and technological cooperation with scientific research institutions, jointly tackles technical problems, speeds up the transformation of scientific and technological achievements, and opens up the “last mile” of the cooperation between industry, education and research.

Polish the ecological background and embrace a zero-carbon future

HY SOLAR actively responds to the national "carbon peaking and carbon neutrality" strategy, introduces the green and low-carbon sustainable development concept into the core development strategy of the enterprise, and integrates it into the life management cycle of the industrial chain products, so as to minimize the non-renewable resources and energy consumption, attach importance to the compliance management of wastes and emissions, and promote energy conservation and emission reduction.

During the reporting period, a total of 84.08 million yuan was invested in environmental protection funds, which reduced carbon dioxide emissions by 40,412,398 tons. The subsidiary HY SOLAR New Materials has passed the ISO 50001 system certification and actively carried out energy-saving and consumption-reducing technological innovation projects, such as the adoption of high-efficiency reduction furnaces and the development of new water quenching process, which saved 1,220.5 kWh of electricity; the waste water recycling project in the slicing workshop can save 715,700 tons of water every year, and continuously strengthen the treatment and control of waste gas, wastewater and waste. At the same time, we regularly hold energy-saving week activities to guide all employees of enterprises to pay attention to energy conservation and consumption reduction, improve energy utilization efficiency, and promote green and low-carbon development of enterprises.

Photovoltaic power generation is known as the "industry embracing the sun and the future". In 2022, the shipment volume of monocrystalline silicon wafers of HY SOLAR exceeded 31.18 GW, which is estimated to be equivalent to saving about 5,754.300 kilo tonnes of standard coal and avoiding 26.67 million tonnes of carbon dioxide greenhouse gas emissions.

Understand social values and build a better world together

Based on long-term development and working with all parties to solve deeper problems for the society, it is an important embodiment of HY SOLAR's strategy of creating and exploring social value and positioning sustainable development.

In terms of talent construction, HY SOLAR advocates the value concept of common development with employees. Through talent cultivation plans, enriching cultural activities, unblocked communication channels and so on, various measures shall be taken to build a perfect, equal, diverse and inclusive working environment. At the same time, it pays attention to the occupational health and safety of the employees, and provides the employees with a good learning atmosphere and easy-to-obtain learning opportunities through diversified training modes, so as to comprehensively improve the happiness index of the employees.

In terms of social responsibility, HY SOLAR firmly devotes itself to social public welfare undertakings, actively participates in public welfare donations and sponsor-ships, vigorously promotes volunteerism, and actively mobilizes employees to participate in volunteer services. In 2022, a cumulative donation of 13.17 million yuan was made, with 529 volunteer hours and 3,634 participants. The Company continues to carry out targeted assistance and counterpart assistance, etc. to fully promote the rural revitalization, pay attention to social needs, continue to convey warmth and contribute to the construction of a harmonious society.

In terms of supply chain, HY SOLAR standardizes the supplier access and daily management by formulating the "Questionnaire for Newly Introduced Suppliers" and the "Supplier Management Procedures", and regularly carries out supplier performance evaluation and training to integrate the concept of sustainable development into the supply chain management to promote the construction of a green supply chain and guide the sustainable development of industry ecology. At the same time, the company encourages localized procurement, improves the security of the supply chain, reduces the transportation cost of logistics, and reduces the possible negative impact on the environment. Finally, the extension of the industrial chain also drives the local economic development and promotes local employment.

Relying on the mission and vision of the enterprise, HY SOLAR has formulated relevant strategies and plans for sustainable development and implemented a series of measures in practice. The release of the first ESG report is not only a summary of the past year, but also represents the higher pursuit of sustainable development by HY SOLAR.

In the face of the global "carbon neutrality" tide, HY SOLAR will continue to strive for sustainable development, contribute a solid force to building a zero-carbon world and contribute to global green and low-carbon sustainable development.