东山精密(002384):2023年环境、社会与公司治理（ESG）报告（英文版）
原标题:东山精密:2023年环境、社会与公司治理（ESG）报告（英文版） Table of Contents Reporting Instructions ....................................................................................................................... 1 Message from the CEO ..................................................................................................................... 4 1. About Dongshan Precision ............................................................................................................ 6 2. Sustainable Development Governance ......................................................................................... 8 3. Excellent Governance for Stable and Efficient Operations ......................................................... 15 3.1. Corporate Governance ..................................................................................................... 15 3.2. Business Ethics ................................................................................................................ 21 3.3. Digital Intelligence Transformation ................................................................................. 25 3.4. Information Security and Privacy Protection ................................................................... 31 4. Collaboration for Mutual Benefit to Build a Sustainable Supply Chain ..................................... 35 4.1. Establishment of a High-quality Supply Chain ................................................................ 35 4.2. Supply Chain Risk Management and Control .................................................................. 37 4.3. Responsible Mining Procurement .................................................................................... 42 5. Continuous Improvement of Product Quality and Competitiveness by Insisting on Quality ..... 45 5.1. Driven by Innovation ....................................................................................................... 45 5.2. Quality Priority ................................................................................................................ 49 5.3. Professional Services ....................................................................................................... 62 6. Building a Clean and Low-carbon Production System for Environmental Friendliness ............ 67 6.1. Environmental Impact Management ................................................................................ 67 6.2. Expansion of Green Energy ............................................................................................. 71 6.3. Addressing Climate Change ............................................................................................. 72 6.4. Water Resources Management ......................................................................................... 78 6.5. Emissions and Waste Management .................................................................................. 80 6.6. Biodiversity Conservation ................................................................................................ 84 7. Working Together for a Better Future Based on People-Oriented Philosophy ............................ 86 7.1. Talent Development ......................................................................................................... 86 7.2. Community Construction ............................................................................................... 119 Appendix I: Key Performance Table ..................................................................................... 122 Appendix II: Index of Indicators ........................................................................................... 125 Note: This document is a translated version of the Chinese ESG Report 2023 ("2023 年 ESG报告"). In case of any discrepancies, the ESG Report 2023 published in the Chinese version shall prevail. The full Chinese ESG Report 2023 is available at www.cninfo.com.cn. Reporting Instructions The 2023 Environmental, Social and Governance Report of Suzhou Dongshan Precision Manufacturing Co., Ltd. (the “Report”) aims to disclose the Company’s philosophy, management practices, and key performance in sustainable development to stakeholders, responding to stakeholders’ expectations and concerns adequately. Report Boundary The Report mainly discloses information and key performance of Suzhou Dongshan Precision Manufacturing Co., Ltd. and its branches and subsidiaries in the fulfillment of economic, social, and environmental responsibilities in 2023. Reference For ease of presentation and readability, Dongshan Precision and its branches and subsidiaries are referred to by the abbreviations listed in the table below throughout this Report.
The period is from January 1, 2023, to December 31, 2023, and extends appropriately to previous and subsequent years. Basis for Preparation GRI Sustainability Reporting Standards (GRI Standards) from Global Sustainability Standards Board; Guidelines No.17 on Self-Regulation of Listed Companies – Sustainability Report (Trial) from Shenzhen Stock Exchange (SZSE); Guidance on Social Responsibility Reporting (GB/T36001-2015) from the National Standard of the People’s Republic of China; and Sustainable Development Goals of the United Nations (SDGs). Principles for Preparation This Report is subject to the following four principles, namely, “Materiality ”, “Impartially”, “Quantification”, and “Consistency”. ? Materiality. The Company conducts materiality assessment to identify and assess ESG topics that are material to our business and internal and external stakeholders, ensuring that the Report focuses on relevant disclosure. For a more detailed overview of the materiality assessment process and results, please refer to the ESG Topics Management section of the Report. ? Impartiality. The content of this Report reflects objective facts, providing unbiased disclosure of both positive and negative information related to the Company, and impartially stating the Company’s efforts across various aspects of ESG. During the reporting period, we have identified no significant negative events that should have been disclosed but were not to do so, and that had a major impact. ? Quantification. In this Report, the Company discloses ESG quantitative performance indicators and establishes quantitative performance targets where applicable. The measurement standards, methods, assumptions, and/or calculation tools for key performance indicators in this Report, as well as the sources of conversion factors used, have been explained in the respective sections, where applicable. the same indicators across different reporting periods. Any changes in statistical and disclosure methods will be fully explained in the report notes, facilitating meaningful analysis and evaluation by relevant parties. Source of Information All information data used in this Report are derived from the Company’s official documents, statistical reports, financial reports, and sustainable development practice information of different units summarized and reviewed by the Company’s responsible management department. In case of any discrepancies between the relevant financial data and the Company’s annual report, the annual report shall prevail. Unless otherwise specified, the currency amounts mentioned in this Report are denominated in Renminbi (RMB). Reliability Assurance The Company undertakes that the content of this Report contains no false records, misleading statements, or major omissions, and the Company is responsible for the truthfulness and accuracy of the content. Access to the Report Welcome to visit the Company’s official website at www.dsbj.com to access the electronic version of the Report. Message from the CEO 2023 was an extraordinary year for Dongshan Precision. We upheld our passion with proactive attitudes, navigating through a timeline filled with memories of challenges and unwavering in our quest for excellence. Continuously bolstering our capacity for sustainable development management, we are committed to creating value for our customers and society. With the corporate spirit of “Breakthrough, Diversity, Simplicity and Journey”, we stay true to the founding principles of the manufacturing industry. Dongshan Precision has transitioned from localization to internationalization and, ultimately, to globalization, meeting the demands of the times and forging a distinctive path of development. The mega-trend of accelerated industrial change, coupled with the restructuring of the global landscape, is once again reshaping the value landscape for enterprises, particularly manufacturing ones. Today’s enterprises are no longer mere combinations of “one factory + one factory” as in the past; they have evolved into “industrial clusters” integrating various elements such as the innovation chain, industry chain, capital chain, and talent chain. Society’s criteria for evaluating enterprise value are also evolving, transitioning from singular financial indicators like revenue and profit to encompass the sustainable development capabilities of enterprises. In navigating the clash between societal values and short-term financial objectives, enterprises must strive for a win-win situation and establish a sustainable path for business development. We believe that the essence of ESG extends beyond the mere act of producing a report. It involves seamlessly integrating sustainable development principles into corporate strategies, intricately woven into the very fabric of business operations. To achieve this, we must align our development strategies with our management ethos and daily operations, identifying pivotal areas for the systematical reshaping of our entire framework. This commitment not only upholds and creates long-term corporate values but also serves as the cornerstone for achieving the sustainable development of the Company and the entire industry chain. Dongshan Precision actively analyzes key industry topics and their relationship with existing businesses, while also planning for future spaces available for sustainable development. We convert ESG practices into a long-term, strategic development philosophy and continuously pursue our phased goals through ongoing tracking and investment in ESG-related indicators. We are committed to upholding compliant operations while continuously enhancing corporate governance. Guided by principles of green development, we have seamlessly integrated carbon reduction strategies into our corporate strategy and operations. Advocating continuous innovation, we actively engage in long-term practices. With strong support from all stakeholders and the relentless efforts of our employees, we have successfully implemented and accelerated our new energy strategy. This strategy not only propels our future development but also spearheads our transition to clean energy processes. Moving forward, we remain dedicated to contributing to the green transformation of the energy sector, which entails innovating cutting-edge technology products, promoting green manufacturing, and striving to reduce resource consumption. As we dedicate ourselves to corporate innovation and business development, we leverage our capabilities and strengths to fulfill our societal responsibilities. We prioritize the welfare of special employee groups and extend full support to public welfare causes such as livelihoods, education, and environmental conservation. We are also honored to receive recognition and accolades from industry institutions, media platforms, and the general public, continuously enriching the foundation of our corporate development. Despite encountering numerous challenges, our original aspiration remains unwavering. We are committed to continually moving forward with the times and aligning ourselves with the global landscape. 1. About Dongshan Precision Headquartered in Suzhou, Jiangsu Province, Suzhou Dongshan Precision Manufacturing Co., Ltd (stock code: 002384.SZ) is committed to developing into a core component supplier for intelligent interconnection and global connectivity. With the mission of “building a better connected world for tomorrow”, and the vision of “building a 100-billion advanced and intelligent manufacturing platform”, the Company has gradually formed three major segments, namely, electronic circuit, photoelectric display, and precision manufacturing, by expanding and optimizing its main businesses through internal development and external acquisition. According to Prismark’s revenue estimate for global PCB companies, the Company ranked among the top three in the world in 2023. Additionally, in the same year, the Company was ranked 413th among the top 500 private enterprises in China and 267th among the top 500 private manufacturing enterprises in China, boasting over 70 wholly-owned and holding companies. In recent years, leveraging its technological advantages in the consumer electronics and communication equipment industries, the Company has actively explored new tracks in the new energy vehicle industry. We have established a dual-wheel drive strategy with consumer electronics and new energy as the two core tracks, seizing the new market opportunity brought by new energy while continuously improving the quality and efficiency of the consumer electronics business. The Company strongly believes that clean technology is crucial for developing a sustainable future. By adopting new energy as its primary strategic focus, the Company is embarking on a new journey towards green and high-quality development.
2.1. Framework of Sustainable Development Governance By integrating sustainable development management with corporate development strategies, Dongshan Precision continuously improves the environmental, social, and corporate governance systems. The Company has clarified management concepts and principles, authority scope, work tasks, decision-making processes, and parliamentary procedures, incorporating sustainable development management into the Company’s governance framework, thereby establishing a sustainable development management system covering the Board of Directors, management, functional departments, and business segments. The Company has focused on strategically deploying ESG management work to continuously enhance the Company’s risk control and value creation capabilities in sustainable development. The Company’s Board of Directors is the highest authority and decision-making body responsible for managing economic, environmental, and social topics. The professional skills and capabilities of the Board of Directors in supervising ESG-related impacts, risks, and opportunities are detailed in the “Strengthened Corporate Governance/Diversified Structure of the Board of Directors” chapter of this Report. The Board of Directors authorizes the operating management to establish an ESG management organizational structure at three levels, including the Sustainable Development Administration Committee, the Sustainable Development Administration Office, and the ESG Working Group. The Sustainable Development Administration Committee, as the executive body for ESG management, is responsible for assessing and managing ESG opportunities and risks, determining the materiality of ESG issues and incorporating them into business considerations, establishing ESG strategies, goal plans, and regular reviews, supervising and guiding the implementation of ESG topics by the Company, etc. The Sustainable Development Administration Office, as the coordinating body for ESG management, is mainly responsible for daily communication and conference organization between the Sustainable Development Administration Committee and the ESG Working Group, the coordination and promotion of ESG topic management and implementation, as well as ESG-related information disclosure, etc. The ESG Working Group, the specific executive body for ESG work, is composed of relevant personnel from various departments, branches, and subsidiaries, mainly responsible for promoting the implementation and execution of ESG topics. The performance of relevant departments is linked to ESG performance indicators, and reward and penalty measures will be implemented according to the results of annual assessments. Framework of Sustainable Development Management
Attaching importance to the expectations and demands of various stakeholders, Dongshan Precision has established a smooth communication mechanism for all stakeholders, under which we conduct regular communication with stakeholders and respond to them with an open attitude, thereby establishing long-term cooperative relationships with all parties based on mutual trust.
Effective identification and management of important material topics are crucial to enterprises’ effective management for sustainable development. In rigorous adherence to the analysis process of material topics, Dongshan Precision meticulously identifies paramount ESG topics under the principle of “double materiality” with a focus on “the materiality to the Company’s development and operations” and “the materiality to stakeholders”. This identification is grounded in the analysis of internal and external trends, with reference to sustainable development guidelines from stock exchanges, insights from capital markets, evaluations from both domestic and international mainstream ESG rating systems, esteemed international frameworks for information disclosure, and sustainable development topics concerned by peer companies. With these efforts, we screen out and determine key ESG topics to be highlighted in the Report, so as to continually enhance our ESG management practices to better meet the expectations and demands of our stakeholders. Analysis Process of Material Topics
3. Excellent Governance for Stable and Efficient Operations Sustainable Development Goals (SDGs) of the United States 3.1. Corporate Governance 3.1.1. Standardized Governance System In strict accordance with the requirements of 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 Shenzhen Stock Exchange Guideline No.1 on Self-regulatory Supervision of Listed Companies - Standardized Operation of Companies Listed on the Main Board, the Code of Corporate Governance for Listed Companies, the Company has established a complete legal governance structure and modern organizational management system. We have formed a governance system and mechanism with a clear division of powers and responsibilities among the power, decision-making, supervision, and execution bodies that can ensure coordinated operation effective checks and balances, and continuous optimization of management documents and internal processes at all levels. Through these initiatives, the Company is constantly improving the governance standardization and effectiveness to strengthen the foundation for stable development. ? Governance structure The Company has established a corporate governance structure consisting of the General Meeting of Shareholders, the Board of Directors, the Board of Supervisors, and the Management. The General Meeting of Shareholders exercises the voting rights on major issues such as the Company’s business policies, investment plans, and the election of directors and supervisors in accordance with laws. The Company convenes and holds the general meeting of shareholders in strict accordance with relevant laws and regulations and the requirements of the Company’s Articles of Association and the Parliamentary Procedures for the General Meeting of Shareholders to ensure that all shareholders enjoy equal status and have equal right to be informed and make decisions on major issues, hence effectively safeguarding the legitimate rights and interests of all shareholders. The Board of Directors is responsible for the General Meeting of Shareholders and exercises the Company’s management rights in accordance with the laws. The Board of Directors has four specialized committees, namely, the Strategy Committee, the Audit Committee, the Nomination Committee, and the Remuneration and Appraisal Committee, which perform their duties in accordance with the Company’s Articles of Association and the authorization from the Board of Directors to provide professional opinions and reference suggestions for decisions of the Board of Directors. All of the four specialized committees have employed independent directors, and in the Audit Committee, the Nomination Committee, and the Remuneration and Appraisal Committee, the independent directors have constituted the majority of committee members and serve as the chairman. The Board of Supervisors, as the supervisory body, is responsible for the General Meeting of Shareholders and strictly fulfills its duties in accordance with the Company’s Articles of Association, the Parliamentary Procedures for the General Meeting of Shareholders, and other systems. The Board of Supervisors is responsible for supervising the Company’s financial position and fundraising management and the performance of the Company’s directors and senior executives, as well as expressing opinions on major issues, so as to guarantee the Company’s standardized operation. The Board of Supervisors consists of 3 supervisors, including 2 employee representative supervisors. For detailed information on the corporate governance structure, governance mechanism, equity structure, controlling shareholders, and de facto controllers, please refer to the 2023 annual report of Suzhou Dongshan Precision Manufacturing Co., Ltd.
Dongshan Precision acknowledges and firmly believes that the increasingly diversified structure of the Board of Directors is a crucial factor in maintaining the Company’s competitive advantage and sustainable development. The Company values diversity among members of the Board of Directors and has implemented a diversity policy aimed at the members, committed to building a diversified structure of the Board of Directors. When recommending candidates to join the Board of Directors, the Nomination Committee will fully consider the diversity factors to maintain an appropriate and balanced structure of the Board of Directors in terms of capabilities, skills, experience, gender, age, and cultural and educational backgrounds, thereby ensuring that the Board of Directors can make decisions in a scientific and effective manner. The Company currently has 9 members of the Board of Directors, including 1 female director. As the current directors possess professional capabilities and practice experience in fields such as operating management, financial accounting, law, and international operations, one independent director in the Audit Committee is an accounting professional and some board members have extensive experience in risk prevention and control, the directors can effectively assist the Company in identifying, preventing, mitigating, and managing risks. Each member of the Board of Directors has performed their duties to the best of their abilities, actively promoting the efficient and standardized operation of the Company. 3.1.2. Enhanced Risk Control In strict accordance with the requirements of the Company Law of the People’s Republic of China, the Basic Norms of Enterprise Internal Control, and supporting guidelines, Dongshan Precision continuously promotes the construction, evaluation, and supervision of the internal control system and has established systematic internal control and necessary internal supervision mechanisms spanning from the corporate governance structure to various business process levels. We have strengthened the self-assessment of the design and implementation effectiveness of the internal control system, ensuring the orderly conduct of various special audits and key project audits. Moreover, we also identify and investigate internal control defects and risks to continuously improve the effectiveness of the Company’s internal control mechanisms. In addition, we have enhanced employees’ awareness of internal control risks and strengthened internal control management capabilities through internal control training, continuously improving the Company’s standardized operation capabilities. By establishing a sound risk prevention mechanism, the Company has formed a stable risk management structure and work system that meets the Company’s business scale and operational management demands. Through continuous optimization of the risk management assessment process, we could timely identify and assess risk sources existing in the Company’s operations, and improve and supervise risks closely related to the Company’s operations such as investment risks, business risks, operational risks, and risks relative to sustainable development, thereby achieving a closed-loop management to control the overall risks at an acceptable level. By promptly incorporating major ESG risks and opportunities into the risk review and business planning process for taking full consideration of them in the Company’s operational plan, the Company has controlled or mitigated risks in a better way and sought growth and transformation opportunities accordingly. At the same time, the Company actively cultivates a risk management culture through training, promotion, and other approaches, enhancing employees’ awareness and understanding of risk management and forming a risk prevention framework with full participation, so as to lay a solid foundation for the Company’s risk management.
In strict accordance with regulatory documents such as the Securities Law of the People’s Republic of China, Measures for the Administration of Information Disclosure by Listed Companies, as well as the Articles of Association and Information Disclosure Management System, the Company, under the principle of “truth, accuracy, completeness, and timeliness” in information disclosure, has diligently fulfilled its information disclosure obligations and continuously presents information of the Company’s operations to investors from multiple levels, perspectives, and angles based on investors’ demands, in order to enhance the quality and effectiveness of information disclosure. In 2023, the Company disclosed information on the operation of the Board of Directors, Board of Supervisors, and General Meeting of Shareholders, regular reports, significant events, etc. in a timely manner. During the reporting period, the Company’s disclosed information has contained no false records, misleading statements, significant omissions, or other improper disclosures. At the same time, the Company has also kept a close eye on the public opinion environment and market trading conditions to effectively protect the legitimate rights and interests of investors. Attaching great importance to investor relations management, the Company continuously improves internal systems such as the Regulations for Investor Relations Management and expands communication channels with investors. Through activities such as performance presentation meetings, conference calls, organized visits, and research, the Company has maintained timely and effective communication with investors on corporate governance, operating conditions, sustainable development, etc., which further deepens investors’ understanding of the Company’s production and operation and enhance the interaction and mutual trust between the Company and investors. The Company sincerely listens to the opinions and suggestions of shareholders and potential investors and provides timely replies and explanations to them, so as to build a good interactive ecosystem with investors and render high-quality services to investors. We equally treat all shareholders and continuously standardize the procedures for convening, holding, deliberating, and voting on the general meeting of shareholders, to ensure that investors, especially small and medium-sized shareholders, can enjoy the right to be informed and participate in major matters of the Company. We have adopted modern information technology with full consideration of time, place, and convening approach of the general meeting of shareholders to increase the proportion of shareholders to participate in the general meeting of shareholders, so as to facilitate more shareholders, especially small and medium-sized shareholders, to participate. For major matters that may affect the rights and interests of small and medium-sized investors, the Company has counted and disclosed the votes from small and medium-sized investors separately. Through channels such as the platform of “EasyIR”, the Company has communicated with investors, fully listening to the opinions and demands of small and medium-sized shareholders and timely responding to issues of concern to small-and-medium-sized shareholders. While focusing on our development, the Company adheres to an investor-oriented approach. Since listing, the Company has been strictly formulating a cash dividend policy that combines continuity and stability in accordance with the Articles of Association to create a “long-term, stable, and sustainable” shareholder value return mechanism, thereby continuously sharing the Company’s development achievements with investors. During the reporting period, the Company, based on actual operating conditions and development plans, has formulated an annual profit distribution plan on the premise of ensuring normal operations and long-term development. Independent directors have fulfilled their duties and responsibilities to express clear independent opinions on the preparation and decision-making process of the profit distribution plan. The relevant proposals, after being reviewed by the Board of Directors and the Board of Supervisors, are submitted to the General Meeting of Shareholders for deliberation, thereby effectively safeguarding the legitimate rights and interests of shareholders. In 2023, the Company implemented the 2022 profit distribution plan, distributing a cash dividend of RMB 1.10 per 10 shares, totaling RMB 187,315,200 in cash dividends. 3.2. Business Ethics 3.2.1. Building a Defense Line of Business Ethics With adherence to integrity operation and business ethics, Dongshan Precision strictly complies with laws and regulations such as the Company Law of the People’s Republic of China, the Anti-Unfair Competition Law of the People’s Republic of China, the Anti-Monopoly Law of the People’s Republic of China, and the Anti-Money Laundering Law of the People’s Republic of China and industry codes. The Company has been continuously establishing and improving the system of business ethics and anti-corruption management and formulates guidelines such as the Anti-Corruption Administration Rules, to prohibit any form of fraud, commercial bribery, and other similar behaviors. The Company has strengthened the defense line of business ethics through internal audit and reporting mechanisms and reinforced training and cultural construction on business ethics and anti-corruption. During the reporting period, the Company was involved in no major litigation cases related to corruption, bribery, or unfair competition.
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