Recently, Zhuhai CosMX Battery Co., Ltd. (hereinafter referred to as “CosMX,” “the company,” or “we”) received recognition from a globally authoritative ESG rating organization-CDP for its climate action efforts in 2023, CosMX achieved B score (Management Level) in Climate Change and A score (Supplier Engagement Leader) in Supplier Engagement Rating, which is the highest honor in the world. CosMX's score is higher than the average level (C score) of global and Asia regional, as well as the Electrical & electronic equipment sector.

CDP Global Environmental Information Research Center (former “Carbon Disclosure Project”) is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Its mission is to promote the reduction of greenhouse gas emissions and protect water and forest resources. CDP hosts the world's largest environmental information database, its annual disclosure and scoring process is widely recognized as the gold standard of environmental reporting with the richest and most comprehensive dataset on corporate and city action. In China, more than 3,000 companies participated in CDP ratings.

Since October 2022, CosMX officially established the Carbon Neutrality Management Team. The company's follow the group's “three-step sustainability action roadmap, ensuring continuous business development under the dual carbon background. The Carbon Neutrality Management Team delved into researching international carbon emission calculation standards, clarifying the organizational carbon emission sources, scope, and total emissions across all subsidiaries within the group. CosMX set a net-zero greenhouse gas (GHG) emission targets to be achieved by 2050, and these targets have passed verification and official approval by Science-Based Targets initiative (SBTi) organization successfully in February 2024.

Reducing GHG emissions resulting from production and operational activities is crucial for enhancing carbon management within the organization. All CosMX subsidiaries actively explore carbon reduction opportunities, formulate measures, and collectively drive energy-saving and GHG emission reduction projects. Additionally, CosMX continuously increase the proportion of renewable energy usage, organize regular carbon neutrality management meetings at various levels to track progress toward GHG emission reduction targets. Furthermore, corresponding performance incentive systems have been established to further motivate employees. Regarding carbon management across the entire value chain, one of the key areas for emission reduction lies in the upstream supplier. At the end of 2022, the company initiated supplier GHG reduction management measures, collaborating closely with supply-chain partners to build a green ecosystem. We invited all suppliers to participate in empowering training sessions, disseminating knowledge about GHG reduction, and aligning goals by signing emission reduction commitment letters. Besides, we identified key suppliers (account for 51% of CosMX's procurement expenses and contribute 76% of the total carbon emissions within CosMX's scope 3) as priority targets for personalized coaching and monitoring of emission reduction progress. These measures demonstrate the company's determination in climate change management.

As a socially responsible enterprise, CosMX always adheres to sustainability development, continuously working on environmental protection activities, and integrates climate change into the company's management and business practices. Climate protection is a marathon—a long journey with weighty responsibility. CosMX will integrate the higher-level requirements from CDP, establish a more robust greenhouse gas management system, and seamlessly incorporate it into the company's core processes and performance management system.