Report
Environmental Protection Employment Management
Renewable Energy 12 Environmental Protection Practices 20 Occupational Safety
the Chairman
Supplier Management Products and Services
Part of Supplier Review 36 Quality of Our Products
Social Development Corporate Governance
Rural Revitalization 47 Internal Control and
Business Ethics
About This Report
This report is the first Environmental, Social and Governance (ESG) report released by SANY Renewable
Energy Co., Ltd.
Basis of preparation
This report is prepared according to the Shanghai Stock Exchange Self-Regulatory Guidelines
for Listed Companies No. 1 – Standardized Operation and followed the guidance of the Global
Reporting Initiative Sustainability Reporting Standards (GRI Standards).
Reporting scope
This report reviews the environmental, social, and governance performance of SANY
Renewable Energy Co., Ltd. in 2022 (covering the period from January 1, 2022, to December
performance.
References
For a smooth expression and reading experience, "SANY Renewable Energy Co., Ltd." is also
referred to as "SANY Renewable Energy", "SANY", "the Company", or "we" in this report.
Report review and approval
This report has been reviewed and approved by the Board of Directors.
Access to this Report
You can access the report online and download it from various sources, including the
Shanghai Stock Exchange website, the official website of SANY Renewable Energy, and the
WeChat Official Account.
Environmental, Social and Governance (ESG) report 2022
About SANY Renewable Energy
SANY Renewable Energy Co., Ltd was founded in 2008 and is committed to becoming the global leader
in the field of clean energy equipment supply and services. It was officially listed and traded on STAR
Market of Shanghai Stock Exchange on June 22, 2022 (stock name: SANY Renewable Energy; stock
code: 688349). SANY Renewable Energy is among the Global Top 500 New Energy Companies and
recognized by The Ministry of Industry and Information Technology of the People's Republic of China
as the Benchmark Enterprise for Intelligent Manufacturing. SANY Renewable Energy's market share has
increased significantly and ranked among the global Top 10 wind turbine manufacturers and Top 5 wind
turbine manufacturers in China.
The main business of SANY Renewable Energy includes the R&D, manufacturing and sales of wind
turbines, wind farm designing, construction, operation & management, and the construction and
operation management of photovoltaic power stations. By integrating the world's top research and
technology resources, SANY Renewable Energy continues to create wind turbine platforms with
competitive advantages, and has the ability to independently design, construct and operate wind
farms. SANY has developed the comprehensive wind energy solutions including digital top-level
design, intelligent production and manufacturing, complete integration system, core components
manufacturing, wind farm designing, EPC, and wind farm operation and maintenance.
Motivated by the mission "Intelligence Leads the Future" and the vision "To Promote Efficient Utilization
of Clean Energy", SANY Renewable Energy is doing its part in helping China achieve its carbon emissions
goals and contributing to the global transition to clean energy.
Corporate Culture
Our Mission
Quality Changes the World, Intelligence Leads the Future
Our Vision
To Promote Efficient Utilization of Clean Energy
Our Value
Patriotism, Integrity, Struggle, Innovation, Adherence to Long-Termism, Keep Customer
Satisfaction as the Top Priority
Awards
Total Number of Awards in 2022
Honorary Ranking Product Project
Awards Awards Awards Awards
Honorary Awards
Benchmark Enterprise for National Intellectual Property Outstanding Person of China's
Intelligent Manufacturing Advantage Enterprise Wind Power Industry in 2022
Awarded by：Ministry of Industry Awarded by：China National Awarded by：China Electricity Council
and Information Technology of Intellectual Property Administration Recipient of the award: Mr. LI Qiang,
the People's Republic of China Recipient of the award: General Manager, SANY Renewable
Recipient of the award: SANY SANY Renewable Energy Energy
Renewable Energy
Top 10 Influential Brands in Top 10 Supported Brands in Science and Technology Person
Wind Power Industry in 2022 China Wind Power Industry in 2022
Awarded by：China Renewable Energy
Awarded by：China Electricity Awarded by：China Electricity Society
Council Council Recipient of the award: Mr. HE Guangling,
Recipient of the award: SANY Recipient of the award: SANY Head of SANY Renewable Energy Research
Renewable Energy Renewable Energy Institution
Low Carbon Innovation Green Supplier - Carbon Leader in Clean Energy of the Year
Social Responsibility Peaking & Carbon Neutrality
Enterprise Award in 2021 Recipient of the award: Shanghai United
Awarded by：China Energy News Awarded by：China Energy News Media Group
Recipient of the award: SANY Recipient of the award: SANY Recipient of the award: SANY Renewable
Renewable Energy Renewable Energy Energy
Ranking Awards
Global Top 500 New Energy Top 500 China Machinery Top 500 Energy Enterprises
Companies Awarded by：China Machinery (Groups) in China
Awarded by：China Energy News Enterprise Management Awarded by：China Institute of Energy
Recipient of the award: SANY Association Economics Research
Renewable Energy Recipient of the award: SANY Recipient of the award: SANY Renewable
Renewable Energy Energy
Environmental, Social and Governance (ESG) report 2022
Beijing Top 100 Private Beijing Top 100 Enterprises Beijing Top 100 Manufacturing
Enterprises Enterprises
Awarded by: Beijing
Awarded by：Beijing Federation Enterprise Association, Beijing Awarded by：Beijing Enterprise
of Industry and Commerce Entrepreneurs Association Association, Beijing Entrepreneurs
Recipient of the award: SANY Recipient of the award: SANY Association
Renewable Energy Renewable Energy Recipient of the award: SANY
Renewable Energy
Project Awards
Wind Power Leader - Best Onshore Global Top 10 Best Onshore Wind Turbines
Wind Turbines Award (Below 4.6MW)
Awarded by: China Wind News Awarded by：Windpower Monthly
Awarded product: SI6050 Awarded product: SE14125
Product Awards
China Electric Power Quality Projects 2022 Outstanding Wind Farms (Class A3 - Class 5A
Wind Farms)
Awarded by：China Electric Power Construction
Association Awarded by：China Electric Power Construction
Awarded wind farms：Qinghai Haixi Nuomuhong Association
Jiangyong County, Tongshanling Wind Farm Renewable Energy (Datang Zhangjiakou Wudengshan
Project, HuaNeng Yongzhou Huilongxu Wind Farm W i n d Fa r m P h a s e I V, Sta t e Po w e r I n v e st m e n t
Phase I Project Corporation’s Jiaokou Qipanshan Wind Farm, Inner
Mongolia Linxi Wind Farm, etc.)
Optimal Turbine Manufacturers for Maximum Hundred-day Fault-free Wind Farms
Unit Availability
Awarded by：China Electricity Technology Market
Awarded by：China Electric Power Construction Operation and Maintenance Association Awarded
Association region: 10 wind farms built with the participation
Anhui, Sichuan, Henan, Qinghai Zhaogou Wind Farm, Gaoshanzhang Wind Farm,
Tiantangjie Wind Farm, etc.)
Message from the Chairman
Intelligence Leads the Future - guides us as we work towards ensuring national energy security and
promoting the use of clean energy. We are committed to achieving China's goal of carbon peaking and
carbon neutrality, and our company charges fearlessly ahead towards a new stage of development.
To achieve our Zero Carbon dream, we pursue intelligent manufacturing and digital development.
We strive to become a leader in digital transformation in the wind power industry while supporting
China's efforts to achieve carbon neutrality. Our efforts have been recognized, and we have been named
the Benchmark Enterprise for Intelligent Manufacturing. We are currently beginning construction on
multiple zero-carbon digital industrial parks across the country. The Shaoshan Super Blade Factory, a
world-class smart and digitized "lighthouse" factory for wind blade production, was completed in 2023
and is now operational.
We are integrating ESG principles throughout our company in order to promote sustainable
development. Our commitment to environmental protection, social responsibility, and optimized
governance strengthens our competitiveness, enhances innovation, increases industry influence, and
improves risk management across all areas of our business.
We are implementing our international strategy by working towards increasing the influence of China's
wind power industry on a global level. Despite facing challenges such as the Russia-Ukraine conflict,
energy crisis, and economic turbulence, we have expanded into new overseas markets. Through our
cutting-edge wind turbines, produced with SANY's engineering expertise and intelligent manufacturing
technology, we are demonstrating our commitment to innovation and quality in the wind power sector.
Our efforts underscore our dedication to quality and innovation in the industry, not just domestically,
but globally.
As time flies by, the release of the SANY Renewable Energy 2022 Environmental, Social and Governance
(ESG) Report signifies the one-third completion of our journey towards 2023. Nonetheless, we sincerely
invite all stakeholders to review our progress towards sustainable development in 2022. With this report,
we hope to engage in an open and cooperative conversation with stakeholders about SANY Renewable
Energy's sustainable development. By working together, we can create a blueprint for its green
development.
Chairman of SANY Renewable Energy Co., Ltd. Mr. ZHOU Fugui
Environmental
Protection
Climate Change
Protection Practices
Management
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
To achieve our goal of being an Environmentally Friendly Enterprise, SANY Renewable Energy has
established policies on environmental protection, work safety, occupational health, fire safety, and
environmental responsibility. These policies ensure that we comply with relevant laws and regulations,
prevent environmental accidents during operations and project construction, and take measures to
protect and preserve the environment.
Our Response to Climate Change
Digitization, Internationalization: Promote the Energy Transition
Digitalization: Capturing More Wind, Generating More Electricity
The alarm bells of climate change have already sounded, highlighting the urgent need to pursue climate
change mitigation and promote carbon neutrality. Transitioning from fossil fuels to clean energy is a
critical measure towards mitigating the impact of climate change. As a provider of clean energy, SANY
Renewable Energy constantly innovates to develop new products and break through new technological
barriers. By producing high-large-long-light-intelligent wind turbines and operating intelligent wind
farms, we are committed to providing society with a greater supply of green electricity.
The wind power industry is entering a phase of large-scale development, with high-megawatt wind
turbines and ultra-long blades emerging as a mega trend due to their ability to capture wind and generate
greater electricity output more effectively. Although these advancements have significant upsides, they
also present unique challenges, including the assurance of quality and production efficiency for high-
capacity wind turbines and ultra-long blades. At SANY Renewable Energy, we are leveraging digital
transformation to overcome these challenges and drive the development of large-scale wind power.
SANY Renewable Energy has consistently ingrained the digital transformation within our organization
for many years. By doing so, we want to achieve QCDSM - Quality, Cost, Delivery, Safety, and Morale, to
achieve the better quality, lower cost, faster delivery, safer production process, and to raise morale in the
production sites.
Digitalization in Production
Intelligent production involves the use of technologies such as the internet, automation,
and digital-driven methods in factories. By replacing manual operations, smart production
has improved accuracy and avoided quality problems. Also, digital manufacturing operation
systems have been contributing to quality control, achieving precise execution of delivery
plans and reliable product quality assurance.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Digitalization in Management
Through the application of technologies such as the integration of digital twins and IoT,
and high-precision positioning, we put effort into the development of a Digital Twin Meta
Platform for blade factories, to monitor the real-time data of Man-Machine-Material-Method-
Environment online. The Digital Twin Meta Platform works as a virtual factory, giving us a
complete picture of the operational situation on sites.
We have developed a manufacturing and operation management platform, realizing the
integration of the various process: planning, production, logistics, quality, and equipment
management. This platform makes our workers and managers more willing to use the APP for
on-site management.
We introduced a dual-center platform (i.e., business center and data center) to comprehensively
monitor and intelligently analyse the on-site production order, personnel safety, and material
use and storage, which adopts industrial visual recognition, machine learning, and big data
technology. It enables management personnel to be aware of the risks in the production process
in advance and respond more promptly to faults. Also, the platform can monitor, analyze, and
provide alerts for production plans, sales plans, warehousing and logistics, and production quality.
Turbine Availability Reaches to 99.79
In December 2022, all 64 units of 6.25 MW wind Through digital transformation,
turbines at the No.7 Beidaqiao Wind Farm of SANY's production efficiency
SDIC in Gansu Province were connected to the
grid and started generating power. This was the
was improved by 27%
first large-scale commercial wind power project in 2022, and the defect rate
in China to have a single unit capacity of 6 MW
or above and be fully connected to the grid.
decreased by 46%.
According to statistics, the wind turbines in Zone
B of the wind farm operated stably from April to
December 2022, with an availability of 99.79%.
The high reliability of the SANY Renewable
Energy wind turbines effectively ensured the
power generation of the wind farm.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Internationalization: Promote the Energy Transition
In 2022, SANY Renewable Energy broke through again in the international market, securing multiple
orders for wind power projects in Central Asia. SANY’s wind turbines will be spinning in the wind in
Central Asia, helping the region to achieve an energy transition.
SANY Renewable Energy made a debut appearance at the international exhibition, with the topic
"Capture the Power of Wind, Usher in a Cleaner World", to show SANY Renewable Energy's strength
in all aspects from research and development, intelligent manufacturing, wind farm construction and
operation. In the course of exhibition, SANY signed a strategic cooperation agreement with the Global
Wind Energy Council (GWEC) which made SANY an official member of the GWEC family.
Moving forward, we plan to collaborate with industry peers and associations to increase the export of
Chinese-made wind turbines. We aim to establish a stronger foothold in the international new energy
market and support the global transition to a low-carbon energy structure.
Green Intelligent Factory: Make Industrial Decarbonization Happen
In response to China's national target production space, optimized logistics, and used wind and
- to have CO2 emissions peak before solar complementary technologies to realize green power
before 2060, SANY Renewable Energy that benefits both production efficiency and environmental
took the lead in building a green protection, resulting in a win-win situation.
intelligent factory in the Nankou
Industrial Park. The factory adopts
environmental protection and
intelligent technologies, striving
to minimize energy consumption
and carbon dioxide emissions in
production.
The construction of this factory is
an exploration in decarbonization
practices in the wind power
industry. We have built an intelligent
Building an Intelligent Production Space
SANY Renewable Energy relies on Industrial Internet of Things technology, equipping factories with both
visible intelligence - hardware and invisible intelligence - software.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Rely on Industrial Internet of Things technology, equipping factories with hardware and software
Hardware Software
Optimizing factory layout design and An intelligent Data Brain further
adopting automated equipment for improves lean management, product
production, material management, and lifecycle management, and enterprise
inspection. resource management.
After implementing digitalization and intelligence in production, the overall unit energy consumption
and carbon emissions have been reduced by 15%.
Scope 1 Emissions Reduction: Tapping the Emission Reduction Potential in
Logistics Operations
Scope 1 emissions include those emissions generated by transportation owned or controlled
by the enterprise. In order to reduce Scope 1 emissions, we established a green logistics
system by optimizing logistics activities such as transportation, storage, loading and
unloading, handling, packaging, etc. Thereby we minimize carbon emissions in the logistics
process as much as possible.
We allocate our distribution centres appropriately and create
reasonable distribution plans that will improve transport
efficiency, resulting in reduced damage or freight volume.
Measures to We conduct joint delivery to reduce pollution.
Optimize Logistics
Activities We implement a combined transportation system that
reduces the total number of vehicles by changing the
transportation method.
We equip factories with electric forklifts and electric AGVs to
replace fossil fuel logistics vehicles.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Scope 2 Emissions Reduction: Achieving Green Electricity Substitution through
Distributed Wind-solar Complementarity
Scope 2 emissions mainly generated by the purchase of electricity and heat production. Increasing the
proportion of green electricity use can reduce Scope 2 emissions. Therefore, we have installed a 3.78 MW
distributed photovoltaic power station and a 1.5 MW wind turbine on the Nankou Industrial Park. After
connecting to the grid, it is expected to generate over 4.2 million kWh of electricity annually, resulting in
a carbon emissions reduction of over 2,000 tons per year.
Greenhouse Gas Emissions Scope 1 6,197tCO2e Scope 2 25,263tCO2e
Environmental Protection Practices
We have the Policy on Environmental Protection to ensure mainstream environment-friendly practices at
SANY Renewable Energy. We have clearly defined the accountability, goals, and reward and punishment,
and also developed an environmental accident management system. Besides, we have also taken measures
to promote environmental protection practices throughout the operation of SANY Renewable Energy.
Environmental Protection Practices in Operation
In order to make sure that all employees
understand the importance of conserving
water, the HSE specialist arranges regular
training, and the administration department
puts up campaign materials in operation
areas and conducts water conservation Raise the
During the Water Saving Day in 2022,
education programmes. By doing so, we awareness
we held a water-saving campaign by
displaying water-saving slogans in aim to raise awareness among everyone on through
Nankou Industrial Park. water conservation. campaigns
We have developed the Nankou Industrial Park's Mandatory Waste
Sorting Management Regulations and the SANY Nankou Industrial Park
Comply with Environmental Protection Convention to encourage employees to be
regulations and
environmentally responsible. These rules include not littering, wasting food
conventions
and water, and turning off electronic equipment and lights when not in use.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Through the installation of water/electricity meters and the digital
interconnection of equipment, we have realized real-time online monitoring
to keep track of how much water, electricity, oil and gas we use in all of our
industrial parks. By monitoring the individual water points, we can quickly
find and fix any leaks or waste. We also monitor how much electricity is Monitor the
used by high-consumption equipment so we can use the equipment more use of
efficiently based on the data we collect. resources
increased lighting while reducing electricity
usage by 50%, saving 185.24 kWh each day.
In 2022, we upgraded our irrigation system
The irrigation equipment in the Nankou
at Nankou Industrial Park to conserve water.
Use Industrial Park.
We customized the spray levels for each green
energy-saving
In 2020, we replaced the lights area using visible and hidden pipes that were
and water-saving
equipment in the workshops and office appropriate for the area. Additionally, we
areas of Nankou Industrial Park regularly inspect our pipelines and promptly
with energy-saving ones. This repair any leaks to minimize water waste.
Energy-saving and Water-saving Equipment being Used
Energy-saving Equipment
Permanent magnet frequency conversion air compressor; water pump and fan with the use of
frequency conversion technology; air conditioner ranked grade-1 energy efficient (labelled as
most efficient); electric pallet truck; electric forklift; LED lights; motion sensor lights, etc.
Water-saving Equipment
Sensor faucet and sensor toilet flush; initial rainwater collection system and rainwater
irrigation system.
The Use of Water and Energy in 2022
Nankou Nankou
Zhangjiakou Tongyu Shaoshan Chenzhou
Industrial Park No.2 Plant
Blade Blade Blade Plant
Category (Including (Including
Company Company Company (Temporary
Nankou No.1 Xi'an Industrial
Plant)
Plant) Park)
May 2022 to
Water
(Municipal Water)
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
November
Natural 2022:
Gas 652,600m3
MWh MWh MWh MWh MWh MWh
Purchased
Electricity
Environmental Protection in Wind Farms
The company adheres to the relevant laws, regulations, norms, and standards such as Environmental
Protection Law of the People's Republic of China, the Water Pollution Prevention and Control Law of
the People's Republic of China, the Law of the People's Republic of China on Noise Pollution Prevention
and Control, the Regulations on the Administration of Construction Project Environmental Protection,
the Interim Provisions for the Administration of Environmental Protection Acceptance of Completed
Construction Projects, Ambient Air Quality Standards (GB 3095-2012), and the Technical Regulations for
Wind Farm Site Selection in the development and operation of wind farm projects, and carries out the
relevant environmental protection work. Specific environmental protection measures are as followed:
Site · As biodiversity conservation matters, the site should avoid rare animal and plant
Selection distribution areas, bird protection areas, and bird migration channels during site
selection;
· A reasonable distance is maintained between the wind turbines and residential
areas to prevent noise pollution from disturbing the local residents;
·Surrounding environmental sensitive areas are clearly identified.
· We plan specific environmental protection measures for the construction project;
Feasibility
· We commission qualified organizations to conduct environmental impact
Study
assessments and prepare environmental impact reports.
· We develop clear implementation provisions for environmental protection
Design
measures;
· We commission environmental engineering design organization to carry out
environmental engineering design projects, such as wastewater treatment, noise
reduction, and greening.
· We adhere to the national environmental protection policies, regulations, laws,
Construction
and rules;
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
· We conduct environmental monitoring, including air quality, noise control,
Construction
health of the public, ecological environment, soil and water conservation;
· The construction supervisor submits regular environmental supervision reports;
· The commissioned company carries out environmental quality monitoring and
is required to submit environmental monitoring reports regularly;
· Upon completion of the project, we carry out land improvement and plant grass
seeds for greening;
· To minimize dust generated during construction, we take measures such as
watering the site regularly.
· We organize environmental protection inspection upon completion of the project;
Operation
· We implement various environmental management plans;
· We carry out environmental monitoring (such as surface water, noise, and ecology);
· We conduct regular inspections to ensure that the ecological environment is not
damaged;
· We develop and implement emergency plans and treatment plans for pollution
incidents;
· We conduct environmental education and publicity.
Waste Management
Solid Waste
To properly handle the solid waste produced by the company, in accordance with the laws and
regulations such as Environmental Protection Law of the People's Republic of China, the Law of the
People's Republic of China on the Prevention and Control of Environment Pollution Caused by Solid
Wastes, and the Standard For Pollution Control on the Non-Hazardous Industrial Solid Waste Storage and
Landfill, the company has developed the Policy on Solid Waste Management, which specifies the types of
solid waste that may be generated and corresponding disposal measures.
Categories Items Disposal Measures
· Implement garbage classification
· Entrust a qualified company to handle hazardous waste
· Kitchen waste should be handed over to a qualified
Paper, plastic, waste company for harmless treatment. Untreated kitchen
batteries, discarded waste should not be discharged into sewers, toilets
Domestic fluorescent tubes, or mixed with other types of garbage. It is strictly
Garbage kitchen waste, etc. prohibited to use kitchen waste for processing food or
feeding livestock without authorization.
· The qualified company transports domestic waste away
on a daily basis.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
· Entrust a qualified company to handle industrial solid
waste and specify pollution prevention and control
Waste steel, waste requirements for the transportation, utilization, and disposal
iron, water-based · Require the rational use of raw materials, utilize general
Industrial
paint drums, etc. industrial solid waste and reduce its production
Solid Waste
· Establish a Waste Transfer Record System to record
information such as types, amounts, and flow directions
· Establish a list of hazardous waste, waste transfer forms, transfer
records, etc., and report to the HSE commissioner for filing
· Classify, collect, label, establish records, transfer, and store
hazardous waste in accordance with regulations to prevent
Waste mineral secondary pollution to the environment
oil, waste paint, · Establish internal transportation management standards,
waste filter in order to prevent seepage, loss, and dispersal
Hazardous
cotton, etc. · Entrust a qualified company to transfer and dispose of
Waste
hazardous waste and sign a safety and environmental
protection agreement
· Analyze the source of production and formulate hazardous
waste reduction strategies
Slag soil, waste
· The construction company handles construction waste
concrete, mud,
and hazardous waste generated during the construction in
Construction asphalt blocks, etc.
accordance with relevant laws and regulations.
Waste
Waste Generation in 2022
Zhangjiakou Shaoshan Tongyu
Nankou No.1 Nankou No.2
Blade Blade Blade
Plant Plant
Company Company Company
Solid Waste 4,221.02t 3,082.14t 225.8t 2000t
Hazardous 31.713t 37.8t buckets of resin/ 123.48t 28.91t
Waste hardener 6,796 pcs
Wastewater
In accordance with Policy on Environmental Management, SANY Renewable Energy carries out daily
proper treatment of wastewater. We strictly adhere to national standards for wastewater treatment to
ensure its effectiveness. We rigorously monitor wastewater treatment plants and conduct testing and
evaluation of the results to ensure normal operations. In the course of wind farm construction and
operation, domestic wastewater is discharged into the sewage treatment device of the booster station.
Following treatment, it is then directed into the reuse water pool for greening.
In addition, we generate a certain amount of liquid hazardous waste during the operation, mainly
including oil-containing cleaning wastewater, paint wastewater, waste engine oil, etc. We will collect and
seal it centrally, and then send it to the hazardous waste storage facility for temporary storage before it is
transported and disposed of later.
Employment
Management
Benefits
Mechanisms
Activities
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
SANY Renewable Energy abides by the Constitution of the People’s Republic of China, the Civil Code of
the People's Republic of China, the Labour Law of the People’s Republic of China, the Special Rules on
the Labour Protection of Female Employees, the Law of the People’s Republic of China on the Protection
of Minors and other laws and regulations. We are committed to adopting fair and lawful employment
practices and strictly prohibit the use of child or forced labour. Additionally, we do not discriminate
against any employee on the basis of gender, age, height, appearance, religion, or any other personal
characteristic in any of our operations or facilities.
SANY Renewable Energy is a talent-focused enterprise that believes in the value of hard work and
perseverance in achieving success. We are committed to nurturing our employees through a supportive
work environment and development opportunities. In addition, we employ a Triple-High policy to attract
top talent from both domestic and international markets.
We invest in training our employees to make sure our team
High Quality members possess the proper values and a high degree of knowledge,
abilities, and experience.
High standards for objectives, high standards for evaluation, high
High Standard
standards for speed, high standards for quality.
Through compensation, benefits, and incentive mechanisms, we
High Return
provide high returns for strugglers and high-achieving employees.
Till the end of 2022, we have 4,287 employees on board and 300 contractors, which is 4,587 in total. The
composition is as follows:
Employees Contractors Total Employees Contractors Total
Gender
Employees Contractors Total
Age
≤ 30 years 1,811 89 1,900
≥ 51 years 2,414 207 2,621
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Ethnical Employees Contractors Total
group
Ethnic Minorities 210 11 221
Employees Contractors Total Operating
regions/
Beijing, China (Headquarter) 1,360 55 1,415
areas
International Assignment 941 18 959
Oversea 20 6 26
Hebei, China 526 79 605
Hunan, China 984 139 1,123
Jilin, China 404 2 406
Shanghai, China 42 0 42
Xi’an, China 7 1 8
Xinjiang, China 3 0 3
Remuneration and Benefits
We provide our employees with a competitive remuneration package, which includes a basic salary,
performance bonuses, allowances, subsidies, statutory benefits, and supplementary benefits. We have
developed customized salary strategies for employees in various positions, including those in charge,
work center directors, and support staff. In addition, our company has implemented a tiered performance
management strategy based on the Performance Management Policy and the Performance Management
Procedure to motivate employees to enhance their personal capabilities and achieve performance targets.
Remuneration and Benefits
Basic Salary Determined by job value, personal ability, and skill level
Performance
Confirmed by performance results
Bonuses
Allowances and
Based on job characteristics or geographical location
Subsidies
Statutory benefits (five insurances and one fund) and supplemental
Benefits
benefits (birthdays, holidays, big events, etc.)
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
For senior managers in key positions, R&D core positions, and core
management positions, a medium and long-term incentive plan is
offered in the form of restricted stocks equivalent to performance
Medium and
bonuses. Starting in the second year of participation in the
Long-term Incentives
incentive programme, the stocks will be delivered over a period of
five years, with 20% unlocking annually. During the holding period,
the manager will have the right to receive stock dividends.
Incremental Sales Targeting the R&D team: designed for incremental gross profit of
Award R&D products
Benefit Sharing Based on the company's operating profit situation
Incentives are devised based on challenging target agreements that
Incentives for Achieving are tied to key performance indicators, such as business revenue
Challenging Targets and profits. Upon achieving challenging targets, personnel will
receive corresponding cash incentives.
Occupational Safety
At SANY Renewable Energy, our employees are the driving force behind our continuous development.
It is our obligation and responsibility to ensure their safety, take active measures to reduce accident risks,
and maintain a safe work environment. Therefore, we invest in production safety, pysical examination,
and insurance to create a safe work environment and prevent occupational diseases. Our goal is to
prioritize the health and safety of our employees.
Workplace Safety
Policies
SANY Renewable Energy has formulated a series of safety management policies, including the
Policy on Emergency Management of Workplace Safety, the Policy on Safety Rewards, Punishments
& Evaluations, the Protocol on Safety Inspection, and the Regulations on Fire Safety, in accordance
with relevant laws and regulations such as the Work Safety Law of the People's Republic of China,
the Law of the People's Republic of China on the Prevention and the Control of Occupational
Diseases, the Provisions on the Safety Training of Production and Operation Entities, and the
Guideline of China Occupational Safety and Health Management System. Moreover, the company
has clearly defined safety production responsibility system and obligations of every party.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Activities and Training
The company conducts regular safety training on various topics, including fire safety, traffic safety,
occupational disease prevention and control, and factory electricity usage. A total of 17 safety
training sessions were organized in 2022. In addition, during the annual National Safety Month
which in June, the company conducts various safety activities like safety knowledge training, fire
evacuation drills and safety knowledge quiz, in order to raise the safety awareness of all employees.
June 2022, National Safety Month
During National Safety Month, the company offered online safety knowledge training to all
employees, which covered topics such as fire safety inspection, safety accident prevention
in wind power generation, and analysis of typical wind power accidents. Additionally, some
employees participated in an online safety knowledge quiz, with cash rewards offered by the
company to those who performed well.
Profile of HSE
Since September 2022, we have started to implement a new HSE management programme, namely
Profile of HSE. Every month, we visualize and evaluate the performance of our safety work across
four dimensions: work-related injuries and accidents, rate of hidden danger rectification, safety
education and training, and regular duties. Evaluations are performed on a rating system. This helps
us to monitor and improve our safety performance effectively.
Since the launch of the Profile of HSE programme, we have been regularly reviewing the safety
performance of our HSE personnel and departments on a monthly basis, while providing timely
feedback to employees. The Profile of HSE programme has not only created incentives and guidance
for responsible employees, but also strengthened their sense of responsibility and capability, which
encourages them to take their safety responsibilities seriously and continuously improve their
performance.
By the end of 2022, all departments and branches had performed well in safety and no penalties had
been imposed on any individuals or departments.
Make Sure our Frontline Workers have Sufficient Rest Time
Giving frontline workers sufficient time to rest is essential for their work efficiency and safety.
To achieve this, we have established a procedure to guarantee rest time for production line
employees. This procedure aims to prevent excessive workload and prolonged work without rest
for frontline workers by clearly defining the responsibilities of various personnel and penalties for
noncompliance. If employees are unable to take their vacation time due to work demands, they may
report it to the human resources department.
Although we have implemented various safety measures, we regrettably experienced three safety
Environmental Employment Supplier Products and Social Corporate Business
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accidents in 2022. Fortunately, no fatalities resulted from these incidents, but nevertheless, they
serve as a reminder that we can never rest on our laurels when it comes to safety in the workplace.
Moving forward, we will commit even more resources to bolster the safety production management
at SANY Renewable Energy.
Physical Examination and Insurance
Upon the onboarding process, all new joiners, including employees, contractors, and interns, are
required to undergo a mandatory physical examination. We maintain a comprehensive medical record
for everyone, providing a valuable reference for their health status should any illnesses emerge in future.
In addition to this, we place a strong emphasis on the health of our frontline employees who are
often exposed to occupational hazards. That's why we offer them an annual customized examination
for occupational diseases, tailored to their specific job and exposure risks. We also provide physical
examinations for these employees upon leaving the company, so as to ensure that they depart in good
health.
We also offer an annual physical examination as a benefit to our middle and senior-level management
personnel. For other employees, they can participate in the physical examination at a deeply discounted
price, as we believe that everyone should have access to quality healthcare.
In 2022, we invested 1.1819 million CNY in physical examinations, which reflects our commitment to the
health and wellbeing of all our personnel.
In addition to regular benefits such as pensions, medical, work-related injury, maternity, and
unemployment insurance, we offer our employees customized commercial insurance that is tailored
to their unique job positions. For instance, when our staff are on international assignments, we offer
overseas personnel accident insurance to protect them against unexpected accidents. Similarly, we offer
expert health insurance to international experts and their family members, ensuring that they are able to
access quality healthcare services throughout their stay in our company.
Working Environment
To ensure that employees feel comfortable and can perform their duties without any undue stress or
hazards, it is crucial to maintain a clean and orderly workplace that minimizes physical risks. We take
proactive measures to ensure that our workplace adheres to the safety standards.
Factories and Wind Farms
We take workplace safety seriously in our factories and follow strict production safety management
standards. To achieve this, we maintain a clean and organized workplace, ensure equipment
is in good working order, and properly store goods. We provide necessary fire suppression
systems, protective gear, and first aid supplies to promote worker safety. Regular inspections and
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maintenance are conducted to ensure equipment reliability. We also prioritize source control to
minimize workplace hazards. For example, we use low-noise technology to keep workshop noise
below acceptable limits, protecting our employees from potential noise-related hazards.
At our wind farms, we provide employees with a range of safety equipment, such as safety ropes,
protective gear, and helmets. In addition, we also place warning signs and information boards in
work areas to alert operators of any potential hazards and promote safety.
The Occupational Hazard Information Card is Posted at the Warehouse Entrance Our Worker at Blade Web Team
Office Space
Our office space has a minimalist design, with well-organized workstations connected by greenery
to improve staff well-being. To promote a friendly and supportive workplace culture, we have a
corporate culture corner displaying pictures of each department to showcase the positive attitudes
and collaborative spirit of our staff.
We also provide facilities in our activity center, including activity rooms, gymnasiums, singing
rooms, yoga rooms, and table tennis facilities. We believe that offering opportunities for our
employees to refresh themselves and exercise is essential in promoting a healthy work-life balance.
Additionally, we serve wholesome and delicious meals in our canteen that vary according to the
seasons. We prioritize good food to maintain the well-being of our employees.
The Activity Center for Staff
The Prevention of Occupational Diseases
To prioritize the health and safety of our employees, we have established a comprehensive occupational
health management system, including policies such as Occupational Health Special Management System,
the Regulations on Occupational Health Guardianship and File Management, and the Occupational
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Disease Public Education and Training System for Disease Prevention and Control. The management
system was developed in accordance with the Law of the People's Republic of China on the Prevention
and Control of Occupational Diseases, the Provisions on the Administration of Occupational Health at
Workplaces, and others.
Monitor Manage Handle Provide alert Implement
and manage occupational and report and notification timely emergency
employee health health hazards. occupational of occupational response when
records. accidents. hazards. accidents occur
Maintain Provide training Monitor and Declare
and inspect on occupational evaluate project with
protective disease occupational occupational
equipment. prevention and hazards. hazards to the
control. company.
Occupational Health Management System
The Policy on Safety Management for Related Parties has been developed in accordance with Work
Safety Law of the People's Republic of China, the Contract Law of the People's Republic of China, the
Regulations of Beijing Municipality on Work Safety, and the Provisions of Beijing Municipality on the
Main Responsibility for Production Safety of Production and Business Entities. The purpose of this
system is to ensure the safety of everyone involved in our business operations.
Guarantee the Safety of Related Parties
We evaluate the qualifications, competence and safety system of
Construction Project- contractors. The contractor must submit the construction plan to the
related Parties CEO Office's Safety and Environment Unit for documentation and to
ensure that it complies with safety laws while construction is underway.
When entering contracts, we carefully review the qualifications,
Contracted Project
capabilities, and production safety systems of the outsourcing
-related Parties
provider. Additionally, we offer them production locations, tools, and
infrastructure that complies with local laws and regulations.
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Correspondent departments designate a staff member to receive
visitors, and the security personnel are responsible for identifying the
scope of activities of each visitor and informing them of any necessary
Visitors
safety precautions. Visitors are required to sign a Safety Notice upon
arrival to acknowledge that they have received the required safety
information and agree to comply with our safety protocols.
We provide comprehensive safety instruction and training to all
operators. Our contracts with operators reflect our company's
Cars Owned by
commitment to safety management. The operators adhere to SANY's
Relevant Parties
safety regulations and conduct their work within the designated
spaces, and inform SANY of any potential safety concerns in advance.
Interns are well-informed of their responsibilities regarding safety
management. Interns receive safety instruction and training and are
Interns expected to adhere to our safety management system. They must
participate in educational and training activities that promote safety,
and undergo safety inspections, among other requirements.
Employee Development
Training Opportunities
At SANY, we provide various learning and training opportunities for our employees to foster a
collaborative culture that benefits everyone. In 2022, we hosted 479 training sessions with a total of 56,834
attendees. Our employees dedicated over 9,712.2 hours to training activities.
Examples of Training Programmes
We offer a comprehensive five-day orientation programme for all new
hires. This programme is intended to familiarize newcomers with our
New Hire Training
company's culture, management policies, and workplace etiquette,
among other essential topics.
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At SANY, we recognize the importance of nurturing and retaining
talent with a global perspective to support our international marketing
efforts. In 2022, we introduced the International Youth Training Camp
programme, a three-month initiative designed to empower the next
International Youth generation of global marketing professionals.
Training Camp The International Youth Training Camp programme was attended
by 64 participants who learned about industry knowledge, global
marketing skills, and our business. They were also able to gain hands-on
experience through field practice at wind farms and factories, allowing
them to acquire valuable professional skills in a real-world setting.
To promote digital intelligence and enhance our management's strategic
thinking, we have initiated a series of monthly cadre knowledge learning
sessions. These sessions are conducted by a range of experts, including
internal consultants, leaders from different departments, and external
Executive Reading professors.
Club Throughout 2022, we organized a total of eight workshops, each of which
was moderated by an internal consultant or department leader. We
also invited a guest speaker, a professor from top-tier university, to lead
one of the workshops, bringing in fresh insights and perspectives from
outside our organization.
Nurturing Systems
At SANY, we believe in cultivating our employees' potential and supporting their ongoing development.
To achieve this goal, we have developed multiple individual development programme for employees that
are tailored to their position, level, and career path.
Examples of Nurturing Systems
he Mentor-Mentee programme is offered to new hires in key and core
positions. This programme is designed to help them integrate into the
Mentor-mentee company more quickly, adapt to their job responsibilities, and acquire
Programme necessary knowledge and skills. The mentor will guide and train the
mentee during the first 12 months of their employment. The mentee
will have regular meetings with their mentor at least once a month.
Potential candidates for leadership positions are selected from the
Supervision
business department teams and mentored by employees who already
Programme
hold leadership positions.
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The Triple-Wind Programme ("Long Wind," "Swift Wind," and "Sudden
Wind" programmes) is a training Programme for potential talent from
recent graduates/young employees, mid-level managers, and senior
managers. The Triple-Wind Programme uses differentiated training
Triple-Wind
methods to help talented individuals explore career development paths
Programme
and create a talent pool that meets the business development needs.
In 2022, the second phase of the Swift Wind Programme was successfully
carried out, training a total of 30 employees, and empowering 23 employees
who had not been promoted from the "Swift Wind Phase I" programme.
Young and committed talent will be selected through Torch Programme.
Torch
The selection procedure includes written test, structure interview,
Programme
leaderless group discussion.
Promotion Channels
Career Advancement Path for Employees with Management Responsibilities
Moving from a Junior Position to a More Senior Position
Offer one promotion opportunity every 6 months
Employees in Core Positions
(Specialist-Manager-Senior Manager)
Those who meet the job requirements are eligible
Employees in Key Positions
for promotion opportunities.
Rank 28 and above:
Rank Promotion The core of senior-
Rank 25-27:
level management
Senior-level
Rank 17-24:
management
Middle-level
management
Rank 8-16:
Clerk
·Based on employees' performance evaluation results and the grade they in, they can be
nominated for promotion every six months/one year/two years.
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The Career Advancement Path for Employees with R&D
Research and development (R&D) personnel and technicians are evaluated every year based on their
level of professionalism. If their level of professionalism increases, their remuneration will also increase
accordingly.
Communication Mechanisms
We encourage employees to actively participate in the development of the organization. To facilitate this
process, to maintain effective and reasonable communication channels between our company and our
employees, we have established a range of different communication mechanisms, including labour union
committee, the assembly of the representatives of the employees, three-level feedback system, complaint
management system, and employee satisfaction survey.
labour the assembly
three-level complaint employee
of the
union representatives feedback management satisfaction
committee of the
system system survey
employees
In order to safeguard the legitimate rights and interests of employees, we
established our own labour union in accordance with the Trade Union Law of
the People's Republic of China and the Constitution of the All-China Federation
of Trade Unions in 2020. On January 15, 2021, we held the first membership
Labour Union
representative conference of our SANY Renewable Energy labour union, during
Committee
which the first labour union committee was elected. This committee consists of
highly motivated and dedicated individuals who are committed to promoting the
interests and well-being of our employees. A total of 40 people participated in the
election, representing 1.2% of the total number of employees.
On August 31, 2022, the Draft Employee Stock Ownership Plan for 2022 was
discussed and approved, and the number of shares and participants in the plan
were also discussed. A total of 30 employee representatives attended the meeting,
accounting for 0.7% of the total number of employees. For more detailed
The Assembly
information, please refer to the Announcement of the Resolutions of the First
of the
Representatives assembly of the Representatives of the Employees of SANY Renewable Energy
of the Co., Ltd. in 2022.
Employees
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If our staff need support regarding of property management, catering, security,
reception, they can ask for help through the Three-Level Feedback System:
Level 1 Person in charge of property management, catering, security
Three-Level
and reception.
Feedback
System
Level 2 Deputy Head of Administration Department.
Level 3 Feishu Portal, and SANY Mailbox
After SANY Mailbox receiving the feedback, the administrator of SANY Mailbox
will process it.
The staff member can submit support request to the
SANY Mailbox by email, after which the administrator
the request
will include the matter in the requesting list.
The administrator tracks the status of the case. If the
department or person responsible for handling the
request is not yet clear, the administrator will nominate
status
the responsible department or person according to the
type of request and the details of the matter.
The department or person responsible for the request
resolution After receiving the confirmation from the staff, the
administrator will close the case.
After the case is closed, the staff member can rate the
feedback from
handling process.
the staff member
If an employee has a complaint or issue to report, they can do so through various
channels such as letters, emails or attending the chairman's reception day. The
human resources department will receive and review the complaint and refer it
to the corresponding business department. The business department will provide
Complaint
a written response, which may include emails. If the employee is still unsatisfied,
Management
System the complaint can be escalated to the human resources department, who will
forward it to the chairman of the board for review. The chairman of the board
will provide the employee with a final decision.
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Every year we conduct an Employee Satisfaction Survey to assess how our
staff feel about their work, and in 2022, we administered the survey via a
questionnaire. Upon analyzing the results, we found that our employees rated
their job recognition, team recognition, supervisor recognition, and development
Employee
recognition with an average satisfaction score of 80.8.
Satisfaction
Survey After analysis, we found that employees generally recognized the value of their
work and expressed recognition for their team, and were generally satisfied with
the company. In the future, the company will further improve management
practices and create a more desirable working environment for employees.
Employee Engagement Activities
Participating in various activities can help alleviate stress and tension that come with a busy work pace.
These activities offer opportunities for employees to relax, have fun, and connect with each other on
a more personal level. By engaging in such activities, our staff can recharge their batteries and return
to work with renewed energy and enthusiasm. In 2022, our company organized a variety of exciting
activities to provide our staff with a much-needed break from their daily work routines.
SANY Renewable Energy 3rd Basketball Tournament
From October 10 to October
Tournament of SANY Renewable
Energy was held successfully
with the collaboration of the a six-day period. On the afternoon of October 15, the tournament
administration department and came to a close as the final games were played. After an exciting
the labour union. The primary series of matches, the marketing team emerged as the tournament
goal of the tournament was to champion, with the CEO office team taking the second-place
create a platform for interactive trophy and the joint team of manufacturing department and
communication among different commercial department coming in third place. Overall, the
departments. Participants had tournament provided a fun and engaging way for employees
the chance to compete in a series to come together and strengthen their connections, while also
of games which took place over fostering a spirit of teamwork and healthy competition.
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Hiking Activities
On September 24, 2022, SANY Renewable Energy
and CITIC Securities organized a 10.4 km hike on the
outskirts of Beijing for Party members. During the hike,
Party members appreciated the beauty of nature and
learned the importance of green development.
Supplier
Management
Audit as a Part of
Supplier Review
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Social Responsibility Audit as a Part of Supplier Review
We conduct audits of supplier social responsibility performance during the entry process, with a focus
on two aspects: social and environmental. The social responsibility performance of a potential supplier
will impact their entry audit score. Environmental compliance is a must for production suppliers.
If a candidate supplier does not possess the relevant qualifications, they will be excluded from the
procurement process.
Taking social responsibility audit as a part of supplier review can reduce the procurement risks and
encourage our supplier and business partners to perform their social responsibility.
Focus on labour rights (e.g. regulating employment and improving
Social Aspect employment relations), employee development (e.g. formulating and
implementing talent-development programme), safety and health, etc.
Environmental qualifications should be submitted, such as ISO14001,
Emission Permits, Environmental Impact Assessment Approvals,
Environmental
Environmental Impact Registration Forms, Environmental Acceptance
Aspect
Reports, etc. We check if the supplier has set emission reduction targets and
are taking action to reduce use of energy and reduce carbon emissions.
Supplier Audits in 2022
Till the end of 2022, the total number of production suppliers of SANY Renewable Energy was 260, of
which 42 were new. This year, no supplier was removed from the supplier list for the reason of bad social
responsibility performance.
New Suppliers All 42 new suppliers were qualified.
During this reporting period, a total of 42 stock supplier audits were
conducted, including 31 routine audits and 11 unannounced audits. After
Existing Supplier the auditing is completed, we will provide timely feedback to the supplier
on the issues found during the auditing and proceed to have the supplier
make corrections on schedule.
Local Procurement
Our key component suppliers are mainly located in Jiangsu, Zhejiang and Shanghai, China.
Number of
Local procurement 1.5
suppliers based 16 expenditure million CNY
in Beijing, China
Products and
Services
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Our Products
Intelligent Wind Turbine
The company's main offerings include wind turbines from the 3.XMW-4.XMW and 4.XMW-8.XMW
platforms. The 3.XMW-4.XMW series of wind turbines are specifically designed to operate in a variety of
wind and site conditions, with power ratings ranging from 3.0MW to 4.55MW. These turbines have rotors
with diameters up to 193 meters, and hub heights up to 160 meters.
The 4.XMW-8.XMW series of wind turbines are built to withstand a broad range of wind and
environmental conditions, with power ratings of 4.2MW to 8.5MW. These turbines boast rotor diameters
exceeding 200 meters and hub heights up to 160 meters.
Our products stand out for their reliability, high power generation capacity, cost-effectiveness, and wide
range of applications.
Technical Features of the Products
The reliability of our
products is a result of several
factors, including our mature
and dependable supply chain,
comprehensive third-party
certification, and our
unwavering commitment to
quality throughout the
Our wind turbines are design phase.
designed with longer blade
diameters, allowing them to
Wind turbines capture more wind. Additionally, they
with the doubly are equipped with intelligent wind farm
fed induction facilities and control techniques, which
generator (DFIG) enhance their power-generation
capacity. Our 4.XMW-8.XMW series of We adopt a
platform-based
wind turbines are the first in China to design approach
us an up-tower transformer, with modular
which has effectively reduced configuration of
the overall cost of wind components, which
offers extensive
farm construction. applicability.
We are able to
reduce the overall cost
of electricity by utilizing
advanced control
strategies, decreasing the
foundation load of wind
turbine units, reducing
the weight o
the tower.
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Quality of our Products
At SANY Renewable Energy, we put our customers
at the center and to provide them with high-
quality products and services. Our customer-
centric approach ensures that their needs are
always at the forefront of our minds. To ensure
that our products meet the highest standards,
we have established a comprehensive quality
management system that includes a series
of regulatory documents, such as the SANY
Renewable Energy Management Manual and
the Quality Award and Punishment Management System. These measures have been put in place to
guarantee that we maintain the highest levels of quality management throughout our organization.
In 2022, 26 members of our quality management department completed the APQP4Wind framework
training, and SANY Renewable Energy has become a member of this non-profit, authoritative quality
management organization for the wind power industry. APQP4Wind was initiated by international wind
turbine manufacturers and suppliers with the aim of providing widely accepted standards, methods, and
tools for quality assurance processes in the wind power industry. As a member of this organization, we
are committed to promoting the use of APQP4Wind.
Total Life Cycle Quality Management System
Establishment and Management of Quality Management in R&D
Quality System
·Using the Integrated Product Development
·Develop the Policy on Quality Process for Quality Planning
Management ·Critical Point Management
·Quality Objectives, Resource Allocation, ·Track Market Demand
and Performance Management
·Conduct Regular Internal and
External Management Reviews Manufacturing Quality
Management
Continuous Improvement
·Automatic Control and other
·QC Activity and Quality Means to Collect Process
Management Inspection Data
·Quality Planning Scheme, Quality ·Products Archives Management
Risk Identification and Control ·Scanning Code System to Achieve
Accurate Traceability
After-sales Quality Management Supply Chain Quality Management
·Equipment Inspection, Repair and Maintenance ·Process Control, Finished Product Quality
·Standardize Quality Problem Management Inspection, and Production Monitoring Control
·Analyse Quality Problems ·Suppliers Archives Management
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Product Innovation
SANY Renewable Energy continuously increases investment in technological research and development,
and continuously attracts talent from around the world to build an international, diverse, and highly
skilled research team. We are proud to lead the industry in a variety of areas, including large intelligent
wind turbines, up-tower transformers, intelligent operation and maintenance, and long blades. Our wind
turbine products are highly reliable, and we have developed comprehensive solutions for wind farm
design, construction, and operation and maintenance.
SANY Renewable Energy
Research Institute
Intelligentization
Research Institute Structural Transmission
Engineering Engineering
Institute International
Institute
Institute
Information
Institute Technical
Support Institute Electric
Engineering
Product Institute
Intelligent
Institute Control
Operation and
Maintenance Institute Engineering
Institute
In addition, we have integrated green concepts into our research and development process. In the past
two years, SANY Renewable Energy has obtained a total of 252 patents, of which 75 are green patents.
Increasing Power Recycling of Application of
Optimizing Blade
Generation Grease and Lightweight Noise Reduction
Manufacturing
Capacity Carbon Dust Materials
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The Patent related to Carbon Dust Filtering Device for Generators
The carbon dust filtering device for the generator has a detachable connection between the
exhaust pipe and the connecting pipe of the collector ring, making it easy to install and maintain.
Multiple filter layers are set inside carbon dust collector to trap the carbon dust, preventing the
carbon dust from getting into the air.
Customer Satisfaction
SANY Renewable Energy prides itself on maintaining close communication with its customers and
adhering to a strict policy on customer satisfaction management. We regularly assess customer
satisfaction with our services and promptly handle any feedback we receive. This allows us to
continuously improve the quality of our products and services.
Following the Procedure of Customer Satisfaction Management, the CEO office conducts customer
satisfaction surveys every two months. After receiving the survey results, the office analyses them and
creates a Customer Feedback Record. The service company then confirms and categorizes the feedback
mentioned in the record and collaborates with the responsible departments to develop and execute
solutions. The result of the follow-up is recorded as a Customer Satisfaction Follow-up Record, and a
comprehensive Customer Satisfaction Analysis Report is produced.
In 2022, we carried out 6 customer satisfaction surveys, distributing 612 questionnaires, and receiving 606
valid responses, resulting in an average satisfaction score of 95.3.
Social
Development
Rural Revitalization
Platform
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Wind Farms Driving Rural Revitalization
How did Donghutang Wind Farm achieve both ecological and economic
benefits simultaneously?
On February 26th, 2023, the China Wind Energy New Year Event was successfully held in Beijing.
Our Donghutang Wind Farm won the Leading Pioneer Award for its positive ecological and
economic impacts. Previously, Donghutang Wind Farm was chosen as a national demonstration site
for soil and water conservation in 2021 and won the 2020 Green Ecological Wind Farm Award. Then,
how did Donghutang Wind Farm achieve both ecological and economic benefits at the same time?
Ecological Benefits
To minimize the ecological impact of the Donghutang wind farm, great
importance was placed on ecological protection throughout the entire
construction process to ensure that the farm achieved ecological benefits.
During site selection, the bird migration routes were taken into consideration
to ensure that the wind farm operations did not interfere with bird migration water and soil erosion
or affect their living environment. Environmental protection goals and
measures were formulated during the feasibility study, and during the exceeded
construction process, we paid close attention to reducing the impact on
vegetation and soil through various construction steps. For example, topsoil
disturbed land
was collected during earth excavation, and greening was carried out in treatment rate
sections. After the wind turbine installation, we promptly conducted follow-
up soil and water conservation and ecological restoration work based on
the established plan and local environmental conditions. Measures such as
spraying net slurry on exposed soil and sowing seeds were taken. With these reduced water and
soil loss
environmental protection measures, the ecological environment of the wind
farm was well preserved.
Through soil and water conservation and scientific construction methods,
Over
the Donghutang project treated an area of 22.99hm? for water and soil a corrosion
erosion, and disturbed land treatment rate exceeded 98%; reduced water and inhibition efficiency
soil loss by 5,378 tons, and the soil loss rate after treatment in this project
area was far lower than the allowable loss rate of 500t/km?·a, with a corrosion
inhibition efficiency over 90%. Vegetation coverage in the region was also increased, which is conducive
to improving the ground microclimate and improving the ecological environment in the region.
Compared with coal-fired power plants of the same scale, the Donghutang wind farm is anticipated to
annually save over 40,000 tons of standard coal, reduce 79,600 tons of carbon dioxide emissions, and
reduce 680 tons of sulfur dioxide emissions.
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Economic Benefits
During the construction of the Donghutang
wind farm, we not only upgraded the
existing village-to-village roads but also
constructed new main roads, turbine
branch roads, and access roads. These
developments provided easier access for
tourists to approach the wind turbines and
witness their grandeur and charm up close.
With the influx of visitors, the tourism
economy has flourished. In addition
to providing green electricity and being environmentally friendly, Donghutang wind farm has also
stimulated the economic development of the surrounding region. The benefits to the environment and
the local economy have provided a new source of energy and economic development for the area.
The SANY Renewable Energy Classroom: a Knowledge Sharing Programme
Providing information to the public about the wind
power industry and improving their understanding
of it can stimulate their interest in wind power
generation, wind energy, and wind turbines, while
also improving their knowledge. To achieve this goal,
we have launched a knowledge sharing programme,
namely the SANY Renewable Energy Classroom. We
The SANY Renewable Energy Classroom,
have posted nearly 20 episodes so far, which answer
Episode 1 - What is wind power?
a variety of questions related to the wind power
industry, such as "What is wind power?" and “Where
can wind turbines be installed?".
Corporate
Governance
Governance System
Risk Management
Engagement
Environmental Employment Supplier Products and Social Corporate Business
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The company strictly abides by 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, the Code of Corporate Governance of Listed
Companies, and the Rules Governing the Listing of Stocks on Shanghai Stock Exchange. The company
has formulated the Articles of Association and established a scientific and effective governance system.
Shareholders’
General Meeting
Board of
Supervisors
Board of Directors
The Strategy and The Remuneration
The Audit The Nomination
Development and Appraisal
Committee Committee
Committee Committee
Management of Governance System
Shareholders' Rights and Shareholders’ Meetings
SANY Renewable Energy guarantees shareholder’s general meeting to exercise its powers in accordance
with the law. We have formulated the Rules of Procedures for Shareholders’ General Meetings in accordance
with relevant laws, regulations, and normative documents such as the Company Law of the People's Republic
of China, the Securities Law of the People's Republic of China, the Rules for Shareholders' Meetings of Listed
Companies, and the Articles of Association.
Environmental Employment Supplier Products and Social Corporate Business
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The company's shareholders enjoy the following rights：
Other rights provided by the laws, Obtain dividends and other forms of
administrative regulations, departmental profit distribution according to their
rules or the bylaw shareholding
Request the company to purchase the Request, convene, chair,
shares held by them since they object attend or appoint shareholder
to a resolution of the shareholders' representatives to attend the
meeting on the combination shareholders' general meeting,
or division of the company and exercise corresponding
voting rights
Participate in the distribution of
the company's remaining
properties according to their Supervise the business
shareholding upon the company's operations of the company,
termination or liquidation put forward proposals or raise
questions about it
Review the bylaw, the register of shareholders,
the stubs of corporate bonds, the minutes of Transfer, donate, or pledge their
shareholders' general meeting, the minutes shareholdings in accordance with the
of the meeting of the board of directors, laws, administrative regulations, and
the minutes of the meetings of board of the bylaw
supervisors, and the financial reports
During the reporting period, the company held a total of 5 shareholders' general meetings, including
such as the 2022 Employee Shareholding Plan (draft), and relevant resolutions have been announced as
required by regulations.
The Board of Directors and Committees
The Board of Directors
The board of directors shall be responsible for the shareholders' general meeting and exercises decision-
making right within the scope of authority conferred by the Company Law of the People's Republic of
China, the Rules Governing the Listing of Stocks on Shanghai Stock Exchange, the Articles of Association,
and the shareholders' general meeting. Its main powers include convening and reporting to the
shareholders' general meeting, implementing resolutions made at shareholders' general meetings, and
determined the company's business and investment plans, etc..
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Nomination and Selection
According to the Articles of Association, directors are elected or changed by the shareholders'
general meeting, and each term of office is 3 years. His or her post can be removed before
the expiry of the term of office by the shareholders’ general meeting. Directors may hold a
consecutive term upon re-election after the expiry of their term of office.
Representatives of the employees can serve as members of the board of directors, but they are
limited to a maximum of two positions on the board. Directors assumed by representatives of
the employees can enter the board of directors directly without going through the election of
shareholder’s general meeting, after being democratically elected through the representatives
of the employees, or other methods. The chairman of the board is elected by more than half of
all directors.
For more information on the nomination and selection of the board of directors, please refer to
the Articles of Association.
Composition of the Board of Directors
The board of directors at SANY Renewable Energy comprises a diverse and skilled group of
professionals, reflecting a range of attributes and experiences. With seven directors in total,
including Chairman Zhou Fugui, the board is well-balanced, incorporating a mix of genders,
educational backgrounds, and professional expertise, among other factors. The directors are
XIANG Wenbo, LI Qiang, GUO Ruiguang, DENG Zhonghua, YANG Min, and CAO Jing. Notably,
three of the directors, DENG Zhonghua, YANG Min, and CAO Jing, have been appointed as
independent directors, occupying 3/7 of the board seats. In addition, the board features one
female director, who holds 1/7 of the board seats. All directors hold advanced degrees, either at
the master's or doctoral level, and have extensive experience in various fields, such as enterprise
management, machinery, materials, energy, accounting, and environment. This composition
enables the board to leverage a broad range of expertise, respond effectively to rapidly changing
market demands, and approach decision-making from multiple perspectives, ultimately
guaranteeing the quality of decisions for the company.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Committees
There are four board committees, the Strategy and Development Committee, the Audit Committee,
the Nomination Committee, and the Remuneration and Appraisal Committee.
The Strategy and Development Committee makes recommendations to the board on the
company's development strategies including but not limited to product strategy, marketing
strategy, R&D strategy, and talent acquaintance strategy, and advice on business objectives
and roadmap.
The Audit Committee is responsible for the internal audit and supervision of the financial
revenues, expenditures, and economic activities, including but not limited to supporting
the board in the appointment of or removal of the external audit firm, and reviewing the
company's financial information and its disclosure.
The Nomination Committee presents recommendations to the board of directors on the
size and composition of the board, based on the company's business activities, asset size,
and equity structure. It also nominates candidates for the board of directors and the general
manager, and is responsible for other matters related to the appointment of directors.
The Remuneration and Appraisal Committee is responsible for formulating the remuneration
plan, reviewing the performance of the company's directors (non-independent directors) and
senior managers, and conducting annual performance appraisals on them, etc.
The Audit Committee, Nomination Committee, and Remuneration
and Appraisal Committee are chaired by independent directors, and
the majority of seats are held by independent directors. At least one
independent director with an accounting background serves on the
Audit Committee.
Throughout the reporting period, the company convened a total of
comprising 11 Audit Committee meetings, 1 Nomination Committee meeting, 3 Remuneration and Appraisal
Committee meetings, and 1 Strategic and Development Committee meeting.
Remuneration of Directors
The remuneration of directors consists of basic salary, annual performance bonus, medium and long-term
incentives, allowances, benefits, profit sharing, and superior target incentives. According to the Policy on
Performance Management, the performance of directors is confirmed by the chairman of the board. The
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
calculation of profit sharing is based on the net profit of every fiscal year confirmed by the finance
department. In accordance with the SANY Group Profit Sharing Incentive Plan and the Profit-Sharing
Incentive Plan on Export Business for Parts Subsidiaries, financial department calculates and allocates
the total amount of profit-sharing incentives of the fiscal year.
The incentives for achieving challenging targets are calculated by the finance department and
confirmed by the audit department based on wind turbine sales and earnings before tax of the fiscal
year. Once the amount of the challenging targets incentives is confirmed, it is distributed to targeting
individuals in accordance with the outlined distribution ratio as planned.
The Board of Supervisors
The board of supervisors exercises the supervisory function conferred by the shareholders' general
meeting, which includes overseeing the company's financial status, ensuring the legality and compliance
of the board of directors, general manager, and other senior management in fulfilling their duties, and
safeguarding the legitimate interests of the company and its shareholders. The board of supervisors is
composed of three members, namely DING Dawei, CHANG Xiaokang1, and MA Yuming, with DING Dawei
serving as the Chairman and MA Yuming serves as the employee representative supervisor.
In 2022, a total of 16 the board of supervisors’ meetings were convened.
Internal Control and Risk Management
To enhance the internal control and risk management of SANY Renewable Energy, the company
established the Internal Control System in 2022. This was done in accordance with the Basic Internal
Control Norms for Enterprises, which aimed to improve the previously existing internal control system.
The new system helps ensure the safe and stable operation of the company's business and management
system.
The system clarifies the internal control objectives and basic principles of SANY Renewable Energy, as
well as the five elements of the internal control system: internal environment, risk assessment, control
activities, information and communication, and supervision and evaluation.
Meanwhile, the company has formed a multi-level and multi-participant supervision mechanism for
the implementation of internal control, with the board of directors, senior management, the board of
supervisors, the internal control specialist in CEO Office and the audit department performing their
respective supervisory responsibilities in the internal control system.
Supervisor and the Nomination of Candidates for Supervisor
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
The board of directors is responsible for supervising senior management in monitoring
and evaluating the adequacy and effectiveness of the internal control system.
The board of supervisors is responsible for supervising the board of directors and senior
management in improving the internal control system and fulfilling internal control
responsibilities.
Senior management is responsible for supervising and evaluating of the adequacy and
effectiveness of the internal control system.
The internal control specialist in the CEO's office makes sure that the internal control
system works properly by supervising, checking, and evaluating.
The internal audit department monitors and evaluates its internal control systems to
ensure they are functioning properly and efficiently. If any issues arise, the department
reports issues to the management and ensure issues are promptly and effectively resolved.
Financial Transparency
SANY Renewable Energy has taken multiple initiatives to ensure the authenticity and completeness
of financial statements and the transparency of financial information. Our finance department has
developed the Measures for the Management of Preparation of Financial Statement in accordance with
the Accounting Standards for Enterprises - Basic Standards, established an accountability system for the
preparation of financial statements, and clarified the control process for the preparation, approval, and
disclosure of financial statements. In addition, the company has established the Procedure of Year-end
Settlement of Accounts and the Accounting Foundation Management System to regulate the preparation
of annual financial statement. In 2022, we engaged Ernst & Young Hua Ming LLP (Special General
Partnership) to audit our financial statements.
At the same time, the company has established the Information Disclosure Management System in
accordance with relevant provisions in the Company Law of the People's Republic of China, the Securities
Law of the People's Republic of China, the Measures for the Administration of Information Disclosure by
Listed Companies, the Rules of the Shanghai Stock Exchange for the Listing of Stocks on the Science and
Technology Innovation Board and other relevant laws, regulations, rules and administration regulatory
documents. By strengthening the management of information disclosure affairs, the company ensures
the protection of the legitimate rights and interests of the company, investors, creditors, and other
stakeholders through regular disclosure of financial information.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Stakeholder Engagement
SANY Renewable Energy has identified the following main stakeholders and has established
communication channels for them to express their opinions and needs. This facilitates a shared vision
for the development of the company and ensures that the needs and expectations of each stakeholder are
understood.
Stakeholders Communication Channels
Attend government meetings, invite government officials to company
Government activities, maintain communication channels with relevant government
personnel, stay up-to-date with changes in policies and regulations, etc.
Shareholders and Shareholder meetings, investor networking sessions, performance briefing,
Investors telephone, email, etc.
Industry exhibitions, product and solution communication, mobile
Customers
marketplace for trade, etc.
Supplier management and communication, SANY global supplier portal,
Suppliers
etc.
Business Partners Invite business partners to visit our company and factories, etc.
The assembly of the representatives of the employees, activities, training,
Staff
team building, grievance mechanism, etc.
Join industry organization, organize joint charity events, join industry
NGOs
initiatives, etc.
Communities Organize charity events, provide aid to the communities, etc.
Business
Ethics
Fundamental Principle
Chain
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Integrity as a Fundamental Principle
We regard integrity as an essential principle. We have formulated policies
such as Integrity Policy, the Accountability Management Policy, the Conflict of
Interest and Clean Management Policy, and the Complaints and Reports Policy
to ensure that all employees value integrity and abide by it in their work.
We have identified four types of dishonest behavior, namely favoritism, fraud,
breach of promise, and infringement of company rights. We have developed
mature preventive, monitoring, and response mechanisms, including investigation procedures and
response departments, daily monitoring mechanism, grievance mechanism, conflict of interest
management, and accountability systems. Additionally, we have conducted risk assessments and
identified key positions for integrity monitoring.
We value our employees' rights to express their opinions and defend themselves when necessary. To
ensure that these rights are upheld, we have established a comprehensive grievance mechanism for those
who opposes investigation procedures or handling recommendations. If an employee wishes to raise
a grievance, the corresponding department will initiate the grievance response procedure, giving the
employee the opportunity to be heard.
Employee
Raise a grievance
Receiving Department
Provide the employee with feedback on handling
recommendations within 3 working days (not
exceeding 5 working days at the longest)
Employee
Integrity Objections No objections,
Committee raised close the case
Provide a resolution within
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
We require all employees to abide by integrity from the beginning of
their employment.
Integrity is the primary principle that all employees should follow. We expect all employees
to prioritize and strictly comply with this principle from the moment they join our company.
To ensure that this expectation is met, integrity education is incorporated into our induction
training system, and newcomers are required to sign a Commitment to Integrity upon
onboarding. This process enables them to fully understand the high standards set for our
employees regarding integrity from the very beginning of their employment.
Everyone participates in integrity management.
We have worked hard to promote a culture of integrity throughout our organization, with
both management and employees playing an active role in this effort. The Human Resources
Department is responsible for establishing and managing our integrity management
system, and for promoting the importance of integrity among our employees. To support
this effort, the Chairman's Office and each department/business unit appoint a part-time
integrity management specialist to manage employee integrity archives. Our leaders are
also responsible for promoting integrity on a daily basis and guiding employees to act with
integrity. To ensure that we maintain the highest standards of integrity across all units,
we have established an integrity committee that handles complaints and conducts regular
inspections of our integrity management practices.
While certain departments and personnel listed above have specific roles in integrity
management, ultimately, everyone is responsible for upholding our values of integrity. All
employees must internalize the importance of honesty and hold each other accountable. If an
employee discovers any behavior that is not in line with our values, they can report it to the
company through various channels, such as the whistle-blower hotline, email, phone, or text
messages.
Conducting annual disclosure of conflicts of interest and external
investments is done to avoid business damage.
To mitigate ethical risks and ensure fairness in decision-making processes, we conduct
an annual disclosure of conflicts of interest and external investments. This process helps
us identify any potential conflicts within our leadership and promotes transparency and
accountability within our organization. Improper management of conflicts of interest or
lack of supervision of senior management's external investments could expose the company
to reputational, financial, or even legal risks. To prevent this, we require all levels of
management (including board members), department heads/assistants, and business system
personnel to declare any conflicts of interest and external investments annually.
Environmental Employment Supplier Products and Social Corporate Business
Protection Management Management Services Development Governance Ethics
Integrity in Supply Chain
In addition to self-restraint, we have also incorporated integrity management into our supplier
management, requiring our suppliers to conduct business with integrity. We thoroughly screen potential
suppliers during the due diligence process. If we find any evidence of dishonesty, we will not work with
them. For current suppliers, we have a policy of zero tolerance towards unethical behavior such as
bribing our employees. If we become aware of such conduct, we add them to our supplier blacklist.
We strongly believe that building a culture of integrity is essential to creating a positive business
environment. By enforcing our standards for suppliers, we hope to promote a culture of integrity in trade
and a healthy business environment, where honesty, transparency and fairness are the norm.
GRI Standards
GRI STANDARDS DISCLOSURE PAGE
GRI 2: General Disclosures
P8/P14/P15/P18/
P28/P43/P44/48
GRI 3: Material Topics 3-2 List of material topics P1
GRI 201: Economic P8-P12
climate change
Performance
GRI 203: Indirect Economic
Impacts
GRI 204: Procurement
Practices
GRI 205: Anti-corruption 205-2 Communication and training about anti-corruption policies
P51-P52
and procedures
Environmental, Social and Governance (ESG) report 2022
GRI STANDARDS DISCLOSURE PAGE
GRI 302: Energy 302-1 Energy consumption within the organization P14
GRI 303: Water and Effluents 303-3 Water withdrawal P12-P16
GRI 305: Emissions
GRI 306: Waste 306-3 Waste generated P15-P16
GRI 308: Supplier
Environmental Assessment
GRI 401: Employment P19-P20/P22-P23
to temporary or part-time employees
P22-P23
investigation
P20-P25
occupational health and safety
GRI 403: Occupational Health 403-5 Worker training on occupational health and safety P21
and Safety 403-6 Promotion of worker health P22-P24
P20-P25
impacts directly linked by business relationships
P20-P25
management system
GRI 404: Training and 404-2 Programs for upgrading employee skills and transition
P26-P27
Education assistance programs
GRI 405: Diversity and Equal
Opportunity
GRI 414: Supplier Social
Assessment
Feedback
Greeting! Thank you for reading this report!
This is the first environmental, social and governance (ESG) report released by SANY Renewable
Energy. We sincerely look forward to your valuable comments and suggestions on this report, so that we
can continue to improve in future report preparations.
○ Government and Regulatory Authorities ○ Shareholders and Investors
○ Consumers ○ Suppliers
○ Education Institutions ○ General Public
○ Media ○ Others
○ Very Convenient ○ Reasonably Convenient ○ Generally Convenient
○ Not Particularly Convenient ○ Not Convenient at All
performance.
○ Agree ○ Disagree
___________________________________________________________________
____________________________________________________________________
Contact person: Securities and Investment Department Email：sanyreir@sany.com.cn
Landline phone：010-60737789 Address: No.8 Beiqing Road, Changping District, Beijing
If it is possible, please left your contact, so that we can contact with you regarding the feedback
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SANY RENEWABLE ENERGY
TO PROMOTE EFFICIENT
UTILIZATION OF CLEAN ENERGY
Address: No.8 Beiqing Road, Changping District, Beijing Email: hrhunang@sany.com
Landline phone: 010 - 60737758 （Wind turbine sales） Website: https://www.sanyre.com.cn
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