Pylontech, the world’s leading lithium battery ESS provider has released its 2021 Environmental, Social and Governance(ESG) Report, an annual report that describes Pylontech’s methods and performance of environment, society and governance in 2021.

“In 2021, Pylontech comprehensively strengthened ESG management, conducted carbon inspections for the entire Company through a third-party professional institution, and released an ESG report to the public for the first time,” said Tan Wen, President, Pylontech. “2021 was the first year of the successful IPO of Pylontech, we hope that through the strengths and advantages of our own energy storage business, benefiting from ‘carbon peaking and carbon neutrality goals’, we will create more value for shareholders, customers, employees, suppliers, communities and other stakeholders with a sincere heart.”

Among the many ESG initiatives this report covers, key highlights from the past year include:

Given our vision and role in BESS industry around the world, Pylontech has an important role to play in achieving the UN Sustainable Development Goals (SDGs). We have identified the SDGs which we can have the greatest impact and conducted comprehensive materiality assessments to identify our most relevant (or “material”) reporting topics from an ESG perspective. Meanwhile, we set stakeholder engagement mechanism to collect and respond to their demands and expectations to be a trusted partner to our clients.

√ Empowerment of Stable Governance

A standardized and orderly governance structure is the foundation at Pylontech. Our corporate governance structure, work procedure and policies ensure sustainable and stable business practices.

√ Innovation

Innovation also is a booster for company’s sustainable development. We master the core technology of the whole industry chain from cell to system integration, and put considerable investment in cutting-edge technology to ensure and improve our technology competiveness. Besides, we proactively to participate in national and industrial standards and research projects to boost the development of the industry. Data of R&D investment and the new technology and projects under research have been disclosed in the report.

√ Product and Service Assurance

Product quality assurance is a key point to provide a sustainable and satisfactory services and products to our clients. We have been accredited by authorized QMS certification and conducted standardized customer satisfaction procedures with the idea that product life cycle always comes first in quality management.

√ Sustainable Supply Chain

Sustainable procurement policy and practices ensure the sustainable and controllable supply chain. We conducted Supplier QESH System Audit, supplier access assessment mechanism and set supplier audit checklist internally and conduct corresponding audits on all suppliers externally to ensure their policy and practice aligned with the domestic and oversea regulations.

√ Green Development Strategy for Low Carbon

Pylontech delivers clean products and services to contribute to a sustainable carbon-free future across the global.

Green manufacturing: The company has formulated an effective environmental and energy consumption management system and built a structured operating mechanism for monitoring and treatment of wastewater, waste gas, hazardous waste and general industrial solid waste generated in the production and operation process in accordance with national and regional emission standards.

Green logistics and transportation: Pylontech encourages localized procurement on the basis of ensuring the efficiency of production, and reduces the cost and possible negative environmental impact in the process of transportation and logistics.

√ People-oriented Practices

The basic rights and interests of employees always is our main concerns. We cherish and practice “people-oriented” cultural atmosphere by employments entitlement such as providing equal opportunity and diversity, promoting democratic governance and providing comprehensive welfare guarantees for all employees.

√ Corporate Social Responsibility

We actively take social responsibilities, participates in public welfare and charity, and contributes to building a better society. At the same time, we will also actively encourage employees to participate in the volunteer team, and will give back to the society through various ways in the future, so that more people feel the warm heart of Pylontech.

The Report complies with the requirements of the "core" scheme of Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) and is prepared regarding the Guidelines for Environmental Information Disclosure by Listed Companies of Shanghai Stock Exchange and with reference to the United Nations Sustainable Development Goals (UN SDGs 2030).

Link to download report:

http://static.sse.com.cn/disclosure/listedinfo/announcement/c/new/2022-04-08/688063_20220408_8_beXW59ti.pdf