2024 Environmental Social and Governance Report
Introduction
Compliance
Governance
Upholding
Integrity and
Sincerity
Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
12024 Environmental Social and Governance Report
Introduction
Compliance
Governance
Upholding
Integrity and
Sincerity
Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
22024 Environmental Social and Governance Report
Introduction
Introduction
Overview
Compliance
Governance
Upholding
This is the second Environmental Social and Governance Report published by Gree Integrity and
Electric Appliances Inc. of Zhuhai. The Report mainly discloses the Company’s efforts to References Sincerity
actively respond to the opportunities and challenges of sustainable development and create
comprehensive economic social and environmental value for its stakeholders. This Report has been prepared with reference to the “GRI Standards” issued by the
Global Sustainability Standards Board (GSSB) the Sustainable Development Goals
(SDGs) of the United Nations the Guidelines No.3 of the Shenzhen Stock Exchange
for the Self-Regulation of Listed Companies - Preparation of Sustainability Reports and Innovation-Driven
addressed the concerns of MSCI. Quality-Base
Scope Development
Unless otherwise indicated the scope of organization of this Report covers Gree Electric
Appliances Inc. of Zhuhai and its branches. Data
People-
The qualitative and quantitative information used in this Report comes from publicly Centered Approach
available information internal documents and relevant statistics of Gree Electric Creating Value
Time Period and the disclosure scope is consistent with the scope of the consolidated financial for Society
statements. Other contents that differ from this scope will be explained in the Report.Unless otherwise stated all amounts mentioned hereunder shall be denominated in
The Report covers the period from January 1 2024 to December 31 2024. To enhance the CNY.completeness of the Report some content may be beyond the above time period.Green
Development
Leading with
Low Carbon
Executive Summary Acquisition
For ease of expression “Gree Electric Appliances Inc. of Zhuhai” is referred to as “Gree This electronic version of this Report can be accessed on the Company website (http://Electric” “GREE” “the Company” or “we” in this Report. www.gree.com.cn) Shenzhen Stock Exchange website (http://www.szse.cn) and ConclusionCNINFO (www.cninfo.com.cn).
32024 Environmental Social and Governance Report
A Message from Management
Introduction
In this era of transformation and opportunity Gree Electric reached “internationally leading” levels. Among these the “120℃ + of shared interests and joint risks between shareholders theaims to “Build a World Class Company and GREE into a Industrial Large-capacity Efficient High-temperature Centrifugal management team middle-level cadres and key employees. TheCentury-old Brand” as its vision using innovation as the Heat Pump” and “COP7.0+ Two-stage Permanent-magnet Company also enhances employee satisfaction and happinesspen and quality as the ink to write a new chapter for Chinese Inverter Screw Chiller Technology and Application” demonstrated by offering support measures such as talent subsidies housing Compliance
manufacturing. Over the past year through relentless significant energy-saving effects contributing to low-carbon assistance and policy-based public school placements ensuring Governance
innovation efforts the Company achieved a total revenue of energy development and industrial carbon neutrality and to the that employees can share in the Company’s development Upholding Integrity and
CNY190.038 billion and a net profit attributable to the parent national energy conservation and emissions reduction strategy. dividends. Sinceritycompany of CNY32.185 billion with earnings per share of The “Research and Application of Key Technologies for Low-CNY5.83. The Company has accumulated 46 “world-leading” carbon Dynamic Operation of Inverter Air Conditioners” improved Green transformation demonstrating responsibility of the
technologies and filed 129524 patents making it the only the dynamic energy efficiency of air conditioners by more than era. The Company’s globally pioneering “zero-carbon source” PV
home appliance company to be ranked in the top ten for 15.8% with annual electricity consumption reduced by more than energy-storage AC system provides a Chinese solution for global
the number of Chinese invention patents granted for nine 13.6%. In addition the GMV9 Zhiyue VRF Unit pioneered indoor carbon neutrality. This innovative technology has been deployed Innovation-
consecutive years. These achievements are the result of our unit dynamic monitoring technology. Through real-time power in 35 countries and regions worldwide achieving a reduction of Driven Quality-Base
unwavering commitment to high-quality development and the measurement and intelligent allocation the unit has achieved a 115000 tons of carbon emissions annually. In 2024 the system Development
gradual culmination of technical innovations. comprehensive energy-saving rate exceeding 25% for commercial won the “Terawatt Diamond Award” and the “Excellence Awardspaces redefining the energy efficiency standards of central AC for Energy Storage Applications” at the SNEC 17th International
Strong governance as the foundation for growth. In 2024 we systems. The reversible air supply central AC system which does Photovoltaic Power Generation and Smart Energy (Shanghai)
continuously enhanced our corporate governance and held two not blow air directly onto people provides a significant advantage Conference. The Company has established six major recycling
sessions of General Meetings of Shareholders with all proposals over traditional side air supply units. It can achieve non-direct resource bases creating a circular development model of
being approved; eight meetings of the Board of Directors and six cold air flow during cooling and a 53% faster temperature rise “green design - green manufacturing - green recycling”. This
People-
Centered
meetings of the Board of Supervisors with 100% attendance by during heating with more even vertical temperature distribution model effectively realizes the resource utilization of electronic Approach resulting in a 42.7% energy-saving effect. Gree Electric continues waste and sets a benchmark for sustainable development in the Creating Value directors and supervisors. For consecutive years the Company for Society
has been awarded an A-level evaluation for information disclosure to contribute to sustainable social development through constant industry. In addition the Company is committed to building an
by the Shenzhen Stock Exchange reflecting the compliance and technological innovation. efficient energy-saving and environmentally friendly supply chain
efficiency of our operations. Additionally the Company places great system actively promoting green manufacturing and sustainable
importance on investor communication and shareholder returns. Talent pool breeding core value. The Company has always placed development. As of the end of the reporting period five of the
Through performance briefings the Shenzhen Stock Exchange’s talent development as a top priority. Through a comprehensive Company’s subsidiaries were included in the Ministry of Industry
“Easy Interaction” platform investor hotlines and other channels talent introduction training and incentive mechanism it has and Information Technology’s List of Green Manufacturing and
Green
Development
we have conducted effective communication with our investors. attracted and retained massive outstanding professionals. In Green Supply Chain Management Enterprises including GREE
Leading with
2024 the Company recruited over 6000 graduates reflecting its (Shijiazhuang) Small Home Appliances Co. Ltd GREE Changsha Low CarbonDuring the reporting period the Company distributed a total cash
dividend of CNY16.755 billion demonstrating our commitment to responsiveness to societal needs and more importantly its strong HVAC Equipment Co. Ltd and GREE (Zhongshan) Small Home
rewarding shareholders and promoting the healthy development of desire to nurture young talent. In 2024 the total training hours Appliances Co. Ltd. This effort contributes positively to the
the capital markets. for all employees reached 1.18 million hours with the average development of a green supply chain system.training time per employee exceeding 50 hours. This commitment
Technological innovation driving high-quality development. to continuous learning enhances the professional skills and Looking ahead Gree Electric will remain committed to its mission Conclusion
With the mission of “Made in China Loved by the World” Gree overall competencies of employees. Furthermore the Company of “Made in China Loved by the World” adhering to innovation-
Electric insists on independent R&D driving breakthroughs in core implemented the third phase of its Employee Stock Ownership Plan driven and green development principles and continue to enhance
technologies and product innovations to create a better life for (ESOP) in 2024 bringing the total number of employees benefiting its core competitiveness and sustainability capabilities.people. In 2024 the Company achieved six R&D outcomes that from this incentive to 12824. This plan strengthens the mechanism
42024 Environmental Social and Governance Report
About Gree Electric
Gree Electric Appliances Inc. of Zhuhai was established Technology Research Center one National Industrial Design its strong capabilities and influence in product quality management. Introduction
in 1991 and listed on the Shenzhen Stock Exchange in Center one National Enterprise Technology Center and one Additionally Gree Electric actively participates in the formulation of
November 1996. The Company has now evolved into a Robotics Engineering Technology R&D Center. Additionally the national standards to promote the improvement of industry quality
diversified and technologically oriented global industrial Company has been designated as a research and evaluation levels.group with three major consumer brands: GREE TOSOT base for refrigeration equipment by the National Notification and
and Kinghome as well as industrial brands such as Landa Enquiry Center as well as a national standard verification point With respect to transformation and upgrading Gree Electric
Kaibang and Xinyuan. Its industries span household for energy-efficient refrigeration equipment. As of the end of the vigorously promoting smart manufacturing. By driving
Compliance
Governance
consumer goods and industrial equipment. For the reporting period Gree Electric has received 2 National Science and digitalization the Company aims to improve efficiency create Upholding
consumer sector this includes products such as residential Integrity and Technology Progress Awards and a total of 122 major awards at value and enhance business objectives. It has developed a lean Sincerityair conditioners heating ventilation and air conditioning
(HVAC) systems refrigerators washing machines water national provincial and industrial levels. It holds 46 “world-leading”
smart manufacturing system centered around dual effectiveness
facilitating the system optimization and overall upgrade of the
heaters kitchen appliances environmental appliances technologies and has applied for 129524 patents including
70844 invention patient applications.with 25883 invention patents full product lifecycle production processes and all supply chain and smart buildings and smart-home. For the industrial
sector the Company’s industrial offerings cover high- granted. It is the only home appliance company to have ranked in links thus advancing the Company’s transformation into smart Innovation-
end equipment precision molds refrigeration and cold the top 10 in China for invention patent grants for nine consecutive manufacturing. Through the integration of information systems Driven
storage equipment motors compressors capacitors years. The Company has received 81 China Patent Awards platforms the Company enhances flexible automation capabilities Quality-Base
semiconductor devices precision casting basic materials including 3 Gold Awards for Invention 4 China Appearance Design optimizes production operations and improves management
Development
industrial energy storage and renewable resources with Gold Awards 15 Geneva International Exhibition of Inventions Gold efficiency. During the reporting period the Company’s project onproducts served for a total of over 600 million customers Awards and 12 Nuremberg International Exhibition of Inventions “Building and Implementing a Lean Smart Manufacturing Systemand sold in over 190 countries and regions. Gold Awards. In addition the Company is among the batch of for Large Home Appliance Enterprise Groups” was awarded first
national demonstration units for intellectual property in enterprises place in the 31st National Enterprise Management Modernization
In terms of industrial layout Gree Electric promotes the and institutions and a “National Patent Operation Pilot Enterprise”. Innovation Achievement Award. Additionally its Jinwan Factory was People-
coordination of multiple industries. It has established 77 It has also won the China Trademark Gold Award. The Company’s selected as one of the first “Outstanding Smart Factories” by the Centered
production bases across provinces and cities such as Guangdong patent quantity and quality have steadily increased fully Ministry of Industry and Information Technology of China.Approach
Creating Value
Chongqing and Anhui as well as in countries including Brazil showcasing Gree Electric’s inventive capabilities and internationally for Societycovering air conditioning home appliance and industrial products. leading R&D strength. GREE will continue to uphold the corporate vision of “Build aIn addition the Company has also set up six recycling facilities World Class Company and GREE into a Century-old Brand” and
covering the entire industrial chain from upstream production Regarding quality management Gree Electric has set an always adhere to the guidance of Xi Jinping Thought on Socialism
to downstream recycling achieving a green recycling and industry benchmark for quality. It adheres to the principle of with Chinese Characteristics for a New Era remains true to its
sustainable development model. honest operation customer-oriented approach and strict control original aspiration keeps its mission firmly in mind sticks to the Green Development
over quality and system construction maintaining a leading position real economy and follows the path of self-reliance and innovation. Leading with
Low Carbon
About innovation Gree Electric focuses on strengthening in the industry in terms of quality. This commitment to quality has Through innovation responsibility and green development it aims
its R&D capabilities. It has set up 16 R&D centers 152 research earned the Company a good reputation in the market winning to contribute to the progress of human society becoming a brand
institutions 1411 laboratories and an academician workstation (for the third “China Quality Award” in 2018 and the “National Quality trusted by global consumers and working together to create amotors and control). It is equipped with one National Engineering Award” and “National Quality Benchmark” honors demonstrating brighter future.Conclusion
52024 Environmental Social and Governance Report
Corporate Culture
Introduction
Vision Business Service Core Mission Philosophy Philosophy Values
Compliance
Build a World Class Carry forward the industrial spirit An enterprise without innovation is the Your Satisfaction is Our Less empty talk more practical Governance Upholding
Company and GREE into a master core technology; one that without soul; Top Priority. work quality first customer Integrity and
Century-old Brand. Pursue perfect quality provide An enterprise without core technology satisfaction loyalty and friendly
Sincerity
first-class service; is the one that without spine; diligent enterprising honest
management multi-win-winStrive for “Made in China Loved An enterprise without high-end dedication pioneering andby the World”. products is one without a future. innovative law-abiding honest.Innovation-
Driven
Quality-Base
Development
Brand Development Journey
People-
Centered
01 1991: Brand 1.0 03 2010: Brand 3.0 05 2015: Brand 5.0 Approach Creating Value
for Society
Brand slogan: “GREE Creates Much Sales Chance” Brand slogan: “GREE the Master of Core Technologies” Brand slogan: “Made in China Loved by the World”
Brand positioning: Turbo Cooling Brand positioning: Leading in Science and Technology Brand positioning: Serve the WorldBrand development strategy: Initially establish a Brand development strategy: Transfer from “Made in Brand development strategy: Reshape the image ofhigh-quality image of GREE air conditioners and China” to “Created in China” “Made in China” to introduce Chinese independent brands Green
create core advantages of product to the world Development Leading with
Low Carbon
02 1997: Brand 2.0 04 2013: Brand 4.0 Category slogan: GREE Making Better Electric Appliances (2022)
Brand slogan: “GREE Making Better Air Conditioners” Brand slogan: “For the Clearer Sky and Greener Earth” Category positioning: Changing from single air
Brand positioning: Quality Takes Priority Brand positioning: Undertake Responsibility
conditioner to fullspace health appliances in the consumer
category
Brand development strategy: Conclusion “Excellent strategy” Brand development strategy: Shoulder the
of producing excellent products and creating famous responsibility of environmental protection and green
Category development strategy: Demonstrate GREE’s
development technological innovation strength and diversified industrial brands layout in the field of household appliances
62024 Environmental Social and Governance Report
Performance Highlights in 2024
Introduction
Economic performance Corporate governance Corporate Behavior
Total operating revenue Net profit attributable to the Attendance rate of board Percentage of female Coverage of business ethics training for
parent company members directors employees Compliance Governance
CNY190.038 Upholding billion CNY 32.185 Integrity and billion 100% 22.22% 100% Sincerity
Total cash dividends (tax Cash dividend of Percentage of independent Number of signed Integrity Commitment
inclusive) directors Letter
Innovation-
16.755 billion CNY 30 per 10 shares 44.44% 10332
Driven
copies Quality-Base
CNY Development
Innovation R&D Supply chain management Product quality
People-
Centered
Approach
Percentage of R&D representing a year-on-year
652 Successfully completed
Creating Value
expenses in revenue growth of Conducted conflict minerals investigations with 0 major safety and quality for Society
3.77% 1.9% suppliers; traced 360 refining plants and smelting 249 quality improvement responsibility accidents related to product services
plants with over 40% obtaining RMAP certification projects
Green
Total patents filed including invention patents Development Leading with
Low Carbon
129524 70844 Customer service
Total China Parent Awards received: Customer feedback response Customer satisfaction reached Over Conclusion
rate reached
81 99.99% 99.88% 15000 authorized after-sales service outlets
72024 Environmental Social and Governance Report
Employee management Environmental management Resource utilization
Introduction
Total number of employees Collective bargaining Total environmental protection investment Total number of energy- saving
agreement coverage saving technological
72808 100% CNY134.794 million renovation projects 58.344 million 392 kWh of electricity Compliance
Governance
UpholdingNo No Including energy-saving technology Integrity and Sincerityrenovation investment Total number of products awarded the national “Greenstrikes or lock-outs occurred major layoffs occurredCNY45.808 million Design Product” title
61
Innovation-
Listed in Number of emergency response drills for
Driven
Quality-Base
environmental incidents Total photovoltaic installed newly installed photovoltaic Development
2024 Forbes World's Best Employers 197 capacity capacity in 2024121.3 MW 56.9 MW
Employee health checkup coverage 100% Total number of green factory certifications 20 People-
10 Photovoltaic power accounting for
Centered
including national-level green factory certifications Approach generation 5.6% Creating Value 6 of the Group’s for Societyprovincial-level green factory certifications and Non-compensation benefits 4 96.85 million kWh total electricity consumption
all employees municipal-level green factory certificationscoverage for
Green
Development
Leading with
Talent training E-waste management Low Carbon
Total employee training Average training hours per Number of discarded electrical and converted into recycled materials Total number of electrical and electronic
hours nearly employee electronic products recycled and processed (copper iron aluminum plastics) products processed
1.18 50 Conclusionmillion hours over hours 8.13 million units/sets 157600 tons 64.77million units/sets
82024 Environmental Social and Governance Report
Honors and Awards
Introduction
Innovation Awards
Compliance
Governance
2024 Geneva International Exhibition 2024 Nuremberg International Exhibition First Prize of 2023 Guangdong Science Upholding
of Inventions Gold Award of Inventions Gold Award in Germany and Technology Progress Award Integrity and Sincerity
World Intellectual Property Organization Organizing Committee of Nuremberg International Guangdong Provincial People’s Government
Swiss federal government Exhibition of Inventions in Germany
Innovation-
Driven
Quality-Base
Development
2024 First Prize of Technology
Progress Award of China National Gold Award at 2024 Canton Fair
Light Industry Council AWE 2024 Gold Award Design Award (CF Award)
People-
China National Light Industry Council Organizing Committee of Appliance & Centered CF Award Office Approach
Electronics World Expo Creating Value for Society
SNEC 17th International Photovoltaic Power Green
SNEC 17th International Photovoltaic Power Development Generation and Smart Energy Conference Leading with
2024 Model Enterprise for Green Generation and Smart Energy Conference & & Exhibition “Energy Storage Application Low CarbonTechnology Innovation Exhibition “Terawatt Diamond Award” Excellence Award”
Patent Protection Association of China Expert Committee of SNEC Photovoltaic SNEC 17th (2024) International
Power Conference & Exhibition Photovoltaic Power Generation and
Smart Energy (Shanghai) Conference & Conclusion
Exhibition
92024 Environmental Social and Governance Report
Introduction
Brand Awards
th Market Quality Credit Rating Certificate User Satisfaction Benchmark Compliance 2024 Forbes Global 2000——the 334 Governance AAA Level Five-Star Rating Upholding
Integrity and
Sincerity
Forbes China Association for Quality China Association for Quality
Innovation-
Driven
Quality-Base
Development
2024 Household Appliance IndustryIndustry User Satisfaction Index: “GREE 2024 World Internet of Things 500 2024 Top 500 Private EnterprisesstHousehold Air Conditioners Ranked First” List (Gold)——the 46th in China——the 31
China Association for Quality User Committee Organizing Committee of the World Internet All-China Federation of Industry and People-
of Things Convention Commerce Centered Approach
Creating Value
for Society
Guangdong Province Standardization
Outstanding Contribution Award 2024 Top 100 Chinese Overseas Green
Standardization Organization Award Brands Index 2024 People’s Craftsman Brand Development Leading with
Low Carbon
Guangdong Provincial Department of Human People's Daily Overseas Network GYBrand People’s Daily Online (people.cn)
Resources and Social Security Guangdong Global Brand Research Institute
Provincial Market Supervision Administration
Conclusion
102024 Environmental Social and Governance Report
Focus on Sustainable Development
Introduction
Stakeholder Identification and Communication
Gree Electric actively carries out communication with various stakeholders collects the requirements and expectations of stakeholders through various channels and realizes common development with them.Compliance
Governance
Upholding
Integrity and
Sincerity
Major
stakeholder
Government department
and regulatory authority Shareholder and investor
Customer Partner Employee Society and the public
Innovation-
Law-biding and compliant Law-biding and compliant Customer management Adherence to business Occupational health and Responding to national Driven
operation operation Product quality and safety ethics safety strategies Quality-Base
Transparent disclosure Intellectual property Accessibility of products and Industry exchange and Occupational training and Practicing social Development
Improving corporate protection services development development responsibility
Key issue governance Transparent disclosure Supply chain management Protection of employees’ Adherence to business Risk management rights and interests
ethics Improving corporate Employee communication
Addressing climate change governance and democratic
Adherence to business management
ethics Employee care People-Centered
Technological innovation Diversity and equal Approach
opportunity Creating Value for Society
Inspection by leaders and General meeting of Customer satisfaction Selection assessment Training and induction E-mail
competent authorities shareholders survey Procurement process training Tel
Compliance patrols and Investor exchange meetings E-mail and daily phone Performance evaluation E-mail and suggestion box Company announcement Green
inspections Online performance briefing communication Regular communication Regular meeting Social network platform Development
Regular meetings with local Shenzhen stock exchange Customer e-mail with business partners (e.g. Employee performance Company website Leading with Low Carbon
government representatives easy interaction Q&A Responding to customer e-mails meetings) evaluation Social media
Forums conferences and Investor hotline complaints Employee activities Charitable donations and
Communication seminars Company research Customer visits voluntary services
and channels Daily policy implementation Telephone consultation Community activities
Carrying out carbon E-mail
footprint verification energy Regular reports and
conservation and emission information disclosure on Conclusion
reduction official website
Developing clean energy
112024 Environmental Social and Governance Report
Material Issues Assessment GREE’s Matrix of Material Issues in 2024
During this reporting period we orderly carried out the research on material issues based on Introductionthe process of “stakeholder communication - issue identification - issue evaluation - materiality 13confirmation” to effectively response to the expectations and demands of various stakeholders
continuously improving the level of ESG management. 1 16
7
23 9 12 Compliance
3 Governance
Upholding
We maintained regular communication with investors customers Integrity and
government agencies and employees among other stakeholders. 2 Sincerity
Stakeholder 20We recorded the issues and specific content of different 18
communication stakeholders’ concerns and responded to their demands. 25 22 4
19156
5 8 10 Innovation-
24 Driven
17 Quality-Base Based on the Guidelines No.3 of the Shenzhen Stock Exchange Development14 11
for the Self-Regulation of Listed Companies - Preparation of 26
Sustainability Reports the United Nations’ 17 Sustainable
Development Goals (SDGs) “GRI Standards” mainstream ESG 21
Issue ratings national policies industry benchmarking and the results
identification of stakeholder communications we identified 26 issues highly
relevant to the Company. Low Importance to internal stakeholders High People-Centered
Approach
Creating Value
for Society
Governance Social Environment
In 2024 we conducted interviews with nearly 30 internal
departments on environmental social and corporate governance
Issue issues listening extensively to their opinions and feedback. 1 Law-abiding and 7 Occupational health and 14 Intellectual property 20 Energy usage
evaluation compliant operation safety protection Green
8 Career training and 15 Data security and 21 Water resource
Development
2 Improving corporate utilization Leading with
governance development customer privacy Low Carbonprotection
9 Protection of employees’ 22 Waste disposal
Based on the survey results from stakeholders we created a 3 Transparent disclosure rights and interests 16 Innovation-driven development 23 Addressing
material issue analysis matrix to identify the significant issues 4 Risk management 10 Employee communication and 17 Supply chain climate change
matrix for the year and the disclosure highlights for this Report. democratic management management 24 Environmental
Combining the Company’s development strategy interview 5 Protecting investor’s rights and interests 11
Materiality Employee care Rural revitalization and
compliance
18 management Conclusion
communications external inquiries and industry trends the contribution to society
confirmation 6 Business ethics and 12 Optimization of customer 25service Conflict minerals Circular economymanagement confirmed the material issues. anti-corruption 19 management
13 Safety and quality of 26 Pollutant
products and services emissions
12
High Importance to external stakeholders2024 Environmental Social and Governance Report
Introduction
Compliance
Governance
Upholding
Integrity and
Sincerity
Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
132024 Environmental Social and Governance Report
Solidifying Corporate Governance
Introduction
The Company strictly adheres to the requirements of laws and regulations such as the
Company Law of the People’s Republic of China the Securities Law of the People’s Republic of
China and the Stock Listing Rules of the Shenzhen Stock Exchange. It standardizes company
operations continuously improves its corporate governance structure and fully utilizes the roles
of the General Meeting of Shareholders Board of Directors and Board of Supervisors in major is the highest governing body of the Company responsible
decision-making business management and supervision to ensure the Company’s compliance General Compliance Meeting of for electing the members of the Board of Directors and the Governance and proper operation. Shareholders Board of Supervisors as well as hearing reports on the work
Upholding
Integrity and
of both boards. Sincerity
Corporate Governance Structure Diagram
is responsible for the Company’s overall strategic decision-
making and supervising the Business Management. It Innovation-
General Meeting of Shareholders Board of has several specialized committees including the Audit
Driven
Directors Committee the Remuneration and Evaluation Committee
Quality-Base
Development
and the Nomination Committee which are responsible
Elect Report Elect Report for financial audits compensation management and the
nomination of directors and senior executives respectively.Board of Directors
Formulate Supervise
Establish Report People-is responsible for overseeing the performance of the Board of Centered Approach
Directors and the Business Management to ensure that the Creating Value
Special Committee of Board of Company operates in compliance with laws regulations and for Society
the Board of Directors Supervisors the Company’s articles of association. It is also responsible
Audit Committee for reviewing the Company’s financial reports and internal control systems as well as preventing potential risks.Remuneration and Green
Evaluation Committee Development
Leading with
Nomination Committee Low Carbonis responsible for the Company’s daily operations and
Business for implementing the strategies and policies set by the
Supervise and Guide Report Management Board of Directors. It is also tasked with developing
Implement Supervise internal management systems and methods to ensure the
Company’s operations are standardized and efficient.Business Management Conclusion
14
Board of Supervisors
Report
Appoint Supervise Guide
Formulate Internal Management Systems
and Management Methods2024 Environmental Social and Governance Report
Governance through the General Meeting of
Shareholders Board of Directors and Board of
Introduction
Supervisors
The Company’s directors supervisors and senior management strictly comply with
regulatory requirements and regularly participate in compliance training organized by
regulatory authorities the Shenzhen Stock Exchange and the Company itself. This Compliance
ensures zero violations and zero errors in key areas such as major decision-making Governance
Upholding
information disclosure and related-party transactions. The management team leads Integrity and
by example integrating compliance integrity and business ethics into the corporate Sincerity
culture establishing a strong model for corporate governance.During the reporting period the procedures for convening and holding meetings
of the Board of Directors and the Board of Supervisors strictly adhered to the
provisions of the Company Law of the People’s Republic of China and the Articles of Innovation-Driven
Association. The attendance rate of all incumbent directors and supervisors at board Quality-Base
meetings and board of supervisors meetings reached 100%. They diligently and Development
responsibly fulfilled their duties fully reflecting the standardization and effectiveness
of the corporate governance.People-
Centered
Approach
Creating Value
Convening of Meetings of General Meeting of Shareholders the Meetings of the Board of Directors for Society
and the Board of Supervisors of Gree Electric in 2024
General Meeting of Meetings of the deliberated Meetings of the deliberated
Shareholders Convened Board of Supervisors Board of Directors
Convened Convened Green Development
Leading with
2 6 18 8 30 Low Carbon times times proposals times proposals
Meetings of the Audit Committee under Meetings of Remuneration and Evaluation Committee
the Board of Directors Convened under the Board of Directors Convened Conclusion
3 times 2 times
152024 Environmental Social and Governance Report
Specialization and Diversity of the
Board of Directors Members of the Board of Directors in Gree Electric
Introduction
Date of the First
The diverse backgrounds and experiences of the members Name Position Gender Age Appointment of
Professional Serving on Special
Directors Ability Committees
of the Board of Directors provide multiple perspectives and
value to the Company’s strategic planning enabling the Dong Mingzhu Chairwoman &
various committees to evaluate issues from broader angles President
Female 70 2012.05 Industry Expert /
Compliance
and fully consider the best interests of all stakeholders. Secretary of the Audit Committee Governance
The Company’s Nomination Committee comprehensively Zhang Wei Upholding Party Committee Male 48 2019.01 Industry Expert Remuneration and Integrity and
considers factors such as gender age and professional and Director Evaluation Committee Sincerity
background when nominating members for the Board of
Directors and the Board of Supervisors with a focus on Guo Shuzhan Director Male 68 2019.01 Industry Expert /
selecting experts in areas such as corporate governance
finance law and the home appliance and electronics Zhang Jundu Director Male 64 2012.05 Industry Expert /
industry. Innovation-Driven
Quality-Base
As of the end of the reporting period the Company’s Deng Xiaobo Director and Vice DevelopmentPresident Male 49 2020.12 Industry Expert Nomination Committee
Board of Directors consisted of 9 directors including four
independent directors (44.44%) and 2 female directors Audit Committee
(22.22%). Liu Shuwei Independent Director Female 72 2019.01 Financial Expert Remuneration and Evaluation
Committee
44.44% Wang Xiaohua Independent Director Male 63 2019.01 Legal Risk
Audit Committee People-
Control Expert Remuneration and Evaluation
Centered
Committee Approach
independent directors Creating Value for Society
Xing Ziwen Independent Director Male 62 2019.01 Industry Expert Nomination Committee
Zhang Qiusheng Independent Director Male 57 2022.03 Financial Expert Nomination Committee
Green
Development
22.22% Leading with Low Carbon
female directors Executive Compensation PolicyThe Board of Directors conducts a comprehensive evaluation of the executives’ overall performance in areas such as “virtue abilitydiligence and performance” based on the Company’s 2024 business goals and the completion of individual executive objectives. The Conclusion
results of the performance evaluation are then used to determine the executives’ performance bonuses and annual salaries for 2024
which are submitted to the Board of Directors for review and decision. During the reporting period the total remuneration received by
all directors supervisors and senior management was CNY45.0518 million.
162024 Environmental Social and Governance Report
Strict Risk Management
Introduction
In order to clarify the Company’s management responsibility for the prevention and control of various risks and opportunities enhance the risk awareness of cadres and employees and improve the
Company’s risk control capability Gree Electric has formulated the Measures for Administration of Risks and Opportunities which identifies monitors and evaluates internal and external environments
related to the Company’s purpose and strategic direction and at the same time identifies and evaluates relevant parties’ expectations or requirements related to the Company’s management systems of
quality environment occupational health and safety hazardous substances process energy information security.Compliance
Internal Control Objectives Internal Control Management Measures Governance Upholding Integrity and
Sincerity
In accordance with the Company Law of the People’s In accordance with the Basic Specifications for Internal Control of Enterprises and Guidelines for Enterprise Internal Control Evaluation
Republic of China and relevant laws and regulations the Company earnestly carries out internal control and compliance assessment. The Audit Committee Board of Supervisors and Business
as well as the Company’s internal control systems the Management clearly define their roles and responsibilities so as to closely link the internal control work with daily operations and realize the
Company has established an effectively functioning closed-loop operation of risk management.internal control mechanism. Based on internal control Innovation-Driven
guidelines and its actual situation it continuously The Company adheres to the principles of “risk-based comprehensive coverage and focus on key areas”. Through thorough research it Quality-Base
improves its internal control systems to ensure their formulates an annual audit plan and conducts special audits economic responsibility audits and operational management audits covering Development
effectiveness. The objectives of the Company’s internal important business areas such as procurement production sales finance infrastructure and asset management ensuring comprehensive
control work are as follows: oversight. The Company regularly conducts full audits of subsidiaries to ensure compliant and effective operations further strengtheninggroup-wide management. Based on audit findings it issues audit reports and implements a full-chain corrective process of “issueEnsure the implementation of relevant national laws identification responsibility assignment corrective action supervision and effectiveness verification”. Through systematic audit supervision
regulations and the Company’s internal rules and and internal control optimization the Company continuously enhances its internal control level and audit efficiency. People-
regulations Centered
Meanwhile the Company engages a third-party professional organization to conduct self-assessment of the compliance and effectiveness Approach Creating Value
Improve the Company’s operational effectiveness of the Company’s internal control system every year and timely updates and improves the internal control system in accordance with the
for Society
and efficiency enhance the quality of the listed provisions of the Basic Specifications for Internal Control of Enterprises and its accompanying guidelines taking into account the Company’s
company and increase returns to its shareholders internal and external environments changes in its internal organization and management requirements etc. This ensures a dynamic and
adaptive control mechanism that supports the Company’s high-quality development.Safeguard the security and integrity of the
Company’s assets; Green Development
Leading with
Ensure the Company’s information disclosure is Low Carbon
truthful accurate complete and fair.Conclusion
172024 Environmental Social and Governance Report
Strengthening Communication with Investors
Introduction
The company strictly complies with laws and regulations such as the Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies - Standard Operation of Companies
Listed on the Main Board the Guidelines for Investor Relations Management of Listed Companies as well as internal regulations including the Measures for Administration of Information Disclosure
and the Investor Relations Management System. These efforts further strengthen the management of information disclosure and investor relations enhance corporate governance standards and
protect the legitimate rights and interests of the company investors and other stakeholders.Compliance
Governance
Upholding
Protecting Investor’s Rights and Interests Integrity and Sincerity
The Company has established comprehensive investor communication
channels. Through platforms such as the Shenzhen Stock Exchange’s
“Easy Interaction” platform the Company promptly responds to Innovation-
investor inquiries. Additionally the Company regularly holds the Driven
General Meeting of Shareholders performance briefings operates Investor hotline “Easy Interaction” platform Quality-Base Development
an investor hotline sets up a dedicated email address to receive and
respond to investor queries and organizes investor communication
events to actively engage with investors. Furthermore the Company Investor
arranges investor visit activities to help investors gain a deeper Email Communication General meeting of
understanding of the Company’s operational status and development Methods shareholders
strategy fostering a positive and constructive interaction with investors. People-Centered
Approach
The Company strictly adheres to the information disclosure regulations Creating Value Performance for Society
set by the China Securities Regulatory Commission (CSRC) and the On-site visits briefings
Shenzhen Stock Exchange ensuring the fairness accuracy and
completeness of information disclosure to protect the legitimate rights
and interests of investors.Green
Development
Leading with
Low Carbon
During the reporting period
The Company held 147 answer about Conclusionanswered questions on
1 the Easy Interaction platform of performance briefing the Shenzhen Stock Exchange 749 calls from investors
182024 Environmental Social and Governance Report
Information Disclosure
Introduction
The Company strictly abides by the principles of 2020-2023
information disclosure fulfills its information disclosure
obligations truthfully accurately completely timely and
fairly and continues to deepen the institutionalization
and standardization of its information disclosure work the Company was rated “A” for four Compliance
strengthen the disclosure of environmental social and consecutive years Governance in the annual information Upholding
corporate governance information and continuously Integrity and
Sincerity
enhance the transparency of the Company. During disclosure assessment by the Shenzhen Stock
the reporting period the Company released 72 Exchange
announcements to the public including 4 periodic
reports and 68 interim reports.Innovation-
Driven
Quality-Base
Development
Gree Electric's annual dividends (including repurchases) / CNY 100 million
450 Shareholder Returns and
400 384. 28 Dividends
Dividends Repurchases People-
Centered
350 While the Company continues to promote its own Approach Creating Value
sound development it has always placed an for Society
300 278.56 important position on rewarding its shareholders.
Since 1996 the Company has raised a total of
218.18
250 CNY5.269 billion through equity financing and paid
51.82 cumulative dividends more than CNY 172 billion
of which cash dividends amount to over CNY 142 Green
200 Development 161.42 billion with share repurchases totaling approximately Leading with
CNY30 billion. During the reporting period the total Low Carbon
150 126.33 112. 28 cash dividends distributed amounted to CNY16.755 30.00 billion including: (1) a proposed cash dividend of
100 72.19 CNY5.585 billion (tax inclusive) for the 2024 interim
55.22 profit distribution; and (2) a proposed cash dividend
50 of CNY11.17 billion (tax inclusive subject to review Conclusionand approval by the Company’s General Meeting of
Shareholders) for the 2024 annual profit distribution.
0
2018201920202021202220232024
192024 Environmental Social and Governance Report
Adherence to Business Ethics
Business Ethics Training Introduction
The Company strictly complies with laws and regulations such as the Anti-Unfair Competition Law of the People's Republic of China The Company upholds the principles of integrity legality and
the Interim Provisions on Prohibiting Commercial Bribery and the provisions of the Articles of Association. It upholds the principles honest business practices integrating the development of
of integrity and self-discipline in its business activities. To prevent unethical practices such as bribery bride-taking fraud money an integrity culture with business risk prevention. Through
laundering unfair competition and conflicts of interest during management processes the Company has established management business ethics training for all employees disciplinary education
systems such as the Measures for Administration of Discipline Inspection and Supervision. These measures aim to enhance the during monthly learning sessions and enhanced promotion of Compliance
Company’s ability to govern in accordance with the law and manage business ethics ensuring adherence to business ethics. Governance integrity culture the Company ensures that 100% of employees Upholding
The company's management team serves as the top governing body for business ethics and anti-corruption issues. The Company participate in relevant training programs. These efforts aim to
Integrity and
Sincerity
has set up the Discipline Inspection and Supervision Office which is specifically responsible for carrying out the Company’s discipline comprehensively improve employees’ awareness of business
inspection and supervision management conducting integrity education preventing corruption risks and implementing the investigation ethics and effectively prevent business ethics risks.and handling of suspected violations of the law to ensure the legal and compliant business operations.Innovation-
Integrity-Building Driven
the Company ensures that 100% Quality-Base Development
To strengthen compliance and ethical conduct The number of Integrity Commitment Letters
enhance the Company’s management of business of employees participate in relevant training
ethics standards prevent corruption in the production In 2024 totaling programs
and management processes and protect the
Company’s brand value it has established the Code of
Business Ethics. The Company requires all employees 10332 copies People-
at the headquarters and subsidiaries (including Centered Approach
branches) to adhere to the provisions of the Code of Creating Value for Society
Business Ethics. Additionally it encourages upstream 2024 10332
and downstream partners and other stakeholders
to support accept and implement this code. All 2023 7123
parties are expected to strictly comply with the ethical
standards conduct business in line with the principles 2022 6959 Green
of commercial ethics and comply with all applicable Development
laws regulations and internationally recognized ESG Leading with Business Ethics Audit Low Carbonstandards.The Company conducts annual checks and supervision to ensure the
The Company requires employees management effectiveness of its business ethics anti-corruption and anti-commercial
and partners to commit to ensuring their own integrity bribery management measures by reviewing the establishment and
and clearly define their responsibilities in maintaining implementation of its internal control mechanisms the accuracy and
ethical conduct. Senior management middle-level completeness of financial information and conducting integrity investigation Conclusion
managers and key personnel sign an Integrity on key positions and personnel involved in critical processes. In addition it
Commitment Letter annually to fulfill their individual assesses the risks of commercial bribery and corruption across diversified
responsibility for integrity prevent violations and business areas identifies where business ethics are more likely to occur
address corruption risks from the source. and focuses its audits on these high-risk areas.
202024 Environmental Social and Governance Report
Reporting Channels and Whistleblower Protection Reporting Channels
President’s mailbox
IntroductionIn order to maintain the principles of “three The Company has established over 30 president’sopennesses and three stresses” of the enterprise mailboxes in various departments canteens gates
Gree Electric adheres to the principles of fairness and factories to facilitate real-time complaints and Stress the reports by employees.and impartiality openness and transparency and Fairness and truth to do practical
clear distinction between public and private interests impartiality things Complaint and reporting e-mail concerning
to carry out production and operation. The Company professional integrity Compliance
Governance
has formulated the Measures for Administration of jiancha@cn.gree.com Upholding
Reporting to standardize the duties and content Integrity and
Openness Three Three tress Sincerityof reporting information acceptance investigation and principles principles of principles Complaints and reporting phone
and processing file management protection transparency of equity stresses
to do good
deeds 0756-8669807
reward and punishment of reporting. The Measures
clearly stipulate the investigation and handling Whistleblower Protection
of reported incidents whistleblower rewards and Stress
Clear distinction dedication to Innovation-
punishments investigator recusal and whistleblower between public make great The Measures for Administration of Reporting Driven
achievements Quality-Base
protection mechanism to ensure the effectiveness and private formulated by the Company mandate strict protection interests Development
of the reporting throughout the whole process and of the personal rights and other legal rights of
safeguard the rights and interests of employees. the whistleblowers; no one may retaliate against
whistleblower or employees cooperating with the
investigation.Anti-money Laundering
People-
The Company strictly adheres to the Criminal Law of the People’s Republic of China the Responsible Marketing Equal Treatment of Small and Centered Approach
Anti-Money Laundering Law of the People’s Republic of China and relevant laws and Medium-Sized Enterprises Creating Value for Society
regulations. It has established the Code of Business Ethics to clearly define the nature The Company’s marketing activities strictly adhere
of anti-money laundering practices. It requires all employees as well as any partners to the Advertising Law of the People’s Republic of The Company consistently upholds the philosophy
engaged in business activities with GREE to comply with anti-money laundering laws avoid China and other relevant laws and regulations as of “fair competition and common development”
involvement in any money laundering activities and enhance internal anti-money laundering well as the Company’s internal review systems. actively fulfilling its social responsibilities by treating
compliance management. This ensures the compliant operation of the business and upholds The Company consistently practices responsible small and medium-sized enterprises (SMEs) equally. Green
financial security. marketing aligning corporate social responsibility By providing open supply chain resources offering Development
with business goals. It rigorously controls the technical support and sharing market channels the Leading with Low Carbon
Fair Competition review of external marketing information prohibiting Company helps SMEs enhance their competitiveness any exaggerat ion or distort ion in market ing and promotes collaborative development across the
The Company strictly complies with relevant laws and regulations such as the Anti- communications. The Company has established upstream and downstream sectors of the industry
Unfair Competition Law of the People’s Republic of China the Anti-Trust Law and the standardized management requirements and labeling chain. Gree Electric recognizes the significant role of
EU Competition Law ensuring that its business operations are legal and compliant. The processes for product labeling to ensure compliance. SMEs in the national economy and is committed to
Company is committed to preventing unfair competition and monopolistic behaviors During the reporting period the Company has not creating a fair and transparent business environment. Conclusion
actively maintaining market order and promoting a fair competition environment. The encountered any significant incidents of violations Through concrete actions the Company practices
Company pledges to adhere to the principles of fair competition in all commercial activities related to product and service information labeling corporate social responsibil ity and contributes
refraining from any monopolistic or unfair practices and encourages supports and protects or market promotion (including advertising sales to building a harmonious and win-win industrial
organizations and individuals in supervising such activities. and sponsorship) regulations. ecosystem.
212024 Environmental Social and Governance Report
Information Security Protection
Introduction
Gree Electric strictly complies with laws and regulations such as the Cybersecurity Law and the Personal Information Protection Law and has established systems such as the Measures for Administration
of Information Security. These measures ensure the security of its own information while respecting the privacy protection of customers employees and other stakeholders. During the reporting period the
Company did not experience any information security incidents or user privacy breaches and thus suffered no economic losses as a result.Compliance
Governance
During the reporting period Upholding
Enhancing the Information Security System Integrity and Sincerity
the Company has obtained the ISO 27701
The Company continues to improve its user privacy protection and information security management system. By formulating and revising Privacy Information Security Management
relevant policies the Company further strengthens its practices in managing privacy data and ensuring information security. Specific measures System Certification for its privacy information
include: management system. Innovation-
Driven
Quality-Base
Establishment of the Measures for Revision of the Measures for Administration of Development
Administration of User Privacy Protection Information Security Risk Assessment
These measures clearly define the management requirements Building on the original framework for information security
for the full lifecycle of user privacy data including collection risk assessment the Company has introduced content
storage use transmission and destruction ensuring that related to Privacy Impact Assessments (PIA). The PIA
personal information is adequately protected. Additionally requires an enterprise to assess the potential impact on People-
these measures specify key provisions such as the data user privacy when launching new businesses products Centered Approach
minimization principle the user informed consent mechanism or technologies and to take appropriate risk mitigation Creating Value for Society
and access control for data reflecting Gree Electric’s high measures. This revision reflects Gree Electric’s foresight
regard for user privacy. and systematization in privacy protection. ISO 27001 Information Security
Management System Certificate
Green
Development
Leading with
Revision of Measures for Administration of Enhancement of Employee Training and Low Carbon
Application Software Development Safety Awareness
The Company strengthens cybersecurity management To ensure the effective implementation of the new and
throughout the full lifecycle of application software development revised policies the Company plans to conduct company-
fully considers security requirements during the development wide privacy protection and information security training.process and implements secure coding practices. Before going This will raise employee awareness and capabilities in Conclusion
live the software undergoes necessary security testing to protecting privacy data ensuring that all measures are
minimize potential security vulnerabilities from the outset. This carried out in daily operations.approach helps prevent system attacks after launch and ensures
ISO 27701 Privacy Information Security
the protection of customer data. Management System Certification
222024 Environmental Social and Governance Report
Information Security Incident Response Operations Information Security Compliance Actions
The Company places a high priority on managing information security incidents and their evolving situations and The Company has established a Connected
Introduction
has clearly defined the response communication and handling procedures for information security incidents and Products & Information Security Task Force fully
situations. These measures also specify the reporting response and handling of personal information security responsible for the compliance management
incidents including how and when to notify relevant parties. The Company identifies and analyzes information of information security and privacy protection.security incidents categorizing them based on severity including general information security incidents serious The task force has developed a standardized
information security incidents and information security breaches with tiered response measures in place in fo rmat ion secur i ty aud i t p rocess and Compliance
accordingly. conducted pilot programs in critical product Governance
lines implementing full lifecycle information Upholding Integrity and
security controls for programs involving personal Sincerity
Information Security Emergency Organization information and IoT modules. At the same
time the Company has strengthened data
The Company’s IT Center has established an Information Security Emergency Response Team responsible for transmission security management utilizing
the prevention monitoring reporting and emergency response operations of information security incidents. This encryption technology to encrypt transmitted
team is tasked with activating the emergency response plan for information security incidents and implementing files ensuring data security. Innovation-Driven
interim emergency measures based on the evolving situation of such incident. Quality-Base Development
Network security scanning and penetration testing initiative
In 2024 Gree Electric has repeatedly engaged professional third-party
Oversees overall coordination and command of emergency incidents organizations to conduct a comprehensive scanning and penetration
Emergency Response organizes recovery operations for the Emergency Response Team; testing of its internal information systems aimed at identifying and People-
Team Leader promptly reports personal information security incidents to the Company’s remediating potential security vulnerabilities to enhance the overall Centered Approach
Personal Information Protection Officer. security of its information systems. The testing scope covered the Creating Value
Company’s core business systems financial systems customer data for Society
management systems and internal communication platforms. The third-
party testing team employed advanced penetration testing tools and
techniques to simulate various malicious attack methods and network
Emergency Response Directs on-site incident containment control and coordination ensures
Team Deputy Leader smooth execution of emergency response operations and organizes
attack scenarios assessing system and network security. During
Green
incident investigations and lesson-learnt summaries; coordinates with the process the testing team worked closely with Gree Electric’s IT Development Leading with
team members and relevant units in responding to personal information department to ensure that identified issues were promptly addressed. Low Carbon
security incidents. Upon completion of the initiative the third-party organization provided a
detailed security assessment report and improvement recommendations
helping Gree Electric further refine its information security strategies
Execute tactical emergency response operations including investigation and defense mechanisms. Through these testing Gree Electric not only
Emergency Response and reporting technical root cause analysis fault analysis business
strengthened the security of its information systems preventing system
Conclusion
Team members recovery etc.; trace the source of personal information security incidents
disruptions and the leakage of sensitive information but also enhanced
reproduce issues restore processes analyze and evaluate impacts and employee awareness of security reflecting the Company’s strategic
collect verify and preserve relevant evidence of personal information vision of safeguarding trust with technology and empowering the future
security incidents. with security.
232024 Environmental Social and Governance Report
Introduction
Compliance
Governance
Upholding
Integrity and
Sincerity
Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
242024 Environmental Social and Governance Report
Innovation-Driven Transformation
Introduction
Gree Electric has established technological innovation as the core driver of its development steadfastly adhering to independent research and development of core technologies and upholding the principles
of “investing on demand without setting a ceiling”. Over the years the Company has continuously optimized organizational structure for R&D management established a multi-level and high-standard R&D
platform system based on national-level scientific research platforms and formed a technology innovation system that is “enterprise-led market-oriented and integrates industry academy and research”.Compliance
Governance
Core Strategies for R&D Innovation Strategy Direction of R&D Innovation Upholding Integrity and Sincerity
“One Core Dual Chains Three Foundations Four Outcomes” “Low Carbon - Intelligence - Health” Integrated High-Quality Development Strategy Direction
Innovation-One Core refers to the guiding philosophy which is the abbreviation for “adhering to Driven Quality-Baseindependent innovation and implementing a core leadership strategy” Strategy Technological Development
Direction Path
Innovation
chain R&D Design Lean Automated
Full-staff
internationalization universality manufacturing mass quality production engagementActivity Air conditioning variable frequency technology innovation People-
system Low carbon Dynamic operation energy saving
Centered
Approach
Sustainable Green Sustainable Win-win Demand Environmentally friendly refrigerant replacement Creating Value
value chain purchasing manufacturing marketing creation
for Society
From single household appliance product intelligence to the
Intelligence development of multi-device multi-scenario smart home
platforms and to the construction of smart hardware andDual Chains refer to the activity system which is the abbreviation for “innovation. ecosystem GreenDevelopment
Leading withThree refers to the organizational system which is the abbreviation for “high- Low CarbonFoundations level technological innovation platforms comprehensive innovation Air health: research on key technologies such as sterilization
bacteriostatic virus elimination and room-temperature catalyticmanagement mechanisms and high-quality R&D talent teams” as the formaldehyde removal
three fundamental supports.Water health: whole-house water purification system solutionsFour refers to the outcome system which is the abbreviation for “self- HealthOutcomes Food health: fresh-keeping technology for fruits and vegetables Conclusion
transcending innovation culture sound R&D system leading core natural convection overcooling technology for meat preservationtechnologies and standards and comprehensive product systems” created wide-frequency fully-sealed piston compressors for ultra-low-
through GREE’s innovation practices. temperature meat storage smart health cooking technology etc
252024 Environmental Social and Governance Report
Construction of R&D and Innovation System
Pyramid System of Research Platforms Introduction
The Company’s R&D innovation subject includes
National Engineering Technology Research Center
National Industrial Design Center Compliance
4 National Enterprise Technology Center
Governance
Upholding
national-level hosts 4 Obotics Engineering Technology R&D Center
Integrity and
Sincerity
research platforms national-
level research
platforms
Motor and Control Academician Workstation
Innovation-
1 academician Driven
workstation Quality-Base Electrical Engineering and Washing Technology Institute Development
Electrical Materials Institute
Communication Technology
16 Freezing and Refrigeration Instituteresearch institutes 16 research institutes Technology Institute Equipment Power Technology
Health Technology Institute Institute
Robots Research Institute Motor System Technology Institute People-Centered
Approach
152 research institutions Intelligent Equipment Technology Mechanical and Electrical Creating Value Institute Technology Institute for Society
New Energy Environment Refrigeration Technology Institute
Technology Institute
Two Home Appliances Technology
152 Building Environment and Energy Institutesresearch institutions 1411 laboratories Conservation Institute
Green
Internet of Things Technology Development
Institute Leading with Low Carbon
National-level research platforms Relevant research institutes Product development departments
Provide platform support for R&D activities Focus on specialized technological research Leverage new technologies to drive product Conclusion
establishing the cornerstone of an open and forging the core competitive advantage for in- R&D efficiently converting innovative outcomes
collaborative innovation ecosystem; depth technological breakthroughs; into commercial value.
262024 Environmental Social and Governance Report
R&D Innovation Team Building
As a technology-driven enterprise the Company Introduction
has always regarded talent cultivation as a critical Proportion of R&D investment
strategic resource for corporate development fueling
technological innovation. To incentivize breakthroughsthe Company established the “Science and Technology representing a year-Progress Award” which recognizes teams and 3.77% on-year growth of Compliance
individuals who complete major R&D projects and Governance Upholding
deliver outstanding achievements. Each year the 1.9% Integrity and Company rewards over 100 innovative projects. In 2024 of R&D revenue of 2024 Sincerity
a total of 189 award-winning projects were selected.Innovation-
Driven
Fostering Full-staff Innovation through Comprehensive Incentivization Quality-Base Development
01 Project-based evaluations and “Science and Technology Progress Award” rewarding mechanism to drive
innovation motivation;
People-
02 Talent subsidies: Support for high-level experts and Zhuhai Outstanding Industrial Youth Talents; Centered Approach
Creating Value
for Society
03 Employee stock ownership plan (ESOP): Launch the ESOP covering core R&D teams to fully unleash
employees' potential and promote the high-quality development of the company;
04 “GREE Innovation Hub”: Host tech salons forums exhibitions and competitions and other technological
innovation activities to facilitate knowledge-sharing and project incubation; Green
Development
Leading with
05 Open innovation mechanism: By implementing proposal improvement initiatives and open call for Low Carbon
breakthrough solutions we aim to create a thick scientific and creative atmosphere;
06 Provide attractive workplace & benefits to retain top-tier talents;
07 Encourage employees to attend domestic and international academic meetings and technology
Conclusion
exchanges broadening horizon and expertise.
272024 Environmental Social and Governance Report
Industry-university-research Cooperation
The Company has established comprehensive long-term partnerships with more than 100 higher education institutions scientific research institutions and institutes and upstream/downstream enterprises. Introduction
These collaborations are structured through three primary mechanisms: joint platforms for technology R&D and talent development collaborative research to address national strategic needs and
establishment of technology alliance to promote the innovations conversion and sharing aiming to advance corporate technological innovation; support the intelligent transformation of manufacturing and
lead the industry toward high-quality development.
2024 Selected Industry-Academia-Research Collaboration Cases
Compliance
Governance
Upholding
Partner Collaboration Area Collaboration Objectives/Achievements Integrity and SincerityJointly conducted the project “Key Technologies and Industrialization of High-Performance ScrewRefrigeration Compressors for Complex Environments” which introduced the innovative small
Xi’an Jiaotong University
Zhejiang University Screw Refrigeration Compressor Technology R&D
compression ratio two-stage permanent magnet variable frequency adaptive variable compression
ratio screw compressor. The system’s coefficient of performance (COP) exceeds 7.0 under national Innovation-Driven
standard operating conditions. Hence this breakthrough achievement earned the First Prize for Quality-Base
Development
Technological Innovation in Guangdong Province.University of Macau Jointly established the “Provincial Quality Standard Laboratory for Advanced Photovoltaic-EnergyGuangdong Power Grid Foundational Theory and Applied Research of Quality Storage-Direct Current-Flexibility (PEDF) Systems” conducted foundational and applied research on
Co. Ltd. Standards quality standards resolved key technical challenges and developed an advanced quality standard system with breakthroughs in testing and inspection methodologies. People-
Centered
Approach
Jointly established a new benchmark for green and smart subway systems. The integrated Creating Value for Society
Shenzhen Metro Green and Smart Subway Construction refrigeration energy efficiency of the refrigeration rooms exceeds 5.0 annually while the AC systems achieve a yearly integrated refrigeration energy efficiency of over 3.0. These remarkable energy-
saving outcomes place our efforts at the “internationally leading” standards.Jointly built up China’s first end-to-end hard slicing solution the first provincial 5G LAN commercial- Green
Development
China Unicom 5G base stations photovoltaics energy storage applications grade pilot site; selected for two national innovation projects by the Ministry of Industry and Leading with
Information Technology (MIIT) and the National Development and Reform Commission (NDRC). Low Carbon
Research and industrialization cooperation on refrigeration
and cooling system of deep mining working spaceJointly developed “key technologies and applications for new registration equipment systems for deepChina Pingmei Shenma Joint application for major scientific and technological mine heat hazard control” was certified as “Internationally Leading” and awarded the First Prize of Conclusion
Holding Group Co. Ltd. projects at or above the provincial and ministerial level Science and Technology Award by China National Coal Association.High-level R&D platform construction
282024 Environmental Social and Governance Report
R&D Innovation Achievements and Awards
Introduction
In 2024 aligned with its three strategic focus areas - green & low-carbon personalized intelligence and health & comfort the Company pursued innovative technology and product development to meet
consumers’ aspirations for better living. It made technological breakthroughs in residential/commercial air conditioning (AC) home appliances and core components significantly enhancing product
competitiveness. These accomplishments were recognized through multiple prestigious domestic and international awards.Achievement
Category Achievement Name Achievement Impact Compliance Governance
Upholding
Integrity and
Sincerity
The product incorporates AI algorithm-based variable frequency energy-saving control technology and a highly adaptable AI chip
significantly improving annual dynamic energy efficiency and reducing yearly power consumption by over 13.6%. Based on
current sales volume it is estimated to save 3.08 million kWh of electricity annually equivalent to reducing CO? emissions Innovation-Driven
306700 Quality-Base by approximately tons. This breakthrough represents a major advancement in dynamic operational energy Development
AI energy-saving residential efficiency for AC systems achieving genuine energy conservation and carbon reduction in real-world usage.AC series
People-
The PV energy-storage AC system integrates clean photovoltaic power generation safe energy storage and load management Centeredhigh-efficiency AC operation and smart system control. Featuring company’s proprietary “Cascade Heat Exchange Parallel Approach Creating ValueCompression Refrigeration Technology” the system significantly enhances high-temperature refrigeration performance delivering for Society
efficient and stable refrigeration even under extreme conditions. These products have been widely applied in regions such as
Green and
low carbon Africa the Americas and Southeast Asia and successfully used in various scenarios including residential industrial and office
spaces in Saudi Arabia. The use of these products results in a carbon emissions reduction of at least 110000 tons
annually.High-efficiency PV energy-storage Green Development
AC for export Leading with
Low Carbon
This product is equipped with a two-stage compression intermediate gas injection refrigeration cycle system and a new screw
rotor profile. It integrates a multi-parameter linked adjustment and control method significantly enhancing performance across all
operating conditions. With a national standard COP of 7.0+ under standard conditions it meets the user needs in various sectors Conclusion
including public buildings rail transportation and data centers. The product has been extensively applied in public buildings
metro stations industrial refrigeration projects and exported to countries and regions such as Singapore and Russia.COP7.0+ Two-stage Permanent-magnet
Inverter Screw Chiller
292024 Environmental Social and Governance Report
Achievement
Category Achievement Name Achievement Impact
Introduction
This product utilizes real-time performance calculation technology flexible refrigerant control technology and full-scenario AI
energy-saving technology to address the industry challenge of accurately detecting regulating and optimizing energy efficiency
Compliance
in commercial multi-split systems for large buildings. It is the first in the industry to achieve online measurement of indoor unit Governance
Upholding
capacity and real-time power measurement with an average energy-saving rate of 25%. Based on three years of sales it Integrity and Sincerity
is estimated that the product can reduce carbon dioxide emissions by 74800 tons.GMV9 Zhiyue VRF Units Innovation-
Driven
Quality-Base
Development
This product addresses several issues present in traditional metro stations such as the difficulty in replicating efficient systems
across multiple lines large fluctuations in operating conditions and the inability to self-adjust operating parameters. The system People-
Personalized Centered has been successfully applied across all 25 stations on Shenzhen Metro Line 12. It is estimated that the system will save Approach intelligence Creating Value
17.36 million kWh of electricity annually and reduce carbon emissions by 13636 tons for the entire line. for Society
Efficient and Intelligent Environmental
Control System for Subway Stations under
All Working Conditions
Green
Development
Leading with
Low Carbon
The “Taishan” Smart Building Platform through its fully self-developed software and hardware system supports the integration
of a large number of electromechanical devices providing flexible and efficient networking capabilities to meet the needs for
online digital and intelligent construction of building electromechanical systems. The platform integrates technologies such as
energy efficiency simulation global optimization and cloud-edge collaboration to ensure efficient management and intelligent
operation of buildings facilitating smart building upgrades. Conclusion
Taishan Smart Building
Platform
302024 Environmental Social and Governance Report
Achievement
Category Achievement Name Achievement Impact
Introduction
This product features the industry-first reversible air supply technology addressing long-standing issues such as poor heating
efficiency and cold air blowing directly at people in traditional air conditioning systems. It ensures that no cold air blows at people
during cooling while rapidly warming the human activity area during heating. Compared to traditional ducted systems it achieves
a 42.7% energy-saving rate. Compliance Governance
Central air conditioner with gentle air Upholding Integrity and
comfort technology Sincerity
This product incorporates several breakthrough technologies including high airflow with low noise operation efficient condensate-
based air purification and sterilization AI-powered dynamic energy-saving chip to address the user needs of low noise and
efficient fresh air replacement sterilization and purification increase airflow by 15% at equivalent noise levels compared to Innovation-Driven
conventional units and achieve professional-grade air circulation with purification and sterilization. It boasts 13.6% Quality-Base annual Development
energy savings through real-time dynamic optimization across all operating conditions and significantly enhances user experience
for fresh air functionality.Health and Fresh air residential air conditioner
comfort
People-
Centered
Approach
Creating Value
for Society
This product incorporates three freshness preservation technologies namely self-balancing fruit & vegetable freshness
preservation technology natural convection meat freshness preservation technology and super-freeze meat storage technology
to effectively resolve complex storage challenges including produce dehydration and addresses diverse consumer preservation
requirements for both fruits/vegetables and meats.Green
Development
Refrigerator with all-round freshness preservation Leading with Low Carbon
The product adopts rinse+ technology to addresses critical consumer demands for deep cleaning high-efficiency sterilization and
smart home integration achieve comprehensive interior coverage through optimized spray systems and save 40% of time Conclusion
than traditional soak-rinse methods greatly reducing the washing duration. This product is integrated with WiFi for enhanced user
experience.“Zhenrou” washing machine series
312024 Environmental Social and Governance Report
Major New Awards of Gree Electric in 2024
Introduction
China Appearance Design China National Light Technology Progress of Guangdong Science Industry Council and Technology Progress Award
Gold Award Excellence Appearance Design Science and Technology Award First Prize Second Prizes
Awards Excellence Award
1 2 1 First Prize
Compliance
1 2 Governance Upholding
Integrity and
Sincerity
49th Geneva International Exhibition of Inventions 76th Nuremberg International Exhibition of Inventions (in Germany)
Innovation-
Driven
Gold Award Silver Award Bronze Award Gold Awards Silver Awards Quality-Base
Development
11123
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
Certificate of Award of GREE at the 49th Geneva International Exhibition of Inventions Certificate of Gold Award of GREE at the 76th Nuremberg
International Exhibition of Inventions in Germany
322024 Environmental Social and Governance Report
Intellectual Property Management
Aligned with its corporate vision Gree Electric has established a comprehensive intellectual Gree Electric’s IP training initiatives Introduction
property (IP) strategy and management system integrating IP planning into its overall business The Company is dedicated to cultivating a robust IP culture within the organization
strategy. The Company actively promotes the development and implementation of its IP framework. fostering an innovation protection ethos enhancing patent quality awareness and
In strict accordance with local IP regulations in all operational markets and in combination with elevating IP management standards. In 2024 the Company launched a series of
its IP strategy the Company has formulated and implemented the Measures for Administration initiatives including the “4.26 Intellectual Property Awareness Week” comprehensive
of Enterprise Intellectual Property Measures for Administration of Patent and Measures for IP training courses and patent quality enhancement programs targeting technical
Administration of Trademark to standardize the IP management. The Company has established a Compliance personnel across its primary R&D units. These initiatives are designed to strengthen Governance
dedicated IP department with 500+ patent professionals assisting patient officers in technology-to- employees’ IP protection awareness solidify foundational IP knowledge and enhance Upholding
patent conversion. Integrity and capabilities in patent technology innovation and protection by focusing on three key Sincerity
areas: awareness building professional skill development and quality improvement.Business activities
Pre-research Design Procurement Production Sales After-sales
Innovation-
Driven
IP management risks Quality-Base Development
Repeated Infringement of inadequately Material Equipment
Improper use
R&D of promotional Quality risksprotected product infringement infringement materials
IP control measures
People-
Project search and Patent layout Material Equipment infringement Compliance Solving quality
Centered
patent analysis infringement risk Approach avoidance design verification risk verification review problems Creating Value for Society
Full Lifecycle IP Management System of Gree Electric
4.26 Intellectual Property Awareness Week
Green
Gree Electric establishes itself as a leader in the IP sector Development
Leading with
Low Carbon
It is among the first national demonstration units for IP
within enterprises and institutions.Gree Electric
National Patent Operation Pilot Enterprise
Conclusion
National Intellectual Property Demonstration Enterprise 7subsidiaries
National Intellectual Property Advantage Enterprise 17subsidiaries Company-level IP course training
332024 Environmental Social and Governance Report
Intellectual Property Protection Introduction
As a critical element in the new wave of technological and industrial transformation IP plays an increasingly vital role in economic development. As an
industry leader Gree Electric actively fulfills its responsibilities in the field of IP protection demonstrating its commitment and leadership.Compliance
Governance
Upholding
Integrity and
Respect for other’s IP rights Guiding the industry to respect IP Courageously defending its own IP SincerityGREE understands the challenges of As a leading enterprise in the AC GREE advocates for “respecting others’innovation and has established a multi- industry GREE has formed the IP safeguarding one’s own legitimate Innovation-
tiered IP risk verification system to ensure Intellectual Property Alliance of China rights and jointly fostering a favorable Driven Quality-Basethat each product undergoes thorough Air Conditioning Industry to actively business environment”. To protect its Development
IP risk assessment before leaving the promote IP respect within the industry. rightful interests GREE firmly pursues
factory thereby safeguarding against The Company provides IP hosting litigation against repeated and malicious
infringement of others’ patents. and support to upstream enterprises infringements. The purpose of GREE’s IP
to enhance patent quality and reduce litigation is not to seek compensation but
infringement risks; for peer enterprises to convey a message: Only by respecting People-
GREE facilitates technology development IP can innovation be further stimulated. Centered
through patent licensing and transfers; for Approach Creating Value
downstream enterprises patent licensing for Society
improves consumer experience.Green
Development
Intellectual Property Management Platform Leading with Low Carbon
The Company has developed a comprehensive enterprise IP management system platform integrating functionalities such as patent search application
and maintenance value assessment product patent navigation and patent operation processes. This platform encompasses 16 management modules
spanning from the initial proposal to the termination of a patent’s lifecycle. It facilitates the electronic management of processes and IP documents
ensuring seamless integration with project management platforms PDM management platforms and patent agency platforms significantly reducing the Conclusion
patent application cycle and elevating the overall IP management standards.
342024 Environmental Social and Governance Report
Patent Applications Patent application process
Introduction
Gree Electric prioritizes patent quality implementing a multi-level patent quality inspection system to rigorously control patent quality
The Company has assembled a dedicated standard and eliminate substandard patents
patent research team and established a robust
innovation system. By leveraging IP protection and
standard leadership the Company enhances its
influence in setting international and industry standards. Compliance
It has led multiple international standard proposals for Governance Upholding
photovoltaics driving the convergence of photovoltaic 1. Pre-application 2. Application 3. Post-application 4. Dedicated quality Integrity and Sincerity
technology with household appliances thereby search quality check: document quality examination response inspection team:
contributing Chinese expertise. This initiative has also excluding technically check: ensuring that quality check: further establishing a specialized
promoted the global application and dissemination of insufficient solutions at technical solutions are controlling the scope quality inspection team to
photovoltaic direct-drive inverter air conditioners and the source; adequately protected; of patent protection conduct comprehensive ensuring each GREE quality checks at every
other photovoltaic direct-drive appliances. Furthermore patent is of high quality. stage ensuring the Innovation-
the Company has strategically focused on patent overall quality of patent Driven Quality-Base
standardization filing numerous related patents in the applications. Development
fields of photovoltaics and smart home technology.People-
Centered
Approach
Creating Value
Patent application and granting for Society
At the end of the reporting period
Gree Electric applied for a total of including and
Green
129524 70844 25883 Development Leading with patents invention patents granted invention patents Low Carbon
won including and Conclusion
81China Patent Awards in total 3 China Patent Gold Awards 4 China Appearance Design Gold Awards
352024 Environmental Social and Governance Report
Lean Intelligent ManufacturingGree Electric adheres to the philosophy of “Pursuing Lean Excellence Creating the Future with Smart Manufacturing’ embedding this approach into every link of R&D production testing and service. The IntroductionCompany leverages innovation to drive lean manufacturing ensuring the stability and reliability of product quality. At the same time it actively embraces the call for “digital transformation” accelerating the
digitalization and smart manufacturing upgrades and is dedicated to integrating digital technologies deeply into all aspects of its operations.Innovation Driving Lean Manufacturing Compliance Governance
Upholding
Integrity and
Sincerity
Gree Electric focuses on innovation in its management systems and has established the GREE Lean Smart Manufacturing System integrating lean management with smart manufacturing technologies.During the reporting period the Company took innovative measures in four key areas - management design production and logistics to enhance the efficiency and intelligence across the entire value
chain driving a comprehensive upgrade of its lean manufacturing capabilities.Innovation-
Driven
The Company has developed its own intelligent management model integrating HR MES ERP and MPM systems to build a GREE Efficiency Management Information System. Quality-Base
Dual-Effect Development
Management This system enables real-time data collection computation and analysis for dual-effect management with data details refined down to the unit level and data at the group
Innovation base factory and unit are derived from the same source with management efficiency upgraded to a system that enables minute-by-minute oversight ensuring that dual-effect
management is timely accurate transparent and executed through to completion.The Company has established a “Five Transformations One Integration Multi-Dimensional Full Lifecycle” lean design innovation system. This system fosters comprehensive People-Centered
Lean Design cross-departmental collaboration driving innovation and improvements from the very source of design to significantly reduce later-stage change costs. The lean design system Approach
Creating Value
Innovation encompasses the entire product line including air conditioners home appliances and refrigeration and washing products leading to an average annual efficiency improvement of for Society
10% for new products.
In terms of process innovation the Company focuses on materials and process methods and centers innovation efforts around lean organization and manufacturing models.Regarding automation innovation the Company has achieved automation in assembly testing and production lines and is advancing low-cost intelligent automation to reduce Green
Production labor intensity for employees; in terms of smart manufacturing innovation the Company starts with data structuring and leverages intelligent decision-making to optimize different Development Leading with
Technology production stages. It has also developed standards for intelligent factory systems driving the production system toward flexibility efficiency and intelligence. Additionally the Low Carbon
Innovation Company has independently developed an automated production line for both the indoor and outdoor units of home air conditioners improving model compatibility and automation
rates for various positions. It has also launched the low-cost intelligent automation (LCIA) “Three Zeroes” project achieving zero-turning zero-bending and zero-walking in its
operations.Guided by the “low inventory-high turnover” concept with standardized material packaging as the foundation the Company promotes efficient supply chains to reduce material ConclusionLogistics
Technology inventory. It integrates various IoT technologies and has independently developed the “IoT Logistics Technology Application Service Platform” which is innovatively applied in
Innovation the production logistics process. The platform has been rapidly deployed and promoted across the entire group enhancing the digital management efficiency of the Company’s
logistics operations.
362024 Environmental Social and Governance Report
Gree Electric awarded the first place for national Digital Empowerment in Manufacturing
enterprise management modernization innovation Based on the “multi-matrix nesting” concept the Company has developed a lean and high-performance application platform Introduction
achievement encompassing core business areas such as production supply chain sales and inventory. This platform breaks down data silos and
On December 31 2024 the China Enterprise enables end-to-end data integration and collaboration. The Company has also designed review and execution standards across all
Confederation announced the list of the 31st National business segments. Through a systematic internal loop supervision mechanism GREE continuously optimizes management evaluation
Enterprise Management Modernization Innovation models and platform functionalities driving dynamic iteration and upgrading of the management system. This promotes the deep
Achievements. Gree Electric’s project Building and optimization and continuous improvement in the overall internal control system.Implementing a Lean Smart Manufacturing System Compliance Governance
for Large Home Appliance Enterprise Groups stood In the production system the Company has achieved integrated data management across production sales and inventory. Real-time Upholding
out from 1033 entries and was awarded first prize. data monitoring and analysis enhance data transparency ensuring consistency accuracy and reliability of data. By leveraging data-
Integrity and
Sincerity
This project demonstrates the Company’s innovative driven management transformation the Company optimizes production and operation models reduces operational costs and improves
achievements in lean manufacturing systems and production efficiency. Additionally data empowerment supports precise market decision-making enabling rapid responses to market
manufacturing technologies highlighting its commitment demands and enhancing market competitiveness. Looking ahead Gree Electric will continue to deepen its digital transformationto “mastering core technologies independently and fostering the deep integration of intelligence digitalization and manufacturing to establish itself as an industrial leading digitalempowering the high-quality development of the benchmark. Innovation-enterprise”. Driven Quality-Base
Development
Group business standardization and modeling achieving “one-network unified management” of subsidiaries by
headquarters
In 2024 Gree Electric made significant breakthroughs in group operation management by successfully launching the
“Group Manufacturing Operation Decision Platform”. This platform integrates key data such as material inventory
logistics status production progress and quality status from various production bases enabling transparent and real- People-Centered
time management of over 70 production bases by the headquarters. This has significantly enhanced operational Approach
efficiency and decision-making accuracy. This initiative marks a new phase in Gree Electric’s digital transformation and Creating Value for Society
group control laying a solid foundation for comprehensive management digitalization and real-time command. It also
advances the fulfillment of green production and SDGs.Green
Development
Leading with
Low Carbon
Conclusion
372024 Environmental Social and Governance Report
Intelligent after-sales monitoring
Introduction
In 2024 the Company developed a Multi-Split Unit Big Data Management System establishing a comprehensive and intelligent after-sales quality monitoring system. This system not only enables real-
time collection and analysis of AC unit operation data nationwide but also classifies predicts and diagnoses faults by intelligent means ensuring rapid response and resolution thereby improving after-
sales service quality and efficiency.Data collection and analysis Fault classification and uploading Real-time monitoring and diagnosis Compliance
Governance
Upholding
C o m p r e h e n s iv e d a t a c o l l e c ti o n Gree Electric uses Automatic cla s s i fi c a t i o n The system automatically Real-time mo n i t o r i n g The big data system monitors Integrity and Sincerity
the Multi-Split Unit Big Data Management System classifies fault information and uploads it in real-time product operation status in real-time promptly
to collect real-time operation data of AC units to the after-sales maintenance system and design identifying abnormalities.nationwide ensuring data comprehensiveness and evaluation system ensuring rapid response and
timeliness. resolution.Intelligent ana l y s i s Leveraging advanced big data Closed-loop m a n a g e m e n t The system seamlessly Intelligent dia g n o s is Utilizing intelligent fault Innovation-
analysis technologies the system conducts in-depth connects product development and after-sales diagnosis technology the system quickly locates the Driven Quality-Base
analysis of collected data identifies potential issues processes forming a closed-loop management root cause of issues providing precise solutions and Development
predicts possible faults and takes preventive actions system that enhances after-sales quality analysis reducing fault resolution time.in advance. and service feedback efficiency.People-
Centered
Approach
Honors in Intelligent Manufacturing Creating Value for Society
During the reporting period the Company has received numerous national and provincial honors in the field of intelligent manufacturing:
During the reporting period Green
Development
Leading with
Low Carbon
Jinwan GREE was awarded the national Luoyang GREE was recognized as a Ganzhou GREE was designated as a First Prize
“Excellence Level” provincial-level excellent provincial-level in the 31st National Enterprise
smart factory title intelligent application scenario intelligent manufacturing Management Modernization and benchmark enterprise ConclusionInnovation Achievements
382024 Environmental Social and Governance Report
Strive for Excellence in Quality
Introduction
The Company strictly adheres to the Product Quality Law of the People’s Republic of China
consistently positioning high-quality product strategy as one of its long-term strategies.Guided by the quality policy of “pursuing supreme quality establishing an international brand Implement the Chief Quality Officer (CQO) system and the Quality Director (Factoryand building a century-old enterprise” the Company aims for “zero defects” and “the best Director) system establishing a top-down quality responsibility structure;service is no service needed” as its quality goals. It upholds a “strict practical and innovative” Compliance
quality culture driven by customer needs and social responsibility. The Quality Control Department has complete and independent final authority to reject Governance Strictness Upholding quality implementing a “one-vote veto system” for quality; Integrity and
Sincerity
Launch the “Quality Inspection Action” encouraging all links and positions to adopt the
mindset of “everyone is a quality inspector” and foster a courageous self-reflective
approach to rigorously manage quality.Quality Culture of Gree Electric
Innovation-
Driven
Quality-Base
Development
Seek truth from facts stay grounded and eradicate any tendency toward dishonesty
Quality Policy or falsification in work;
Pursue perfect Quality goal Establish company-level and branch-level quality meeting systems held weekly to
quality Strictness Realism Realism thoroughly analyze the causes of quality incidents and implement corrective actions; People-The best service is no Centered Approach
service needed Set up multiple company-level quality improvement teams in specialized areas Creating Value
guided by customer needs and integrate feedback from after-sales quality information for Society
to drive systematic quality improvements.Innovation
Green
Development
Leading with
Low Carbon
Adhere to independent innovation continuously innovate in management concepts
quality technologies quality methods etc. to achieve rapid and sustained quality level
progress;
Rooted in GREE’s “real” culture and its commitment to self-
transcendence in innovation the Company has developed a quality Innovation Combine the positive five-step quality method with the reverse quality innovation-
culture centered around “strictness reality and innovation”. driven loop to create the pioneering PQAM (Perfect Quality Assurance Model) Conclusion
that makes the world love “Made in China” GREE products focusing on proactive
prevention and post-incident quality control.
392024 Environmental Social and Governance Report
Quality Management System
The company aims for “zero defects” and is committed to becoming a benchmark enterprise for high Gree Electric has built a full lifecycle quality risk management system centered on products. Introduction
quality in the global household appliance industry. Through precise control throughout the entire Through a multi-level quality management structure the Company ensures that every step from
product lifecycle it has established a comprehensive product quality management system.The design to production is strictly controlled. The Company President as the highest authority for
Company places great emphasis on managing product production quality. It has established and product quality oversees the work with a CQO responsible for implementing quality management.strictly implements the Measures for Administration of Product Quality Inspection and Production The Quality Director Quality Factory Director and Quality General Manager supervise and manage
Process Quality effectively standardizing the inspection and management of product quality at key quality positions regularly reporting to the CQO. Additionally the Company has established a
each branch factory to ensure high-quality products flow into the market. Currently all of the quality leadership constraint mechanism implementing a “one-vote veto system” for quality with Compliance Governance
Company’s production factories have obtained ISO 9001 quality management system certification. quality responsibilities broken down from top to bottom. This enables effective identification and Upholding
Regular system audits are conducted annually to promptly identify issues and make improvements management of quality risks continually improving product quality and customer satisfaction. Integrity and Sincerity
ensuring continued compliance with standards to maintain certification validity. During the reporting
period the Company also obtained the ISO 10012 measurement management system certification
further ensuring the accuracy and reliability of product measurement data and improving product
quality consistency. This also enhanced customer trust in the brand optimized internal operational
efficiency and reduced measurement errors and costs. Full lifecycle quality risk control structure Innovation-
Driven
Quality-Base
Development
Broken-down quality responsibility organization system from top to bottom
Company President
People-
Centered
Approach
CQO Creating Value for Society
Quality Director Quality Factory Quality General Director Manager Green
Development
Leading with
Low Carbon
Conclusion
ISO 9001 Quality Management System Certificate ISO 10012 Measurement Management System Certificate
40
Quality honesty culture construction integrated into the
organization’s overall quality culture
Key position
Key position
Key position
Key position
Key position
Key position
Key position
Quality-centered full lifecycle quality risk control system2024 Environmental Social and Governance Report
Product Quality Improvement Strengthening Product Testing Capabilities
In its quality management practices the Company has established a quality responsibility system
The Company is committed to achieving perfect quality as its mission adhering to honest business clearly defining quality management responsibilities at every level from workshop workers Introduction
practices. With national and international standards as the baseline and consumer needs as the department staff and department heads to quality supervisors and ultimately the Chairwoman of the
highest standard the Company relentlessly strives to “Made in China Loved by the World” and Board. This ensures that quality activities have designated responsible individuals and that quality
contribute to China’s grand goal of becoming a manufacturing and quality powerhouse. issues are promptly addressed.The Company employs the “Five Steps to Quality Prevention” which drives quality plans positively
through quality objectives. This method involves five steps: demand research planning execution Enhancing production process quality control
Strengthening quality testing during
product use Compliance Governance
inspection and improvement. It ensures strict process control over the value creation stages such Upholding
as R&D procurement manufacturing and after-sales service eliminating quality issues before The products of the Company undergo inspection The Company has independently Integrity and Sincerity
products reach consumers. The “D-CTFP Quality Technology Innovation Cycle” is a reverse quality- by hundreds of quality control staff at every developed the Tianwang Intelligent
driven approach guided by customer needs. By collecting and analyzing customer demands (C) stage including material procurement assembly Monitoring System which is equipped
and implementing actions such as inspection technology driving (T) failure mechanism research line production and delivery. This includes with remote monitoring software and high-
(F) and process system optimization (P) it forms a closed-loop around standards. This approach inspections of appearance performance and definition display technology to enable
continually drives quality technology innovation to meet customer demands. Both systems are type testing for outsourced materials upon arrival remote real-time monitoring of the Innovation-
interlinked and organically combined to jointly promote the steady improvement of the Company’s at the factory quality inspections during final product testing process. Quality test data Driven
product quality. assembly and production at supporting factories
Quality-Base
is aggregated categorized and analyzed Development
and tests for performance noise reliability and on a unified quality data platform and
GREE’s “Perfect Quality” management model diagram of safety compliance during laboratory testing. automatically uploaded to the quality data
“Made in China Loved by the World” These comprehensive quality testing processes management system enabling remote real-
ensure high-quality products. time monitoring and data sharing.“Made in China Loved by the World” People-
Perfect quality Product Quality Improvement Actions
Centered
Approach
Creating Value
for Society
Gree Electric actively responded to the national Key Performance
“Quality Month” initiative and carried out the
R&D process Procurement process Manufacturing process Sales & service process “Quality Month” and Fourth Quarter Quality
Improvement Special Campaign from October to
Integrated Guarantee December 2024. The aim was to comprehensively During the reporting period Target driven innovation prevention Green enhance the qual i ty levels of a l l product the Company did not Development Leading with
5.Improvement categories and services reduce after-sales Low CarbonCustomer major Process system experience any
demand led 1.C 4.P optimization
4.Inspection failure rates and repair costs and improve market safety quality accidents related to
3. Execution competitiveness and customer satisfaction.
Inspection 2.T 3.F Failure product services2.Planning
technology driven mechanism research Each participating unit diligently advanced
1.Demand research according to the plan successfully completing
249 quality improvement projects significantly Conclusion
Feedback Support enhancing both product quality and service levels. and there were no related
The campaign resulted in expected effect with
R&D process Organizational Technology Standard system Information
economic losses
system system system exemplary projects being selected and awarded.
41
Internal and
external2024 Environmental Social and Governance Report
Product Traceability and Recall Product Recall Management Product Recall Drills
The Company has established the Measures for Administration The Company has established a product recall management The Company conducts at least Introduction
of Product Traceability and Recall Control which define the system in accordance with the Interim Provisions on Consumer one simulated drill of the product
traceability and recall processes for Company products. These Product Recall Management. This system enables the Company traceability and recall system
measures ensure traceability from raw materials to finished to quickly and effectively recall any batch of non-conforming annually to ensure traceability
products and effectively control product recalls and proper or safety-risk products from the market when necessary. The and recal labi l i ty from raw
handling. The management system covers all stages from Company clearly defines that when any of the following issues materials to finished products. Compliance
suppliers to product sales to consumers ensuring traceability occur with products already sold in the market or to distributors Governance
throughout the product’s lifecycle. a recall must be initiated: Upholding Integrity and
Sincerity
Product Traceability Management
Products that do not comply with relevant laws and Gree Electric’s “simulated” product recall drill
regulations in the sales region;
All raw materials and components must have traceability In 2024 to ensure the effectiveness of the product Innovation-
records and markings including batch numbers production Products with dangerous quality defects that could harm recall process and the Company’s ability to respond
Driven
Quality-Base
dates specifications and suppliers; the safety of users or others’ personal or property safety; to sudden quality issues Gree Electric organized a Development
“simulated” product recall drill. The drill simulated
All products are managed using barcodes with each Products with mass quality issues; a failure caused by insufficient strength of the
barcode number corresponding to the actual product. internal valve plate of the compressor involving Products that after delivery show HSF non-compliance
These barcodes serve as the primary identification markers cross-departmental collaboration. During the and require a recall according to laws regulations or
for the products. The Measures for Administration of drill each department responded swiftly strictly customer requirements. People-
Barcode and Certificate have been formulated as the basis following the process from customer complaint Centered
for this management system; reception issue verification recall confirmation to Approach Creating Value
product quarantine and information dissemination for Society
For export products batch management is a lso ensuring the smooth execution of the exercise.implemented with export batch numbers corresponding to For recalled products the Quality Control Department Technical Through this drill Gree Electric further enhanced its
production order numbers; Department Production Department Operations Department product quality management and emergency recall
and Customer Service Center coordinate to determine the response capabilities laying a solid foundation for
The Company’s Quality Control Department records and product handling strategy including repair rework or disposal. safeguarding customer interests and maintaining Green
manages quality information for all products documenting Development In addition the Company’s Customer Service Center conducts the Company’s reputation. Leading with
details such as barcode numbers export product batch Low Carbonregular follow-up visits with users of recalled products gathers
numbers production dates shifts and specifications of key feedback and maintains user satisfaction records.components.Conclusion
422024 Environmental Social and Governance Report
Enhancing User Experience Optimizing Customer Service Actions
Introduction
Gree Electric is committed to “customer satisfaction” as its service purpose adhering to the service The Company continuously optimizes services
philosophy that “Your satisfaction is our top priority” and establishing the concept of “service without across all stages including pre-sale in-sale andlimits”. The Company provides comprehensive training for service personnel including technical after-sale committed to providing customers with
skills behavioral norms and service safety to achieve refined management and professional quality-first pre-sale consultations a welcoming
service. The goal is to achieve “zero complaints in after-sales service”. in-sale experience and worry-free after-sale Compliance
services. Governance
Upholding
Integrity and
Sincerity
Customer Service Management System Implementation of Smart Customer
The Company strictly complies with laws and regulations such as the Law of the People’s Republic Service
of China on the Protection of Consumer Rights and Interests and the Implementation Regulations
of the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests. During the reporting period the Company Innovation-
It continuously upgrades service policies and standards to better safeguard consumer interests launched several information technology projects Driven
including intelligent work order assignment Quality-Base eliminate users’ concerns regarding after-sales services and set higher demands for product quality. Development
service personnel mobility analysis and system
During the reporting period the Company received CRAA installation and maintenance service logic optimization significantly improving the
certification for centralized refrigeration air conditioning equipment (Class A) air purifying air efficiency and quality of after-sales service and
conditioning equipment (Class B) and domestic (commercial) refrigeration air conditioning equipment enhancing user satisfaction and loyalty.
(Class D) with service level certification rated at six stars.
People-
Centered
Approach
Creating Value
for Society
Intelligent work Real-time Transparent
order assignment information management of
system feedback spare parts
Green
Development
Leading with
Low Carbon
Data monitoring User information Dissatisfaction Comprehensive
and analysis interaction handling service network
mechanism coverage Conclusion
Class A Certificate Class B Certificate Class D Certificate
432024 Environmental Social and Governance Report
Service Management Innovation Value-Added Services
In 2024 the Company launched its self-developed B2B The Company pays close attention to
e-commerce platform - the GREE Online Bulk Ordering System. Introductionthe increasingly refined service needs of
This platform aims to comprehensively integrate the entire users. To address challenges such as air
supply chain for distributors including procurement warehousing conditioner cleaning difficulties and pricing “Spring Breeze in March” service campaign
and logistics terminal sales and after-sales services through issues GREE has introduced initiatives
digital solutions. It addresses the issue of fragmented distribution like the “GREE Spring Breeze in March” For many years Gree Electric has
channels and promotes deep integration between online and campaign. This campaign offers free air organized nationwide “3.15” (March 15) Compliance
offline channels. The system provides distributors with a one- conditioner inspections and testing services activities or off-season “Spring Breeze” Governance Upholding
stop service including online ordering logistics delivery project to hundreds of thousands of consumers service campaigns offering free filter Integrity and
management and business analysis functions. This helps Sincerityas well as on-site maintenance services cleaning maintenance and inspections.businesses efficiently manage products orders shipments including cleaning air conditioner filters and These initiatives have significantly
settlements and customer relationships enabling the exterior components. Additionally GREE enhanced users’ long-term service
digitalization and automation of the sales process. engages with consumers through the experiences.“GREE Service” WeChat public account Innovation-
offering interactive activities such as air Driven
conditioner cleaning knowledge quizzes Quality-Base Development
and spec ia l promot ions enhanc ing
customer satisfaction and engagement.Strengthening After-Sales Service
People-
Establishing a Improving the quality Centered
Gree Electric has established a comprehensive after-sales service nationwide unified information collection Approach
system that radiates the entire country and extends deeply into Creating Value customer complaint and feedback system for Society
urban and rural areas. By the end of the reporting period the handling mechanism to for closed-loop service
Company had set up customer service centers at sales companies ensure swift response; management;
in 31 regions across the country with over 15000 authorized after-
sales service points achieving 100% service network coverage.The Company has assembled a service team of more than 110000 Green
professional service personnel ensuring timely and professional Development Leading with
service effectively enhancing service efficiency and quality and Low Carbon
continuously improving customer satisfaction. This strong after- Optimizing the spare Implementing a quick
sales service infrastructure provides robust support for the market parts supply chain settlement mechanism
competitiveness of GREE products. to ensure timely for service fees to
The Company has implemented a “Four-Hub” strategy - refining the availability of repair enhance the motivation
service network standardizing service processes professionalizing parts; of service providers. Conclusion
service personnel and digitizing service management to establish
an efficient after-sales service system. Specific measures include:
GREE Online Bulk Ordering System
442024 Environmental Social and Governance Report
Handling of Customer Complaints Customer Satisfaction
The Company strictly adheres to the “three guarantees” policy (repair The Company regularly conducts statistical analysis ofreplacement and return) ensuring quick response and resolution complaint data to identify service gaps and continuously Awarded “National Enterprise (After-Sales Introductionfor customer complaints and negative feedback thus protecting optimizes service processes to enhance customer satisfaction. Service) Competitiveness 5A Benchmark Unit”
customer rights. Additionally the Company has developed and In addition it conducts annual customer satisfaction surveys titleimplemented the Measures for Administration of Rapid Response to with results showing that customer satisfaction has remained In March 2024 at the “First National StandardCustomer Service authorizing customer service representatives to above 99% for three consecutive years demonstrating a Enterprise Competitiveness Evaluation Norms
provide remedies such as store credits extended warranty services consistent year-on-year improvement trend. Promotion Conference and New Era Enterprise Complianceor free cleaning when necessary to enhance customer satisfaction. Competitiveness Development Forum” Gree Electric GovernanceFor special customer complaints personalized consolation plans Upholding was awarded the title of “National Enterprise (After- Integrity andare offered to effectively alleviate customer dissatisfaction. During 99.88% Sales Service) Competitiveness 5A Benchmark Unit”. Sincerity
the reporting period the Company implemented a 24-hour rapid 100% 99.05%
99.61%
response standard to customer inquiries successfully resolving
client issues with a customer feedback response rate of 99.99%.The Company values customer complaints and feedback Innovation-Driven
considering them valuable insights for the high-quality development Quality-Base
of the business with multiple communication channels including Development
phone WeChat public account online platform customer service
email and postal mail available to protect consumer rights.Furthermore the Company has established a standardized customer
service information handling process creating a closed-loop People-
management system that includes problem reception classification 2022 2023 2024 Year Centered
tracking and supervision and result feedback ensuring that every Approach Creating Value
complaint is resolved promptly and effectively. for Society
Improvement in Professional After-Sales Service
Professional after-sales service personnel are the fundamental
guarantee of product quality and service. With years of experience
Green
and a strong installation team along with a rigorous supervision Development
system the Company ensures the effective guarantee of GREE Leading with Low Carbon
air conditioner installation quality. During the reporting period the
Company strengthened the promotion and education of installation
standards enhancing the installation skills and professional ethics
of installers; implemented a quality inspection and supervision
mechanism with sales companies and service points assigning
inspectors to conduct irregular inspections to ensure installation Conclusion
quality. The headquarter compiles and reviews the after-sales
service performance KPIs of nationwide sales companies and
service points on a monthly basis providing commendations or
critiques based on the results.
45
Customer Satisfaction2024 Environmental Social and Governance Report
In terms of enhancing the professional skills of after-sales service personnel the Company develops management documents
each year including the On-Site Service Manual and Technical Guidance Manual for New Products to guide after-sales
service teams across various regions in keeping up with new products technologies and requirements. The Company
Introduction
organizes irregular technical skills training sessions nationwide every year to enhance service capabilities. Additionally
through the “GREE After-Sales Engineer” WeChat public account the Company provides frontline service personnel with self-
service features such as national standards product services installation specifications and fault handling. The platform also
periodically releases materials on product introductions installation guidance and more empowering service personnel to
engage in self-learning and skill improvement ultimately offering higher-quality service to end customers.Compliance
Customer Service Awards Governance Upholding
Integrity and
Sincerity
Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
2024 Annual Household Appliance Industry 2023 Household Appliance After-Sales for Society
User Satisfaction Index: Service Leading Enterprise Certificate
“GREE After-Sales Satisfaction Ranked First”
Green
Development
Leading with
Low Carbon
2024 Top 100 Chinese Service Brands
Conclusion
National Standard Five-Star After-Sales Support Enterprise National Top 10 After-Sales Support Enterprises
A Letter from Consumer to Dong Mingzhu
462024 Environmental Social and Governance Report
Building Sustainable Supply Supplier Categorization
Chains The Company has established the Measures for Administration of Supplier Quality Evaluation to implement a tiered management approach for suppliers ensuring that their quality performance meets the Company’s requirements. Adhering to the principles of Introduction
comprehensiveness and fairness the Company regularly evaluates suppliers’ performance across different dimensions including
The Company adheres to the principles of sustainable quality delivery and service. This effectively monitors supplier performance and ensures the stability and high quality of the supply
development and is committed to building an efficient green chain. For underperforming suppliers the Company provides specific improvement recommendations and support to help them
and responsible supply chain system to enhance social and enhance management levels and product quality.environmental well-being. Through continuous optimization of Compliance
supply chain management processes the Company aims to Supplier Audit Governance
Upholding
improve resource utilization efficiency reduce environmental The Company enforces a strict periodic audit and elimination mechanism conducting annual reviews and human rights risk audits Integrity and
impact and actively fulfill its social responsibilities respects and Sincerityfor high-risk suppliers as well as some Tier 2 (components) and Tier 3 (raw materials) suppliers to ensure continued compliance with
safeguards labor rights and collaborate with suppliers to create the Company’s requirements demonstrating its commitment to protecting product quality and consumer rights. Through reviews the
a sustainable future. Company identifies and addresses issues with suppliers in a timely manner ensuring the stability and sustainability of the supply chain.For suppliers failing to meet requirements the Company will take corrective actions and if necessary initiate the elimination process to
maintain the overall quality of the supply chain.Supplier Management Innovation-Driven
Quality-Base
Main content of Gree Electric’s supplier audit Development
To fully guarantee the Company’s production and satisfy
customer needs as much as possible the Company has
established and improved the supplier lifecycle management
system encompassing admission assessment categorization
control regular audit and elimination. It also has established
and strictly follows the Measures for Administration of Suppliers People-Centered
controlling the supply chain from the source to ensure stable Basic information Quality control Work safety Approach Creating Value
product quality and supply chain change Including the implementation for SocietyChange in name production
address and production of quality control measures
Work safety protection
qualification and inspection standards
measures
Admission of Suppliers during production
The Company has implemented a robust supplier admission Green
system conducting comprehensive evaluations through Development Leading with
strict assessments on-site inspections and other methods. Low Carbon
It thoroughly assess factors such as product quality control
capability production capacity technical level and pricing.Additionally the Company analyzes potential risks in supplier
partnerships including supply stability and financial health and
formulates appropriate risk management strategies to address Finished product ESG standards Inspection equipment
potential challenges. warehousing and capability Conclusion
Management and control Including the protection Inspection equipment
measures for finished product of workers’ rights and condition and its inspection
warehousing interests capability
472024 Environmental Social and Governance Report
Conflict Minerals Management During the reporting period
The Company strictly prohibits any involvement in or initiation of activities that contribute Introduction
to human rights violations or environmental degradation caused by armed conflicts. To
this end the Company adheres to and requires its suppliers to comply with both domestic
and international conventions regulations and industry initiatives regarding responsible The Company investigated a Traced
minerals. It has developed and published Gree Electric Conflict Mineral Policy pledging total of
to not using minerals directly or indirectly sourced from conflict-affected and high-risk
areas in its products including but not limited to minerals such as tin tantalum tungsten 652 Compliance suppliers 360smelters and refineries Governance
and gold (3TG). The Company has communicated to its suppliers and require them to Upholding Integrity and
comply with it. In addition it mandates that suppliers provide written declarations and Sincerity
establish a raw material traceability system to ensure that the products supplied to the
Company do not contain the above mentioned conflict minerals.The Company conducts annual conflict minerals due diligence on suppliers of products
containing conflict minerals following the Conflict Minerals Reporting Template (CMRT/ Of which over Innovation-
EMRT) provided by the Responsible Mineral Initiative (RMI). Suppliers are required Driven Quality-Base
to perform due diligence on their upstream suppliers concerning conflict minerals; Development
by regularly disclosing the results of its due diligence investigations the Company 40%have obtained RMAP certification
continuously enhances the transparency of its conflict minerals due diligence outcomes.During the reporting period the Company investigated a total of 652 suppliers and traced
360 smelters and refineries of which over 40% have obtained RMAP certification.
People-
Sustainable Supply Chains Centered Approach
Creating Value
for Society
The Company places significant emphasis on the sustainable development of its supply
chain. The agreements with suppliers incorporate clauses covering environmental Supplier ESG Management
protection labor practices and other areas to promote the growth of a green supply The Company places significant importance on the
chain. In addition the Company actively promotes integrity signing integrity agreements During the reporting periodESG performance of its suppliers and has issued the
with suppliers and providing channels for feedback. In addition it strengthens the Supplier Code of Conduct which outlines specific Green
management of conflict minerals establishing a traceability system to ensure the Development management requirements for suppliers regarding The Company
compliance of raw materials. Through various communication activities the Company did not Leading with business ethics health and safety employee rights Low Carbon
fosters in-depth interactions with suppliers striving for mutual benefits and shared reject any potential suppliers or protection and environmental protection. The Company
development. terminate relationships with any conducts comprehensive environmental and social suppliers due to non-compliance
The Company is committed to building an efficient energy-saving and environmentally- impact assessments for all suppliers. Additionally
friendly supply chain system actively promoting green manufacturing and sustainable the Company requires all new suppliers to commit to
with environmental or social
development. By the end of the reporting period five of the Company’s subsidiaries have adhering to the Business Social Compliance Initiative
requirements.Conclusion
been included in the Ministry of Industry and Information Technology’s list of green supply (BSCI) Code of Conduct ensuring compliance with
chain management enterprises including GREE (Shijiazhuang) Electric Appliances Co. international standards on social responsibility labor
Ltd GREE Changsha HVAC Equipment Co. Ltd and GREE (Zhongshan) Small Home rights and environmental protection thus promoting
Appliances Co. Ltd. the sustainable development of the supply chain.
482024 Environmental Social and Governance Report
The Supplier Code of Conduct includes the following social responsibility- The Supplier Code of Conduct includes the following environmental protection-
related content: related content: Introduction
Environmental and social responsibility system certification: Acquisition of ISO 14001 Environmental protection requirements
and ISO 45001 certifications is one of the manifestations of a company’s responsible *Evidence of compliance with environmental laws and regulations: Suppliers
behavior. Furthermore holding certificates such as SA8000 (Social Responsibility) BSI are required to provide documents or reports demonstrating their compliance
(Business Social Indicators) and C-TPAT (Customs-Trade Partnership Against Terrorism) with national and regional environmental regulations including compliance with Compliance
further demonstrates the company’s efforts in social responsibility. wastewater discharge air emissions waste disposal and other related aspects. Governance Upholding
Integrity and
Compliance with labor laws and regulations:This includes but is not limited to the *Plans and objectives to reduce environmental impact: Suppliers must provide Sincerity
prohibition of any form of forced labor ensuring that employees’ fundamental human rights specific improvement plans and objectives such as reducing carbon footprints
are respected. The use of child labor should be avoided and it must be ensured that all improving energy efficiency and minimizing waste generation.workers are at least 16 years old. Furthermore there should be no discrimination based on Toxic and hazardous substance control
factors such as age gender race religious belief sexual orientation or physical condition
during processes such as recruitment and promotion. *Presence of toxic and hazardous substances in products: Suppliers are Innovation-
required to provide relevant test reports proving that their products contain no toxic Driven Quality-Base
Workplace health and safety:Providing a safe and healthy working environment is a and hazardous substances regulated by laws such as the EU RoHS (Restriction of Development
fundamental requirement. This includes but is not limited to providing necessary personal Hazardous Substances).protective equipment implementing special protective measures for toxic or hazardous *Hazardous substance testing equipment: Suppliers must possess necessary
jobs conducting regular health check-ups to monitor employee health establishing hazardous substance testing equipment or send samples to third-party accredited
effective accident prevention and management systems regularly inspecting special testing agencies for testing and provide corresponding test reports.equipment and maintaining relevant records ensuring fire safety and fully equipped People-
facilities and conducting fire evacuation drills. Warehouse materials handling and production line management Centered
*Identification and segregation of toxic and non-toxic substances: Suppliers Approach
Working hours and rest/leave system:Companies shall comply with national regulations Creating Value must ensure that toxic and non-toxic substances are clearly identified and stored for Society
regarding working hours reasonably arrange for employee rest and leave and abide by separately in warehouses material handling areas and production lines to prevent
local labor laws regarding paid overtime to ensure proper compensation for overtime work. cross-contamination.Working hours and rest/leave system:Companies shall cover social insurance for *Identification of pollution risks in the production process: Suppliers must
employees ensure that each employee’s income meets or exceeds the local government’s identify potential environmental pollution points in the production process and
minimum wage standard and provide relevant wage structure and payment records as implement corresponding control measures. Green Development
proof. Leading with Green supplier management Low Carbon
Freedom of association:Companies shall respect employees' rights to freedom of *Green supplier certification process and list: Suppliers should have a clear
association and collective bargaining. green supplier certification process and maintain a list of certified green suppliers.*Hazardous substance control agreement: Suppliers must sign hazardous
Note: Under the same conditions the company will give priority to suppliers substance control agreements with green suppliers or require the suppliers to provide
who meet the aforementioned labor management requirements and ensure that relevant commitment letters ensuring that these suppliers are provided with effective Conclusion
employees' rights and interests are fully protected. third-party accredited test reports on hazardous substance content filed.
492024 Environmental Social and Governance Report
Supplier Integrity Construction
The Company is committed to fostering an open fair healthy and Gree Electric Hosts Offline Training on Hazardous Substances for Suppliers
Introduction
transparent competitive environment within its supply chain. To this
end the Company has established a self-recommendation platform for In 2024 the Company organized an offline training session for
suppliers and requires both suppliers and relevant internal personnel to suppliers focused on hazardous substances aiming to enhance
sign Integrity Agreement Self-Discipline Declaration and Commitment suppliers’ understanding and implementation capabilities regarding
Letter. Additionally the Company regularly conducts anti-corruption and global hazardous substance control laws and regulations ensuring
anti-bribery awareness campaigns and training reinforcing the foundation that the supply chain meets green and environmental standards. Compliance
of business ethics. The training incorporated detailed explanations of international Governance Upholding
regulations such as the EU RoHS Directive key REACH compliance Integrity and Sincerity
Feedback Channels requirements new packaging material TPCH requirements updates
on France’s mineral oil legislation POPs management regulations
the US Toxic Substances Control Act (TSCA) and the Battery Act.Complaint Hotline: (0756)8669807 The training also included a comprehensive introduction to GREE’s
own restricted substances environmental requirements. The training Innovation-
received significant attention and support from suppliers with 120 Driven Quality-Base
suppliers participating. After the training the Company conducted an Development
Complaint E-mail: assessment with 245 participants taking the exam. The pass rate
jiancha@gree.com.cn； was 91% indicating that the majority of suppliers had mastered the
caigoujicha@cn.gree.com core knowledge covered in the training.People-
Supplier Communication and Training Centered Approach
Creating Value
for Society
The Company places a high value on empowering its suppliers. For
suppliers identified as having risks during regular evaluations the
Company proactively assists them with corrective actions. Additionally During the reporting period in terms of supplier training the Company
the Company regularly organizes supplier training and communication
activities promoting continuous improvement in suppliers’ quality control
and sustainability awareness and capabilities. held the cumulative training duration was
Green
Development
Leading with
Low Carbon
30training sessions 30hours
covering with more than Conclusion
26suppliers 1300 participant
502024 Environmental Social and Governance Report
Industry Collaboration and Development
Introduction
In the ever-changing waves of the industry the Company has been adhering to the philosophy of openness cooperation and mutual benefit considering industry collaboration as a key engine to drive both
its own development and the advancement of the industry. The Company actively engages in different industry seminars and conferences sharing experiences and exchanging ideas with peers exploring
new pathways for industry development. It proactively establishes deep strategic partnerships with upstream and downstream enterprises collaborating closely across various aspects such as raw material
supply product research and development and market expansion achieving efficient resource integration and complementing each other’s advantages. The Company also actively participates in the
formulation of industry standards contributing to the regulation of market order and the improvement of the overall industry level.Compliance
Governance
Upholding
Integrity and
Sincerity
Gree Electric Co-hosts Technical Exchange Conference within the Industry
To thoroughly implement the decisions made by the Central Government State Council and provincial and Innovation-Driven
municipal governments regarding large-scale equipment updates and the replacement of old consumer goods Quality-Base Development
the Company together with the Sichuan Energy Conservation Association and Sichuan Construction TechnologyAssociation co-hosted the “Sichuan Province 2024 Large-Scale Equipment Update and HVAC Industry TechnicalExchange Summit” aiming to explore methods for equipment upgrades in the HVAC and refrigeration sectors within
existing buildings promote technological advancements and encourage the transformation and upgrading of key
industries thus driving high-quality development in the HVAC sector.People-“Sichuan Province 2024 Large-Scale Equipment Update and HVAC Industry Centered ApproachTechnical Exchange Summit” Creating Value
for Society
Gree Electric Participates in the SNEC 17th International Photovoltaic Power Generation and Smart Energy
(Shanghai) Conference
Green
In June 2024 Gree Electric participated in the SNEC 17th International Photovoltaic Power Generation and Smart Development Leading with
Energy (Shanghai) Conference & Exhibition at the National Exhibition and Convention Center in Shanghai. At the Low Carbon
event Gree Electric showcased a variety of green products including the PEDF system energy storage temperature
control and industrial and commercial energy storage solutions. The Company also held presentations centered
on GREE’s PEDF technology and engineering cases related to photovoltaic-storage AC applications. Additionally
the Company was invited to participate in the “Top Ten Highlights” presentation event where it shared the standouttechnologies of the GREE PEDF Air Conditioning System and the GREE PEDF Zero-Carbon+ system. The “GREEPEDF Zero-Carbon+” system won the “Terawatt Diamond Award” while the “GREE PEDF Energy Station” was Conclusion
awarded the “Energy Storage Application Excellence Award”. These accolades received high praise from industry
experts and attendees further showcasing Gree Electric’s technological strength in the photovoltaic-storage sector. The SNEC 17th International Photovoltaic Power Generation and Smart Energy
(Shanghai) Conference
512024 Environmental Social and Governance Report
Standard Formulation
Zhuhai GREE Intelligent Equipment Co. Ltd. establishes strategic partnership
with Omron As of the end of the reporting period Gree Electric has formulated 14000 corporate standards Introduction
and has shared over 3600 GREE component standards with the industry chain. The Company
In July 2024 Gree Electric’s subsidiary GREE Intelligent Equipment signed a has led or participated in the formulation and revision of 873 national and international standards
strategic partnership agreement with Omron Automation. Both parties will collaborate including 64 international and foreign standards. Additionally the Company actively undertakes or
in various fields including rail transportation automotive electronics photovoltaic participates in 153 domestic and international standardization organizations including 40 foreign
lithium batteries robotics applications automation engineering system integration and standardization organizations. It holds 37 expert positions in organizations such as ISO and IEC. In
smart warehousing logistics. Compliance 2024 GREE participated in and released 73 new standards. Governance Upholding
Integrity and
By combining GREE Intelligent Equipment’s R&D capabilities with Omron’s automation Sincerity
technologies both parties will leverage their respective strengths to jointly provide Standard Formulation and Revision of Gree Electric
efficient reliable and professional smart manufacturing solutions. This partnership
aims to drive automation upgrades across industries and support the high-quality
development of China’s manufacturing sector through “precision craftsmanship”. Type of Standard Quantity (Nos)
Innovation-
Driven
Quality-Base
International and foreign standard 64 Development
National standard 341
People-
Centered
Approach
Creating Value
Industry standard 186 for Society
Group standard 24
Green
Development
Leading with
Low Carbon
Group standard 258
Scene of signing ceremony of strategic partnership Total 873 Conclusion
522024 Environmental Social and Governance Report
On September 10 2024 Chairperson Dong Mingzhu as the In May 2024 Gree Electric was awarded the Guangdong Province
first entrepreneur from China’s refrigeration industry to serve as Standardization Outstanding Contribution Award for Standard
the Chairman of the Refrigeration Compressor Subcommittee Organization with a high score. At the same time the Company’s GREE Was Selected for 38 National Standard Introduction
held the 13th plenary meeting of the International Refrigeration leadership in formulating the standards GB/T 38356-2019 Quality Verification Points Approved for the First Time
Compressor Subcommittee (ISO/TC86/SC4) in Hefei. The Management - Guideline for Customer-Oriented Innovation Cycle The Company’s national standard verification point for
meeting was attended by 32 representatives from 8 countries and GB/T 37227.1-2018 Evaluation Method and Testing Method refrigeration equipment energy conservation has been
including China the United States Japan Germany and the for Energy Performance of Refrigerating Systems - Part 1:Energy- included in the list of approved verification points
United Kingdom. The Company presented its first proposal for a Storage Air Conditioning Systems earned the Second and Third making it one of the 38 national standard verification
standard on Compressor Vibration and Noise Evaluation. Prizes respectively in the Guangdong Province Standardization points approved for the first time in the country. It is Compliance
Outstanding Contribution Award for Standard Projects. Governance also the only company from the refrigeration industry Upholding
to be included. This marks another achievement in Integrity and Sinceritythe Company’s implementation of the “StandardizationLeadership Strategy” further contributing to the high-
quality development of the industry.Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
On June 27 2024 the Company was approved to establish the Guangdong Provincial Advanced Photovoltaic Energy Storage Direct
Current System Quality Standard Laboratory.In July 2024 the Company earned the title Green Developmentof “Leading Standardization Enterprise in Leading withLow CarbonGuangdong Province.”
On December 25 2024 the Companywas honored with the title of “OutstandingContribution to Standardization in 2024”
by the National Technical Committee on Conclusion
Refrigeration and Air Conditioning Equipment
Standardization.
532024 Environmental Social and Governance Report
Introduction
Compliance
Governance
Upholding
Integrity and
Sincerity
Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
542024 Environmental Social and Governance Report
Talent Recruitment and During the reporting period
Employment The Company did not experience any incidents of employment discrimination Introduction
harassment child labor or forced labor that violated labor human rights policies
The Company in strict accordance with the relevant
laws and regulations including the Labor Law of the
People’s Republic of China the Labor Contract Law of
the People’s Republic of China and the Provisions on The employee labor and the social insurance
the Prohibition of Using Child Labor has established contract signing rate coverage rate for employees was Compliance Governance
a comprehensive employment management system to Upholding Integrity and
ensure compliance in recruitment hiring termination was100% also100% Sincerity
compensation and benefits working hours holidays
and other employment matters.no strikes or lock-outs in the last three years
Compliant Employment Innovation-Driven
Collective negotiation Quality-Base Development
The Company is committed to respecting and caring for Employer Honors Gree Electric places great emphasis on collective
every employee. It has revised and implemented the negotiation continuously improving negotiation
Measures for Administration of Employee Recruitment ski l ls and capabil i t ies strengthening the
standardizing the management of employees across development of a professional workforce
the Company and its subsidiaries. Adhering to the and promoting the efficient implementation of People-principles of “open recruitment equal competition and collective bargaining activities. These efforts Centeredmerit-based selection” it ensures equal employment Approach effectively protect the legal rights and interests Creating Value
opportunities equal pay for equal work and is of employees ensuring mutual benefit and for Society
committed to preventing the use of child labor or collaboration between the Company and its
forced labor. It also actively works to avoid any form workforce laying a solid foundation for the
of discrimination based on nationality race religion establishment of harmonious and stable labor
ethnicity gender age disability marital or parental relations. The Company has been recognized
status and respects employees’ rights to freely as a model for enterprise labor and capital Green Development
assemble and associate in accordance with the law. communication and negotiation in Guangdong Leading with
This guarantees that each employee can thrive in a Low CarbonProvince in 2023 a typical enterprise for collective
diverse equitable and inclusive work environment. bargaining in Zhuhai City in 2022 and has won
the first prize for excellent cases in collective
Furthermore the Company ensures that labor contracts bargaining. Upon deliberation and voting for
are signed based on equality and willingness. It strictly approval at the employees' representative
follows legal provisions and contractual agreements congress the collective agreements were signed Conclusion
when performing renewing or terminating labor by the legal representatives of both parties
contracts thereby ensuring that all employment achieving 100% coverage of the collective
practices are compliant with laws and regulations. Named to Forbes’ 2024 List of the World’s Best Employers agreements.
552024 Environmental Social and Governance Report
Employee Structure Remuneration Management Employee Stock Ownership PlanIndicator/Total number of employees Unit/Person The Company adheres to the concept that “talent is the primary The Company has established a long-term effective incentive Introductionresource” establishing a scientific remuneration management mechanism continuously implementing the ESOP to attract 72900 72808 system and continuously promoting employee stock ownership and retain outstanding talents. This plan aims to incentivize and
plans offering special benefits for high-tech talents. Through stabilize the retention of middle and senior management and
72700 72610 a scientifically structured remuneration system and incentive backbone employees forming a community of interest between
mechanisms it effectively stimulates employee enthusiasm employees and the Company thereby enhancing employee Compliance
72500 helping both employees and itself grow together and share cohesion and the Company’s competitiveness. Since 2021 the Governance Upholding
72380 development achievements achieving a win-win result. Company has successively launched the first second and third Integrity and
phases of its ESOP. The incentive scope of all three phases Sincerity
72300
Remuneration Management System includes company directors (excluding independent directors) supervisors senior management and middle-level managers
72100
The Company strictly complies with national laws and and key employees identified by the Board of Directors as
regulations and in line with its actual situation has developed having an important role in the Company’s overall performance
2022 2023 2024 Innovation-the Measures for Administration of Wages establishing a and medium- to long-term development. Driven
Quality-Base
standardized and systematic salary management system Development
that ensures employees to receive the legal and rightful As of the end of the reporting period
72808
51733 Number of remuneration for their labor. It is committed to building a fair
Number of male employees under
employees labor contracts and competitive remuneration system consisting of fixed and
variable income. The variable portion of the salary is linked to
personal performance assessments and other dynamic factors
21075 and this salary structure covers all employees. the number of employees covered by the
People-
Number Centered of female Approach
employees Company’s ESOP is as follows The first phase of In addition the Company continues to advance its talent Creating Value for Society
incentive policies fully leveraging the role of outstanding the ESOP covered employees 4513
Number of employees by gender Number of employees by employees as role models. To this end the company has
employment type established a diverse bonus system including awards for
technological progress management innovation rationalization
5373
249 Mid-level suggestions performance and year-end bonuses. It also
Senior management management Green
organizes various honors activit ies such as selecting Development
37 1402 Leading with
23833 Number of female Number of female outstanding individuals worker pioneers gold medal employees The second phase of the ESOP Low Carbon
32631 30 years old
employees in senior employees in mid-
and below management level management distinguished employees and skill model workers to encourage 31 to 40
years old employees to innovate and demonstrate their strengths. covered 3170 employees
67186
Grassroots
Conclusion
16344
40 years old or The third phase of the ESOP covered
above
Number of employees by Number of employees by job
age level 5141employees
562024 Environmental Social and Governance Report
Employee Development and Training Training Plan System
The Company is committed to creating a comprehensive growth platform for employees building a practical and efficient Introduction
The Company has always considered talent development as the core talent culture and consistently adhering to the concept of self-driven talent development. To support the Company’s
strategy for its business growth continuously performing comprehensive strategic goals and the business development needs of each unit the Company has formulated and implemented a
training programs and effectively promoting the quality building of talent company-wide learning and development plan covering four levels: company-level department-level office-level and
teams. By carrying out all-encompassing training implementing scientific individual-level. The annual training demand survey is conducted from four dimensions: organizational strategy business
performance evaluations and ensuring smooth promotion channels it fully development personnel skills and cultural literacy. It adopts a “dual-track linkage” approach at both the Company and
unleashes employees’ potential. At the same time it deepens cooperation unit levels. This method helps identify training needs for the strategic goals from top to bottom while also refining training Compliance Governance
with universities and industries promoting the integration of production and requirements for business skills improvement from bottom to top finally resulting in a four-level training plan. The content Upholding
education to reserve innovative forces for the Company’s development. of the training plans at each level complements each other and focuses on key areas ensuring that the learning and Integrity and Sincerity
development objectives of “connecting strategy with performance” are effectively implemented. This framework provides
Employee Training strong support for both the Company’s strategic implementation and the enhancement of employee capabilities.The Company fosters a learning organization and promotes mechanisms Four-Level Training Plan
such as regular learning for grassroots management cadres to facilitate the Innovation-Driven
inheritance of management experience the sharing of R&D technology Quality-Base Development
and the enhancement of skill levels. For key groups it focuses on key
programs such as the “Cornerstone Program” for supervisor training Four-level learning training plan
camps the “Spark Program” for team leader training camps and the system involving all staff
university talent development program providing comprehensive and multi-
level training support for grassroots managers and fresh graduates. Relying Level Training plan Training focus
on the national high-skilled talent training base construction project the People-
Company continues to nurture high-skilled professionals further enhancing Centered Approach
its core competitiveness. Company-level plan Strategy support Key group Key business
Creating Value
Strategic level Promotion of for Society
(level 1) for implementation training development cultural quality
During the reporting period
the total training hours for all employees reached Green
Department level plan Project operation of key business In-depth training of key groups Development nearly (level 2) Leading with Low Carbon
Business level
1.18 million hours Devision level plan Business innovation Team development Management Technical experience
(level 3) development construction
experience
inheritance inheritance
with the average training hours per employee over Conclusion
50 Performance level Individual level plan Working performance Occupational development Knowledge and skill hours (level 4) improvement challenge reserves
572024 Environmental Social and Governance Report
Training Program Construction
The Company continues to deepen its talent development “Cornerstone Program” Supervisor Training Camp Introduction
strategy by empowering employee growth and business
development through a systematic and efficient training In 2024 Gree Electric’s supervisor training camp was targeted and problem-oriented focusing on 160 grassroots
system. During the reporting period the company-level training backbones across 68 units within the Company. By establishing a unique training model and reconstructing the courseplan focused on five core dimensions namely the strategic system the camp emphasized three main directions: “solidifying fundamental management knowledge fostering a sense ofimplementation support key group training building a learning responsibility and accountability and learning risk avoidance methods”. The program adopted a blended learning approach
organization business development priorities and system combining both online and offline activities including team-building exercises management experience seminars and visits Compliance
management operations. These plans were jointly boosted and to well-known enterprises to comprehensively enhance supervisors’ overall competence. The purpose of this training camp
Governanceimplemented by the HR Department and various units. During is to build a grassroots management team “aware of positioning skilled in management excels in team performance andUpholding
Integrity andthe training implementation process the Company places great strong in compliance knowledge”. This serves as a solid talent guarantee for fulfilling the Company’s strategic goals and
Sincerity
emphasis on the practical application and transformation of the ensuring its sustainable development.training outcomes. Each project is assigned a dedicated person
for supervision and the Company strictly adheres to the Plan-
Do-Check-Act (PDCA) cycle management mechanism to ensure Innovation-
continuous improvement in the training effectiveness. Driven Quality-Base
Development
As of the end of the reporting period
the Company successfully completed
People-
54 Centered level 1 training programs Approach Creating Value
for Society
training over
Green
43000 Development participants Leading with Low Carbon
with an average annual training satisfaction
“Cornerstone Program” supervisor training camp of 2024Program” supervisor training camp of 2024
rate of Conclusion
96.85%
582024 Environmental Social and Governance Report
New Employee Training
The Company always adheres to the concept of “self-cultivating talent” and views fresh graduates as the driving force for the Company’s future development. To help new employees quickly fit in and become Introduction
competent in their roles the Company has developed a systematic and comprehensive training plan. At the beginning of their employment new employees undergo centralized training covering corporate
culture management systems and core business processes to help them fully understand the Company’s operations. Additionally the HR Department closely collaborates with relevant departments to
design departmental training plans based on the competency models for each role. The Company also employs mentorship programs and “master-apprentice” systems to accelerate new employees’ learning
and transformation helping them to quickly acquire the necessary skills in performing their work duties effectively.Compliance
Governance
Upholding
Educational and Professional Qualification Integrity and Sincerity
Support
“Starry GREE” Class of 2024 College Graduate Onboarding and Training Program The Company highly values the personal growth and
development of its employees actively encouraging them
In response to the Company’s rapid development needs and to foster high-quality talent deeply aligned with the to enhance their educational qualifications and professional
Company’s culture and strong in professional abilities Gree Electric launched the “Starry GREE” class of 2024 college Innovation-certifications. It has established the Measures for Administration Driven
graduate training program. This program targets all newly graduated college students at the Company’s headquarters and Quality-Base of Training Funds specifying that employees who have obtained Development
subsidiaries. The program includes specialized customized and distinctive training projects and organizes onboarding a diploma (associate bachelor’s or master’s degree) or earned
ceremonies to enhance the sense of occasion and fulfillment for new employees helping graduates transition from campus a professional qualification certificate related to their current job
life to becoming part of the GREE family facilitating their smooth integration into the workplace. from the national vocational qualification directory may apply
for reimbursement of the related expenses after meeting the
eligibility requirements through the approval process.People-
Centered
During the reporting period Approach Creating Value
for Society
the Company provided reimbursement support for
educational and skill level improvement expenses
to over
1100 Green Development employees Leading with
Low Carbon
Scene of Class of 2024 Graduates’ Onboarding Training
with a total reimbursement amount exceeding
Conclusion
CNY1 million
592024 Environmental Social and Governance Report
Performance Evaluation Performance Feedback and Appeals
and Promotion If employees have any objections to the current performance evaluation results they can first provide feedback and communicate with their immediate Introduction
Gree Electric has established a scientific supervisor; if after communication an agreement is not reached employees may submit a written appeal to the corresponding user department during the
and transparent performance evaluation performance announcement period. The user department receiving the appeal should promptly communicate with the employee and provide feedback on
and promotion system based on fairness the handling of such matter to ensure proper resolution.and justice motivating employees to make
continuous improvement. In addition it If employees have concerns regarding the fairness or impartiality of the performance management process by their department or supervisor they may
places great emphasis on the enhancement submit a written request to the HR Department for review. The HR Department will conduct an investigation verify the facts and take fair and appropriate Compliance
of feedback and appeal mechanisms to action based on the findings ensuring transparency and credibility in the performance management process and safeguarding the legal rights of employees. Governance Upholding
ensure that employees receive timely and Integrity and Sincerity
effective feedback during the performance
evaluation process. Promotion ChannelsPerformance Evaluation The Company has always regarded talent as its most valuable asset and is committed to building a scientific and well-structured talent pipeline system. For technical and management employees the Company has innovatively created three career development pathways: “Professional Administration Innovation-To standardize and strengthen employee and Comprehensive Development” offering employees a diversified range of growth options. For frontline employees the Company has established a Driven Quality-Base
performance management improve work comprehensive skills grading mechanism to encourage them to refine their skills and enhance their professional expertise. At the same time for employees Development
performance and capabilities and drive the with excellent performance the Company will prioritize the provision of promotion opportunities or support for them in applying for internal competitions
realization of the Company’s strategic goals ensuring that outstanding talent is recognized and can emerge successfully. This system aims to achieve a win-win situation where both individual career
GREE has revised and implemented the development and the Company’s strategic objectives are met.Measures for Administration of Employee
Performance. Addit ionally each user People-
department has formulated its own secondary Employee Career Development Pathways Centered
Approach
performance management guidelines to better Creating Value
address specific management requirements. for Society
Executives Vertical development Expert designers
Employee performance evaluations are
conducted on a monthly and annual basis istration fu
focusing on goal achievement and work Middle-level dmin nccadres A
tion Senior designers
outcomes with actual performance output as n Green Development
the core criterion for evaluation. The results Leading with
are distinctly differentiated and objectively New Low Carbon
reflect the performance differences among Division heads employees Advanced
employees. This forms a basis for applying Management Professional designersLateral developmentresults such as “rewarding the top performers direction directionand penalizing underperformers” while c
motivating continued improvement in both es Team leaders s qua og
y
li hnol Designers Conclusionorganizational efficiency and employee ty Tec
competence.Specialists Design officers
Vertical development
60
Production operatio
R&D
ing an
d sales
rket
Ma
Pro2024 Environmental Social and Governance Report
University-Enterprise Cooperation
Introduction
The Company actively explores a new model of university-enterprise
cooperation based on “resource sharing and mutual integration” establishing
a comprehensive and multi-level industry-academia-research collaboration
ecosystem. Currently the Company has built deep partnerships with over 40
key universities regularly hosting university-enterprise exchange conferences
to establish efficient communication channels between both parties; in Compliance
addition the Company has partnered with several universities to jointly Governance Upholding
develop specialized courses integrating cutting-edge industry technologies into Integrity and Sincerity
educational practices deepening the integration of industry and education.This collaboration aims to foster versatile talents that meet the demands of theindustry. Furthermore the Company successfully hosted its first “UniversityStudent Innovation Practice Camp” attracting hundreds of outstanding
students from across the country to the Company headquarters for in-depth Innovation-
exchanges and practical explorations igniting innovative thinking. Through Driven
Quality-Base
diverse campus recruitment collaborations the Company has proactively Development
identified and reserved a pool of high-quality and innovative talents ensuring a Key Universities and Enterprises Exchange Meeting Class of Special Courses
continuous infusion of energy into the Company’s long-term development.People-
Centered
Gree Electric’s 2024 College Student Innovation Practice Camp empowering 100 students’ career development Approach Creating Value
for Society
In August 2024 Gree Electric held the “Create and Share” GREE Week - the
2024 College Student Innovation Practice Camp - in Xiangzhou District Zhuhai.
This event gathered 100 outstanding students from top universities across China
including Shanghai Jiao Tong University Xi'an Jiaotong University Huazhong
University of Science and Technology and Zhejiang University. The practice camp Green Development
included activities such as exhibition hall visits hands-on workshops technology Leading with
innovation courses career planning sessions and one-on-one (1v1) interviews Low Carbon
helping the students clarify their career plans and providing opportunities for
exceptional students to be recruited through campus recruitment. In addition the
event allowed the students to gain in-depth knowledge of GREE’s product portfolio
technological capabilities and corporate culture. Gree Electric will continue
to provide a broad development platform for young talents passionate about Conclusion
innovation and contribute to the high-quality development of the manufacturing
industry by injecting continuous vitality.University Student Innovation Practice Camp
612024 Environmental Social and Governance Report
Occupational Health and Safety
Introduction
The Company places great emphasis on occupational health and safety continuously improving Work Safety Responsibility Management
its management systems by reinforcing responsibility implementation optimizing processes andenhancing technical measures. These efforts comprehensively elevate the work safety standards The Company adheres to the occupational health and safety policy of “people-oriented worksafeguarding the health and safety of employees. safety health protection and life care”. It has established a Work Safety Committee led by the
Chairwoman of the Board of Directors to oversee guide and supervise all work safety activities.The Company strictly follows the principles of “graded responsibility and local management” and Compliance
Occupational Health and Safety System “whoever is in charge is responsible whoever approves is responsible” ensuring the implementation Governance Upholding
of the “dual responsibility” work safety system. The Company conducts an annual review revision Integrity and
The Company strictly complies with legal and regulatory requirements and has developed and and improvement of the EHS Responsibility Agreement and ensures that all organizational levels
Sincerity
implemented a series of policies including the Measures for Administration of Work Safety sign such agreement. This process reinforces safety accountability at all levels ensuring that
Responsibility Measures for Administration of Work Safety Inspection and Assessment Measures responsibilities are assigned measures are implemented and robust protections are in place for the
for Administration of Occupational Disease Prevention and Measures for Administration of health and safety of employees. During the reporting period the Company organized the signing
Occupational Health and Safety Education. The Company adheres to the management philosophy of the EHS Responsibility Agreement by the primary safety responsibility holders across all units Innovation-
of “equally emphasizing safety and production” totaling 105 copies. At the unit level internal agreements were signed based on specific job roles to Driven
ensure the safety responsibility implementation. Quality-Base and works on addressing weaknesses and Development
strengthening areas in safety responsibility
standards technology and safety competence.It actively advances the systematization and Safety Risk Identification and Management
standardization of work safety with the goal
of building a solid “safety culture”. During The Company has established and implemented the Measures for Administration of Hazard Source
the reporting period the Company and its and Environmental Factor which systematically identifies assesses and controls internal hazards People-Centered
subsidiaries have all received the Occupational (sources) and environmental factors according to the safety risk identification and management Approach
Health and Safety Management System process. For identified risks the Company adopts multi-level control measures such as elimination
Creating Value
for Society
certificate. substitution engineering controls labeling/warning/administrative controls and personal protective
equipment. For significant or critical hazards that cannot be eliminated or substituted it develops
specialized control plans. To ensure the continuous effectiveness of hazard source management
the Company conducts annual reviews of hazard source/environmental factor identification risk
assessments and control measures and promptly updates the evaluation results. This ensures that Green
hazard sources remain under control safeguarding the health and safety of employees. Development Leading with
Low Carbon
Division of Review of effectiveness Establishment
workplace and Hazard (source) of measures and
identification Risk evaluation of risk control activity scope plans and measures and plans implementation of
improvements
Conclusion
The Company has been certified to ISO 45001 Occupational
Health and Safety Management System Safety Risk Identification and Management Process Flowchart
622024 Environmental Social and Governance Report
Hidden Hazard Identification and Elimination
The Company has established a dual prevention system for safety risk classification and hazard identification. Each year it organizes the identification and classification of potential hazards and updates Introduction
and maintains the hazard source registry. It also draws a four-color safety risk distribution chart prominently displayed in the workshops to help employees identify and understand risk points thereby
fostering a culture of heightened safety awareness. In addition the Company conducts hazard investigations regularly at the company department/factory and workshop levels based on the risk levels.It shares findings through corrective action notices and timely conducts follow-up inspections to ensure compliance forming a closed-loop management system for hazard identification rectification and
verification thereby ensuring comprehensive work safety across the organization.Compliance
Governance
Upholding
Integrity and
During the reporting period Sincerity
Highlights of hidden hazard identification and elimination of the Company during the reporting period:
Innovation-
Preparation and Publication of the Safety Enhancement of dust explosion prevention and Improvement of “Four High” positions Driven
Management Manual intrinsic safety Quality-Base Development
To effectively guide the safety management efforts To prevent dust explosion accidents the Company invested The Company has continued its work to improve positionsacross the Company and establish a unified set of CNY 5.8 million to upgrade the powder coating lines with “high risk high noise high temperature and high laborsafety management standards the Company’s safety with explosion-proof upgrades and renovations. By intensity” implemented a total of improvement
management team was tasked with developing and 361
releasing the Safety Management Manual to strengthen implementing explosion venting explosion isolation projects utilizing automation technologies ventilation
People-
and other control measures it additionally installed Centered
the professionalization and standardization of safety flame arresters one-way explosion isolation valves and system installation and self-initiated modifications to
Approach
Creating Value
management. This manual is divided into two sections: monitoring control systems; set up real-time monitoring address challenges on the production site. These efforts for Society
General Standards and Special ized Standards and automatic interlock shutdown alarms to monitor have optimized working conditions reduced labor intensity
257 and enhanced the overall working environment for encompassing a total of safety management temperature wind pressure difference blowing gas pressure and lock-air ash unloading status ensuring work employees.
standards. safety on the powder coating lines.Green
Development
Leading with
Low Carbon
Conclusion
Safety Management Manual Dust explosion prevention device Improvement of ventilation at workshop
632024 Environmental Social and Governance Report
Occupational Disease Prevention and Health Checks Safety Culture Construction
The Company places great emphasis on occupational disease prevention management and has
formulated the Measures for Administration of Occupational Disease Prevention. For employees The Company actively promotes the construction of safety culture and organizes regular Introduction
working in occupational hazard positions the Company provides appropriate personal protective specialized and phased work safety-related activities such as fire-fighting skills competitions
equipment such as safety shoes earplugs protective masks AED automatic defibrillators and emergency drills work safety knowledge contests work safety month series of activities
first aid kits. In addition it organizes annual occupational health checks and job-specific hazard comprehensive safety training and theoretical fire safety training for new employees. These
assessments to effectively prevent occupational risks and injuries maximizing the protection of initiatives aim to universally enhance employees’ safety awareness and improve their emergency
employees’ physical health and safety. Additionally in response to the Implementation Plan for response capabilities with a particular focus on improving the organizational and command skills of Compliance
Promoting Employee Mental Health Services by the Guangdong Provincial Federation of Trade key leaders and safety officers and their ability to execute safety measures effectively. Governance Upholding
Unions the Company’s Labor Union in collaboration with the Qianshan Sub-district Office in Zhuhai’s Integrity and
Xiangzhou District established an Psychological Well-being Station for employees in the first half Sincerity
of 2024. This initiative aims to support employees in maintaining both physical and mental health
cultivating positive psychological resilience.Key Performance Innovation-
Driven
Quality-Base
Development
During the reporting period the Company
achieved a 100% employee
health check rate People-
Centered
Approach
Creating Value
Scene of fire-fighting skill competition for Society
Safety Emergency Drills
maintained a
100%
coverage of employees' work injury To standardize the management and response procedures for production safety accidents
clearly define the rescue responsibilities of each unit and enhance employees’ ability to handle Green Development
insurance unexpected incidents the Company has developed a comprehensive emergency plan along with Leading with Low Carbon
seventeen specialized contingency plans. These plans were reviewed and validated through internal
discussions and expert evaluations before being filed with the emergency management department.In response to issues identified during drills such as insufficient professionalism low participant
engagement and lack of practicality the Company has made improvements across four key areas:
Six AED installation points in Gree Electric (partially personnel organization resource utilization command methods and process documentation
displayed) aiming to improve drill effectiveness and refine the emergency response framework. Conclusion
642024 Environmental Social and Governance Report
Key Performance Work Safety Training
The Company places a high priority on work safety training and has established a multi-tiered safety training system. During the reporting
During the reporting period the Company period the Company conducted several key safety training programs including training for key personnel and safety management staff
Introduction
130 aiming to enhance senior management’s ability to control and make decisions regarding safety production; safety management backbone organized emergency drills training camp focusing on developing practical safety management skills for middle management; “GREE Safety Cup” Work Safety
Knowledge Competition organized to encourage all employees to engage in safety knowledge learning creating an environment that fosters
in total a culture of safety.Compliance
Governance
Upholding
Training Program for Key Personnel and Safety Management Staff Integrity and Sincerity
with 15461 participants During the reporting period the Company organized targeted training for different
groups including leadership safety officers and team leaders covering various
aspects such as work safety occupational health and fire safety. A total of 86000
training hours were completed for key personnel and safety management staff. Innovation-
Driven
Quality-Base
Development
Training for key personnel and safety management staff
Safety Management Backbone Training Camp Program
To strengthen the foundation of work safety management and build a high-quality People-Centered
safety management team that ensures high-level safety to support the Company’s Approach
Creating Value
high-quality development the Company organized a safety management backbone for Society
skills enhancement training camp during the reporting period aiming to improve the
professionalism of the team strengthen leadership responsibility implement key
Emergency response drill in factory control measures advance the standardization of safety management and develop
a group-wide safety information management system. Safety management backbone training camp
Green
Development
Leading with
Low Carbon
“GREE Safety Cup” Work Safety Knowledge Competition
During the reporting period the Company organized a company-wide work
safety knowledge competition that lasted 42 days participated in by over 40000
employees. Through this competition which encouraged learning through
competition and application through learning the Company enhanced employees’ Conclusion
work safety knowledge while strengthening their practical work safety abilities
effectively combining work safety theory with practice.Emergency response drill for accident “GREE Safety Cup” Work Safety Knowledge Competition
652024 Environmental Social and Governance Report
Employee Care and Activities Benefit system of Gree Electric
The Company has always adhered to an employee-centered Introduction
approach actively promoting the development of humanistic Statutory benefits Non-compensation benefits available for all employees
Conditioned non-compensation
benefits
care. Through the establishment of effective communication and
feedback mechanisms the creation of a competitive benefits
system and the development of diverse cultural activities the
Company continuously enhances employees’ sense of well-being Health checkupStatutory holidays Security housing for employees Science and technology
and recognition injecting sustainable energy into the Company’s Statutory leaves Employee dormitory Consolation benefit Compliance progress award Governance
sustainable development. Social insurance Free shuttle bus Cultural development activity Proposal improvement award Upholding
Seniority pay Integrity and
Housing provident fund Communication package Skill allowance Sincerity
Employee Benefits Customized work uniforms Working meal allowanceStaff canteen Transportation allowance
The Company places great emphasis on employee well-being
aiming to enhance employees’ happiness and sense of belonging.It offers a competitive benefits system that incorporates statutory Innovation-
benefits such as public holidays social insurance and housing Driven Quality-Base
provident fund as well as non-compensation benefits such as Development
housing shuttle buses special cafeterias and customized work
uniforms ensuring comprehensive support for employees’ living
needs.The Company continuously strives to “create a comprehensive People-employee benefits system” constantly improving and enhancing Centered Approach
it. To address issues such as employee transportation housing Creating Value
healthcare and children’s education the Company has invested for Society
in building well-equipped facilities such as the GREE Leisure
Park Phase I and Phase II projects and is in the process of
constructing GREE Hospital; in 2018 the Company established Employee living quarter Staff book house New GREE School’s teaching building
GREE School effectively resolving the issue concerning employee
children’s education. In daily life the Company provides cafeterias Green Development
offering a variety of regional cuisines to accommodate the dining Leading with Low Carbon
needs of all employees across the group; it also provides fully
equipped employee dormitories for convenient “move-in ready”
accommodations and free shuttle buses covering Zhuhai City and
the locations of all subsidiaries to ensure convenient commuting.Additionally it offers benefits such as customized work uniforms
comprehensive communication packages and health checkups. Conclusion
These efforts collectively create a fulfilling life for GREE employees
covering all aspects of clothing food housing transportation and
daily needs significantly enhancing employee satisfaction and Staff canteen offering cuisines in both north and south flavors GREE’s huge shuttle system Customized work uniforms
sense of belonging.
662024 Environmental Social and Governance Report
Employee Communication and Democratic Management Support for Employees in Need
Introduction
The Company adheres to the principle of “people-centered” and is committed to promoting labor- Normalization of Care for Employees in Need
management communication and negotiation. By establishing and improving labor-management
communication mechanisms and expanding channels for employee feedback the Companylistens to employees’ voices through various methods such as Employees’ Congress smart Labor The Company consistently implements the care system of “visiting all who are injured comforting allUnion democratic life meetings and employee satisfaction surveys. These efforts foster mutual who are seriously ill and caring for all who are hospitalized” making support and warmth a normal
understanding and support between the Company and its employees laying a solid foundation for the frequent and everyday occurrence. It actively explores effective ways and measures to assist Compliance Governance
stable corporate development. employees in need ensuring precise and dynamic management ensuring that “support is provided Upholding to those who need it with precision and with dynamic management”. Integrity and
Sincerity
Precise Support for Employees in Need
Innovation-
The Company places great importance on providing assistance to the families of employees Driven Quality-Base
in need. For employees facing hardship due to unforeseen events accidents major illnesses Development
disabilities or challenges like their children’s education the Company has implemented precise
support measures. This includes building a support file before offering assistance ensuring the work
is targeted and effective. During holidays and festivals the Company organizes visits and support
activities distributing consolation funds and consolation items to families in need offering warmth
and care. For employees in difficulty suffering from serious illnesses the Company also applies for
major illness assistance further alleviating their financial burdens. People-Centered
Approach
Creating Value
for Society
Employees’ Congress Democratic Life Meeting
Employee Satisfaction Survey
The Company conducts an annual employee satisfaction survey focusing on such aspects as work Green Development
and career development team management work compensation logistical support company Leading with Low Carbon
operations and party-building activities in combination with both online and on-site methods to
gather feedback. In response to areas with lower satisfaction scores the Company takes a series of
targeted improvement measures including enhancing the working environment and office resources
for frontline staff diversifying employee training formats and content upgrading shuttle bus routes
and improving the quality of employee accommodations and meals as well as organizing a variety
of enriching cultural and recreational activities that promote physical and mental well-being. These Conclusion
initiatives aim to significantly improve the employee experience and support mutual growth between Caring for employees in need
employees and the Company.
672024 Environmental Social and Governance Report
Sunshine Fund System Care for Female Employees
The Company has established the Sunshine Mutual Aid Fund (the “Sunshine Fund”) system. In The Company strictly adheres to the Law on the Protection of Women’s Rights and Interests and Introduction
addition to the precise support provided through the establishment of support files the Company’s the Regulations on Prohibited Labor for Female Employees ensuring that female employees are
labor unions at all levels actively monitor the living conditions and status of employees facing not assigned to work prohibited by national laws. The Company legally provides female employeesfinancial difficulties due to illness offering support through the Sunshine Fund policy. The “Sunshine with maternity check-up leave pregnancy check-up leave special breastfeeding time dedicatedFund” was established by Gree Electric in the second half of 2009 to safeguard the health of transportation services for “caring mothers” and flexible work benefits while also reducing the
GREE’s employees and to build and improve the employee major illness medical assistance workload for breastfeeding employees.system. The Labor Union reviews the Sunshine Fund materials for employees on a monthly Compliance Governance
basis. For employees their spouses and children under the age of 18 who require outpatient or For female employees during the breastfeeding period the Company actively promoted and Upholding
inpatient treatment due to illness the Fund provides secondary reimbursement following social successfully established two caring mother’s rooms at the municipal level and above. These Integrity and Sincerity
security insurance reimbursements in accordance with the Implementation Rules of Measures for rooms are equipped with essential maternal and child supplies and a comfortable breastfeeding
Administration of Sunshine Mutual Aid Fund of Gree Electric. This system enhances employees’ environment offering female employees a private safe and warm space to rest during this specialsense of gain happiness and satisfaction ensuring that employees in need truly feel the warmth of period. The two caring mother’s rooms have respectively been awarded the titles of “Guangdongtheir “family”. Province Caring Mother’s Room” and “Zhuhai City Caring Mother’s Room” fully reflecting the
Company’s tangible actions in caring for its employees and its emphasis on protecting the rights Innovation-
Key Performance and interests of female employees.Driven
Quality-Base
Development
During the reporting period
the Company provided consolation to over
400 injured or ill employees People-
Centered
400 Approach injured or ill employees Creating Value for Society
and the Sunshine Fund assisted Guangdong Province Caring Mother’s Room Green
Development
155 Leading with employees in total Low Carbon
with the total expenditure amounted to Conclusion
1.12 million
Zhuhai City Caring Mother’s Room
682024 Environmental Social and Governance Report
Employee Activities
The Company advocates for a healthy and happy work-life balance and strives to create a relaxed and dynamic working environment to enhance employees’ sense of happiness at work. Tailoring Introduction
to its own situation the Company has organized various unique cultural and sports activities for employees.Compliance
Governance
Upholding
Integrity and
Sincerity
“Green Future Building Dreams with Childlike Hearts” - Gree Electric 2024 Children’s Day Parent-Child Outing Activity 2024 “GREE Cup” Sports Festival Closing Ceremony “United in Celebrating the National Day Striving for the New Era” Innovation-
Grand Chorus Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
“Auspicious Serpent Brings Blessings Welcoming the Spring” - Spring Couplets Distribution Activity Healthy Walk Socializing and Friendship Event
Green
Development
10th “GREE Cup” Fun Sports Games Leading with Low Carbon
To enrich employees’ cultural life and strengthen team cohesion Gree Electric held the 10th “GREE Cup” Fun
Sports Games on December 1 2024 attracting over 600 employees from 31 departments. Through six fun
competition events employees worked together demonstrating the spirit of GREE people with their enthusiasm
teamwork and perseverance. This event not only enhanced employees’ teamwork and sense of collective
honor but also deepened their sense of identity with the corporate culture and their sense of belonging injecting Conclusion
vitality into the Company’s sustainable development.
10th “GREE Cup” Fun Sports Games
692024 Environmental Social and Governance Report
Social Contribution and Public
Welfare 2024 GREE UCI World Tour - Tour of Guangxi successfully held Introduction
From October 15 to 20 2024 the 2024 GREE UCI
As a company with a strong sense of social responsibility Gree World Tour - Tour of Guangxi was held across six
Electric not only pursues business excellence but also actively cities in the Guangxi Zhuang Autonomous Region:
participates in public welfare and charity activities contributing Fangchenggang Chongzuo Baise Hechi Laibin and
to rural revitalization and giving back to society through tangible Nanning. The event aimed to showcase the region’s Compliance
actions. Governance natural beauty cultural heritage local culture and Upholding
tourism resources while promoting the development Integrity and Sincerity
of the tourism industry and local economy. As an
Charity and Public Welfare Practices “advocate for green living” Gree Electric promotes
the concepts of environmental protection health
and innovation through cooperation with this world-
The Company actively engages in various public welfare class top-tier event. This collaboration not only
activities focusing on charitable causes and supporting Innovation-demonstrated Gree Electric’s commitment to fulfilling Driven
education undertaking environmental protection and cultural Quality-Base its social responsibility but also infused new vitality Development
and sports projects. This demonstrates the social responsibility into the local economy by integrating sports events
expected of a large-scale enterprise. with green technology.During the reporting period People-
Centered
Approach
Creating Value
for Society
The Company provided a batch of
portable air conditioners for the
Paris Olympic Village offering
a cool breeze made in China to Paris. Green
Development
Leading with
Low Carbon
The Company launched the“GREE Greater Bay Area (Hong) KongScholarship”
aimed at promoting the development of talent Conclusion
in Hong Kong’s innovation and green sectors.
702024 Environmental Social and Governance Report
Supporting Rural Revitalization
“GREE Cup” 2024 Zhuhai-Macau University Students Football
Championship promoting cultural and sports exchange in the Greater IntroductionAs a leading enterprise in China’s manufacturing industry Gree Electric has been adhering to the philosophy
Bay Area of “For the Clearer Sky and Greener Earth” committed to promoting green development through innovative
On October 26 2024 to celebrate the 25th anniversary of Macau’s return technology. In recent years with the country’s strong push for the rural revitalization strategy Gree Electric
to China and to promote cultural and sports exchange between Zhuhai has actively responded to the call and is exploring new pathways to empower rural development through
and Macau the “GREE Cup” 2024 Zhuhai-Macau University Students technology.Football Championship sponsored by Gree Electric officially kicked off at Compliance During the reporting period Gree Electric continued its role as the exclusive partner of the third season of Governance
the Zhuhai Campus of Beijing Institute of Technology. Through sponsoring Upholding Homes in Beautiful China. Through visits to beautiful rural villages the program showcases the ecological Integrity and
this event Gree Electric demonstrated its active support for sports youth beauty cultural charm and development changes in rural areas in the new era. Gree Electric provided Sincerityexchange and utilized the platform to spread its brand philosophy of “eco- high-efficiency energy-saving green technology products such as photovoltaic air conditioners and smartfriendly low-carbon and healthy”. In the future this event will be held equipment helping improve living conditions in rural areas reduce energy consumption and promote
annually further strengthening sports and cultural exchanges between sustainable development. At the same time through the program’s wide influence it further tapped into rural
Zhuhai and Macau and contributing to the development of the Guangdong- unique resources supporting rural tourism agricultural product promotion and the development of specialty
Hong Kong-Macau Greater Bay Area. industries injecting new vitality into the rural economy. Innovation-Driven
Quality-Base
Development
Gree Electric donates AC equipment to improve teaching environments in Zunyi primary
and secondary schools
On July 2 2024 Gree Electric through the Zhuhai Mingzhu Charity Foundation donated a batch
of AC units to Zhongxin Primary School in Daozhen County and the Second Middle School of People-Centered
Chishui City in Zunyi. The donation aims to improve the schools’ teaching environments providing Approach
students and teachers with comfortable learning conditions warm in winter and cool in summer. Creating Value for Society
The event was attended by key leaders including Huang Zhihao Deputy Secretary of the Zhuhai
Municipal Committee and Mayor and Dong Mingzhu Chairwoman of Gree Electric. The donated
AC units were transported by special vehicles covering over a thousand miles to reach Zunyi.This initiative not only demonstrates Gree Electric’s social responsibility but also promotes east-
west cooperation and paired assistance contributing to rural revitalization and the development of Green
education undertaking. Development Leading with
Low Carbon
Conclusion
“GREE Cup” 2024 Zhuhai-Macau University Students Football Championship Gree Electric’s Donation of AC equipment to Zunyi Primary and Secondary Schools
712024 Environmental Social and Governance Report
Introduction
Compliance
Governance
Upholding
Integrity and
Sincerity
Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
722024 Environmental Social and Governance Report
Environmental Compliance Management response plans to address potential environmental issues and offers environmental safety training to enhance employee’s
awareness and response capabilities regarding environmental
In its production and operation processes the Company IntroductionThe Company continues to improve its environmental risks.implements the Environmental Protection Law of the People’s management system and actively advances the certification
Republic of China the Law of People’s Republic of China on and audit processes for the system ensuring the effective
Environmental Impact Appraisal as well as national and local implementation of environmental management efforts. As of the
environmental protection regulations and emission standards end of the reporting period Gree Electric and its subsidiaries have
including the Emission Standard of Volatile Organic Compounds Emergency Management of Sudden successfully obtained ISO 14001 environmental management Compliance
for Furniture Manufacturing Operations and the Emission system certification for a total of 17 entities. To assess the practical Environmental Incidents Governance Upholding
Standards for Odor Pollutants. The Company has formulated operation of the Company’s environmental management system Integrity and
environmental protection management systems including Sincerityand identify areas for improvement the Company conducted an
the Measures for Administration of Environmental Protection annual internal audit of the environmental management system To ensure a timely orderly efficient and proper response
Responsibil ity. This system clarifies the environmental and an annual supervisory audit by an external third-party to sudden environmental incidents protect the safety of
protection responsibilities of each department ensuring the full certification body. The audit covered environmental health and employees and minimize property damage the Company
implementation of environmental protection responsibilities. The safety (ESH) process control compliance of documentation and strictly implements the requirements of the national Measures
Company is committed to improving the group’s environmental Innovation-records pollutant treatment levels and environmental protection for Emergency Management of Sudden Environmental Incidents Driven
management level and steadfastly fulfilling its environmental training. It promptly addressed all non-conformities identified and related laws and regulations. It has also developed an Quality-Base Development
responsibilities. ensuring strict compliance with environmental management Emergency Response Plan for Sudden Environmental Incidents
practices and safeguarding the effective operation of the carried out emergency drills and training activities focused on
Environmental Management Goals Company’s environmental management system. themes such as “fire and explosion” “excessive emissions ofwaste gases” “excessive discharge of wastewater” “chemicalleaks” and “hazardous waste leaks”. During the reporting
The Company has set an annual environmental management period the Company organized 197 emergency drills in total for People-goal of “zero environmental pollution incidents and zero various types of sudden environmental incidents across its units. Centeredadministrative penalties”. During the reporting period Approach Environmental Risk Factor Creating Value
Gree Electric and its subsidiaries did not experience any for Society
environmental pollution accidents or administrative penalties Management
achieving its annual goals.The Company is committed to effectively reducing environmental
r isks and improving overal l environmental protect ion
Green
performance. Through a series of measures the Company aims Development
Environmental protection investment of Gree to prevent and mitigate potential environmental risk incidents Leading with
Electric in 2024 Low Carbonincluding identifying key environmental factors related to
Investment Amount operations and activities establishing environmental protection Investment Type (in CNY’0000) documents for operational control to ensure compliance
with environmental protection requirements and monitoring
Total Investment in environmental factors such as on-site and factory boundary 13479.44
Environmental Protection noise toxic and harmful smoke and vapors radiation heat Conclusion
radiation high temperatures waste gas emissions wastewater
Including: investment in energy- 4580.82 discharges and inspections of special equipment. It has
saving technology upgrading established an environmental management plan and emergency
732024 Environmental Social and Governance Report
Environmental Protection Training
The Company develops and implements an annual Introduction
environmental protection training plan tailored to different
employee groups. For new employees the focus of the
training is on basic environmental protection knowledge. For
current employees the Company conducts environmental
protection training for key personnel including primary
environmental protection heads environmental specialists Compliance Governance
and general employees. The training content primarily Upholding Integrity and
covers environmental protection laws and regulations Sincerity
typical social cases and issues found in the Company’s
management processes.Innovation-
Environmental “Three Wastes” compliance Driven Quality-Base
management training Development
In June 2024 the Company organized an
environmental “Three Wastes” compliance
management training session attended by 24
environmental protection heads from various units Green Factory
of the Company. This training in conjunction with People-
the Company’s Measures for Administration of Centered
Environmental Protection Responsibility focused Gree Electric focuses on driving the intelligent and green transformation of traditional industries through technological innovation. During
Approach
Creating Value
for Society
on topics such as solid waste management waste the reporting period the Company and its subsidiaries continued to make green factory certification efforts with 4 new units achieving
gas treatment management and wastewater certification. Notably the Company’s headquarters was selected as both a national “Green Factory” and a “Green Supply Chain Managementtreatment management. The session aimed to Enterprise” highlighting GREE’s strong technological capabilities and leadership in the green manufacturing sector. As of the end of the
further enhance the environmental management reporting period the Company had obtained a total of 20 green factory certifications including 10 national-level green factory certifications 6
capabilities of each responsible person. provincial-level certifications and 4 municipal-level certifications. Green
Development
Leading with
During the reporting period Low Carbon
the Company had obtained including
a total of 20green 10 6 4 Conclusionnational-level green provincial-level municipal-level
factory certifications factory certifications certifications certifications
Scene of Environmental Protection Training
742024 Environmental Social and Governance ReportEfficient Resource Utilization The Company consistently adheres to the energy management philosophy of “every drop of water everyThe Company places great emphasis on resource conservation sheet of paper” aiming to reduce fossil fuel consumption Independent technological transformation of Introduction
and integrates the concept of sustainable development throughout and lower carbon dioxide emissions. It has implemented compression heat for externally heated dryer
its entire production process. Through process optimization a dual approach to carbon reduction with a strong focus
technological transformation and equipment upgrades the Company on promoting photovoltaic power generation projects to
The Company has carried out a comprehensive
continuously increase the proportion of green electricity; at technological transformation on its high-energy-implements standardized and systematic management measures to consuming blower-based externally heated dryer.continually improve the efficiency of energy water resources and the same time the Company continues to invest in energy-
other resources actively promoting green development principles. saving technological upgrades and deepens efforts in
This transformation involved the independent design
resource recycling and regeneration processes effectively of an electrical control system a pneumatic drive
Compliance
Governance
Upholding
Energy Management reducing the total carbon emissions.control system and process flow optimization. By
Integrity and
recovering compression heat and reducing gas Sincerity
consumption during the processing stage the project
To improve the energy utilization efficiency significantly lowers the energy consumption of the
The Company actively implements the compressed air system. According to statistics
national “Dual Carbon” strategy and this project is expected to save 1.57 million kWh
in accordance with relevant laws and During the reporting period the of electricity annually resulting in a reduction of Innovation-
regulations it has developed systems approximately 842 tons of carbon dioxide emissions. Driven Quality-Base
such as the Measures for Administration of Company carried out 392 energy- Development
Energy and Resource Conservation and saving technological upgrades
created a comprehensive and robust energy this project is expected to save
management system by reference to the ISO 1.57
50001: 2018 Energy Management System million kWh of electricity annually
standard. This is part of the Company’s saving People-
strong commitment to promoting energy Centered
conservation reducing energy consumption Approach resulting in a reduction of approximately Creating Value
and advancing green development. During 58.344million kWh of for Society
the reporting period the Company obtained tons of carbon dioxide emissionsISO 50001 Energy Management 842
the ISO 50001 Energy Management System System Certification Certificate electricity
Certificate.Green
Energy Management Goals and Achievements saving Development
Leading with
Low Carbon
The Company has set a goal to improve energy efficiency. In 28.5 cubic meters of natural gas
2024 the Company aims to reduce energy consumption per
unit of output by 3% compared to 2023.and reducing carbon dioxide equivalent
Through the implementation of energy-saving technological emissions by Conclusion
transformation projects the Company’s energy consumption
per CNY10000 of output value decreased by 3.1% 31925 Energy efficiency improvement from compression heat technology tons transformation project for externally heated dryer
compared to 2024.
752024 Environmental Social and Governance Report
Water Resource Management
Energy efficiency improvement of injection molding air conditioning system at Zhuhai park area
Introduction
The Company replaced the low-efficiency air-cooled units with high-efficiency water-cooled units and implemented variable Water Resource Management Goals and Achievements
frequency water pumps to dynamically adjust the operating speed based on actual cooling loads achieving precise cooling
and effectively avoiding energy waste; the AC system is equipped with an intelligent group control system additionally
fitted with inverters and variable frequency control cabinets to address issues such as excess cooling capacity high
energy consumption of units and low overall system efficiency. As a result the comprehensive energy efficiency ratio of The Company set a water-saving goal of
the injection molding machine room at the park area increased from 3.2 to over 6.5 in 2024. This improvement saves 3.09 reducing water usage by 3% in 2024 using Compliance Governance
million kWh of electricity annually and reduces carbon dioxide emissions by approximately 1658 tons. 2023 as the baseline year. Through the Upholding Integrity and
implementation of water-saving projects the Sincerity
the comprehensive energy efficiency ratio of the
AC system at the headquarters increased from
actual reduction achieved was 4.1%
3.2 to over6.5 in 2024
The Company in strict accordance with the Water Law of the
Innovation-
Driven
This improvement saves3.09 People’s Republic of China and other national and local laws Quality-Base Developmentand regulations has established an overall water resource
million kWh of electricity annually management policy objectives and action plan. The Company
actively implements water-saving measures introduces and
reduces carbon dioxide emissions by applies advanced technologies and processes to minimize water
consumption intensity and effectively reduces water withdrawal
approximately 1658 tons Energy efficiency improvement of injection molding air conditioning system through water recycling. People-Centered
at Zhuhai Park Area Approach
Creating Value
for Society
Cooling water supplementation softening
improvement project
Green assembly process project
Previously the cooling towers maintained proper
In 2024 the Company implemented a new process for the co-planar water quality by adding chemicals which required Green
welding of controllers focusing on innovative changes in the overall large amounts of water to be discharged in order to Development
process layout. By integrating flip-chip technology and adjusting reflow Leading with keep the conductivity within the normal range. By Low Carbon
soldering techniques the process allows for double-sided one-time reflow introducing soft water equipment to supplement soft
soldering of the PCBA board completing the soldering and fixation of all water the input of calcium and magnesium ions was
surface-mounted components. According to statistics the application of reduced thereby lowering the discharge of cooling
this technology saves approximately 285000 kWh of electricity annually. water. This project has been implemented across
285000 various production bases through group promotion Conclusionsaves approximately including in Zhuhai Shijiazhuang Ganzhou and
Changsha. The annual water savings from this
kWh of electricity annually Co-planar welding process innovation project for controller initiative amount to 50000 tons.
762024 Environmental Social and Governance Report
Promotion of Pollutant and The Company is committed to improving the recycling system for used home appliances enhancing the convenience of trade-in programs promoting resource recycling and contributing to the high-quality development of the home appliance industry while supporting the fulfillment
Waste Prevention and Control of the “dual carbon” goals. As a diversified technology-driven global industrial manufacturing group Gree Electric has always adhered to Introductionthe strategic philosophy of balancing environmental protection with production. It has established a “green design - green manufacturing -green recycling” circular development model providing consumers with integrated services for “delivery installation and collection” of home
appliances. This approach promotes a green circular and sustainable development model.Electronic Waste Management Electronic waste (e-waste) take-back program management measures of Gree Electric
Compliance
Governance
Our Commitment Scope of electronic waste take-
Upholding
back program Disused household appliances of all brands are eligible for collection and recycling.Integrity and
Sincerity
The Company is ommitted to complying Cost or incentives to the Consumers can make an appointment through the website submit the relevant information to obtain the price of consumer of e-waste take-back recycling and the staff will provide door-to-door service;
with international environmental and waste program Provide consumers with a credit for a trade-in.transportation conventions agreements and Adopt diversified means for recycling including setting up recycling points mail recycling door-to-door recycling
local laws and regulations and respects and Means available for returning trade-in recycling “Internet +” recycling and regional central site recycling to realize the e-waste recycling across all Innovation-Driven
actively adheres to the Basel Convention on end-of-life electronics channels. Quality-Base
the Control of Transboundary Movements of Facilities that handle recycling of The recycling is carried out by in-house facilities and third-party recycling suppliers. All the collected e-waste is Development
Hazardous Wastes and Their Disposal which collected electronics transported to recycling plants for environmentally friendly and harmless dismantling.strictly prohibits the direct or indirect export
of electronic waste for disposal and recycling Third-party recycling supplier The Company conducts annual audits and verification of third-party recycling suppliers to ensure compliance with management internal management requirements with a 100% supplier audit rate.from Organization for Economic Co-operation
and Development (OECD) countries or the People-
European Union (EU) to non-OECD or non-EU Leveraging its strong after-sales system the Company has set up electronic waste collection points at its stores nationwide. In cities such as Centered
countries through intermediaries. Zhuhai Changsha Shijiazhuang Zhengzhou Wuhu and Tianjin it has established recycled resource bases responsible for the collection and
Approach
Creating Value
recycling of electronic waste in the provinces and cities where they are located as well as in surrounding areas. This initiative aims to achieve for Society
resource utilization from waste materials such as plastics.Responsibility for electronic waste recycling by each subsidiary divided by regions
Green
Development
Zhuhai Renewable Resources Guangdong Leading with
Low Carbon
Shijiazhuang Renewable Resources Hebei Beijing Tianjin Shandong Shanxi Liaoning Jilin Heilongjiang
Wuhu Renewable Resources Fujian Anhui Jiangsu Zhejiang Shanghai Hainan
Hunan Renewable Resources Guangxi Yunnan Chongqing Sichuan Guizhou Jiangxi Hunan Conclusion
Zhengzhou Renewable Resources Henan Hubei Gansu Shaanxi
772024 Environmental Social and Governance Report
Highlights of Electronic Waste Recycling Programs As of the end of the reporting period
Expansion of the trade-in and recycling channels Optimization of the reverse logistics recycling model Introduction
for old appliances and improvement in the offline Green Renewable Resources Recycling Co. Ltd. had
Centered around the trade-in program the Company aligns with recycling system cumulatively processed over 64.77 million units/sets
nationwide trade-in policies leveraging the advantage of dispersed of various waste electrical and electronic products
sales that are easily accessible for centralized collection. This GREE has established its own secondary distribution centers in effectively avoiding potential environmental harm
enables the creation of a comprehensive trade-in and recycling Zhengzhou Changsha and Wuhu. Targeting end consumers it caused by discarded appliances. In the future the
network and establishment of an integrated reverse logistics system directly engages with customers to carry out the recycling of all Company will continue to focus on further processing Compliance
that combines “new product delivery with old product collection” to categories of old home appliances meeting the actual needs of users. Governance efficient resource recycling and the implementation of Upholding
achieve the full industry chain coverage for GREE’s home appliance the producer responsibility system for recycling driving Integrity and Sincerity
sector from the production of new appliances to the recycling of the healthy and sustainable development of the home
old appliances at the end of their lifecycle. appliance industry.Establishment of the online “Internet+ recycling” Innovation-
channel Innovation of urban waste resource recycling and Saving an estimated
Driven
utilization model based on the integration of two Quality-Base Development
In line with the commitment to green development and promoting networks 2.932 billion kWh of energy
sustainable development GREE has launched a specialized In collaboration with sanitation enterprises GREE has established
platform for the recycling of old home appliances “Mingzhu Green a highly efficient “2+1” recycling and utilization model for urban (360100 tons of standard coal equivalent)Loop Recycling”. This platform in collaboration with GREE’s offline household waste. This model integrates an “Internet Big Data Smartafter-sales service network has created a recycling and processing Cloud Platform” and an “Ecological Resource Utilization Center” to
network covering 95% of provinces cities and towns across the create a “Resource Circular Closed Loop System”. By leveraging People-Centered
country. The platform has attracted over 130000 registered users information technology to empower resource recycling and expanding Approach
with total orders surpassing 10000. the industrial chain through technological R&D GREE aims to address
Creating Value
for Society
challenges such as the difficulty of transporting processing and saving
utilizing recyclable materials.
4.715 million cubic meters of water
Green
Electronic waste recycling achievements of Gree Electric Development Leading with
Low Carbon
Investment Type 2022 2023 2024
Recycling and disposal of waste electrical and
electronic products (unit: ‘0000 units/sets) 670 995 813
reducing carbon dioxide emissions by
Conclusion
Conversion of recycled copper iron aluminum 1.092 million tons
and plastics (unit: 10000 tons) 8.30 15.34 15.76 (555 million cubic meters)
Note: The amount of electronic waste recycled is the electronic waste generated by the Company itself.
782024 Environmental Social and Governance Report
Management of Three Wastes
GREE (Chongqing) RTO project
The Company strictly adheres to environmental protection laws regulations and requirements IntroductionTo enhance the purification efficiency of the drying exhaust gas treatment equipment
such as the pollutant discharge permit establishing a comprehensive three wastes operation and reduce the emissions of volatile organic compounds GREE (Chongqing) replacedmanagement system. It has formulated a waste management and monitoring plan and invests the original Phase I drying exhaust gas treatment equipment with a “Filtration + RTOin environmental protection equipment and facilities as needed. Additionally it commissions (Regenerative Thermal Oxidation)” treatment process for in-depth treatment. The
professional third-party organizations to conduct regular monitoring of pollutants such as exhaust equipment were installed during the reporting period with a total investment of CNY2.3
gases wastewater and noise. Monitoring results indicate that the emissions of all pollutants comply million. Compliance
with national and regional discharge standards. Governance Upholding
Integrity and
Sincerity
In accordance with the environmental protection requirements of
construction projects the Company has installed corresponding
wastewater treatment facilities and assigned dedicated environmental Innovation-
management operation and monitoring personnel. During the Driven
Wastewater Quality-Base Development
Treatment reporting period the Company’s wastewater treatment facilities
operated normally with discharge indicators remaining stable and
meeting the standards without any instances of excessive discharges.The Company implements corresponding pollution control measures People-Centered
at various stages including source collection process control and Approach
end treatment. This includes the installation of pollution control Creating Value for Society
systems such as injection molding exhaust gas treatment systems
drying equipment exhaust gas treatment systems and spray painting
Waste Gas
Control exhaust gas treatment systems. During the reporting period the
Company’s waste gas pollution control facilities operated normally
and the exhaust gas monitoring indicators met national and local Green
emission standards with no instances of excessive emissions. RTO Treatment Equipment Development Leading with
Low Carbon
The Company implements a hazardous waste classification and
collection system and entrusts qualified disposal units with the The Company has invested a total of CNY39.1 million in 17 sets of RTO
treatment of hazardous waste; it classifies general industrial solid
Management waste within the factory and then sends to resource recycling
treatment equipment
Conclusion
of Wastes companies for proper recycling and disposal with no instances of
illegal disposal.
792024 Environmental Social and Governance Report
Circular Economy Green Product Design
The Company actively promotes the recycling and reuse of waste materials cooperates with recycled copper plants and scrap Since 2013 when the Company proposed the environmental Introduction
steel recycling manufacturers on processing the recovered and dismantled scrap metal through smelting for reuse thereby protection concept of “For the Clearer Sky and Greener Earth” it has
reducing resource waste and supporting the achievement of circular economy goals. At the same time it continues to innovate consistently integrated green design principles into the entire product
in recycling technologies obtaining multiple patents and participating in the development of standards. This has enabled the development and production process. The Company has established
transformation of technological achievements in plastic recycling metal recovery and other areas driven the product iteration and and implemented corporate standards such as the Green Product
updating and fostered market consumption growth. Design Specifications rigidly regulating the design and development
of green products in areas such as raw material selection component Compliance Governance
selection process equipment energy consumption performance Upholding
Recycling and reprocessing of waste plastic Clean Technology R&D requirements and the use of auxiliary materials. Integrity and Sincerity
products
Automatic crushing and sorting technology for waste Highlights of Gree Electric's green product design
Green Renewable Resources Recycling Co. electrical and electronic equipment
Ltd. obtains recycled materials by collecting and In 2024 Green Renewable Resources Recycling Co. Set specific management Innovation-
reprocessing discarded plastic products. The use Ltd. developed a crushing and sorting technology for indicators for product Use non-toxic or low-toxic Driven Quality-Base
of Post-Consumer Recycled (PCR) material plastic waste electrical and electronic equipment. Using a “multi- recyclability and reuse/ materials Developmentstage crushing + sorting” method the technology enables
helps reduce the demand for new plastics thereby recycling ratesthe automated dismantling of waste electrical and
lowering resource consumption and carbon electronic equipment. The purity of the crushed copper Improve the standardization
emissions. Currently PCR-PP materials are produced by this technology can reach over 99% nearly Prioritize materials with high recyclability and reusability and versatility of
extensively used in AC grilles with a total supply without copper contamination in the crushed aluminum. components
of 5944.1 tons for the year. The Company has Complete set of deep processing equipment People-
also obtained PCR certification from the European Adopt easily removable and Utilize green technologies
Centered
Green Renewable Resources Recycling Co. Ltd. modular designs and processes Approach
Union and the Global Recycled Standard (GRS) Creating Value introduced a complete set of deep processing equipment for Society
certification. which has been applied in the recycling resources facility Reduce the quantity and Give priority to clean and
in Changsha. The material purity after sorting is over variety of raw materials renewable energy
98% significantly enhancing the efficiency of resource
recycling and utilization.Green
Development
As of the end of the reporting period Leading with Low Carbon
a total of 61 products from Gree Electric
have received national certification as
“Green Design Products” Conclusion
802024 Environmental Social and Governance Report
After more than a decade of technological R&D the Company has revolutionized AC by transforming
it from a simple electrical appliance into an integrated system for power generation storage and
GREE’s self-developed internationally leading AI dynamic energy-saving technology usage. It has pioneered the world’s first “zero-carbon source” photovoltaic energy storage AC
system. This system boasts exceptional low carbon emissions economic benefits and scalability Introduction
GREE’s self-developed AI dynamic energy-saving technology for air conditioners aligning perfectly with the national “Dual-Carbon” goals. It has received the highest award at the
is a great combination of AI and air conditioning. Its powerful computing capability Global Refrigeration Innovation Awards and the first-ever China Patent Gold Award in the home
ensures energy efficiency and the air conditioners equipped with this technology appliance industry. By the end of 2024 the “zero-carbon source” photovoltaic energy storage
achieve outstanding energy-saving performance. The technology enables a dynamic AC system series has expanded to 15 categories and 101 models successfully addressing the
improvement in energy efficiency of over 15.8% annually helping consumers reduce technical challenges of on-site photovoltaic power consumption and peak shaving and valley Compliance
electricity consumption by more than 13.6% throughout the year. It functions without filling in electricity. The application of this technology has been included in the Opinions of the Governance
being limited by environmental conditions duration temperature wind speed or Upholding Central Committee of the Communist Party of China and the State Council on Accelerating the Integrity and
wind direction. Upon startup the system automatically identifies the optimal energy- Comprehensive Green Transformation of Economic and Social Development. As the leading entity Sincerity
saving path breaking through the traditional single-condition energy-saving evaluation for international standards in photovoltaic energy storage AC Gree Electric has provided a Chinese
standards in the industry and providing real-time dynamic energy-saving across all solution for achieving the global “Dual-Carbon” goals.operating conditions.Innovation-
Company’s “zero-carbon source” More than Annual reduction of Driven Quality-Base
photovoltaic energy storage AC carbon emissions by Development
system has been deployed in over
35 countries and regions 12000 projects 11000 tons
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
AI dynamic energy-saving technology of GREE
Photovoltaic energy storage AC system
812024 Environmental Social and Governance Report
Addressing Climate Change Climate risk identification and response of Gree Electric
Global warming is an environmental crisis faced by human society as Introduction
a whole. The Company deeply understands the far-reaching impact Risk Type Risk Description and Impact Risk Response Strategy
of climate-related risks on its business and supply chain and actively
responds to the national “Dual Carbon” strategy. It is committed to
promoting the clean and low-carbon transformation of energy used in
production and operations creating a healthy and green quality of life
for consumers and society. High temperature: Install cooling facilities as needed; Compliance Governance
Upholding
In recent years it has continuously conducted greenhouse gas High temperatures increase the risk of fire Equip comprehensive fire safety facilities; Integrity and Sincerity
emissions verification at the corporate level. During the reporting accidents which can lead to personnel
period the Company verified the Company’s 2023 greenhouse gas casualties and damage to production facilities Conduct fire safety emergency drills and provide
emissions data in accordance with the ISO 14064-1: Specification with and equipment resulting in increased capital relevant training to enhance employees’ safety
Guidance at the Organization Level for Quantification and Reporting of expenditures. awareness and capabilities.Greenhouse Gas Emissions and Removals ISO 14064-3: Specification Innovation-
with Guidance for the Verification and Validation of Greenhouse Gas Typhoons heavy rain and flooding: Driven Quality-Base
Statements and other applicable laws regulations and standards. The Acute Plan multiple transportation methods and Development
verification process resulted in the issuance of a verification certificate. risks Extreme weather events can cause interruptions based on weather alerts arrange logistics and
This verification helps GREE better identify climate change-related in logistics and transportation affecting transportation in advance to ensure material
risks (such as policy changes or market pressures) detect hotspots in production and on-time delivery leading to inventory reserves;
greenhouse gas emissions set scientifically based emission reduction increased operational costs;
goals develop effective reduction measures improve energy efficiency Physical Continuously improve the emergency response People-
and promote the implementation of its sustainable development risks The destructive power of extreme weather mechanism for natural disasters reserve Centered
strategy. events can damage production equipment and emergency supplies and strengthen safety Approach
inspections; Creating Value cause operational disruptions resulting in higher for Society
Climate Change Risks and Responses equipment repair costs; Regularly conduct emergency drills and
Employee safety and occupational health may training for extreme weather events to enhance
The Company supports the Task Force on Climate-related Financial be threatened and workplace accidents could employees’ safety awareness and capabilities.Disclosures (TCFD) initiative and in reference to its disclosure reduce production efficiency. Green Development
recommendations and framework actively conducts climate risk Leading with
management analysis. It has identified potential physical risks and Low Carbon
climate transition risks and assessed their impact on the Company’s Continuously monitor the trend of rising sea
operations and other aspects. Based on the actual business Rising sea levels: levels;
development direction the Company has developed targeted risk
Operations in coastal areas may need to Consider the impact of rising sea levels when response strategies. To strengthen climate change risk management Chronic selecting operational locations;
the Company’s Board of Directors and environmental management risks relocate inland and fixed assets may be Conclusion
units are also actively making preparation including establishing damaged or prematurely decommissioned Develop multiple regional suppliers for the same
an organizational framework for climate change risk management leading to increased production costs. product category to ensure a stable supply of
studying and learning scenario analysis methods and organizing raw materials.climate-related training activities.
822024 Environmental Social and Governance Report
Risk Type Risk Description and Impact Risk Response Strategy
Introduction
Stricter carbon emission management policies and regulations:
Due to the national deployment requirements for carbon peaking and carbon neutrality a
Policy risks Monitor the dynamic changes in carbon policies and regulations series of energy-saving and carbon reduction action plans policies and standards have in operational locations to respond appropriately to policy and
been introduced leading to increased compliance costs for carbon emissions; legal updates; Compliance Governance
The trend of carbon taxes on international trade imports and exports is becoming more Develop photovoltaic projects to increase the share of renewable Upholding Integrity and
apparent which may result in higher costs. energy; Sincerity
Use low-energy consumption production equipment optimize
production processes and explore and implement energy-saving
and emission-reduction projects to reduce energy consumption;
Transition to low carbon emission technologies: Strengthen carbon reduction across the entire production Innovation-
Technology The early phase-out of high energy consuming equipment leads to increased operational operations and logistics processes; Driven Quality-Base
risks costs; Use clean electricity. Development
The R&D and application of clean energy or innovative low-carbon technologies result in
increased R&D expenses.Transformation
risks People-
Centered
Customer preferences shifting toward energy-efficient products: Approach Creating Value
Market risks As consumer awareness of environmental protection increases there is a greater for Society
preference for selecting green low-carbon and environmentally friendly products which
may lead to higher costs for raw materials and the production process.Green
Development
Leading with
Low Carbon
Social attention to the Company’s response to climate change and sustainable
Reputation development:
risks As a leading manufacturing enterprise stakeholders expect the Company to assume on
more emission reduction responsibilities. If the Company does not initiate low-carbon
transformation planning in advance it may suffer reputation damage. Conclusion
832024 Environmental Social and Governance Report
Greenhouse gas emissions of Gree Electric in 2022-2024* Increasing the proportion of clean energy: In 2024 the Company used 709 million kWh of
nuclear power and generated 96.85 million kWh from photovoltaic power representing
Indicator Unit 2022 2023 2024 Introductiona 245% increase in photovoltaic generation compared to 2023 resulting in a carbon
Total emission of dioxide emission reduction of 51969 tons. It also utilized its self-developed titanium acid
greenhouse gases tCO2e 1450080 1314438 3173251 lithium storage cabinets for peak shaving and valley filling with a total energy storage capacity of
Direct (scope 1) 180 MWh and accumulated peak-shaving of 75 million kWh of electricity. Compliance
greenhouse gas tCO2e 709422 726654 2682418 Governance
emission Upholding Integrity and
Direct (scope 2) Sincerity
greenhouse gas tCO2e 740658 587784 490833
emission
Greenhouse gas tCO2e/CNY'0000
emission intensity revenue 0.0767 0.0641 0.1670 Innovation-
Driven
Quality-Base
Development
Clean Energy Utilization
As of the end of the reporting period
the company's total installed capacity of People-with Centered
photovoltaic power stood at Photovoltaic generation project of Ganzhou Base Photovoltaic generation project of Hangzhou Base Approach 56.9 Creating Value for Society121.3 MW of new MW
photovoltaic power generation
projects constructed in 2024
During the reporting period
Green
Development
Leading with
the Company generated accounting for achieved a carbon dioxide Low Carbon
emission reduction of
96.85 approximatelymillion kWh 5.6%
of photovoltaic electricity of the Group’s total 51969
electricity consumption tons Conclusion
*Note: 1. The carbon dioxide emission factor for electricity is the national average carbon dioxide emission factor for electricity of 0.5366 tCO2/MWh as Photovoltaic generation project of Nanjing Base Photovoltaic generation project of Changsha Base
published by the Ministry of Ecology and Environment and the National Bureau of Statistics on December 23 2024.
2. The scope of data accounting in 2024 includes the Company’s headquarters and all its subsidiaries whereas the scope of data accounting for the years
2022-2023 was limited to the company's headquarters.
842024 Environmental Social and Governance Report
Looking to the Future Gree Electric will unswervingly implement the strategy of green development continuously practice green principles and empower the Introduction
improvement of product quality and factory efficiency striving to become a pioneer in green manufacturing. In the meantime the Company will build on the
foundation of “green factories” and “green supply chain management” sharing high-quality experiences to better empower the industry co-build ecosystems and
contribute to the overall transformation and upgrading of China’s manufacturing industry.Compliance
Governance
Upholding
Integrity and
Sincerity
Innovation-
Driven
Quality-Base
Development
People-
Centered
Approach
Creating Value
for Society
Green
Development
Leading with
Low Carbon
Conclusion
852024 Environmental Social and Governance Report
Appendix I: Table of Key Performance Indicators Indicator Unit 2022 2023 2024
Economic Performance Number of sessions Introductionof General Meeting of Session 4 1 2
Shareholders
Indicator Unit 2022 2023 2024
Business Ethics
Total operating revenue CNY’0000 19015067.25 20501812.38 19003807.16 Compliance
Governance
Upholding
Net profit attributable to Indicator Unit 2022 2023 2024 Integrity and
shareholders of listed CNY’0000 2450662.38 2901738.76 3218457.04 Sincerity
companies Anti-commercial
Total cash dividends (tax bribery and anti- Session 47 40 32
included) CNY’0000 1122768.32 1314222.59 1675541.62 corruption training
Number of employees
Cash dividends for every Innovation-
10 shares CNY 20.00 23.80 30.00 signing the Integrity Person 6959 7123 10332
Driven
Commitment Letter Quality-Base Development
Governance Performance Environmental Performance
People-
Board of Directors Board of Supervisors and Senior Management Energy Usage Centered
Approach
Creating Value
for Society
Indicator Unit 2022 2023 2024 Indicator Unit 2022 2023 2024
Total number of board
members Person 9 9 9
Comprehensive energy
consumption tce 214216.38 256892.14 265978.03
Including: number of Direct energy Green Development
female directors Person 2 2 2 consumption tce 51463.99 56461.33 54550.32 Leading with
Low Carbon
Including: number of
executive directors Person 5 5 5 Including: natural gas ’0000 m
32960.933341.403167.66
Including: number of Person 4 4 4 Including: liquefied independent directors petroleum gas Ton 7048.72 7012.02 7245.20
Number of board Session 12 6 6 Indirect energy
Conclusion
meetings convened consumption tce 162752.39 200430.81 211427.71
Attendance rate of
board members % 100 100 100 Including: electricity ’0000 kWh 129871.68 160278.47 162347.31
862024 Environmental Social and Governance Report
Indicator Unit 2022 2023 2024 Waste Discharge
Consumption of self- Indicator Unit 2022 2023 2024 Introduction
generated and self-
consumed renewable ’0000 kWh 2555 2806 9685 Total general solid
electricity wastes Ton 323848.72 466865.10 474261.15
Consumption of
renewable energy Total hazardous waste Ton 15375.74 17571.34 15614.13 Compliance
(photovoltaic power ’0000 kWh 2555 2806 9685 Governance Upholding
generation) Recycled and Integrity and
processed waste Sincerity
electrical and ’0000 tons 670 995 813
Consumption of electronic products
renewable energy
(nuclear power ’0000 kWh 0 57212.7 70876.3 Conversion of
consumption) recycled copper iron aluminum and ’0000 units/sets 8.30 15.34 15.76
plastics Innovation-
Driven
Quality-Base
Proportion of Development
renewable energy % 1.5 28.7 37.2
consumption Wastewater Discharge
Indicator Unit 2022 2023 2024
Greenhouse Gas Emissions People-Total wastewater 3 Centered
discharge m 3042655.05 3526745.37 3147635.11 Approach Creating Value
for Society
Indicator Unit 2022 2023 2024 Chemical oxygen demand (COD) mg/L 79.01 76.56 54.34
Total emission of Ton (CO Five-day biochemical 2
greenhouse gases equivalent) 1450080 1314438 3173251 oxygen demand mg/L 30.84 32.68 23.79(BOD5) Green
Development
Direct (scope 1) Leading with Low Carbon
greenhouse gas Ton (CO2 equivalent) 709422 726654 2682418
Suspended matter mg/L 23.11 22.60 23.64
emission
Indirect (scope 1) Ammonia nitrogen mg/L 7.51 8.00 8.10
greenhouse gas Ton (CO2 740658 587784 490833emission equivalent）
Total phosphorus mg/L 1.01 1.16 1.12 Conclusion
Greenhouse gas Ton (CO2emission intensity equivalent） 0.0767 0.0641 0.0641 pH - 7.57 7.54 6.45
872024 Environmental Social and Governance Report
Waste Gas Emissions Product Performance
Indicator Unit 2022 2023 2024 IntroductionProduct Responsibilities and Services
Total waste gas 3
emissions m 28284810418.03 28114666183.08 34534420049 Indicator Unit 2022 2023 2024
Particles mg/m3 5.40 5.52 6.09 Number of product
recalls Piece 0 0 0 Compliance Governance
Upholding
Non-methane 3 Integrity and
hydrocarbon mg/m 8.49 6.11 5.17 Proportion of product recalls % 0 0 0 Sincerity
Nitrogen oxide mg/m3 18.32 17.55 16.01 Amount involved in the
damage caused by
major liability accidents CNY’0000 0 0 0
Sulfur oxides mg/m3 4.31 4.79 2.27 related to product and service safety and Innovation-
quality in the year Driven Quality-Base
VOC emissions mg/m3 3.45 5.20 2.32 DevelopmentComplaint resolution
rate % 100 100 100
Customer satisfaction % 99.05 99.61 99.88
Water Resource Utilization
Intellectual Property and Innovation People-Centered
Indicator Unit 2022 2023 2024 Approach Creating Value
Indicator Unit 2022 2023 2024 for Society
Total Water 3
Consumption m 9374763 10191754 10435347
R&D investment CNY’0000 642970.21 700649.74 714685.00
Total number of Green
Environmental Management patents held (granted) Nos. 61601 68055 77898 Development Leading with
Total invention patents Low Carbon
held (granted) Nos. 16159 19568 25883
Indicator Unit 2022 2023 2024
Total software
copyright patents held Nos. 10 86 98
Number of (granted)
incidents penalized
Annual increase in Conclusionfor violations of
environmental Times 0 0 0 patents (granted)
Nos. 8650 6454 8130
protection laws and Number of patents
regulations under examination Nos. 32806 33845 28179
882024 Environmental Social and Governance Report
Employee Performance Employee Turnover Rate
Introduction
Employee Composition Indicator Unit 2024
Employee turnover rate* % 12.85
Indicator Unit 2022 2023 2024 Male % 13.13
Employee turnover rate by gender
Female % 12.18
Total number of employees Person 72380 72610 72808 Compliance
30 years old and below % 19.80 Governance Upholding
Integrity and
Number of Male Person 50829 51923 51733 Employee turnover rate by age group 31 to 40 years old % 9.53 Sincerity
employees by 40 years old or above % 5.75
gender Female Person 21551 20687 21075
Employee Training and Development
Labor contract Person 72380 72610 72808 Innovation-Driven
Number of Indicator Unit 2024 Quality-Base Development
employees by
employment Labor dispatching Person 0 0 0 Total training hours Hour 1183968.65
type
Other Person 0 0 0 Training hours per capital Hour 55.13
30 years old and below Person / / 23833 People-Centered
Occupational Health and Safety Approach
Number of Creating Value
employees by 31 to 40 years old Person / / 32631 for Society
age Indicator Unit 2022 2023 2024
40 years old and above Person / / 16344
Health Total duration of training on occupational health and work safety Hour 101346 74612 86720and safety
Senior management Person / / 249 training and Number of safety drills (such as fire Green
drill Development toxic gas leakage etc.) Session 19 14 23 Leading with
Number of female Low Carbon
employees in senior Person / / 37 Work safety investment CNY’0000 2406.3 2325.7 2458.1
management
Number of Number of employees injured at work
employees by Middle management Person / / 5373 (with minor injuries or above) Person 5 4 4
job level
Number of female Employee Number of work-related deaths Person 0 0 0
employees in middle Person / / 1402 Conclusioncasualties Number of working days lost due to
management work-related injuries Day 3539 3079 1997
Grassroot Person / / 67186 Occupational disease incidence rate % 0 0 0
*Employee turnover rate = Number of employees who left at the end of 2024 / Number of employees at the beginning of 2024
892024 Environmental Social and Governance Report
Appendix II: Report Standard Index Sustainability Report Index GRI Content Index Location in Report and Description
GRI 302: Energy 2016 GRI Introduction
Sustainability Report Index GRI Content Index Location in Report Environmental Environmental
and Description Compliance Article 29 Article 33 303: Water Resources and Wastewater 2018 GRI 306: Compliance
Environmental Information Disclosure Management Effluents and Waste 2020 Management
Section I Addressing Climate Change Section III Resource Utilization and Circular Economy Compliance
Governance
Addressing Efficient Resource Upholding Integrity and
Addressing Article 20 Article 21 Article GRI 201: Economic Climate Change Utilization Annex
Sincerity
Climate 22 Article 23 Article 24 Performance 2016 GRI
Energy Article 34 Article 35 GRI 302: Energy 2016 I: Table of Key
Change Article 25 Article 26 Article 302: Energy 2016 GRI 305:
Annex I: Table of Utilization Performance
27 Article 28 Emissions 2016 Key Performance Indicators
Indicators
Efficient Resource Innovation-Driven
Section II Pollution Control and Ecosystem Protection Utilization Quality-Base
Promotion of Development
Water GRI 303: Water Resources Pollutant and Promotion of Resource Article 34 Article 36 Waste Prevention
GRI 2: General Disclosures Pollutant and Utilization
and Wastewater 2018 and Control
Pollutant Waste Prevention Annex I: Table of
Emissions Article 29 Article 30
2021 GRI 303: Water
Resources and Wastewater and Control Key Performance People-
2018 Annex I: Table of Indicators Centered Key Performance Approach Creating Value
Indicators Promotion of for Society
Pollutant and
Waste Prevention
Promotion of Circular
Economy Article 34 Article 37
GRI 306: Effluents and Waste
Pollutant and 2020
and Control
Annex I: Table of
Green
Waste Article 29 Article 31 GRI 306: Effluents and Waste
Waste Prevention Key Performance Development
Disposal 2020 and Control Indicators Leading with Annex I: Table of Low Carbon
Key Performance Social Information Disclosure
Indicators
Section I Rural Revitalization and Contribution to Society
Ecosystem
and After assessment by the Company this topic is neither of finance materiality nor Rural Article 38 Article 39 GRI 203: Indirect Economic
Social Conclusion
Biodiversity impact materiality Revitalization Impacts 2016 Contribution and
Conservation Public Welfare
902024 Environmental Social and Governance Report
Sustainability Report Index GRI Content Index Location in Report Sustainability Report Index GRI Content Index Location in Report
and Description and Description
Contribution Social Section IV Employees
Introduction
to Society Article 38 Article 40
GRI 203: Indirect Economic
Impacts 2016 Contribution and Public Welfare Talent
Recruitment and
Section II Innovation Driven Development and Science & Technology Ethics GRI 401: Employment 2016 Employment
GRI 403: Occupational Health Employee Compliance
Innovation-Driven and Safety 2018 GRI 404: Development Governance
Innovation Transformation Upholding Training and Education 2016 and Training Integrity and
Driven Article 41 Article 42 / Annex I: Table of Employees Article 49 Article 50 GRI 405: Diversity and Equal Occupational Sincerity
Department Key Performance Opportunity 2016 GRI 406: Health and Safety
Indicators Non-Discrimination 2016 GRI Employee Care
409: Forced or Compulsory and Activities
Science & Not involved. The Company’s core business does not involve scientific research Labor 2016 Annex I: Table of
Technology technological development and other activities in sensitive fields such as life Key Performance Innovation-
Ethics Driven sciences and artificial intelligence ethics. Indicators Quality-Base Development
Section III Suppliers and Customers Sustainability Related Governance Information Disclosure
GRI 308: Supplier Building Section I Sustainability Related Governance MechanismSupply Chain Article 44 Article 45 Environmental Assessment Safety 2016 GRI 414: Supplier Social Sustainable Supply Chains Due Diligence Article 52 / Strict Risk People-Assessment 2016 Management Centered Approach
Creating Value
Equal for Society
Treatment Stakeholder GRI 2: General Disclosures Focus on
of Small and Article 46 / Adherence to Communication Article 53 2021 GRI 3: Material Topic Sustainable
Medium-Sized Business Ethics 2021 Development
Enterprises
Section II Business Conduct Green Development
Pursuing Perfect Leading with
Safety and Low Carbon
Quality of GRI 416: Customer Health
Quality Improving Anti- Adherence to
Products and Article 44 Article 47 Safety 2016 GRI 417:
User Experience Commercial Business Ethics
Marketing and Labeling 2016 Annex I: Table of Bribery Article 54 Article 55 GRI 205: Anti-Corruption 2016 Annex I: Table of Services Key Performance and Anti- Key Performance
Indicators Corruption Indicators
Conclusion
Data Security
and Customer GRI 418: Customer Privacy
Privacy Article 44 Article 48 2016 Protection
Anti-Unfair Article 54 GRI 206: Anti-Competitive Adherence to Competition Behavior 2016 Business Ethics
Protection
912024 Environmental Social and Governance Report
Appendix III: Readers’ Feedback
Introduction
Dear readers
Hello!
Thank you for taking your time to read this report. In order to provide more comprehensive professional and valuable ESG information to you and other stakeholders and to improve the quality of our ESG Compliance Governance
report we sincerely invite you to assist us by completing the relevant questions in the feedback form. Your valuable insights would be greatly appreciated. Upholding Integrity and
Sincerity
6. Are you satisfied with the overall design of this report Innovation-1. Are you satisfied with this report on overall Driven
Quality-Base
Development
Yes □ Average □ No □ Yes □ Average □ No □
2. Do you think this report comprehensively reflects Gree Electric’s significant impacts on the 7. Any other comments or suggestions regarding the 2024 Environmental Social and
ESG Governance Report of Gree Electric are welcome.People-
Yes □ Average □ No □ Centered
Approach
Creating Value
3. Do you think the stakeholders identified in this report and the analysis of their relationship for Society
with Gree Electric are accurate and comprehensive
Yes □ Average □ No □
Green
4. Do you think the information provided in this report is comprehensive Development
Leading with
Low Carbon
Yes □ Average □ No □
If you have any questions suggestions or comments regarding this report please contact us at:
5. Do you think the information provided in this report is readable
： Jinji West Road Qianshan Zhuhai City Guangdong Province
Yes □ Average □ No □
：0756-8669232 Conclusion
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