2022 SANY Heavy IndustryCorporate Social Responsibility Report
Honest operations and governance
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Honest operations and governanceHonest operations and governance
This is the 2022 Corporate Social Responsibility Report (hereinafterreferred to as “this report”) released by SANY Heavy Industry Co., Ltd.This report is a genuine description of SANY Heavy Industry’s e?orts tofulll its economic, social and environmental responsibilities and achievesustainable development, and contains Company's response to majorissues that stakeholders focus on. This report has been reviewed by theBoard of Directors of the Company and is responsible for the authenticityand e?ectiveness of the information herein.
About this Report
This report is prepared according to the Rules Governing the Listing of Stocks on Shanghai Stock Exchange (February2023 Revision), the Guidelines No.1 for Self-discipline Regulation of Listed Companies on Shanghai Stock Exchange-Standard Operations and refers to the Global Reporting Initiative’s Global Standards for Sustainability Reporting (GRIStandards) released by Global Sustainability Standards Board(GSSB) and a Guide to Formulating Corporate SocialResponsibility Reports for Enterprises in China by the Chinese Academy of Social Sciences.
For the ease of readability, SANY Heavy Industry Co., Ltd. is hereinafter referred to as “SANY Heavy Industry,” “theCompany,” and “We” in this report.
This report is available for browse and download on the Shanghai Stock Exchange website: www.sse.com.cn and theCompany’s website: www.sany.com.cnIf you want a paper copy of this report, please contact the Securities A?airs Department of the Company.Tel: 0731-84031555Fax: 0731-84031555Email: zhoulk@sany.com.cnAddress: New R&D Building 4th Storey, SANY Heavy Industry Industrial City, Liangtang Road, Changsha County,Changsha City, Hunan ProvincePostal Code: 410100
Basis of Preparation
Note on Appellation
Access to this ReportThis report covers the period from January 1, 2022 to December 31,2022. To ensure the consistency of the report, some of the contents maycover information before or after the reporting period.
Reporting Period
This report covers SANY Heavy Industry Co., Ltd. and its subsidiaries.Reporting Scope
All the information and data are from the Company’s o?cial documents,statistical reports and financial reports, as well as the information anddata collected, summarized and reviewed by the Company. This report ispublished in both Chinese and English. In case of any inconsistency, theChinese version shall prevail. Unless otherwise specied, the currencyunit is RMB.
Data Sources
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
About this reportAbout this report
Message from the Chairman
The year 2022 has witnessed both changes and tur-bulence, unity and division in the exacerbated geopo-litical crisis and sluggish economic recovery. Futuregrowth is challenged and restricted by uncertaintiesabout the world's economic recovery and continuedglobal turmoil. Under these circumstances, we arecommitted to promoting are long-term value growththrough the development of our core business. Byrelying our corporate strategy of "Digitalization, Elec-trication and Internationalization", we continue to im-prove the e?ectiveness of corporate governance andrisk management. We also promote green economyby achieving environmental management objectivesas well as adhering to UN Sustainable DevelopmentGoals and China'scommitment to the Carbon Peak-ing and Carbon Neutrality.Meanwhile, we undertakemore social responsibilities by creating a better work-place for our employees and realizing positive inter-actions with stakeholders to strive toward our visionof “Build First-class Enterprises, Foster First-classTalents, and Make First-class Contributions.”At present, the machinery industry is experiencing along-term technological upturn due to crossover be-tween the Fourth Industrial Revolution and the ThirdEnergy Revolution and the world is in an unprece-dented window of opportunity to develop cutting-edgetechnologies. SANY Heavy Industry is undergoingstrategic transformation towards digitization, electri-fication and internationalization. On digitization, theCompany vigorously promotes the digital transfor-mation in the full business process of management,manufacturing, R&D, commerce, marketing andservice strives. This is to turn SANY Heavy Industryinto a digital and intelligent company with data- andAI-driven decision-making and coorporation-basednetwork. On electrification, the Company focuseson the three technical routes of pure electricity, hy-brid and hydrogen fuel by promoting electrificationin main-engine products and developing core tech-nologies and producing key spare parts, as a wayto develop electrical products with high quality, lowpower consumption and comfortable experience. Oninternationalization, the Company intensies interna-tional product development, plan more supply chainsglobally and promotes marketing service systemconstruction. While committed to our internationaliza-tion strategy, we continue to make localized improve-ments to our products, design products and operatethe company for 8 billion people as global customersto build a world-class brand for China.
Sound corporate governance serves as the foundationof corporate development. Following the principles ofcompliance with the law, clear hierarchy, e?cient man-agement and scientic rationality, we always attach greatimportance to the quality of our operations and constant-ly reinforce the construction of the Board of Directors togive full play to the leading role of the Board of Directorsin corporate governance. We build a modern corporategovernance system by ensuring that operations are inaccordance with laws and regulations, improving riskcontrol and prevention capabilities. Integrity educationand anti-corruption work is furthered by regulating thebusiness activities of the Company and our partners tocreate a clean and upright business environment.We strive to be a responsible industry leader bycontribut-ing to the social prosperity with advanced technologies,leading products and considerate services. In order toimprove our independent R&D efficiency, we adopt ahierarchical and matrix-based R&D management and in-vest heavily in production innovation. We also work withindustry experts and university laboratories to explorecutting-edge technologies. We pursue superior productquality and all of our subsidiary manufacturers of mainengine and spare part are certied by ISO 9001 or IATF16949 in 2022. We achieve full-life-cycle quality moni-toring by constantly improving the e?ciency of productquality monitoring and building quality information sys-tems. Always conducting our business cooperation activ-ities in a responsible manner, we work together with oursuppliers and customers worldwide to build sustainablepartnerships.We promote green and low-carbon transformation andcapabilities for guaranteeing safety to facilitate high-qual-ity development. We build a well-rounded system formanaging safety, environment and occupational healthand standardize the system in terms of system, policy,process management and supervision and inspection.Adhering to nation's initiative against pollution and "DualCarbon" goals, we set the pollutant reduction target in2022 and gradually emit less pollution in productionand operation through technological innovation and re-source investment. We continue to improve low-carbonoperation scenarios and green park construction andimprove energy and resource utilization through digitaltransformation. To improve production safety and healthmanagement, we put in place inspections, training andalerts in safety to protect the health and safety of relatedparties like our employees, suppliers.
With the talent management concept of "employees rst"and "employees-oriented," we strive to create a betterplatform for our employees' growth. Over the years, wehave always been protecting the legal rights and inter-ests of our employees and committed to providing themwith better compensation and welfare policies. Besides,we have established a well-dened career developmentsequence to help employees realize their self-devel-opment goals and self-worth. In 2022, we released anemployee incentive plan of RMB 485 million to motivateemployees as a practical e?ort to promote the joint de-velopment of the enterprise and talent.We uphold the national identity of "our responsibility forthe country outweighs the prot of the Company" by ful-lling our social responsibility and devoting ourselves tomaking the society better. In 2022, we engaged our em-ployees and their families in green and low-carbon ac-tivities, friendly community building, volunteer educationand innovation. We take Daotong Village, Lianyuan City,Hunan Province as our practice base to promote thecause of helping Rural Revitalization. We help improvethe disaster rescue capacity of the whole society by sup-porting private rescue organizations to build a disasterrelief network system and funding insurance coveragefor front-line rescuers.Looking forward to 2023, SANY Heavy Industry willgrasp more great historical opportunities in this new eraand uphold the corporate mission of “Quality Changesthe World, and To Become the Pioneer of IntelligentManufacturing.” Facing unprecedented changes, SANYHeavy Industry will work together with all stakeholdersto explore a path of sustainable development to meetglobal challenges and to generate more value for ouremployees, shareholders and society, contributing to theglobal sustainable development goals.
SANY Heavy Industry Co., Ltd.Chairman Xiang Wenbo
2022 SANY Heavy IndustryCorporate Social Responsibility Report
Message from the Chairman
2022 SANY Heavy IndustryCorporate Social Responsibility Report
Message from the Chairman
SANY Heavy Industry (SH: 600031) was listed on July 3, 2003. It is the rstenterprise in China to succeed in the split-share structure reform and achievefull circulation of shares. In July 2011, SANY Heavy Industry was shortlistedin the Financial Times (FT) Global 500 list for the first time, and it was theonly Chinese construction machinery enterprise on the list. In 2012, SANYHeavy Industry acquired German manufacturer Putzmeister, renowned as the“Global No. 1 Brand of Concrete Machinery”. In 2022, SANY Heavy Industrywas honored as one of the annual "50 Smartest Companies (TR50)" by MITTechnology Review and ranked 129th in the Fortune China 500, ranking rstin the engineering machinery industry. SANY Heavy Industry was selected asone of 2022 Forbes China Sustainable Development Industrial Enterprises Top
50. Changsha Plant 18 made the World Economic Forum’s (WEF) Lighthouse
Factory List, and the only 2 Lighthouse Factories in the global heavy industryboth came from SANY Heavy Industry, representing the leading strength ofChina's engineering machinery.SANY Heavy Industry has business divisions and industrial centers all over theworld. It has built industrial parks in Beijing, Changsha, Shanghai, Kunshanand other places in China, and global R&D and manufacturing centers in India,the United States and Germany.Adhering to the mission of “Quality changes the world,” SANY HeavyIndustry spends more than 5% of its sales revenue on R&D every year and isdedicated to manufacturing world-class products. Building on the strength oftechnological innovation, SANY Heavy Industry received the National Scienticand Technological Progress Award three times and the National TechnologicalInvention Award twice. These two awards represent the highest honor in theengineering machinery industry in the PRC. In terms of patent application, theCompany ranked rst in the total number of patents applied and granted in thedomestic engineering industry.With the premier product quality, SANY Heavy Industry has undertakena great number of significant projects worldwide, including Burj Khalifa,Beijing Olympic venues, London Olympic venues, Brazil World Cup Stadium,Shanghai Tower, Hong Kong International Finance Center, Hong Kong-Zhuhai-Macau Bridge, Beijing Daxing International Airport, and Xiong’an New Area.
Since its inception, SANY Heavy Industry Co., Ltd. has sustained rapidgrowth. It is now one of the world’s leading manufacturers of equipmentand machinery. The Company has received the National Scientific andTechnological Progress Award three times and the National TechnologyInvention Award twice. The two awards represent the highest nationalhonor in the engineering and machinery industry after the founding of thePeople’s Republic of China. SANY Heavy Industry Co., Ltd. is primarilyengaged in equipment manufacturing, and its product portfolio includeconcrete machinery, excavator, crane, road construction machineryand piling machinery. SANY Heavy Industry concrete machinery firmlyestablishes is No.1 position in the world. Our excavator sales ranked rstglobally for the first time in 2020. And our sales of large tonnage crane,crawler crane and piling machinery ranked rst in China.
Company Prole
About SANY Heavy Industry
Our main products include truck-mounted concretepump, trailer pump, batching plant, truck mixer, linepump.Concrete machinery is mainly used in infrastructureconstruction such as railway, highway, subway,hydroelectric power plant, metallurgical engineeringand the real estate industry.
The main products are truck cranes and crawler cranes.Cranes are widely used in the electric power, steel,bridge, shipbuilding, and petrochemical industries. Smalltruck cranes are mostly used in bulk cargo business suchas municipal works, while large truck cranes and crawlercranes are used in the power, steel, shipbuilding, andpetrochemical industries.
The main products arerotary drilling rigs.Our piling machinery ismainly used in municipalworks, highway and bridgeconstruction, industrialand civil buildings,underground diaphragmwall, water conservancy,anti-seepage slopeprotection and otherinfrastructure constructionprojects.
The main products include roller, paver,grader, and asphalt batching equipment.Road construction machinery is mainlyused for the construction of highway, urbanroad and airport runway.
We o?er the vehiclenancing service to providebuyers of engineeringmachinery with mortgage ,nancing leasing and othernancial services.
Our excavators include large, medium,small, and mini excavators.They are mainly used in the farmland, waterconservancy, railway, highway, construction,real estate industries.ConcreteMachinery
2022 SANY Heavy IndustryCorporate Social Responsibility Report
About SANY Heavy Industry
2022 SANY Heavy IndustryCorporate Social Responsibility Report
About SANY Heavy Industry
FinancialServices
Excavator
PilingMachinery
Crane
RoadConstruction
Machinery
Ranked
th in the FortuneChina 500
SANY Heavy Industry was honoredas one of the annual"
Smartest Companies"by MIT Technology Review
Rankingfirst
in the engineeringmachinery industry
The only
Lighthouse Factories in theglobal heavy industry both camefrom SANY Heavy Industry
2022 Forbes China SustainableDevelopment Industrial EnterprisesTop 50
World-wide human cooperation is not primarily based on mutual love but on mutualbenefit. To get more cooperation opportunities, we should follow the contract,respect the rights and interests of others and do good to others. Therefore, altruismis a noble and wise behavior for self-development and altruistic organizations andindividuals will gain more strength and support. As a business organization, SANYHeavy Industry gives priority to customers, employees, suppliers and society in termsof altruism.
A company and its business activities are defined by the value of customers,customers not only determine the commodity value, but also all production factors,including operators' interests and employees' wages. Therefore, it's a big thing foroperators to understand, schedule and satisfy customers' needs every day.Company always prioritize employees when it comes to the relationship betweencompany development, shareholders' interests and employee growth. To bemore specific, Company values the physical and mental well-being of employees.Employees are helped to work and live happily and healthily on an equal andrespectful basis. Meanwhile, they are helped to be successful in self-worth andnancial rewards.Innovation guidance based on generating value for customers is promising whilefollowing and catching up others is nothing but failure and mediocrity. Bill Gates oncesaid, "The only way to develop business is through innovation."
Enterprise competition lies in talents, thus attracting talents brings the Company apromising future. In SANY Heavy Industry, hardworking employees shall be honest,studious and diligent.
Altruism
CustomerFirst
EmployeeFirst
InnovationGuided
HardworkingEmployeesas theFoundation
Spirit
Serve the CountryThrough Industry
Achieving ambitious goals requires a strong team. Unity is the prerequisite of building a strong team. In 2022, theCompany continued to uphold the SANY Heavy Industry Culture Consensus and make steady progress towardsthe Three First-Class Vision, which is “Build rst-class enterprises, Foster rst-class talents and Make rst-classcontributions.”
Corporate Culture
The founders of SANY Heavy Industry establishedthe Company with the spirit of “Serving the countrythrough industry,” that is, to build the testingground for reform and opening up among Chineseindustries. At SANY Heavy Industry, we believethat people grow great by dreams. The foundingaspiration of “Constantly strive to become strongerand serve the country through industry” providesan eternal driving force for everyone at SANYHeavy Industry.
SANY Heavy Industry’s mission is “Quality changes the world,” meaning that the Company will build anew impression of 'Made in China' in the overseas Market with its top products and services and builditself into a world-class Chinese brand.SANY Heavy Industry’s mission in the new era is “Become the Pioneer of Intelligent Manufacturing.”That means the Company will pursue digital transformation to empower itself to be a leadingmachinery equipment manufacturer globally, and set an example for more companies to engage in theexploration for smart manufacturing. We hope to contribute to China’s shift from a big manufacturer toa manufacturing powerhouse.
SANY Heavy Industry’s vision is “Build first-class enterprises, Foster first-class talents,Make rst-class contributions.”We will keep working hard to turn SANY HeavyIndustry into a role model for the high-qualitydevelopment of private companies, as wellas a world-class enterprise that demonstratesChina’s intelligent manufacturing expertise.
1011
VisionThree First-
Class
Mission
Quality Changes theWorld, Become a SmartManufacturing Pioneer
2022 SANY Heavy IndustryCorporate Social Responsibility Report
About SANY Heavy Industry
2022 SANY Heavy IndustryCorporate Social Responsibility Report
About SANY Heavy Industry
Awards and Recognition 2022
Gold Award forNew EnergyApril, 2022
China Construction MachineryQuality Supervision Testing Center
One of annual "50 Smartest
Companies"
July, 2022
MIT Technology Review
People Choice Award, Awardfor Best Product of the Year,
Bill Shaw Memorial Cup
November, 2022The Crane IndustryCouncil of Australia
The Star Product of
the Country
December, 2022CMIIC2022 China Machinery
Industrial Conference
China New Growth · AgileLeader of 2022December, 2022
Harvard Business Review
China Patent Silver Award,China Design Silver Award,China Patent Excellence Award
August, 2022China National IntellectualProperty Administration
2022 China FoundationConstruction Equipment
of the YearNovember, 2022
T50 Summit of World ConstructionMachinery Industry, ChinaConstruction Machinery Magazine
Iconic Innovative
Product Award
November, 2022
The Fourth Articial IntelligenceIndustrial Innovation andApplication Competition
2022 Second Prize of Scienceand Technology Award of China
Road Construction Industry
AssociationNovember, 2022China HighwayConstruction Association
2022 Customer Care Award ofTop Ten Marketing Events inChina Construction Machinery
September, 20222022 China ConstructionMachinery Marketing &Aftermarket Conference
2022 Top 10 MarketingEvents of China Construction
Machinery, 2022 Golden
Service Award of ChinaConstruction MachinerySeptember, 2022Journal of Construction MachineryToday, Journal of Construction
Machinery & Maintenance
Gold Award for Application
Contribution
April, 2022Journal of Construction Machinery &
Maintenance
Fortune China 500July, 2022
Fortune China
China Construction Machinery
Annual Product MarketPerformance Gold AwardChina Construction MachineryAnnual Product TOP50
April, 2022China Construction MachineryQuality Supervision Testing CenterJournal of Construction Machinery &
Maintenance
1213
2022 SANY Heavy IndustryCorporate Social Responsibility Report
About SANY Heavy Industry
2022 SANY Heavy IndustryCorporate Social Responsibility Report
About SANY Heavy Industry
2022 Forbes ChinaSustainable DevelopmentIndustrial Enterprises Top 50
February, 2023Forbes China
Stakeholders that are crucial to the development of SANY Heavy Industry include government departments andregulators, shareholders, investors, employees, suppliers, customers, communities, the public and non-governmentalorganizations (NGO), partners and industry peers. The Company values the expectations and demands of stakeholdersby maintaining active communication with them through multiple channels and responding to the expectations and issuesof common concern in the value chain.
SANY Heavy Industry establishes a regular stakeholder communication mechanism to get to know and respond to theexpectations and demands of stakeholders. Aimed to generate shared values, SANY Heavy Industry conducts materialityassessments regularly to take major issues that stakeholders focus on into daily operations and decision making.Stakeholder Engagement
Sustainable Development Management
Stakeholder Communication Strategy
Sustainable Development Management SystemSANY Heavy Industry has established a sustainable development governance structure, which vertically links the boardof directors and senior management, the working group of sustainable development and executive staff and horizontallycoordinates various functional departments. The structure covers all subsidiaries’ executive systems for sustainabledevelopment, jointly promoting SANY Heavy Industry’s synergistic development in governance, society and environment.
They are the highest authorityand decision-making bodyfor company's sustainabledevelopment mattersThey are responsible for formulatingESG-related strategies, objectivesand systems, as well as reviewingcompany's annual corporate socialresponsibility report
The Board of Directors and Senior
Management
The Working Group of Sustainable DevelopmentExecutive Sta?
They execute ESG-relatedtasksThey are responsible forcollecting related data forannual corporate socialresponsibility report andpreparing the report
The group oversees the implementation ofESG policies and coordinates executive sta?to complete ESG-related tasksThe group reviews the content of annualcorporate social responsibility report and theaccuracy of performance dataThe group reports regularly to the board ofdirectors and senior management on thesustainable development progress
SANY Heavy Industry’s Sustainable Development Governance Structure
2022 SANY Heavy IndustryCorporate Social Responsibility Report
SustainableDevelopment ManagementSustainableDevelopment Management
2022 SANY Heavy IndustryCorporate Social Responsibility Report
StakeholdersIssues in FocusCommunication and Feedback
GovernmentDepartments/Regulators
OperationalComplianceHonesty andIntegrity
E?uent TreatmentClimate ChangeResponse
On-site SpotChecksOn-siteInvestigation
Dialogue andMeetingShareholders
KPI PerformanceOperationalCompliance
ESG ManagementShareholders’
MeetingRoadshow
On-siteInvestigationInvestors
CorporateGovernanceIndustryCommunication
Product Quality andSafetyTechnology andInnovation
CompanyAnnouncementRoadshow
InvestmentConferenceTelephoneConferenceEmployees
Rights and Interestsof EmployeesRemuneration andBenets
Health and SafetyEmployee Training
CustomerSatisfaction Survey
Labor UnionActivities
StakeholdersIssues in FocusCommunication and Feedback
Suppliers
Supply ChainManagementHonesty andIntegrity
Product Quality andSafety
On-site AssessmentSupplier Trainingand Assistance
QualityCommunicationSupplierConferenceCustomers
Product Quality andSafetyIndustryCommunication
Climate ChangeResponseTechnology andInnovation
Market ResearchMedia Conference
CustomerSatisfaction SurveyOnline and O?inePromotionCommunity,the Publicand NGO
Community CultureCommunityEnvironment
Public WelfarePoverty Alleviation
CommunitySymposiumOnline Promotion
Community Publicity
Partners
IndustryCommunicationHonesty andIntegrity
Stable PartnershipStrategic
Cooperation
High-levelExchanges
IndustryPeers
Fair Competition
IndustryCommunication
Industry Forum andMeetingInspection andExchange ofOpinions
CooperationAgreement
Materiality Analysis
In order to better respond to the expectations of stakeholders in this report, the Company regularly identifies andevaluates the material issues. The material issues that have signicant impact on the Company and stakeholders aredened, specially revealed and responded in the report. We have drawn up a matrix of the importance distribution ofissues in terms of both "Importance to Stakeholders" and "Importance to SANY Heavy Industry" to clarify the focus ofresponsibilities.
CorporateGovernance
SocialResponsibility
EnvironmentalResponsibility
Issues of Medium ImportanceIssues of High Importance
Product Quality and SafetyKPI PerformanceProduct andTechnology InnovationComplaint handling and product recallSupply Chain ManagementHealth and Safety
Operational ComplianceHonestyand IntegrityEnergy ConsumptionManagement
E?uent ManagementClimate Change ResponseEmployee Trainingand DevelopmentCommunity Public Welfare
Customer Satisfaction
Rights and Interestsof EmployeesIntellectual Property RightsWater Resource Management
Industry CommunicationEmployeeCare
Issues of Low Importance
Importance to SANY Heavy Industry
Importance to Stakeholders
Rural Revitalization
Performance Highlights in 2022
1617
Giving Back to Society
The community investments totaled RMB
45.769
million and voluntary activities foremployees totaled
687.4
hours
lighthouse factories were put into operation which boosted the average capacity by
68%
Electrication patents accumulated to
and
models of electric products were developed with the sales of over3,500
and revenue of RMB
2.7
billion in 2022International sales revenue reached RMB
36.571
billion, up
47.19%
year-on-year.
30,000
overseas excavator exceeded were sold
"Digitalization, Electrication and Internationalization" Corporate StrategyGreen and Safe Operations
of the
subsidiary manufacturers of main engine and spare part passed the ISO 14001 environmentalmanagement certication and ISO 14001 EMS external audit.
passed the ISO 45001 occupational health and safetymanagement certication and the ISO 45001 external OHSMS auditOver RMB
million was invested in the technical transformation project for VOCs emission reduction with anreduction of
134.83
tonsClean energy usage (photovoltaic power generation) reached
16.013
million kWh with utilization ratio is
1.88%
The energy-saving and consumption reduction projects saved RMB
57.776
million in energy costs, year-on-yearsavings of
20.11%
The construction of smart green industrial parks
3.0
was completed, covering
parks nationwide418,920.5
hours of health and safety training were provided with total attendancereaching
268,190No one
su?ered from occupational diseases. The coverage of occupational healthcheckup for those on professional posts reached
100%100%
coverage of internal anti-corruption audits and internal anti-corruption trainingcovered over
8,100
sta? members100%
of our suppliers signed a cooperation agreement or commitment letter on integrityand
training sessions on integrity education cover
1,538
suppliers
R&D investment reached RMB
7.826
billion, up
9.78
percent year-on-year
2,663
patents were applied for and
1,781
patents were granted. The Company has won
China Patents SilverAwards and
China Patent Excellence AwardsDeveloped and published
national standards and
organizational standards100%
of the Company’s
subsidiary manufacturers of main engine and spare parts passedthe ISO 9001 or IATF 16949 Certication1,058
suppliers joined in the camps on “necessary knowledge and skills,” covering
2,650
participants
R&D and Product Quality
The employee coverage of vocational training was
78.42%
, amounting to
96.80
hours for each employeeShare incentives of as much as RMB
million were o?ered to
7,000
sta? members
20,262
valid questionnaires of satisfaction survey were collected and
87%
of the surveyedemployees were satisedA total amount of RMB
428,700
was delivered as assistance to 32 employees innancial di?culty
Workplace and Employees
Honest Operations and Governance
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
SustainableDevelopment ManagementSustainableDevelopment Management
SANY Heavy Industry upholds the concept of "data-driven future" and unremittingly implements the Company'sdigitalization strategy. We have made extensive e?orts to construct Lighthouse Factories, deploy the IndustrialInternet of Things, promoted standardized, online, automatic, and intelligent processes, leveraged industrialsoftware, and facilitated data management and application. We have driven R&D digitalization, smart supplychain, smart manufacturing, and smart operation. While improving its own production and service e?ciency,SANY Heavy Industry orients the production mode and consumption model to green, energy-saving, recycling,aiming to lead the industry's technological progress and strongly promote China's "3060 Dual Carbon" strategicgoals through practical actions.
The Company leverages the cutting-edge technologies of the Fourth Industrial Revolution to expand smartmanufacturing to the upstream and downstream links of the industrial chain, helping SANY Heavy Industryset an example for smart manufacturers around the world. The Lighthouse Factory integrates and uses newtechnologies in intelligence, digitalization, and automation to achieve comprehensive changes in models ofbusiness, product development, production, quality management and consumer service. This is to promotehigher e?ciency, quality upgrading, energy saving and emission reduction and operation optimization.The Company has continuously improved its 31 factories based on the Lighthouse Factory standards. By theend of 2022, 25 factories had been put into operation, enhancement in automation with a 68% increase ofaverage capacity and a 45% reduction in labor costs on the production line.
Digitalization Aids in the Achievement ofthe “Dual Carbon” Goals
Achievements in Building the Lighthouse Factory
SANY Heavy Industry's Factory No.18
Dual Carbon MonitoringPlatform of Factory No.18
On October 11, 2022, SANY Heavy Industry's ChangshaFactory No.18 made the World Economic Forum’s (WEF)new Lighthouse Factory list. As of the reporting period,the only 2 Lighthouse Factories certified by the WEF inthe global heavy industry both came from SANY HeavyIndustry, demonstrating the leading strength of SANY HeavyIndustry's digitalization. Relying on Root Cloud's operatingsystem of industrial Internet of things, smart work has beenrealized in all 9 processes and 32 representative scenarios ofLighthouse Factory No.18, which makes complete intelligentmanufacturing of turn pieces of steel plate into a Boom PumpTruck. After the transformation, the capacity of LighthouseFactory No.18 has increased by 123% and labor efficiencyby 98% while the manufacturing cost on unit product hasreduced by 29% in the same production area.Meanwhile, the Factory has created an energy managementsystem based on industrial Internet of things to signicantlyimprove such management. Through automatic identicationof abnormalities, the welding consumption index of theFactory has reduced from 1.21m
/kg wire to 0.44m
/kg wire,a reduction of 64%. In 2022, SANY Heavy Industry's FactoryNo.18 completed a Dual Carbon Monitoring Platform. Basedon industrial Internet of things and block chain technology,it displays and controls carbon emissions and green energyconditions in a real-time manner by connecting water,electricity, oil and natural gas. System for carbon emissionstandards was established to constantly reduce carbonemissions intensity and costs. By the end of 2022, the carbonemission intensity of Factory No.18 is less than 0.015tCO
e/RMB 10,000 of output value, leading the manufacturingindustry according to the report of Carbon Emission Intensityof 2020 Fortune 500 Chinese Enterprises.
Committed to long-termism, SANY Heavy Industry firmly promotes "Digitalization, Electrification andInternationalization" Corporate Strategy, facing the long-lasting international economic complexity andseverity. We help achieve the “dual carbon” goals through digitalization and grasp opportunities of cleantech to further the digitalization reform. We promote internationalization by accelerating our reach to theworld. As a step towards the goal of building a world-class enterprise, the layout innovation is sped up togenerate more development potential, further consolidate the Company's core competitive advantage andpromote its high-quality development.
1819
SANY Heavy Industry's Changsha Factory No.18 made Lighthouse Factory List
Feature
: "Digitalization, Electricationand Internationalization"Corporate Strategy
The number of Lighthouse factoriesthat have been put into production is
Achieving an averagecapacity increase of
68%
Lighthouse production linelabor costs have decreased by45%Feature:"Digitalization, Electrication and
Internationalization" Corporate Strategy
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Feature:"Digitalization, Electrication and
Internationalization" Corporate Strategy
SANY Heavy Industry promotes standardized, online, automatic and intelligent processes across our R&D,supply chain, procurement, production, sales and operation. In 2022, the Company's achievements onstandardized, online, automatic, and intelligent processes are remarkable. 23 processes were automaticallymonitored and warned online based on the self-developed process monitoring platform, which greatly improvedthe quality of the Company's products and the transparency in the production process with reduced costs byRMB 51.72 million.
Standardized, Online, Automatic, and Intelligent Processes & IndustrialSoftware Application
2021
SANY Heavy Industry's Industrial Internet Platform (hereinafter referred to as "IoTPlatform") is oriented to the needs in digitalization, networking and intelligence ofmanufacturing industry. As a service system of mining, integrating, aggregatingand analyzing massive data, the Platform with ubiquitous connection
is able toexibly supply and e?ciently allocate manufacturing resources. The IoT Platformcan extensively connect various devices and systems to model the digital twin
,which will help enterprises effectively reduce cost and improve quality ande?ciency as well as collaborative e?ciency between service quality and industrychain.Committed to independent research and development, we constantly upgradethe IoT platform and data mining platform to connect application systems andequipment control systems. In this way, information technology (IT) and operationtechnology (OT) are integrated to improve production and operation e?ciency. In2022, we witnessed the real-time online access by the Company's IoT Platform to16,000 devices, 46,000 cameras and 23,000 energy uses, forming cross-systeminformation integration and interconnection. Systems in algorithm model andenergy consumption control were optimized through the massive data collectedby the IoT Platform, realizing a cost reduction of RMB 58 million.
Intelligent logistics project
SANY Heavy Industry's "factory intelligent logistics basedon 5G multi-device collaborative" project was listed asone of 2022 representative application scenarios ofmanufacturing digital transformation in Hunan Provincereleased by the Industry and Information TechnologyDepartment of Hunan Province. It highlights theCompany's strength in digital transformation. Adoptingmultiple types of 5G-connected equipment, the projectrelies on low-latency and highly reliable 5G to realizemulti-device collaboration of storage and distributionand automatic pick-up and delivery of various objects.This e?ectively solves the problems of delayed materialdistribution, low accuracy and low turnover efficiency.With the goal of reducing costs with fewer sta? achieved,the timely distribution rate increased by 11% and theinventory turnover rate increased by more than 50%.
Intelligent logistics project was listed as one of annual application scenarios of digitaltransformation by the Industry and Information Technology Department of Hunan Province
Process monitoring platform interface
In 2022, SANY Heavy Industry optimized purchase and warehousing as the process of sorting outcommodities. We optimized the commodity-handling rules to design the sorting sampling algorithm interms of the parameters of material price and annual purchase amount. Commodities are extractedautomatically by the computer for 3R (Real Site, Real Object, Reality) sorting, which improves theaccuracy of stocking and decreases the number of stockers.
SANY Heavy Industry optimized commodity-handling process of purchase and warehousing
SANY Heavy Industry promotes the application of digital technology to create industry-leading intelligent productsand technologies. We use unmanned driving, remote control, intelligent operation, big data analysis and 5Gnetwork to develop a variety of intelligent products. We also deploy intelligent operation to reduce the workload ofour sta? and carry out auxiliary work with the aid of intelligent technologies. As of the end of the reporting period,we have made signicant breakthroughs in the application of L4
driverless technology, cloud control and V2Xtechnology
. These achievements have greatly assisted customers to improve their intelligence level and stronglypromoted the implementation of the Company's digital intelligence transformation strategy.
Intelligent Product and Technology
L4: Automatic vehicle system is capable of performing driving tasks and monitoring the driving environment in certain environments andunder specic conditions.
V2X technology: Vehicle-to-Everything technology can perform interactions between vehicles and various applied communications andapplication scenarios.
Achievements in Building the Industrial Internet of Things
Ubiquitous Connection refers to connect everyone and everything, everywhere, at all times.
The digital twin refers to a digital "clone" designed for a physical device and based on the device or system.Feature:"Digitalization, Electrication and
Internationalization" Corporate Strategy
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Feature:"Digitalization, Electrication and
Internationalization" Corporate Strategy
SANY Heavy Industry deepens the clean technology reform of machinery and equipment and promotesthe electrification of its main-engine products such as engineering vehicles, excavation machinery, loadingmachinery and cranes. So the low-carbon transformation of products is accelerated. In 2022, the Companyfocuses on the three technical routes of pure electricity, hybrid and hydrogen fuel by continuing to updateelectrified products. Electrification patents accumulated to 697 and 79 models of electric products weredeveloped with the sales of over 3,500 and revenue of RMB 2.7 billion in 2022.
Electrication Targets Opportunities ofDeveloping the Clean Technology
2223
In July 2022, the intelligent driving dumper truck developed by SANYHeavy Industry made its o?cial debut. The intelligent dumper truckis equipped with various sensors such as LIDAR, camera, millimeterwave radar. Relying on the Company's self-developed advancedtechnologies like perception, positioning, planning and control, itcan detect obstacles around on its own. It automatically adapts totypes of obstacle scenarios with has innovative functions includingautomatic unloading, parking, turning, stopping by and bypassingobstacles, collaborating signal lights and blind intersections. Allthese truly make the dumper truck reach L4 intelligent driving.
Intelligent driving dumper truck
SANY Heavy Industry develops L4 intelligent driving dumper truck
Committed to being an electrication example in the machinery industry, SANY Heavy Industry has alwaysmade e?orts in developing pure-electric technology and launch electried vehicle models.
Pure-Electric Technology
Highlight models
Using SVPWM (Space Vector Pulse Width Modulation) technology,we develop customized high-efficiency electronic control softwareand hardware in terms of the characteristics of battery voltageplatform and the oil pump of the electric excavator. In this way, theenergy consumption of electric drive is optimized, 7% higher inefficiency than the common working position of traditional dieselengines. So energy is saved and consumption reduced.With the application of "8 pumps and 3 valves" power technology,the excavator is equipped with the standard voltage of 6000V/50Hzmining equipment and the maximum installed power of 900kW.Relying on the advanced RCS full electric control hydraulic system,it is completely driven by its electric control, which makes SANYHeavy Industry lead in the technology.We initiate and adopt the patented technology of no subframe anduniquely integrated design of chassis, reducing weight by 600kgcompared with competing products of the same class. The mixertruck is equipped with thermostatic management system, adaptingto various climates from -30℃ to 50℃.With the pure-electric-driven chassis, the truck crane features littleoperation noise, low costs of use and maintenance. With the fullboom length of 43.5 meters and the limit climbing of 40 degrees,the maximum speed of 90 km/h, it has outstanding performance inredeployment.
Pure electric miniexcavator SY19E
Electric driven largeexcavator SY2600E
Electric Mixer Trucks
Pure Electric TruckCrane STC250BEV
SANY Heavy Industry is fully aware of the great potential of hydrogen technology in energy transformation,hence regarding fuel cell and hydrogen industry as a focus on its future electrication. We focus on developinga system for hydrogen production via water electrolysis, hydrogen refueling equipment and core componentswith SANY Heavy Industry's independent intellectual property rights. And we make an extensive layout of thewhole industry chain, including green hydrogen production, storage and transportation and lling equipment.
Hydrogen Technology
Hydrogen cell mixer trucks at the delivery ceremony
On February 18, 2022, SANY Heavy Industry delivered the rst batch of hydrogen fuel cell vehiclesfor Yueyang City. The hydrogen vehicles provided by SANY Heavy Industry will strongly promote thelanding of hydrogen energy construction vehicle operation scenario in Yueyang City and e?ciently helpthe green and low-carbon development of construction machinery industry.
The world's rst hydrogen cell mixer trucks were o?cially delivered
Feature:"Digitalization, Electrication and
Internationalization" Corporate Strategy
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Feature:"Digitalization, Electrication and
Internationalization" Corporate Strategy
While committed to our internationalization strategy and an internationalization guideline of “Establish aStrong Foothold, Operate Locally, Prioritize Services,” SANY Heavy Industry focuses on di?erentiatedmarket development and goes on making localized improvements to our products, design products andoperate the company for 8 billion people as global customers to build a world-class brand for China.The Company has increased its investment in overseas resources and marketing channels andimproved its competitiveness among overseas key clients, and increased the market share of heavyequipment. We have also constructed better spare parts centers in regions outside of China, and builta global capacity to supply parts. We have continued to promote the digitization strategy globally,established intelligent Lighthouse Factories, built localized advanced manufacturing capacity, andfacilitated digitalized online marketing, digital service and digital operation. Additionally, we have builta stronger pipeline of overseas talents, o?ered attractive incentives, gathered an excellent localizedteam, and strengthened our footprint in the local market. We have accelerated international productdevelopment, enhanced international R&D strength, significantly increased the number of R&Dpersonnel, and focused on global mainstream markets such as Europe and the US.2425
Qatar has renovated or built eight stadiums forthe 2022 World Cup. SANY Heavy Industry'sconstruction equipment was used in building theWorld Cup infrastructure, including truck cranes,large excavators, pump trucks, mixer trucks. As ofthe end of the reporting period, many machineryproducts of SANY Heavy Industry have ranked rstin Qatar market, among which the over 50% marketshare of crane and concrete machinery.
SANY Heavy Industry truck crane exported to Qatar
Helping the construction of Qatar World Cup venues in 2022
INTERSCHUTZ is an internationally renownedevent in the re safety industry. In June 2022, SANYHeavy Industry presented at the exhibition with twobrand equipment of 48m long-span high-lift re truckand 28m powerful-demolition high-lift re truck withthe theme of Guarding Homes. Both provided keysupport for improving re-ghting methods for large-span space buildings, attracting visitors from allover the world and showing the strength of China'sintelligent manufacturing to the world.
SANY Heavy Industry team at the
Exhibition Site
SANY Heavy Industry Made its Debut at INTERSCHUTZ
We fully realize that internationalization is the only way to build a world-class brand and a world-classenterprise. SANY Heavy Industry put forward the strategy of “internationalization” at the early stage of itsexpansion. Since 2002 when internationalization started, the Company has stepped on a unique journey tointernationalization.
Internationalization Helps Extend ourReach Globally
SANY Heavy Industry’s Journey of Internationalization
ExportsFrom 2002 to 2005The business modelis primarily based onexporting products andselling them overseas.
2022
The overseas excavatorsales exceeded30,000
units
Overseas investmentstageFrom 2006 to 2009We have established R&Dand manufacturing basesin India, USA, Germanyand Brazil in a row.
Localization stageFrom 2009 to 2012Iocalization of overseascompanies is improvedthrough mergers andacquisitions.
Regional system stageFrom 2012 to 2022Global layout through theregional system is completed,with 4 overseas manufacturingbases and 10 sales areas.
The company's annual globalsales revenue reached RMB
36.571
billion
Feature:"Digitalization, Electrication and
Internationalization" Corporate Strategy
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Feature:"Digitalization, Electrication and
Internationalization" Corporate Strategy
a year-on-year increase of
47.19%
2627
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Honest operations and governanceHonest operations and governance
2829
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Honest operations and governanceHonest operations and governanceThe Company organizes the General Meeting of Shareholders, Board of Directors Meetings and Board of SupervisorsMeetings in accordance with applicable laws, regulations and the Articles of Association. The convening, deliberationand voting procedures complied with relevant regulations. The Company’s and the shareholders’ legitimate rights andinterests, especially minority shareholders’ are safeguarded. In 2022, SANY Heavy Industry held 5 General Meetings ofShareholders and 13 Board of Directors Meetings, with 100% directors attendance; 12 Board of Supervisors Meetingswere held, with 100% member attendance.
Strengthen Corporate Governance
A sound corporate governance mechanism is the key to the long-term, stable and sustainable development of theCompany. The Company strictly abides by the Company Law of the People’s Republic of China, the Securities Law ofthe People’s Republic of China, the Code of Corporate Governance for Listed Companies, the Rules Governing theListing of Stocks on Shanghai Stock Exchange. We constantly improve our governance framework, make the GeneralMeeting of Shareholders, the Board of Directors, the Board of Supervisors standardized, disclose information in termsof compliance and establish a sound and standardized modern corporate governance system with e?ective checks andbalances and e?ciently operations.The Board of Directors establishes the Strategic Committee, the Nominating Committee, the Remuneration andAppraisal Committee, and the Audit Committee. The Company puts a high value on corporate board diversity by formingthe Board with experienced members from di?erent backgrounds to promote the Company's balanced decision-making.Strict with the corporate governance, the Company's directors are professional and experienced in legal a?airs, nanceand audit, risk management and corporate management. As an important part of our corporate governance system, ourindependent directors aim to protect the interests of minority shareholders and stakeholders and promote the Company'slong-term sustainable development. In 2022, there are 9 directors including 3 independent directors and one femaledirector in the Board of Directors.Corporate Governance Structure
SANY Heavy Industry’s Management Level and Major Responsibilities
The Board is responsible for the General Meeting of Shareholders. It ex-amines important matters regarding the Company’s operating activities andsubmits its decisions to the General Meeting of Shareholders for reviewThe Board of Supervisors oversees the Board members and senior execu-tives, as well as the Company’s nanceSenior executives are guided by the Board of Directors and take charge ofthe Company’s daily operations and management
The Board ofDirectorsThe Board ofSupervisorsSeniorExecutivesManagement
Hierarchy
ComprehensiveRisk Management
Three Defenses for Risk Management System
First Defense(Business Divisions)
Considering the realities of production, operation and management ofthe Company, SANY Heavy Industry has established a standardized andeffective risk management and internal control system. The Companyhas formulated and issued internal laws and regulations, such as Auditand Supervision Quality Manual, Auditing and Supervision ManagementSystem, Audit and Supervision Plan and Management Process, Auditand Supervision Rectication Tracking Management Process, JudgmentGuide for Problems, Defects and Risks and Operation Guide on InternalControl Evaluation. In this way, we continuously improve our capabilityfor preventing risks and the Company's operation and management toensure the safe and sound operation of the Company.The Company has established three defenses of risk prevention andcontrol, which consists of business divisions, functional headquartersand auditing and supervision headquarters. The defenses are supervisedby the leaders of the Board of Directors. We dene the responsibilities ofrisk management and integrate the requirements of enterprise risk man-agement into enterprise management and business processes in termsof the responsibilities and functions of di?erent posts, e?ectively buildinga risk prevention and control system. In 2022, by further strengtheningthe organizational structure and operating mechanism, the Company es-tablished a three-pronged supervision system combining centralized anddecentralized approaches, which made for mutual supervision.
Operationaland ManagementMeasuresInternal ControlMeasures
The FinancialA?airsHeadquartersThe BusinessA?airsHeadquartersThe SmartManufacturingHeadquarters
The MarketingEmpowermentHeadquartersThe Securitiesand InvestmentO?ce
The Processand ITHeadquartersSANY LegalA?airsDepartment
Internal Control and Audit
SANY Heavy Industry's Board of Directors
The Board ofSupervisorsThe General Meetingof ShareholdersThe Board of
DirectorsThe Strategic
Committee
The Nominating
Committee
The Remuneration andAppraisal Committee
The AuditCommittee
Second Defense (Functional Headquarters)
Third Defense (Auditing and Supervision Headquarters)
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Honest operations and governance
To strengthen the supervision and inspection of internal control, the Company has established a sound supervisionand evaluation systems for internal control and risk management. We carried out auditing projects in economic liability,specialty, o? o?ce and internal control audit according to the auditing and supervision management procedures. Westeadily promoted complete auditing coverage and comprehensive risk management and strengthened the up-downcoordination mechanism. Meanwhile, we actively innovated auditing reform and built a digital auditing and supervisionsystem to monitor the fundamental business processes of its subsidiaries and audited major problems and leads. In2022, the Company conducted auditing projects covering 100% headquarters and subsidiaries.
Developing supervision and evaluation systems for internal control and risk managementproceduresInspecting and assessing the completeness, suitability and e?ectiveness of internal controland risk management procedures of di?erent departments
Auditing and Supervision System
Auditing and Supervision System
The Auditing and Supervision Headquarters
The Supervision
Department
Responsible Departments for Integrity Management and their Duties
Committed to the business ethics of integrity, SANY Heavy Industry adopts a “zero-tolerance” approach towardscorruption. The Company has established a sound anti-corruption system to develop an integrity culture by promotinganti-money laundering for a standardized and legal operation environment.
Anti-Corruption and Business Ethics
With a focus on anti-corruption, the Board of Directors directly supervises, guides, and evaluates the Auditing andSupervision Headquarters’ work outcomes and guides, supports, helps and makes decisions on anti-corruptionmanagement. The Company abides by the Criminal Law of the People’s Republic of China, the Anti-Unfair CompetitionLaw of the People’s Republic of China, the Interim Provisions on the Prohibition of Commercial Bribery and otherapplicable laws and regulations in commercial operations like extortion, fraud and money laundering. The Company’sConict of Interest and Integrity Management System, the Blacklist Sharing Management Procedures and EmployeeCode of Conduct Management were formulated to make anti-corruption standard.
Integrity Management
To step up integrity, the Company supervises corruption and prevent and control integrity risks by prioritizing the threeaspects of “before,in progress and after.” We regularly audit anti-corruption and business ethics every year and leveragethe advantages of big data monitoring technology to enhance the capability and e?ectiveness of corruption treatment. In2022, the company carried out anti-corruption audit on its headquarters and subsidiaries, with a coverage rate of 100%.
The principal in charge at each department fulfills main responsibilities for managing conflict ofinterest and integrity and self-discipline work and report the conict of interest according to the rulesand regulations; He may also authorize or appoint another colleague to accept and investigate thedepartment’s issues concerning conict of interest and integrity
Honest operations and governance
The AuditingDepartment
The Concrete andRoad MachineryBusiness Division
The EngineeringVehicle BusinessDivision
The HeavyMachineryBusiness Division
The HeavyCrane BusinessDivision
……
Supervisor Team OneSupervisor Team Two……Leads and NeedsLeads and Needs
Cooperation andInteraction
Cooperation andInteractionCooperation and Interaction
The Auditingand SupervisionHeadquarters
Investigating major fraud cases and developing the anti-fraud system
Encouraging departments to build and maintain a risk databasePromoting self-evaluation of di?erent systems and organizing risk re-assessment activitiesIndependently examining, verifying, assessing and reporting on the effectiveness andsuitability of internal control and risk management procedures of the operators within ourscope of supervision
The
Supervision
Department
The Auditing
Department
SupervisorTeams
The Auditing and Supervision Headquarters is responsible for the publicity, implementationand declaration of the Conflict of Interest and Integrity System; the interpretation, acceptance& investigation and punishment of infractions of the System; The Auditing and SupervisionHeadquarters is also responsible for the implementation of accountability results; and the reception,registration and disposal of the cash and gifts returned by employees
The Business A?airs Headquarters and the Business A?airs Department of each business divisionare responsible for the declaration, implementation, investigation and auditing of the supplier’sconict of interest as well as implementation of the results, and accepting the supervision from theAuditing and Supervision HeadquartersThe Office of the Chairman supervises the Auditing and Supervision Headquarters’ work onmanaging conict of interest, cash received as bonus and gifts
The Human Resources Headquarters and the Human Resources Department of each businessdivision are responsible for collaborating with the Office of the Chairman and the Auditing andSupervision Headquarters on the declaration and publicity of conict of interest issues
3233
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Honest operations and governanceHonest operations and governance
The Company focuses on the integrity performance of its business-relatedunits and the entire supply chain. We established the Supplier ManagementSystem, the Procurement Framework Agreement and the Supplier Contact/Visit Management Plan to make suppliers standardized in terms of businessethics. In 2022, the Company timely informed business related units of theCompany's anti-corruption resolution through supplier integrity education,integrity cooperation agreements and holiday reminder letters. In 2022, 100%of our suppliers signed the Integrity Cooperation Agreement or Letter ofCommitment.
Requires suppliers and franchisees to signthe Integrity Cooperation AgreementFills in the Conict of Interest and ExternalInvestment Declaration Form on theprocurement system
Supplier Integrity Management Rules
Supplier Management System
Anti-Corruption Initiatives
We conduct honesty and integritytraining, stage honesty andintegrity educational exhibition,organize honesty, integrity& compliance test, and o?erintegrity notications at festivalsfor sta? in di?erent divisions anddepartments. We also requiresta? at key positions to sign anHonesty and Integrity Letter ofResponsibility and o?er thempreventative education andtraining to ensure that our sta?and cadres are clean and honest.
Advance Publicityand Prevention
Stipulates accessrequirements of dishonestoperations
Following the requirements of China’s discipline inspection and supervision authority, the Company has developedinternal regulations such as the Reporting Management Procedures to clarify ways to make reporting proceduresstandard. The Company has opened up diversified reporting channels, created a Smart Supervision Platform andspecially-assigned persons from the standing reporting department handle reporting complaints. Complaints can besent through multiple channels like E-mail account, employed Feishu (SANY Heavy Industry’s real-time o?ce software),WeChat, Cloud-Hub (mobile office software) and QQ, a hotline and a reception room. The Company collects andsummarizes problems and leads regularly, turning them into standing books for regular judgement and punishment. In2022, 133 complaint cases were all investigated and handled in terms of the Complaint Management Processes.To safeguard rights and interests of whistle-blowers, we kept the informants’ identity a secret and implementedthe withdrawal system while passing the case information and investigating it. If the identity of a whistle-blower orinformant were stolen or leaked, the competent department would be held accountable according to the AccountabilityManagement System. If the informant were intimidated or retaliated, the Company would assign dedicated personnelto protect them from harm. If necessary, the Company would report the retaliatory conduct to the judicial authorities andhold anyone who took revenge responsible.
Complaint Reporting
SANY Heavy
Industry’sComplaintHandlingProcesses
Receive Feedback, Register, Assign
Identify and ClassifyAcceptConrm and Give FeedbackSubmit an Incentive O?er for the Informant
Review the Incentive O?er
jiancha@sany.com.cnWorkbench / SANY IntegritySANY Integrity Public Account;Chairman's Letter BoxChairman’s Letter Box; SANY Integrity25926895500731-84031222; 85835000
E-mail:
Feishu:
WeChat:
Cloud-Hub:
QQ:
Tel:
ReceptionRoom:
Room 306, Complex Building ofChangsha Industrial Park; O?ce of theSupervisory Head in All Industrial Parks
We improve the processesby utilizing the digital modelsupervision, reporting and complaintmechanism, senior managementsupervision and evaluationmechanism, business compliancecheck, "Ten Rules" supervision ofbusiness decision-making,The Supplier contact and visitmechanism, gift and cashdeclaration mechanism, and conictof interest and external investmentdeclaration to ensure that risks arecontrollable.
Ongoing Supervisionand Governance
We focus on investigatingand handling major cases,announcing typical cases,and building the blacklistsharing mechanism, trackingmechanism of resignedpersonnel, and reportingranking and investigationmechanism. By diversifyingaccountability measures, wehave made them act as adeterrent.
Punishment andAccountability
100%
of oursuppliers signed the IntegrityCooperation Agreement or Letterof Commitment
Procurement Framework Agreement
Builds a real-time feedback mechanismthrough the reporting hotline, WeChat platformand follow-up visitPublicizes the Company’s policy on honestyand integrity
Announces infractions of rules andregulations in real timeInvestigates and conrms a supplier’ssuspected breach of a contract
Supplier Contact / Visit Management Plan
ReportingChannels ofSANY HeavyIndustry
3435
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Honest operations and governanceHonest operations and governance
Integrity Education Forms
Declaration of conict of interestand external investment; Trainingon honesty and condentiality
Employeeenrollment and
promotion
The Company provides integrity training for all regular employees, internal directors, suppliers and part-time oroutsourced personnel. The integrity education is intensied in a wide range of areas, including Employee enrollment andpromotion, evaluation, publicity and supplier signing. In 2022, the Company carried out 25 phases of integrity educationfor new employees and 6 special lectures for business units, covering over 8,100 people, and conducted 5 phases ofintegrity education and training for suppliers, covering over 1,538 suppliers.
Anti-Corruption Training
Anti-Money Laundering Internal Control System
The company strictly abides by the relevant provisions of the Anti-Money Laundering Law of the People's Republic ofChina, and has formulated and improved anti-money laundering systems like the Anti-Money Laundering Internal ControlSystem, the Anti-Money Laundering Self-Evaluation System, the Rules for Reporting Large Transactions and SuspiciousTransactions, and the Trade(Business)-based Money Laundering Risk Assessment Management Measures, Anti-moneyLaundering Evaluation Measures, the Anti-Money Laundering Self-Evaluation Implementation Rules, ManagementMeasures for Customer Identication and Customer Identity Information and Transaction Record Preservation. Internalauditing and supervision are built up to ensure various anti-money laundering and anti-monopoly systems are put inplace and e?ectively implemented. The Company has established an anti-money laundering internal control system fromthe aspects of nancial management and nancial monitoring.
Designate the Legal Compliance Department as theleading unit to take charge of the Company’s anti-moneylaundering e?ort and appoint one dedicated o?cer incharge of anti-money laundering in each department.Develop and revise internal regulations and processes,clarify the anti-money laundering obligations and eachdepartment’s anti-money laundering responsibilities,and regulate the reporting mechanism for suspicioustransactions and money laundering risk assessmentprocess.Operate the Anti-Money Laundering Information Systemto automatically identify and evaluate the customer’smoney laundering risk based on the anti-money launderingmonitoring list, customer identity, nancial product categoryand transaction amount, and communicate the moneylaundering investigation ndings to the business segment.
Review the source and owof specic cash transactionsto ensure the compliance andlegitimacy of capital ow and toeliminate illicit operations.Establish the CRM systemand GSP system to managecustomers and supplier les, carryout credit evaluation and reviewof customers and suppliers,and strictly control cooperativetransactions and supplier access.
Anti-Money Laundering
Financial Monitoring
Financial ManagementEvaluation
Publicity
Suppliersigning
Evaluation of integrity andhonesty performance; Integrityand compliance test
Integrity sunlight week, Integrityand honesty education exhibition,Integrity knowledge competition,Thematic lecture on the criminaljustice system, Short videos onintegrity and honesty, Greetingsmessages on integrity atFestivals
Supplier signing ceremony onintegrity and compliance
3637
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
R&D and Product QualityR&D and Product Quality
3839
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
R&D and Product QualityR&D and Product Quality
R&D Management Structure
It formulates key technical strategies, having a good commandof the trend of cutting-edge technology and technical layout.It also leads professional technical subcommittees and makedecisions on major products and technical projects.
Consolidate the Foundational R&D Capability
SANY Heavy Industry focuses on "electrication," "digitalization" and "internationalization" strategy to strengthen thefoundational technical and R&D capabilities. The Company has established a sound R&D management structure,adopting a hierarchical and matrix-based management model and planning an integrated technological R&D system.
Technical
R&DCommittee
The Company established management process throughout R&D project’s entire life cycle. In terms of the Researchand Development Project Management System, we made projects standard, including its scope, progress, risk,quality, change, human resources, nances, procurement and acceptance check to regulate the management processthroughout a project’s entire life cycle. The goal was to ensure the realization of the project’s objectives. In 2022, theCompany added the Three-generation Parallel
R&D Management System of SANY Heavy Industry. By clarifying thebasic rules of the "three-generation parallel" R&D strategy, we planned products and technologies in advance to facilitatebasic technical R&D. The Management Measures for Generic Technologies of Smart Products was formulated to instructtechnicians to identify such technologies according to specications and lessen the repeated development of projectsrelated to smart products. In 2022, SUNY Heavy Industry has invested RMB 7.826 billion in R&D, a year-on-yearincrease of 1.68%, accounting for 9.78% in revenue.
Three generations refer to SANY Heavy Industry's R&D strategic thinking of “One Generationof Marketing, One Generation of Reserve, One Generation of R&D.”
The Company lays emphasis on the R&D talent training to develop its corecompetitive advantage. The Company establishes the Innovation IncentiveSystem to stimulate the innovation enthusiasm of the R&D team and promoteR&D work. The System claries the criteria for rewarding R&D projects andencourages R&D teams to set targets at different stages and receive thecorresponding bonus. Rewarding R&D outcomes is a defining feature thatruns across a project’s entire life cycle. Additionally, we also place a high valueon developing a talent training system. The Company developed the TalentTraining Plan for our research personnel with different levels of expertiseto develop a stronger pipeline of scientists and researchers. In 2022, weconducted training programs such as dean course, product manager training,youth training camp and R&D lecture hall, with a total of 18 R&D trainingactivities covering a total of 7,848 person-times.
R&D Training Programs in 2022
Dean course
R&D lecture hall
Product manager training
Youth training camp
Innovation-Driven DevelopmentSANY Heavy Industry abides by the Patent Law of the People’sRepublic of China, the Trademark Law of the People’s Republic ofChina, the Enterprise Intellectual Property Management and otherapplicable national laws and standards. The Company has reviseda number of internal regulations, such as the Management Rulesof R&D and Patent Work and the Trademark Management System,and established a series of processes such as application, analysis,invalidation, operation, purchase and asset evaluation of patents.The goal is to create a whole chain of intellectual property service,which integrates innovation, application, protection and manage-ment.To promote the building of a digital intellectual property manage-ment system, we have developed a Patent Navigation System,which allows for patent management, patent information retrievaland patent shelf. R&D personnel can use this system to searchfor categories of our main products and patents of the spare parts,improving the e?ciency of preventing patent risk on and managingpatent assets.To comprehensively step up the protection of intellectual propertyrights and its legislation, the Company relies on legal approachesto crack down on infringement. In 2022, the Company won the law-suit of protecting patent rights and enforced the payment of RMB 4million, and initiated patent litigation against patent infringers with 3cases led.The Company actively applies intellectual property rights and stressthe commercialization of R&D achievements. In 2022, the Com-pany has made remarkable technical achievements in three smartdriving, smart operation and intelligent services.
Nine technical committees of machinery, control, hydraulic,trial, mock and digital twins, new engergy, unmanned driving,universality and industrial design.They are responsible for studying and reviewing the policiesand mid-and long-term plans of professional technical devel-opment, developing promoting and applying new products andtechnologies in the Company, preparing, examining and ap-proving the technical standards and operation specications,exchanging and sharing internal and external professionaltechnical achievements.
Nine TechnicalCommittees
Professional TechnicalSubcommittees
In 2022,The Company applied for
2,663
patentsApplied for
foreign patents1,781
e?ective invention patentswere grantedWon
China Patent Silver AwardsWon
China Patent ExcellenceAwardsParticipating in creating
nationalstandards and
organizationalstandards
4041
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
R&D and Product QualityR&D and Product Quality
Commercialization of Scientic Research Findings in 2022
Through self-developed L4 driverless technology,the pure electric dumper trucks are equippedwith functions like automatic unloading, parking,turning, stopping by and bypassing obstacles,collaborating signal lights and blind intersections,realizing the unmanned and intelligent driving ofthe pure electric dump trucks.Through the cloud control and V2X technology,the joint scheduling of three types of vehicles(dump trucks, mechanical loaders andexcavators) can help customers reduce over80% operators and save over RMB 1 million inannual costs.
SmartDriving
Over the years, the Company has been cooperating with well-established colleges and universities and various rst-classenterprises, with the aim of realizing interdisciplinary, cross-industry and trans-departmental integration and accelerateindustrial development by establishing a long-term and ordered mechanism. In 2022, SANY Heavy Industry has 71foreign cooperation projects totalling nearly RMB 43.5 million. There are 56 rst-class enterprises of various types in thecooperation with an amount of RMB 37.9 million.
On May 20, 2022, SANY Heavy Industrysigned a strategic cooperation agreementwith Mengfa Energy Group in Changsha.Both will carry out in-depth cooperation in thefields of waste filling, coal mining and newenergy.In terms of the agreement, both jointly pro-mote the recycling of coal gangue and theconstruction of green mines through in-depthcooperation in paste lling system and EPCproject, speedy drivage, fully-mechanizedmining equipment and new energy equipmentand services. This contributes to achievingthe national “Dual Carbon” goals and devel-oping green mines.
Signing ceremony
Case: SANY Heavy Industry and Mengfa Energy Group Reached Strategic Cooperation
Technical paths like prototype algorithmdesign, circuit conguration verication,hydraulic control simulation and real machineverication are adopted. The working deviceis equipped with sensors to control theexcavator's bucket trajectory and perform theone-button miscellaneous function.The data of pump trucks' operating conditionsis analyzed to nd the changing rules ofcommutations number and the main systempressure with di?erent operating conditions.In the way, the strategy optimization model foroperating pump trucks is formed.
With the cloud platform service forequipment data as the carrier, we realizethe commercial operation of intelligentservices in multiple industries, such asdi?erentiated intelligent order dispatchand intelligent security solutions.
Pursue Superior QualitySANY Heavy Industry pursues superior product quality.Product quality is ensured by building a quality manage-ment system for the whole life cycle. We also continu-ously promote customer service and communication andcooperation with customers. Brand core value is builtwith high-quality products and services.
The Company abides by the Product Quality Law of thePeople’s Republic of China and other applicable laws andregulations and has developed internal regulations, includingthe Importance Rating and Requirements of Product QualityProperties to state the rating principles and managementrequirements for the importance of product quality proper-ties. The Technical Notification Management System andTechnical Notice Management Procedures are formulated toclarify the handling process of product quality problems suchas after-sales failure and product repair. According to qualitymanagement systems like ISO 9001:2015, IATF 16949:2016,the Company requires all subsidiaries to meet its own qualitymanagement system requirements.
Quality Management
As of theend of 2022,
SmartOperation
SmartServices
subsidiary manufacturers of main engineand spare part
passed
the ISO 9001 orIATF 16949 certication.
4243
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
R&D and Product QualityR&D and Product Quality
QualityObjectivesManagement
QualityResources andPerformanceManagement
R&D QualityManagement
Manufacturing
QualityManagement
After-salesQualityManagement
SupplierQualityManagement
PlanningObjectivesReviewManagement
Quality Management System
Quality Management System
The Company attaches importance to the digital transformation by establishing quality information system,integrating digital information technology with quality management. In 2022, the Company realized life cyclequality monitoring by developing and launching Phase II quality information system, including 35 life-cycle qualitymonitoring, and by planning 6 subsystems and 40 business modules.To improve product inspection e?ciency, the Company has innovated and developed the intelligent vision qualityinspection system. The system utilizes the camera and other hardware equipment to enable the automaticmonitoring and can operate continuously. The smart system resolves inconsistency in manual monitoringstandards. We have also taken into consideration standard processes and special processes and developedmany machine vision quality inspection technologies in response to di?erent testing scenarios. These includequality inspections of blade, welding line, paint, machine, and rubber coating, detection of wrong and neglectedloading, and dimension measurement. This realizes integrated vision monitoring for various products. In 2022,SANY Heavy Industry implemented 28 visual quality inspection programs, greatly improving the technicalapplicability and product inspection e?ciency.To deal with emergencies like a product safety incident, SANYHeavy Industry has developed the Accountability ManagementSystem for Major Quality Defects to standardize the emergencyhandling procedures of product safety incidents. If there weremajor quality incidents, the Company would enable emergencyresponse mechanisms for product safety incidents and properlyhandle the situation according to the procedures. We would reportthe emergency response, losses and impacts caused to the QualityHeadquarters and the Board Office within 24 hours. During thereporting period, the Company reported zero major product safetyincident.
The Company abides by the Law of the People’s Republic of China on the Protection of the Rights and Interests ofConsumers, the Advertising Law of the People’s Republic of China, the Anti-Unfair Competition Law of the People’sRepublic of China and other applicable laws and regulations, establishes and improves the management systems forcustomer service to improves the overall customer service.
Intelligent dispatch,process monitoring,online evaluationand onlinesettlement apply to9 types of orders forsuch as fault call,maintenance, andinspection.
Service skills fallinto 10 levels, andrequired skills ofcustomer servicesta? are certiedfor employment.
The customer servicequality is evaluatedand o?ered incentivesfrom 6 aspects: ordersatisfaction, complainthandling, servicee?ciency, spare partssales, supply andturnover.
Calculation modelfor positioningpersonnel andequipment is usedto monitor thenormalization ofcustomer servicebehavior.
We conduct on-site customerinvestigationmonthly, testcustomer serviceorders and reportand rectify non-compliance.
Customer Service
Service Order
Monitoring
Service Trainingand Certication
ServiceEvaluationMonitoringof ServiceViolations
MysteryClientInvestigation
Customer Service Enhancement Initiatives
SANY Heavy Industry puts a high value on user feed-back, and has formulated internal documents like theCustomer Complaint Procedures, the Service Manage-ment System and the Customer Complaint ManagementProcess: From Filing to Settlement. We established andimproved the customer complaint handling mechanism,opinion feedback mechanism and rapid response mech-anism. We have classied the complaints into di?erentlevels and proactively handled them. We have made ourcomplaint-receiving channels public, including the 24-hour hotline 4008-87-9318, online support personnelon our official website and complaint filing via PM onsocial media. These have allowed us to collect feedbackfrom our customers promptly. In 2022, the Companyreceived 2,367 complaints with a customer satisfactionrate of 83%. In 2022, the Company conducted a seriesof customer satisfaction surveys, such as service travel,demand survey on customer discussion, customer sat-isfaction survey by third party. Customers are invited tovisit the factory to enhance interaction and improve cus-tomer service experience.
In accordance with the requirements of the PersonalInformation Protection Law of the People’s Republic ofChina, the Company has formulated systems like theInformation System Classification Management Sys-tem, the Information Security Incident Handling andEmergency Response Management System, the DataAccountability Management System, the Data AssetClassification Management Procedures, the SupplierInformation Security Management System, and the ThirdParty Information Security Management Regulations.We have established a system for managing and pro-tecting information security and data privacy. The goalis to respect and protect customers' privacy. We haveconducted regular training on information security forour staff and suppliers to enhance their awareness inthis area. In 2022, the Company conducted 5 thematictraining sessions on data leakage prevention and datacompliance awareness for employees, and 1 thematicinformation training on “Introduction to SANY Heavy In-dustry Technical Middle O?ce” for suppliers.
Quality MethodsManagementQualityImplementationManagementQuality CostManagementQualityExaminationManagementQualityImprovement
Quality Issues inR&DAccreditationManagementandImplementationR&DImplementationQualityManagement
QualityMeasurementand InspectionPlanProductionProcess QualityManagementFinishedProduct QualityManagementQuality AnomalyManagement
After-salesQualityProblemsManagement
Supplier QualityManagementBefore MassProductionSupplier QualityManagementDuring MassProductionSupplierQuality andPerformanceManagement
2022 SANY Heavy IndustryCorporate Social Responsibility Report
R&D and Product Quality
Jointly-Built Responsible Supply Chain
Committed to synergy and win-win, SANY Heavy Industry integrates the concept of sustainable development into thesupply chain by strengthening supplier management. The communication with suppliers is intensied to ensure productquality and stable production and operation with healthy and sustainable development with suppliers promoted.In accordance with the Law of the People's Republic of China on Tenders and Bids, the Regulation on the Implementa-tion of the Law of the People's Republic of China on Tenders and Bids and the relevant law-making stipulations of theplace where subsidiaries operate, SANY Heavy Industry has formulated the Supplier Management System and requiredall subsidiaries to establish an open, fair and just mechanism for supplier access and bidding management. We alsoclarify the scope of responsibilities of relevant departments in managing supplier access, evaluation and elimination.We examine the all stages of supplier access, evaluation and exiting. For newly accessed suppliers, we conducta comprehensive inspection from 6 dimensions, including their establishment years, access examination standardcompliance, quality certicate, environmental certication, tax payment and honest operations. After the examination andinspection, we conducted hierarchical management on suppliers according to their classication and inspection resultsof comprehensive capabilities. These suppliers are classied as strategic, premium, backup, active exiting, and negativeexiting suppliers.Committed to incorporating ESG strategy into the whole process of supply chain management, we have alwaysoptimized the environment and social responsibility performance of the supply chain through strict access management,qualication review, regular assessment and inspection. In this way, the environmental and social risks of suppliers aree?ectively controlled. We have applied technologies like big data and intelligent algorithms to e?ectively reduce supplychain risks. System- and platform-based standards for controlling supplier risks are set, which deal with possible risks inadvance, set o? early warning when risks are about to occur, and systematically handle mechanisms and trace supplierrisks after they occur.
Supplier Management
SANY Heavy Industry's ESG Management Strategy for Suppliers
We conduct a thorough review of the environmental certicate provided by the supplier during theaccess approval process, take a “zero-tolerance” approach to fake or expired certificates, andterminate dishonest suppliers.
We track the validity period of environmental protection certificate, quality certificate and othercerticates of accessed suppliers. The supplier's business is automatically frozen if the certicateis invalid, and the ESG-related qualication certicates of suppliers are e?ectively managed.
We designate fuel consumption as a critical metric and factor it into our product procurementassessment in order to practice green procurement.
ESG
The Company vigorously promoted the construction ofdigital supply chain platform and strengthened the man-agement efficiency of supply chain. In 2022, the Com-pany launched a new-generation GSP (Global SupplierPortal) platform, which realized online management andcontrol of core business processes from supplier accessto exiting, from sourcing to contracting and from planningto delivery. The platform optimizes the supplier intelligentrecommendation algorithm to publish business opportu-nities with the supplier's harvest rate of business oppor-tunity increased by 25%.A fair, transparent and objectivesupplier performance evaluation model is launched topromote independent improvement of suppliers with theprocurement share of premium suppliers increased by119%. In this way, intelligent procurement modificationand automatic balance between supply and demand arerealized 10 million purchase orders were automaticallyplaced with a modication reduction by 20%.
Regarding suppliers as important resources, the Com-pany establishes supplier communication mechanismand formulates supplier empowerment strategy. Throughthe training camps on “necessary knowledge and skills”in modules like SANY Heavy Industry values, businessprocess and system, quality requirements, new productdevelopment process, financial system, logistics andwarehousing, we realize value sharing and convenientbusiness development, ensuring cooperation between-SANY Heavy Industry and its suppliers. During the re-porting period, a total of 1,058 suppliers participated inthe training camps on “necessary knowledge and skills,”with attendance of 2,650 and 1,863 suppliers passingthe nal examination.The Company actively provides support for suppliersto help them improve their operational capabilities andproduct quality for a win-win outcome to be achieved.We organize teams corresponding to status quo of sup-pliers, such as quality assurance team, R&D team andthird-party organizations, to support suppliers improvetheir weaknesses in a targeted manner. During the re-porting period, the Company o?ered team support for 44suppliers to help improve their product quality and sup-ply capacity.
Supply Chain Digitalization
Supplier Communication
There are 2,040 suppliers, and one supplier may supply more thanone single category of product.
Number of SANY HeavyIndustry’s Suppliers in 2022
Chinese mainland
Number of suppliersaccording to regions
1,989
Number of production suppliers(Procurement of raw and auxiliary materials)
Number of suppliers of general productsNumber of suppliers of specialized products
Number of non-production suppliers(Project procurement)
1,795
1,479
1,179
Number of suppliersaccording to productcategories
We require suppliers to submit information about their social responsibility and environmentalcertication. They should also disclose such information as operational compliance, tax payment, socialsecurity contributions, environmental protection certificate, quality certificate, debt, the relationshipbetween shareholders and senior executives, and corporate governance capability.
We incorporate into the supplier evaluation system specific requirements of business ethics, staffmanagement, health and safety, energy conservation and environmental protection as well as resourceconservation. In the way, the system of a green supply chain is facilitated to be built.
We verify the information submitted by suppliers through on-site inspections. We have added corporatesocial responsibility terms and a sustainable development section to our Performance Evaluation Form.Additionally, we have worked to double-check the suppliers’ performance in terms of employment,human rights, corporate culture, and employee satisfaction.
HK, Macau andTaiwan, ChinaOverseas
2022 SANY Heavy IndustryCorporate Social Responsibility Report
R&D and Product Quality
4647
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe OperationsGreen and Safe Operations
2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe Operations
Following the guideline of “putting people first, putting prevention first,conserving resources and protecting environment," SANY Heavy Industrycontinues to improve the construction of HSE management system bystandardizing and normalizing the system with respect to the policy, proceduremanagement, supervision and inspection. In 2022, the Company revised theHSE Laws and Regulations Collection System, Identication, Assessment andControl System of Environmental Factors, Hazard Identication, Assessmentand Grading Control System and other relevant internal systems to furtherstandardize the identication, evaluation and control of HSE-related risks in itsactivities, products or services.We have also worked hard to achieve the HSE management system certica-tion for all our key operations and conducted external third-party HSE auditsannually. By the end of 2022, eight of the Company’s 23 subsidiaries of mainengines and spare part passed the ISO 14001 environmental managementcertication and achieved third-party external audit, and nine passed the ISO45001 occupational health and safety certification and achieved third-partyexternal audit.
HSE Management System
Construction of the HSE Management System
System Improvement
Issue the HSEManagement Manualas per ISO 14001:
2015 Requirementsand Guidance forUse of EnvironmentalManagement Systemand ISO 45001: 2018Requirements andGuidance for Use ofOccupational Healthand Safety ManagementSystem.Formulate HSE proceduraldocuments andmanagement regulationsto optimize the HSEmanagement system in anall-round way.
Institutional Construction
The Board of Directors isresponsible for reviewingand approving majordecisions related tocorporate environmentaland safety issues,monitoring seriousabnormalities occurredin environmentalmanagement.The Smart ManufacturingDivision does its duty inenvironmental and safetywork, and reports itsprogress to members of theBoard to ensure that theHSE management systemis e?ectively operated in theCompany.
Support for Implementation
HSE goals setting: the SmartManufacturing Division sets its annualgoals to be achieved in occupationalhealth, safety and environmentalmanagement, and requires itssubsidiaries to develop and split up theannual HSE management goals.HSE-associated performance: the HSEIncentives and Punishment System isestablished as a basis on which progressin HSE management is integrated intothe individual performance assessmentof the management. The policy thatsalaries are adjusted according to HSEperformance assessment species adecrease in rates of executives when apoor HSE performance occurs, whichis intended to encourage workers todevote themselves more actively in thejob, improve the overall performanceand promote relevant goals to berealized as planned.
34.78%
ofsubsidiaries have obtained ISO14001 environmental managementsystem certication and passedthird-party audits.
39.13%
ofsubsidiaries have obtained ISO45001 occupational health andsafety management systemcertication and passed third-party audits.
Measures for Whole-Process HSE Management
Safety, re, public security, and environmental management for stakeholdersCarry out necessary safety, environmental protection, re protection and other reviews of projectcontractors and suppliers;Sign safety, environmental protection, re protection, occupational health, public security and otheragreements with stakeholders.
Emergency management
Identify and control situations that may lead to environmental/safety incidents/events oremergencies at the Company;Emergency plans are formulated and emergency drills are conducted regularly.
Pollutant management
Eight subsidiaries are designated as units for prioritized sewerage management, all of which holdemissions permits and emit pollutants as permitted, and there has been no case of emissionsexceeding standards;Establish an environment self-monitoring program to monitor pollutants through automated monitoring,manual monitoring, commissioned testing, etc.
Occupational health and safety and environmental management for the introduction ofnew equipment, new materials, new technologies, and new processesIdentify and assess the hazards and environmental impact of new equipment, new materials,new technologies, and new processes before they are introduced;Conduct HSE education before adopting new equipment, new materials, new technologies,and new processes before they are introduced;Conduct normative acceptance inspection of projects that involve the introduction of newequipment, new materials, new technologies, and new processes before they are introduced.
Environmental impact assessment
Before the construction of the project, we carry out environmental impact assessment inaccordance with the laws and regulations in the area where the project is located, investigate andassess the adverse e?ects and risks on the surrounding environment during the life cycle of theproject, and formulate appropriate measures to mitigate and eliminate the adverse e?ects.
In accordance with the HSE Management Manual, we have formulated strict policies within the HSE managementsystem and implement integrated management of projects that encompasses pre-construction assessments, projectoperations and other aspects.
2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe Operations
5051
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe OperationsGreen and Safe Operations
With sustained e?orts in improving its long-term pollution prevention and control system, SANY Heavy Industry enhancesits management and control over the discharge of such environmental hazards as wastewater, exhaust gas and waste,which is to reduce pollution from the source, and we try to avoid environmental damages in our business operation. In2022, the Company attained a 100% compliance ratio for wastewater and exhaust gas discharge, and 100% compliancefor hazardous waste treatment. We had not received any signicant complaints or penalties relating to the environmentalissues.
Environmental Protection
Pollutants such as volatile organic compounds, welding/cutting fumes, exhaustgas from natural gas combustion, etc., are produced in the process of coating,welding, cutting, heating, and stoving. The Company always follows laws,regulations and standards, including Law of the People’s Republic of China onthe Prevention and Control of Atmospheric Pollution and Air Pollution Preventionand Control Action Plan issued by the State Council, to implement in-houserequirements for pollutant emissions in a strict way, and introduce advancedproduction technologies with low emissions so that we emit exhaust gas as perlaws and regulations.The Company controls its gas emissions from the source and across thecourse by continuously optimizing its equipment and production processes. Forinstance, SANY Heavy Industry uses environment-friendly paints in the coatingline, and promote the waterborne paint electrostatic spraying and electrostaticpowder spraying to reduce volatile organic compounds produced by traditionalelectrostatic spraying; the Company employs digital welding machines andautomatic spraying robots in welding and spraying workshops for less exhaustgas production with shorter working hours and higher working efficiency. Inan all-round way, we seek to reduce the impact of exhaust gas emissions onthe environment. In 2022, we made a success in the reduction of exhaust gasemissions from the source by means of process optimization and alternativematerials and in the improvement of air-purifying apparatus that works to controlexhaust gas emissions in the last link. In total, we have invested over RMB140 million in the whole year in reducing VOCs emissions by 134.83 tons. Withthe goal set to reduce exhaust gas emissions, the Company decreased VOCsemission per million revenue by 10% with 2021 as a base year. In 2022, VOCsemission concentration was 0.0011 ton per million revenue, a decrease of 39.71%compared with the base year, which has realized the goal.
Exhaust Gas Management
In 2022, Zhongyuan Company adopted environmentally friendly water-based paint instead of the originaloil-based paint in its boom coating line, upgraded the new dry painting method, applied draft fans, dry filtercartridges and activated carbon in the production line, and treated dusts from shot blast in a closed facility forgravitational settling and removal in a lter cylinder. As a result of the transformation, the VOCs emission wasdecreased by 63.67 tons/year, from 68.32 tons/year to 4.65 tons/year, achieving a reduction rate of 93.19%.With a total investment of RMB 19 million, the project received RMB 2.51 million allowance from the centralgovernment for air pollution prevention and control.
Upgrading and improvement of the coating line in Zhongyuan Company as a subsidiaryof SANY Heavy Industry for VOCs emission reduction
Production wastewater and domestic wastewater are the main sources of wastewater discharge by SANY HeavyIndustry. Wastewater pollutants primarily include chemical oxygen demand (COD), ammonia nitrogen and suspendedsolids. While the Company manages wastewater discharge in accordance with Water Law of the People’s Republic ofChina, Law of the People’s Republic of China on the Prevention and Control of Water Pollution and other regulations, oursubsidiaries fashion and enforce their own management system for sewage disposal, and strictly control the disposal anddischarge of industrial wastewater through innovation of production processes, on-line monitoring, upgrading of sewage-purification apparatus. In 2022, we reduced sewage discharge from the source by means of process optimizationand material replacement, and set a goal of less sewage discharge, which is to reduce chemical oxygen demand andammonia nitrogen discharge per million revenue by 8% respectively with 2021 as a base year. In 2022, the dischargeconcentration of chemical oxygen demand was 0.92 kg per million revenue, a year-on-year decrease of 58.21%, whileammonia nitrogen discharge concentration was 0.04 kg per million revenue, an decrease of 65.27%, which has realizedthe goal.
Wastewater Management
In 2022, SANY Heavy Industry Special Purpose Vehicle Co., Ltd. improved its processes from the source, whichdismantled the original spraying line and equipment, and instead built the pre-treatment + powder-sprayingline. In the selection of raw and auxiliary materials, it used the powder-based coating material (thermosettingplastic powder) rather than the oil-based coating material (oil-based paint), further reducing the VOCs contentand wastewater production. In this project, the COD was reduced by 1.19 tons/year, yielding a rate of 50.4%;ammonia nitrogen emission decreased by 0.05 tons/year at a rate of 20%; and suspended substance by 0.734tons/year, at a rate of 84.4%. With a total investment of RMB 41.78 million, it was granted RMB 7.47 million fromthe central government as the pollution prevention and control fund.
In-depth governance of paint alternatives from the source in SANY Heavy Industry SpecialPurpose Vehicle Co., Ltd. as a subsidiary of SANY Heavy Industry
In 2022overRMB
millionwas invested in exhaust gasmanagement
134.83
tons of VOCs emissionswere reduced
39.71%
less VOCs emissionconcentration than 2021
2022年
5253
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe OperationsGreen and Safe Operations
In 2022, Sauter Transmission began to purify the emulsion from the production and manufacturing processthrough vacuum distillation technology provided with the OWS vacuum distillation system. As a result, the distilledwater was recycled and reused, and produced residues were handed over to a certied third party for disposal.Since the project was put into practice, the volume of hazardous emulsion waste has been reduced by 377.1 tons/year from 418.96 tons/year to 41.9 tons/year, with a reduction rate of 90%.
Vacuum distillation of emulsion
Treatment of oil-containing wastewater with OWS
As per the Law of the People’s Republic of China on Environmental Protection, Law of the People’s Republic of China onPrevention and Control of Environmental Pollution by Solid Waste and other relevant regulations, SANY Heavy Industryestablishes a special system to manage waste in a normalized way, including Waste Management Guideline, which isto ensure that waste of all kinds are well disposed of and keep at bay impact of waste discharge on the surroundingenvironment.Taking into consideration their own production characteristics, each subsidiary of SANY Heavy Industry takes measuresfor waste management and control that satisfy the actual production need, involving waste reduction and recycling inlinks of waste generation, material use and recovery, so as to reduce the pressure of waste disposal and improve thee?ciency of resource utilization. The Company logically prepares the reuse of residual materials, recycles iron llingsformed during cutting to reduce industrial solid waste, and continuously promotes the switch from the oil-based paint tothe water-based paint, and from paint-spraying to powder-spraying, in order to reduce hazardous solid waste such aspaint slags and paint barrels. Hazardous waste incurred shall be stored in a closed container to prevent recontaminationbefore being handed over to a certied third party for disposal.
Waste Management
Pollutant Emission Data in 2022
SANY Heavy Industry focuses on biodiversityconservation. We carry out surveys and evaluationson natural environment in the preparation stage wherewe build or upgrade projects; we normally classify andevaluate potential sensitive targets, with a particularemphasis on nature reserves, critical wetlands, naturalconcentrations of endangered wildlife, spawning andfeeding grounds for important aquatic organisms,wintering passages for important aquatic organisms,coastal wetland ecosystems such as coral reefs, andother critical conservation areas. We only move on withthe project if we get confirmation that it will have noserious impacts on ecological resources and habitats,because we focus on preventing development fromdestroying biodiversity.
Biodiversity Conservation
IndicatorUnitValue
Exhaust gasemissions
Total exhaust gas emissionsCubic meter13,812,566,369.63SO
emissionsTonne2.00NOxemissionsTonne33.48VOCs (volatile organic compound) emissionsTonne85.03Total soot emissionsTonne94.09
Wastewaterdischarges
Total water dischargeTonne469,424.75Biochemical oxygen demand (BOD) dischargekilogram7,772.61Chemical oxygen demand (COD) dischargekilogram73,647.94Suspended solids (SS) dischargekilogram5,989.63Ammonia nitrogen (NH
) dischargekilogram3,209.22Waste
Total hazardous waste dischargekilogram4,946,538.00Total general industrial solid waste dischargeTonne194,814.02
Groundbreaking“zero discharge of liquids”
original wastewaterrecycle viathe municipalpipe network
OWS treatment system
reuse in the workshop/post-treatmentltration byactivated carbon
ltration viaceramic membrane
environmentallyfriendly treatment
about 90%clean water
about 10%waste oil
2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe Operations
SANY Heavy Industry continuously improves the low-carbonoperation and the construction of green industrial parks. Weprovide support for carbon reduction in production and operationby means of energy structure adjustment and technologicalimprovement, and promotes that all kinds of resources andenergies are economically used in the park through digital andintelligent transformation, devoting ourselves to the green andsustainable development mode in an all-round way.
Stick to Green Development
SANY Heavy Industry built China’s rst intelligent industrialpark for mixing station in Qingdao. In 2022, the distributedphotovoltaic system in the park was put into service,which uses the intelligent management platform as thecore, and operates in an unmanned way. The photovoltaicproject was invested with a total of 3.22 million, and it cangenerate 0.9 million kWh power in one year. Having beenput into use, the park can reduce carbon emissions by887 tons, dust emissions by 242 tons, sulphide emissionsby 26.7 tons and nitrogen oxide emissions by 13.4tons annually, realizing the coordinated development ofintelligent manufacturing and environmental protection.
Photovoltaic mixing station of SANY HeavyIndustry put into service
SANY Heavy Industry Kaiye green industrial park, Qingdao
Low-carbon OperationWith a focus on the transformation to green and low-carbondevelopment, the Company builds a chain of whole-process greenproduction on the basis of carbon reduction from the source,carbon reduction via the inter-connectivity system and in-processcarbon reduction.
SANY Heavy Industry follows standards like the Code for Construction andAcceptance of Industrial Automated Meter Engineering and the EngineeringTechnical Specications for Energy Consumption Measuring System of LargePublic Buildings to establish its equipment inter-connectivity system, with thepurpose of continuously promoting the digital and intelligent platform in factories,improving production e?ciency and reducing energy and resource consumption.In addition, we make gradual e?orts in the construction of energy and carbonemission monitoring platform, and continues to reduce carbon emissions withlean energy management. In 2022, over 3,000 energy measuring devicesconnected to our system. As of the end of the reporting period, we achieved acumulative connection of 23,000 devices, the compliance rate was 96%.
Carbon reduction from the source
The Company keeps to its e?orts in optimizing the resource andenergy structure. We improve the utilization rate of clean energyby using alternative clean energy, constructing solar powergeneration projects, purchasing green electricity and others, whichworks to reduce the carbon footprint of energy from the source.
Structure of SANY’s Equipment Inter-connectivity System
ERPPLMMES
In 2022
In-process carbon reductionSANY Heavy Industry designs production processes with energyconservation in mind, such as using digital welding machinesin the welding process, which save 20% more energy thantraditional analog welding machines and using high-efficiencydigital equipment for automatic control and management, whichimproves the operational efficiency of machining equipmentdramatically. In 2022, the energy conservation and emissionsreduction projects saved RMB 57.776 million, a year-on-yearimprovement of 20.11%.
subsidiariesinstalled photovoltaic equipment
clean energy consumption reaching
16.013
million kWh
clean energy utilization
accounting for
1.88%
Carbon reduction via the inter-connectivity system
In 2022, over3,000
energy measuring deviceswere connected to theCompany's system
DataProcessing
GivingInstructions
Control InstructionsAcquisition
PredictiveMaintenance
Big DataAnalytics
Real-time Data Storageand ProcessingVisualization
Quality
Management
Multi-source HeterogeneousReal-time Data Acquisition
Data StandardizationData IntegrationConnector
Industrial Network Communication Protocol
4G/5GWirelessNetworkIndustrialEthereum
DimensionalDatabase
AGVRobotCNC
Heat TreatmentFurnace
TestingEquipment
AutomaticProduction Line
OtherEquipment
In 2022, the energyconservation and emissionsreduction projects saved RMB
57.776
million
2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe Operations
Clean energy utilization = Photovoltaic energy consumption/combined energyconsumption.
5657
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe OperationsGreen and Safe Operations
Energy cost RMB 5.2538 million is saved with the application of numerical control equipmentinter-connectivity parameters.
Energy cost RMB 0.8866 million is saved by increasing the lingering temperature and adjustingthe tempering load mode to reduce the power output.
Energy conservation of heat treatment process
Energy cost RMB 0.2378 million is saved with the optimized mode in which the cooling tower ofquenching machine is used, providing full-range centralized refrigeration via water pipes.
Energy conservation of quenching process
Energy cost RMB 2.1879 million is saved by shortening the working time of the ventilationsystem to 2 hours on the premise that the dust removal e?ect was ensured;Energy cost RMB 1.5166 million is saved with daily electricity conservation of 11,088 kWh,achieved by optimizing the roof fan control cabinet mode, and adding automatic timing control.
Energy conservation of lamps
Energy cost RMB 66,400 is saved as LED lamps were used to replace metal halide lamps in thenew workshop, which are brighter and consume less energy.
Energy conservation of coating processEnergy cost RMB 0.4034 million is saved by optimizing the mode of initiating the coating line forstrong cold and hot air drying that is to change the manual operation to the program-controllingswitch, and the transformation reduces the gas consumption by 48.72%.
Energy conservation of degreasing processEnergy cost RMB 1.1811 million is saved due to the degreasing agent with low degreasingtemperature of 35-40℃ used as an alternative of existing degreasing agent.
Energy conservation of mechanical processing
The Company’s Energy resource Usage and Carbon Emissions in 2022
Combined consumption: The sum of all kinds of energy actually consumed in the production of a product or provision of a service during thestatistical reporting period, as converted according to the corresponding prescribed calculation methods and units. Calculation basis: GeneralPrinciples for Calculation of Combined Energy Consumption (GB/T 2589-2020).
Direct GHG emissions (Scope 1) mainly include emissions from the combustion of gasoline and diesel fuel in administrative vehicles andtransportation vehicles, and emissions from the use of natural gas. Calculations are as per the Greenhouse Gas Emissions AccountingMethodology and Reporting Guidelines for Machinery and Equipment Manufacturers (Trial Implementation). Fuel intensity is based on theEnergy Statistics Workbook (Energy Division, National Bureau of Statistics, 2010).
Indirect GHG emissions (Scope 2) mainly include emissions from purchased electricity and purchased heating. The national grid emissionfactors are based on the Notice on the 2023-2025 Work Related to the Management of Corporate Greenhouse Gas Emissions Reporting inthe Power Industry.
IndicatorUnitValue
Energy use
Purchased electricitykWh517,468,826.71GasCubic meter22,968,641.39GasolineLiter19,291.41Clean energykWh16,013,025.53DieselLiter8,536,665.79Combined energy consumption
tce104,614.50Water useMunicipal water supplyTonne5,318,636.75Packaging material usePackaging materialTonne3,272.34Greenhouse gasemissions
Scope 1
tCO
e71,903.88Scope 2
tCO
e295,112.47Total of Scope 1 and Scope 2tCO
e367,016.35
Fan energy conservation
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Achievements of Smart Park Development in 2022
SmartDormitory
Goals Developing Intelligent Industrial Parks
SANY Heavy Industry continues to build smart industrial parksthat are in line with “Safety, Experience, and Efficiency.” Weimprove digitalization for higher work efficiency and betterexperience in the industrial park, promotes digital transformationof operation services, and achieves resource saving and sharing,and energy conservation. In 2022, the Company carried out theconstruction of Smart Park 3.0, involving 18 parks nationwide.
Intelligent Industrial Parks
Basic safety,equipment safety,functional reliability,data security,access security,
logging, emergency plans
Safety
Experience
Convenient experience,online data,intelligent services
E?ciencyCost reduction ande?ciency enhancement,
collaborativemanagement,value addition andrevenue generation
SmartO?ce andSmart PropertyManagement
SmartCanteen
AccessControlTransparent dormitory and hostel resources,accurate occupancy data, online e-contracts,and full online processing from booking tocheck-in that reduces use of paper;Smart door locks and smart water and elec-tricity meters capable of analysis of abnormaldata for timely response and reduced con-sumption;Online program developed to pay fees ca-pable of 95% payments automatically forreduced human and energy e?ciency costs;In 2022, dormitories in 18 industrial parksacross the country had access to the system.
2.5D visualization of workstation resources
with significantly improved resource utiliza-tion in the o?ce area;SANY Heavy Industry+ and Lark Suite onlineservices that collect and process repair re-quests in a closed loop. SANY Heavy Indus-try+ has been applied in 18 industrial parksnationwide, used by more than 30,000 times;In 2022, 18 industrial parks established theonline smart o?ce system.
A white list mechanism for suppliers based on sub-mission of qualication and health certicates and on-line monitoring of purchase, sales, inventory, pesticideresidue detection results, food sample retention, andoperating data for reducing food waste due to over-supply;Synchronization of sHR (system of Human Resource)data for cross-park dining for employees;An online approval OA process for visitor-diners, withcomprehensive functions such as QR code payment,online top-up and real-time notication of payment in-formation;In 2022, 15.91 million orders were completed, with25,399 employees and 18,366 visitor-diners serveddaily.
Face recognition access control for employeesacross parks and smart NFC (near-field com-munication) based patrol to ensure security andimprove passage e?ciency;A self-service visitor system shortens visitor pas-sage time from 1 minute to 10 seconds, improv-ing the passage e?ciency;Abnormal vehicle traveling is analyzed on thebasis of GPS data to lower carbon emissionscaused by unlimited vehicles usage for personalpurposes;Uploading vehicle fuel consumption data, helpfulto control vehicle use according to fuel con-sumption.
Green and Safe Operations
Green and Safe Operations
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe Operations
The Company formulates a HSE Training System for Employees, acting positively in safety culture development. Wecarry out a series of work safety trainings, including three-level work safety training, thematic HSE training, pre-shiftwork safety meeting, safety training on “new equipment, new materials, new technologies, and new processes,” worksafety training upon production resumption, and work safety training for job transfers, and encourages our sta? withincentives to actively take part in safety trainings. In 2022, we developed thematic trainings on re protection, mechanicalsafeguarding and special equipment safety. The trainings were attended by approximately 268,190 person-times with418,920.5 hours in total.
Maintain a risk register that includesrisk names, risk locations, risk types,
level-based control measures, and
responsible persons.Display announcements in prominentpositions in areas with major safety risks andcreate job safety risk information cards.Risk warning
Risk register
Risk assessment
Classify the hazard sources using the JHA+LEC
assessment method (the Benjamin Grahamapproach) by dividing hazards into four levels in
the descending order of severity: majorrisks (red), signicant risks (orange),general risks (yellow) and minor
risks (blue).
Identify the hazards in the production environment,employee behavior, status of materials, etc.,according to the Classication for Casualty Accidentsof Enterprise Sta? and Workers (GB 6441-86)and the Classication and Code for theHazardous and Harmful Factors during theManufacturing Process (GB/T 13861-2009).
Risk identication
The Company understands the reality at the production site, guided by 3R (Real Site, Real Object, Reality) principle,to formulate the 3R Management System and 6S Management of 3R Data, and establishes a three-level managementsystem featuring “Company-Business Division/Subsidiary/Industrial Park Administration-Operation Site”. It is toimprove the 3R management and 6S management levels involving safe production. We installed surveillance camerasin industrial parks, implemented a grid-based management model to select a person specifically responsible formanagement in the working area, and carried out self-inspection activities every month to ensure safety, which isintended to find and exclude potential issues and improve 3R management. In 2022, by managing the 3R data, wecarried out 38 cost reduction and e?ciency improvement projects, achieving cost savings of RMB 70 million and a 6Sviolation rate decrease from 0.407‰ to 0.13‰, a year-on-year decrease of 68.05%.
Work Safety and Training
SANY Heavy Industry strictly complies with the Law of thePeople’s Republic of China on Work Safety, the Law of thePeople’s Republic of China on the Prevention and Controlof Occupational Diseases, the Provisions on Safety Trainingof Production and Operation Entities, the Guideline of ChinaOccupational Safety and Health Management Systemand other laws and regulations to put into e?ect the safetyconrmation, training and warning. We make every e?ort toenhance health and safety of our sta?, suppliers and otherstakeholders.
Occupational Healthand Safety
To enhance the Company’s safety risk management and control, we carry out scientic safety risk management throughthe use of information technology and standard operating procedures in accordance with the Guideline of ChinaOccupational Safety and Health Management System (GB/T 33000-2016). We identify and analyze potential safetyrisk, classify the risk, maintain a risk register, and display on-site announcements for risk warning, to help prevent safetyissues from occurring.
！
In 2022, SANY Heavy Industry provided a training on mechanical safeguarding for its business division andsubsidiaries in a comprehensive manner that types of mechanical injuries, protective measures, protectivedevices and application of mechanical safety technologies were included. The training was attended byapproximately 20,000 people with a pass rate up to 92%, which e?ectively improved the safety awareness of theCompany’s employees.
Thematic training on mechanical safeguarding
Training on mechanical safeguarding
Protective Devices for Mechanical Hazard
Distance-based guard: the guard used in not completely closed dangerarea, which is capable of preventing the operator entering the danger areaor reducing the need to enter the danger area according to its size anddistance from the danger area, such as the barrier-guard or channel-guardEnclosed guard: a device preventing the operator entering the dangerarea in any directionFixed guard: a permanent part of the machine, working independently of anyother part, permanently xed (eg. welded); or xed by the fastener (screw, bolt,etc.), unremovable or unopenable without a tool
Green and Safe Operations
6263
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Green and Safe OperationsGreen and Safe Operations
We have developed measurable health and safety performanceand adopted several occupational health and safety protectioninitiatives to continuously improve health and safety managementeffectiveness in accordance with our internal systems such asthe HSE Management Manual, HSE Incentives and PunishmentSystem, HSE Performance Incentives and Punishment Manual, andProtective Equipment Management System. We conduct monthlyHSE performance assessments on injury rate per thousand people,accident incident rates, injury rates in a thousand workers, incidencerates of occupational diseases, allowing the HSE managementsystem goals to be incorporated in the annual performanceevaluation of executives and other responsible persons. We adjustsalaries based on results of the annual environmental, healthand safety performance assessment, and require lower executivecompensation as a decrease in relevant HSE performance occurs.
Occupational Health and Safety
Occupational Health and Safety Initiatives
Strictly follow the regulatory requirements on occupational disease prevention in implementingnew, upgrading and expansion projects.OccupationalDisease Prevention
and Control
Require employees to strictly observe labor discipline and work safety rules, regulations andstandard operating procedures.
Standard OperationRequirements
The Company has formulated the Safety, Fire Protection, Public Security and Environmental Management Policyfor Stakeholders whose safety is also our concern, and continues to take measures to ensure heath and safety ofstakeholders, including the safety of their life and property.
Stakeholders Health and Safety
Measures Taken to Protect Safety and Health of Stakeholders
Employees
Employment contracts are signed with all short-term contract workers/temporaryworkers/interns, three-level safety training is provided for them, and all posts are heldby persons with the required qualications who are engaged in special work and specialequipment operation.
Health and safety goal:
To reach an injury rate in a thousandworkers
of3‰Health and safety performance:
Injury rate in a thousand workers of
1.5‰
The number of occupational diseasewas
The number of occupational health andsafety accident was
Occupational physical examination ratereached
100%
Assign well-trained teams to conduct health and safety assessments with the attendanceof employees or employee representatives and make it clear that employees have the rightto refuse to perform work that endangers their life or health.Health and SafetyRisk Assessment
Provide employees with a healthy and safe working and living environment, ensure that theworkplace complies with the requirements of laws and regulations in terms of drinking water,sanitation, re safety, lighting and ventilation, and take appropriate measures to minimize thehazards in the working environment on the basis of compliance with laws and regulations.Workplace Safety
Provide employees with personal protective equipment required by their work.
Personal ProtectiveEquipment
Value the health of employees and organize health checks for them on a regular basis, inaddition to providing pre-entry and preexit occupational health examinations required in theTechnical Specications for Occupational Health Surveillance.
Health Check
Suppliers
All suppliers are subject to qualication review in terms of business license, corporatecertication, professional certication, transportation certication, and business permits;their operators are provided with safety training and personal protective equipment; andthey are required to sign the Safety, Fire Protection, Public Security and EnvironmentalManagement Policy for Stakeholders.Project ContractorsAll contractors are subject to review in terms of required certications and credentials forpersons who are engaged in special work and special equipment operation and requiredto strictly comply with the Company’s safety, environmental protection, fire control,occupational hazard and public security rules.
Resident Stakeholders
All resident stakeholders are included in safety management, receive regular safetytraining, and are subject to regular safety inspections.Public Service/Government PersonnelThey are subject to safety training and informed of safety protocols by the respectivecompetent government departments.
In 2022
Lessees
All lessees are subject to review in terms of required certications and informed of thesafety hazards present in the leased premises and the Company’s safety, environmental,re control and other systems.
An injury rate in a thousand workers(‰) = Number of sta? injured by the work/total number of sta?×1000, number of sta? injured by work is thesum of deaths and sta? with slight or severe injuries.
6465
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
R&D and Product QualityR&D and Product Quality
6667
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Workplace and EmployeesWorkplace and Employees
SANY Heavy Industry has arranged relevant recruitment and employment policies according to the actual conditionsrigorously following the Labor Law of the People’s Republic of China, the Labor Contract Law of the People’s Republicof China, the Regulation on the Implementation of the Employment Contract Law of the People’s Republic of China andother national laws and regulations to comprehensively safeguard the legitimate rights and interests of employees. Inaccordance with Provisions on Prohibition of Child Labor and other relevant laws and regulations, we strongly prohibitchild labor and any form of forced labor, and verify the identity of new employees before they join the Company. We arecommitted to avoiding child labor in any situation. The human resources department of the Company will seriously dealwith the employment violation, if any, according to the internal labor management regulations. At the end of the reportingperiod, no forced labor or child labor has occurred in the Company.We adhere to the principle of diversity and equal opportunity and ensure that discrimination against employees forthe gender, region, race, age, marriage, disability, political stance is eliminated in recruitment, remuneration, trainings,promotion, etc. We continue to enhance the availability of employment information at the recruitment stage, and expandrecruitment channels to attract talents through online sessions, public information platforms, o?ine two-way job fair andothers. At the end of 2022, the Company hired 26,374 employees, and females accounted for 12.5% of executives.
Protect Rights and Interests of Employees
The Company’s Employee data in 2022
Number of employees by rank (Person)
High-levelemployees
12,586
13,591
Total number of full-time employees: 26,374 personNumber of employees by gender (Person)Male employees:
23,274person
Female employees:
3,100person
8,256
17,359
≤30≥51
31—50
21,671
4,695
ChinesemainlandChina’s Hong kong,Macao and Taiwan regions
Overseas
Number of employeesby role type (Person)
10,371
7,466
5,079
3,458
Productionworkers
R&D personnelOther personnel
SANY Heavy Industry adheres to the core value of “Fostering First-class Talents” and attaches great importance toemployee growth. We have implemented a promotion system providing employees with multiple career plans, andconstructed diversified compensation and welfare mechanisms, striving to maximize the initiative of employees andempower their development.
We have established a system of promotion in management and R&D to satisfy employees in career plans anddevelopment and assure the Company of talent sources in management and R&D. Putting emphasis on the selectionof talents, SANY Heavy Industry formulated the Employee Promotion Policy, and announces promotions based onprofessional ability and personal inclinations.
Focus on Talent Growth
Promotion Assessment
Promotion System in SANY Heavy Industry
professional
talentssenior manager
Promotion Channel for Management Personnel
Promotion Channel for Management PersonnelManagement talents
Mid-levelemployees
GeneralemployeesNumber of employeesby age (Person)
Number of employeesby region (Person)
Businessmanagementpersonnel
R&D talents
Promotion Channel for R&D Personnel
Promotion Channel for R&D Personnel
leadership
professionaltalents
leadership
managercommissioner
director/BusinessDivision CEO
supervisor/generalmanager of the subsidiary
departmental head/departmental supervisor
engineer of special gradeexpert engineersenior engineermid-level engineerjunior engineerassistant engineer
chief engineerdeandirector
6869
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Workplace and EmployeesWorkplace and Employees
To ensure fair and just promotion, we stick to performance-driven policy that relates assessments with the promotion. Wehave established performance evaluation standards and incentive and restraint mechanisms for senior management,as well as a performance management system for all regular employees for work reporting and performance evaluationhierarchically. E?ective incentive is given to employees.Performance Assessment Mechanism
Employees with Rank 16 and below who get a rating above “Upper Middle” in theinterim/annual performance assessment are eligible for rank promotion.
Management members with Rank 19 to 24 who get ratings above “Upper Middle” fortwo consecutive years and at least one “Top” rating in at least one of the two years areeligible for rank promotion; the rank promotion cycle is not less than two years, i.e., twopromotions should be at least two years apart.Management members with Rank 17 to 18 who get a rating above “Upper Middle” in theinterim/annual performance assessment are eligible for rank promotion.
Employees
MiddleManagement
Taking into consideration our own business characteristics, SANY Heavy Industry has established a training systemto support our business development, providing employees with trainings that meet their professional needs anddevelopment plans. In 2022, we optimized the training system with training activities onboarding, professional skillimprovement, internal sharing, etc., and deeply tap the potential of employees through training courses. The providedtrainings cover 20,683 employees, occupying 78.42% of the total, with an average of 96.80 training hours per employee.
Employee Training
SANY Heavy Industry Training Plan in 2022
Marketing strategicreserve trainingCenter director youthtraining campDomestic marketingsystem trainingInternational marketingsystem trainingEnglish training for“223 Going Abroad” plan
Subsidiary general managertraining program
Leadership andmanagement moduleTop-selling module
Marketing moduleDigitalization moduleMarketing strategyMarketingmanagement andpractice
Risk managementDigital marketing
Leadership
SANY Heavy Industryproject managementQuality management
Cost managementIntegratedmanagementMarketing theorySANY Heavy Industrymarketing
Businessnegotiations and risksMarketing strategyand techniquesMarketing theorySANY Heavy Industrymarketing
Businessnegotiations and risksMarketing strategyand techniques
RegionalmarketingBusiness EnglishInternational
business etiquette
7071
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Workplace and EmployeesWorkplace and Employees
In 2022, SANY Heavy Industry carried out the“Digitalization and Intelligence” learning activity,in which all employees read Guidance toDAMA Data Management Knowledge System,Smart Business, Online and other books.The Company thoroughly examined learners’understanding of relevant books by organizingo?ine examinations, reading sharing meetings,Feynman speech competitions and otheractivities as ways for learners to effectivelyconsolidate learning fruits, further laying atheoretical foundation for the Company's digitaland intelligent transformation.
On-site reading sharing meeting
SANY Heavy Industry Holding “Digitalization and Intelligence” Learning Activity
SANY Heavy Industry Employee Training Data in 2022Number of employees trained:
20,683 personNumber of employees trained by gender (Person)Number of employees trained by rank (Person)
Number of hours of training for per employee
by gender (Hour)
Number of hours of training for per employee
by rank (Hour)
17,823
2,860
Maleemployees
Femaleemployees
10,126
10,368
Besides providing employees with competitive basic wages, the Company has multiple incentive schemes, such asannual performance bonus, medium- and long-term equity incentive plans, prot-sharing plan, out-performance bonus,special bonuses and interim (annual) salary raise. The Company continues to put into practice the employee stockownership plan. In 2022, the Company granted shares to a total of 7,000 employees, amounting to RMB 485 million.We developed a comprehensive welfare system, and established our Employee Welfare Management System thatfurther claries the benets available to employees. In addition to statutory benets, the Company provides extensivesupplemental benets, including supplemental insurance, holiday supplies, meal subsidies, paid annual leave, familyopen days, dating activities, and schooling for employees’ children. Moreover, the Company continues its sponsorededucation program for outperforming employees by sending them to various study and training programs in cooperationwith leading domestic and overseas universities.
Compensation and Benets
SANY Heavy Industry Welfare and Benet System for Employees
The Company contributes and maintains various social security insurances for employees such as pensioninsurance, medical insurance, work injury insurance, maternity insurance and unemployment insurance andpays housing fund contributions in accordance with national regulations.Employees’ rights to enjoy holidays (including wedding, bereavement, birth, illness, etc.) are protected.StatutorybenetsOthercommercialinsuranceHousingbenetsTranspor-tationbenetsHoliday giftbenetsClothingbenetsHot weatherbenetsLife eventbenetsCateringbenetsEducationof employees’children
High-levelemployees
Mid-levelemployeesGeneralemployees
97.2096.10
86.40
97.1096.60
High-levelemployees
Mid-levelemployeesGeneralemployeesMaleemployees
Femaleemployees
Number of hours of training for per employee:
96.80 hours
The Company insures interns, foreign experts and workers going abroad on business with correspondingcommercial insurances according to Policy for Employee Commercial Insurances and other documents.The Company provides accommodation for all employees in accordance with the Sta? AccommodationManagement Measures to help its employees deal with the housing issue.There are employee shuttle transportation services between the industrial parks and chartered bus servicestransferring employees to and from home on weekends and holidays.The Company distributes supplies to all employees on the occasion of traditional holidays such as the SpringFestival, Dragon Boat Festival and Mid-Autumn Festival according to Holiday Supplies Distribution Standards.The Company provides free working clothes for all employees, as specied in Management of Working Clothes.Every summer from June to August, the Human Resources Department counts the number of employees andthe Administrative Department purchases and distributes heat protection items. The standard of heat protectionbudget is RMB 100 per person for production workers and RMB 15 per person for other employees.The Company provides congratulations and condolences allowances for employees at prescribed rates formajor life events such as wedding, bereavement, birth, and serious disease.
The Company helps employees deal with school issues for their children.
Contract employees are entitled to a monthly allowance for working meals, with rice, porridge, soup, etc.,provided free of charge by the CompanyThe Company provides senior employees with meals in working time according to Management of SeniorEmployees Dinning in Cafeteria.
7273
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Workplace and EmployeesWorkplace and Employees
The Company has established a perfect staff congress systemand trade union as a solid basis on which it e?ectively safeguardsemployees’ rights to know, to participate, to express and tosupervise, and it can deepen democratic management. Weunderstand and respond to hopes and needs of employees viavarious employee engagement channels such as HRSSC serviceplatform
, routine seminar, sta? congress, employee coordinationmeeting, employee interview. In 2022, we got the iSany applicationonline, providing employees with 35 most common workingscenarios as one-stop service based on their needs to furtherimprove our e?ciency of handling employee comments.The Company highly values to the satisfaction of employees in lifeand work, for which it holds survey on team atmosphere and listensto employees on a regular basis. According to the results, it ndsout, identies and solves problems to provide support for employeemanagement system and level improvement. In 2022, the Companycollected 20,262 useful questionnaires of team atmosphere,showing the employee satisfaction of 87%.
Employee Communication
Human Resources Sharing Service Center platform.
Employee Care
As a people-oriented company, SANY Heavy Industry strengthensemployee communication, provides more humanistic care, andperforms diversified activities, creating a warm and comfortableworking and living environment for employees and enhancing theirsense of well-being and belonging.
We take all kinds of measures to provide humanistic care for employees, for example, free professional psychologicalcounseling that is to help them relieve emotions and pressure in work and life; maternal and infant rooms; flexibleworking hours; a special system to help employees in need with subsidies and allowances so that they can feel thetimely care of the Company. In 2022, the Company granted a total assistance of RMB 428,700 to help 32 employees inneed.At the same time, we actively carry out diversied employee activities to energize employees in an e?ective way, whichcan not only enrich the work and life of employees but enhances the cohesion of the sta?.
Employee Care
the Company granted atotal assistance of RMB428,700
to help
employees in need
On May 14, 2022, the Company held a fellowship activityfor single employees to help them meet a partner. Work-ers from Changsha educational and medical systemswere invited, a total of 78 males and females who werepresent. At the end of the event, a total of 9 couples suc-cessfully developed a romantic relationship, effectivelyenhancing the sense of gain and happiness of the Com-pany’s single employees.
Employees in the fellowship activity
“SANY Heavy Industry Love” Developing Fellowship for Employees
In August 2022, the Company organized the annualparent-child activity of caring “Little Migratory Birds” inthe way of “factory visit plus outward development”. Itattracted more than 60 employee families to participate.During the activity, the “Little Migratory Birds” visited theSANY Heavy Industry Industrial Park, Underwater World,Sports Park, Longping Rice Museum, Hunan CPC His-tory Museum and other places, learning social scienceknowledge when understanding their parents’ daily work,and expanding their visions, which greatly enhances therelationship between children and parents.
“Little Migratory Birds” in the on-site activity
Care “Little Migratory Birds”, the Parent-child Activity
Providing employees with
most commonworking scenarios as one-stop service based on theirneeds
Employee satisfaction of87%
7475
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Giving Back to SocietyGiving Back to Society
7677
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Giving Back to SocietyGiving Back to Society
In September 2022, SANY Heavy Industry Foundation, PartyBranch of the International Economic and Trade School inHunan Trinity Industrial Vocational and Technical College,and Green Hunan worked jointly to carry out the voluntaryactivity of cleaning Laodao River beach beside Songya LakeNational Wetland Park, Changsha. It was engaged by a totalof 18 teachers and volunteers, who spent nearly 40 hours ofvoluntary service picking up 2,489 pieces of garbage weighing
44.85 kilograms. While making contributions to the cleanliness
of Ladao River beach, they understood the significance ofenvironmental protection.
Trinity taking part in beach cleaning
Hunan Trinity Industrial Vocational and Technical College founded by SANY HeavyIndustry taking part in beach cleaning
SANY Heavy Industry advocates employees and theirfamilies to participate in public services and voluntaryactivities in an in-depth way that they can cooperate withSANY Heavy Industry Foundation. With its services mainlytoward low carbon, friendly community, education andinnovation, SANY Heavy Industry further expands modes ofthe community participation and promotes co-constructionbetween the Company and communities in a friendly way.In 2022, the Company’s employees totally provided 687.4hours of volunteer activities.
Public Services andVoluntary Activities
In 2022, SANY Heavy Industry Foundation, SANYHeavy Machinery, and the Amity Foundation in Kunshanprovided joint e?orts in the voluntary activity of “Benetinga Heart and Creating a Dream,” leading volunteers tovisit Amity bakery where children with Down’s syndrome(mentally challenged children) can receive rehabilitationand opportunities to integrate in the society. They gaveaccompanying, acceptance, affirmation and recognitionto those children who can be helped to regain social skillsfor enhanced life condence.
Volunteers making cookies with“mentally challenged children”
“Beneting A Heart and Creating A Dream”
“Love House for Slow Angels” is located in ChengxiCommunity, Xianglong Street, Changsha County, HunanProvince, open for free to families having a child withcerebral palsy who is provided with free accommodationand training site. In July 2022, SANY Heavy IndustryFoundation, together with the Party Branch of the Schoolof Engineering Machinery, the Party Branch, the firstAdministrative Branch and the second AdministrativeBranch of the School of Building Industry in the College,carried out the voluntary activity in the House. 18 SANYHeavy Industry volunteers were exposed to the power oflove and persistence while spending time with 20 families.
SANY Heavy Industry volunteersspending time with Slow Angels
Hunan Trinity Industrial Vocational and Technical College founded by SANY Heavy Industrytaking part in care activity for Slow Angels
“Bookcrossing in Summer” donation ceremony
It was engaged by a total of 18teachers and volunteers,who spent nearly
hoursof voluntary servicepicking up
44.85
kilogramsof garbagepicking up2,489
piecesof garbage
In August 2022, SANY Heavy Industry Foundation, the First Branch, and Huaxing Branch of Party Committee ofSANY Heavy Machinery jointly launched the “Bookcrossing in Summer” activity with Datong Social Work ServiceCenter in Kunshan City. More than 300 children’s books and toys were donated by 40 volunteers who are CPCmembers to children in need as extracurricular reading resources.
“Bookcrossing in Summer”
7879
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Giving Back to SocietyGiving Back to Society
It is a key link to strengthen rural public infrastructure construction in thecourse of Rural Revitalization. For a long time, the imperfect infrastructure inrural areas remains as a great obstacle to the promotion of comprehensiveRural Revitalization, as well as to the improvement of farmers’ livingstandards and living conditions. To improve the situation, we have beencommitted to improving the infrastructure in Daotong Village for a long timeby implementing a series of projects, including water network renovation,installation of streetlights, medical and health care center, and rural lodgingservice studies learning center, which has removed important obstacles tothe revitalization of Daotong Village and brought practical convenience to thevillagers.In 2022, 530 streetlights had been installed for 3,818 residents in 1,147households across the whole village; we completed the project to improvethe water quality in Longtang Lake and water network renovation, assuringvillagers of safe drinking water; the medical and health care center is beingbuilt, which will provide 608 elderly residents with basic medical care service.
Infrastructure Revitalization
Longtang Lake with improved water quality
To implement “Iindustrial Revitalization, Talent Revitalization, CulturalRevitalization, Ecological Revitalization, and Organizational Revitalization,” theCompany collaborates with SANY Heavy Industry Foundation to help and supportDaotong Village in Lianyuan City, Hunan Province with its Rural Revitalization ona full range of dimensions, which focuses on infrastructure, medical health, co-construction with villagers, industrial development and educational revitalizationand develops with a scientific concept. In 2022, we invested a total of RMB
9.75 million in funding 4 integrated support projects, 2 infrastructure projects, 4
education projects, 4 healthcare projects and 1 industrial development project, allachieving fruitful results.
Support Rural Revitalization
The rural comprehensive revitalization cannot be conducted independentlyof rural elderly care, whose improvement is related to vital interests of theelderly in rural areas and can also improve their happiness and satisfaction.In Daotong Village, we adhere to the mode of integrating medical carewith elderly care. We have trained a local professional service team withsocial workers as the core, rural nursing sta? as the basis, and professionalmedical team as the support, conducting the comprehensive diagnosis andmanagement of hypertension and other diseases, and making key elderlypeople in the Village fully covered by the health monitoring. We help Daotongelderly people to live a life “being greeted, being helped when in need,being treated when sick, being responded to when in emergency, and beingaccompanied when lonely.”In 2022, we had provided home elderly support to 5,611 recipients, self-conducted elderly engagement services to 871 recipients, medical visitservices to 937 recipients and home life care services to 2,930 recipients, withan overall satisfaction of 96.8%.
Elderly Care
We had provided home elderlysupport to
5,611
recipientsin Daotong Village
with an overall satisfaction of
96.8%
Social workers helping the elderly to go out Social workers helping the elderly with haircut
The number of streetlights that hadbeen installed in Daotong Village is
provide basic medical careservice to
elderly residents
8081
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Giving Back to SocietyGiving Back to Society
The key to Rural Revitalization is industrial revi-talization, a focus on which we can promote ruraldevelopment. We have built the demonstrativemodern agricultural base in the village, where aphilosophy is used to guide agricultural devel-opment that is ecologically and environmentallyfriendly for earth protection, which can work asour development goal to help us create rst-classagricultural products. In the base, we plant specialproducts, including rice, melon, pumpkin, cabbageand strawberry, and sell for gains that are investedin rural and industrial revitalization. As of the end of2022, we have established 180-mu demonstrativemodern agricultural base, with an accumulative in-vestment of millions in soil improvement, purchaseof modern agricultural equipment, introduction anddevelopment of new crops, formulation of techno-logical regulations, etc.
Industrial Revitalization
The key to Rural Revitalization is education thatplays an underlying and leading role in the course.We are committed to investing in improving therural education environment to provide solid humanresource support for agricultural modernizationand rural development. In 2022, we o?ered RMB
4.65 million to support education charity projects
and digital transformation of charity organizationsin several provinces and municipalities.
We have made active e?orts to promote educationequity and education charities. We together withthe China Development Research Foundationand local education departments provided fundingand training support for various rural middle andprimary school, pre-school education and childcare projects to strengthen rural basic educationinfrastructure.In 2022, the Company continued to developthe education project in Wenshan Prefecture inHainan with an investment of RMB 1.3 million,covering 134 kindergarten classes in XichouCounty. As a result, the kindergarten support andteacher training programs cumulatively benefiteda total of 5,725 persons, with the local pre-schooleducation enrollment rate increased to 95.65% in2022, and promoted the local pre-school educationdevelopment.
We continued to expand the scope of childhood education and advance education model innovation. In order to fosterrural children’s scientic thinking and engineering thinking, we have established the Walawala Tinkering Educationprogram, which also can develop interests and ability. As of the end of 2022, the program had developed a set oftinkering courses to meet needs of primary and secondary schools, and established long-term cooperation with 60plus rural schools in 18 provinces and autonomous regions, cumulatively provided for 50,000 students.
Promote Education Equality
Educational Revitalization
The community development concept of “puttingpeople rst” is the basic principle that guides our RuralRevitalization work in Daotong Village. The Companyhas created a local volunteer team, which is activelyengaged in various public services, for example,improving the living environment in the village, caringvulnerable groups, and organizing cultural activities.It greatly enhanced the villagers’ sense of gain andhappiness. In addition, we discussed with the villagersabout mechanisms such as village rules and regulations,points management to enhance the villagers’ awarenessof rules and autonomy. “Daotong School” and variouscommunity activities have been initiated in the villagethat enrich the spiritual and cultural life of the villagers.In 2022, we had 18 more volunteers, leading to a teamof 75 volunteers, who conducted 92 village activities forall villagers, serving a total of 2,801 people with 1,743hours. The comprehensive satisfaction of voluntaryactivities reached 97.6%.
Community Engagement
Daotong School for villages
Students completed the model by design
drawing in Tinkering class
Rural Tinkering Studio Tablet and student’ work
The overall investment in“Power-Solution” clean energyproject for the poor and “Yuzhiai”sports training project for specialchildren reached RMB
million
Support for non-governmentalrescue organizations amounted toRMB
0.518
millionWe give full play to our business advantages. SANY Heavy IndustryEngineering Machinery Emergency Rescue Team always provides supportin the front line after all kinds of major natural disasters. In order to make therescue more systematic, professional and e?cient, SANY Heavy Industry andSANY Heavy Industry Foundation not only established a rescue coordinationmechanism and trained a professional engineering machinery rescue team,but also invested RMB 0.518 million in 2022 to support non-governmentalrescue organizations for a disaster relief network system and fund insurancefor rst-line rescue workers, helping the whole society to improve the disasterrelief capacity.In addition, we achieved sustainable and larger scale social improvement byinvesting in potential social enterprises and public non-profit organizations,covering education, disability, mental health, new energy, social innovation,sustainability and other issues. In 2022, a total of RMB 11 million wereinvested in “Power-Solution” clean energy project for the poor and “Yuzhiai”sports training project for special children.
Social Rescue Improvement
Promote Education Innovation
8283
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Key QuantitativePerformance IndicatorsKey QuantitativePerformance Indicators
EnvironmentalKey Quantitative Performance Indicators
IndicatorUnit or description2022
ISO 14001 certication coverage%
34.78
Signicant environmental incidentNumber
Atmospheric pollutantsTotal exhaust gas emissionsm
13,812,566,369.63
SO
emissionsTonne
2.00
NOx
emissionsTonne
33.48
VOCs (volatile organic compound) emissionsTonne
85.03
Total soot emissionsTonne
94.09
Water contaminantsTotal water dischargeTonne469,424.75Biochemical oxygen demand (BOD) dischargeKilogram7,772.61Chemical oxygen demand (COD) dischargeKilogram73,647.94Suspended solids (SS) dischargeKilogram5,989.63
Ammonia (NH
) dischargeKilogram3,209.22Solid wasteTotal hazardous waste dischargeKilogram4,946,538.00Total general industrial solid waste dischargeTonne194,814.02
Energy/resource consumptionPurchased electricitykWh517,468,826.71Gasm
22,968,641.39GasolineLiter19,291.41Clean energy (solar electricity)kWh16,013,025.53
DieselLiter8,536,665.79
Combined energy consumptiontce104,614.50Municipal water supplyTonne5,318,636.75GHG emissionsScope 1: Direct GHG emissionstCO
e71,903.88Scope 2: Indirect GHG emissionstCO
e295,112.47Total GHG emissionstCO
e367,016.35Packaging material consumptionPackaging material usedTonne3,272.34
Social
IndicatorUnit or description2022EmployeesEmployeesPerson26,374Number of employees, by genderMalePerson23,274FemalePerson3,100Number of employees, by rankHigh-level employeesPerson197Mid-level employeesPerson12,586General employeesPerson13,591Number of employees, by role typeProduction workersPerson10,371R&D personnelPerson7,466Business management personnelPerson5,079Other personnelPerson3,458Number of employees, by age group30 and belowPerson8,25631-50Person17,35951 and abovePerson759Number of employees, by regionChinese mainlandPerson21,671China’s Hong Kong, Macao and Taiwan regionsPerson8OverseasPerson4,695Percentage of female senior management%12.5Development and trainingEmployees trainedPerson20,683Number of employees trained, by genderMale employeesPerson17,823Female employeesPerson2,860
8485
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Key QuantitativePerformance IndicatorsKey QuantitativePerformance Indicators
IndicatorUnit or description2022
Number of employees trained, by rankHigh-level employeesPerson189Mid-level employeesPerson10,126General employeesPerson10,368Average number of hours of training for employeesHour96.80Average number of hours of training for employees, by genderMale employeesHour97.20Female employeesHour96.10Average number of hours of training for employees, by rankHigh-level employeesHour86.40Mid-level employeesHour97.10General employeesHour96.60Health and safetyISO 45001 certication coverage%39.13Injury rate in a thousand workers‰1.5Occupational diseaseperson0Occupationa accidentsNumber0Coverage of occupational health checkup for those on professional posts%100Attendance of health and safety trainingPerson-time268,190Total health and safety training hoursHour418,920.50Supply chain managementSuppliersNumber2,040Suppliers, by regionChinese mainlandNumber1,989China’s Hong Kong, Macao and Taiwan regionsNumber15OverseasNumber36Suppliers, by product categoryProduction (procurement of raw and auxiliary materials) suppliersNumber1,795Non-production (project procurement) suppliersNumber614General suppliersNumber1,179Specialized suppliersNumber1,479
Governance
IndicatorUnit or description2022
Anti corruption audit coverage%100Employees covered by anti-corruption training1,000 persons8.1Suppliers covered by anti-corruption trainingNumber1,538Percentage of suppliers signing supplier integrity agreement/statement%100
IndicatorUnit or description2022
Quality managementISO 9001 or IATF 16949 certication coverage%100R&D and innovationR&D and innovation investmentRMB 100 million78.26Patent applicationsNumber2,663Patents grantedNumber1,781Computer software copyrights grantedNumber397Customer servicesCustomer satiscation%83Customer complaintsNumber2,367CommunityCommunity investmentRMB 10,0004,576.90
8687
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Key QuantitativePerformance IndicatorsKey QuantitativePerformance Indicators
GRI Index
Statementof use
SANY Heavy Industry has reported the information cited in this GRI content index for the period of January1, 2022 to December 31, 2022 with reference to the GRI Standards.GRI 1 usedGRI 1: Foundation 2021
GRI STANDARDDISCLOSURE LOCATION
GRI 2: General Disclosures 2021
2-1 Organizational detailsP8-P92-2 Entities included in the organization’s sustainabilityreporting
P42-3 Reporting period, frequency and contact pointP4-P52-4 Restatements of informationP50-P512-6 Activities, value chain and other businessrelationships
P8-P92-7 EmployeesP662-8 Workers who are not employeesP452-9 Governance structure and compositionP282-10 Nomination and selection of the highestgovernance body
P282-11 Chair of the highest governance bodyP282-12 Role of the highest governance body inoverseeing the management of impacts
P14, P28-P31, P482-13 Delegation of responsibility for managing impactsP14, P28-P31, P482-14 Role of the highest governance body insustainability reporting
P14-P152-15 Conicts of interestP31-P352-16 Communication of critical concernsP14-P152-17 Collective knowledge of the highest governancebody
P342-18 Evaluation of the performance of the highestgovernance body
P48, P622-19 Remuneration policiesP48, P622-22 Statement on sustainable development strategyP14-P152-25 Processes to remediate negative impactsP33
2-26 Mechanisms for seeking advice and raisingconcerns
P332-27 Compliance with laws and regulationsP502-29 Approach to stakeholder engagementP14-P15GRI 3: Material Topics 2021
3-1 Process to determine material topicsP14-P153-2 List of material topicsP14-P153-3 Management of material topicsP14-P15
GRI 201: Economic Performance 2016
3-3 Management of material topicsP24-P25, P51, P71201-1 Direct economic value generated and distributedP16-P17, P25201-3 Dened benet plan obligations and otherretirement plans
P71201-4 Financial assistance received from governmentP51GRI 203: Indirect Economic Impacts2016
3-3 Management of material topicsP74-P81203-1 Infrastructure investments and servicessupported
P74-P81
GRI 205: Anti-corruption 2016
3-3 Management of material topicsP31-P35205-1 Operations assessed for risks related tocorruption
P31205-2 Communication and training about anti-corruption policies and procedures
P32, P34-P35GRI 206: Anti-competitive Behavior2016
3-3 Management of material topicsP35GRI 301: Materials 2016
3-3 Management of material topicsP50-P52, P57
301-1 Materials used by weight or volumeP57
GRI 302: Energy 2016
3-3 Management of material topicsP54-P57
302-1 Energy consumption within the organizationP57
302-4 Reduction of energy consumptionP54-P56
302-5 Reductions in energy requirements of products
and services
P56, P58-P59
GRI 303: Water and E?uents 2018
3-3 Management of material topicsP51, P53, P57
303-2 Management of water discharge-related impactsP51
303-4 Water dischargeP53
303-5 Water consumptionP57GRI 304: Biodiversity 2016
3-3 Management of material topicsP53
304-3 Habitats protected or restoredP53
8889
2022 SANY Heavy IndustryCorporate Social Responsibility Report2022 SANY Heavy IndustryCorporate Social Responsibility Report
Key QuantitativePerformance IndicatorsKey QuantitativePerformance Indicators
GRI 305: Emissions 2016
3-3 Management of material topicsP54-P57305-1 Direct (Scope 1) GHG emissionsP57305-2 Energy indirect (Scope 2) GHG emissionsP57305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), andother signicant air emissions
P53
GRI 306: Waste 2020
3-3 Management of material topicsP52-P53306-1 Waste generation and signicant waste-relatedimpacts
P53306-2 Management of signicant waste-related impactsP52306-3 Waste generatedP53GRI 308: Supplier EnvironmentalAssessment 2016
3-3 Management of material topicsP44308-1 New suppliers that were screened usingenvironmental criteria
P44
GRI 401: Employment 2016
3-3 Management of material topicsP66-P73401-2 Benets provided to full-time employees that arenot provided to temporary or part-time employees
P71401-3 Parental leaveP71
GRI 403: Occupational Health andSafety 2018
3-3 Management of material topicsP48-49, P60-P63403-1 Occupational health and safety managementsystem
P48-49, P60-P63403-2 Hazard identication, risk assessment, andincident investigation
P61-P62403-3 Occupational health servicesP60-P63403-4 Worker participation, consultation, andcommunication on occupational health and safety
P48403-5 Worker training on occupational health andsafety
P60-P61403-6 Promotion of worker healthP62-P63403-7 Prevention and mitigation of occupationalhealth and safety impacts directly linked by businessrelationships
P60-P61403-8 Workers covered by an occupational health andsafety management system
P63403-9 Work-related injuriesP62403-10 Work-related ill healthP62
GRI 404: Training and Education 2016
3-3 Management of material topicsP67-P70404-1 Average hours of training per year per employeeP70404-2 Programs for upgrading employee skills andtransition assistance programs
P69404-3 Percentage of employees receiving regularperformance and career development reviews
P68GRI 405: Diversity and EqualOpportunity 2016
3-3 Management of material topicsP28, P66405-1 Diversity of governance bodies and employeesP28, P66GRI 406: Non-discrimination 20163-3 Management of material topicsP66GRI 408: Child Labor 20163-3 Management of material topicsP66GRI 409: Forced or Compulsory Labor2016
3-3 Management of material topicsP66GRI 413: Local Communities 2016
3-3 Management of material topicsP50
413-1 Operations with local community engagement,
impact assessments, and development programs
P50GRI 414: Supplier Social Assessment2016
3-3 Management of material topicsP44414-1 New suppliers that were screened using socialcriteria
P44GRI 416: Customer Health and Safety2016
3-3 Management of material topicsP41-P42416-1 Assessment of the health and safety impacts ofproduct and service categories
P42416-2 Incidents of non-compliance concerning thehealth and safety impacts of products and services
P42GRI 418: Customer Privacy 20163-3 Management of material topicsP43