https://www.linglong.cnNo. 777 Jinlong Road, Zhaoyuan City, Shandong Province
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
Contents
About This ReportChairman MessageSustainable Development Progressof Linglong Tire in 2023About Linglong Tire
Sustainability Management System
Sustainable Development PhilosophySustainability Governance FrameworkCommunication with StakeholdersAnalysis of Material Topics
Green LinglongImplement Green and Low-CarbonPractice to Fuel Sustainable EcosystemMake Green Innovations toEmpower Low-Carbon TravelHarmonious LinglongCreate a Harmonious andPleasant WorkplaceCo-construct a Harmonious andPleasant Community
Support the UN SustainableDevelopment GoalsPart II: Linglong Tire'sESG Management
Environmental ResponsibilityIdentification of Climate ChangeRisks and OpportunitiesBuilding of an EnvironmentalManagement SystemEnergy ManagementManagement of Raw Materialsand Water ResourcesEmission and Waste ManagementSocial ResponsibilityProduct Quality ManagementCustomer Relationship ManagementInformation Security and Privacy ProtectionInnovation and IP Rights ProtectionEmployee Recruitment and EmploymentEmployee Training and DevelopmentOccupational Health and SafetyResponsible ProcurementCorporate GovernanceResponsibilityCorporate GovernanceBusiness EthicsCompliant Operation
ESG Data Performance TableReport Standard IndexAppendix I:
Definitions of Proper NounsAppendix II:
List of Material Topics in 2023
Verification statement74
Smart LinglongDevelop Intelligent Manufacturing toAdvance Digital TransformationDevelop Intelligent Retail to ImproveCustomer Satisfaction
Part I: Linglong Tire'sSustainable Impact
Reporting Scope
About This Report
This is the seventh Sustainability Report presented by Shandong Linglong Tyre Co., Ltd. with an aim to disclose to all stakeholders the Company's sustainable development philosophy in operation, management methods, implemented work and achieved results.
The Company identified the material topics related to the operation that all stake-holders are concerned about as the highlights of this report. The reporting of ma-terial topics in this report focused on the industry characteristics involved in theCompany's operations and the characteristics of the region where it is located.Theanalysis and results of material topics are detailed in the chapter "" of this report. This report highlights ESG matters that may havean important impact on investors and other stakeholders.
Report Preparation Principles
Materiality
This report is intended to be as accurate as possible. To be specific, the data stan-dard, calculation basis and assumptions have been explained in the quantitativeinformation to guarantee that the calculation error range will not mislead the users.Quantitative information and notes are detailed in the chapters of this report.The Board of Directors warrants that there are no false records, misleading state-ments or material omissions in this report.
Accuracy
The content reflects objective facts and impartially discloses positive and negativeinformation related to the Company. No negative events were found that shouldhave been disclosed but were not disclosed during the reporting period.
Balance
This report is published in simplified Chinese and English.This report contains infor-mation such as tables, model diagrams, and a glossary of proper nouns as a supple-ment to facilitate a better understanding by stakeholders. To facilitate faster accessto information, this report provides a table of contents and a benchmarking index ofESG standards.
Clarity
This report discloses key quantitative performance indicators and historical data aswell. The statistics and disclosure of the same indicator in this report are consistentfrom one reporting period to another; any change shall be fully explained in thenotes, to enable stakeholders to conduct meaningful analyses and assessment ofthe development trend of the Company's sustainability performance level.
Quantitative and consistency
The scope of the disclosure object shall be in line with that of the Compa-ny's Consolidated Financial Statements.Integrity
This is an annual report covering the period from 1 January 2023 to 31 De-cember 2023. The Company publishes this report and its annual report atthe same time to provide stakeholders with timely information for deci-sion-making.
Timeliness
The cases and data in this report were taken from the original records orfinancial reports of the Company's actual operations. The data and informa-tion in the report can be traced and verified.
Verifiability
Report Language
This report is made in simplified Chinese and English. In case of any discrepancybetween the two versions, the simplified Chinese version shall prevail.
Confirmation and Approval
This report was approved by the Board of Directors on April 24, 2024.External CertificationThis report has been certified by SGS as an independent third party and thecertification statement is attached.Access to this ReportThis report is published in electronic form on
andIf you have any suggestions for this report, please contact us through thefollowing methods:
Address: No. 777, Jinlong Road, Zhaoyuan City, Shandong Province, ChinaEmail: linglongdsb@linglong.cnTel.: 0535-8242726
Notes on DataThe financial data in this report are quoted from theOther data and cases are from official records ofactual operations. In case of any discrepancy with the Company's annual finan-cial report, the annual financial report shall prevail.The currency amounts involved in this report are denominated in RMB. Unlessotherwise stated, the statistical standard of relevant words and data in thisreport is consistent with that of the Company's annual Consolidated FinancialStatements.
Basis of Preparation
Reporting Period: The reporting period is from January 1, 2023 to December 31, 2023.Unless otherwise stated, the data in this report are those within this period.Release Frequency: This is an annual report.The previous report was the 2022 Annual Report.
Scope of organization: This report covers Shandong Linglong Tyre Co., Ltd. and itssubsidiaries (hereinafter referred to as "Linglong Tire" or "the Company"). Unless other-wise stated, the scope is consistent with that of the Consolidated Financial Statementsof Linglong Tire (stock code: 601966. SH) in the same period.
Date of the first release: April 2018, Corporate Social Responsibility Report
2023 Annual Report of Shan-dong Linglong Tyre Co., Ltd.
Sustainability Man-
the official websites of the Shang-China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily,
agement System
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
This report is prepared in accordance with
issued by the Global Sustainabili-ty Standards Board (GSSB), the Automotive Components Industry Standard ofthe Sustainability Accounting Standards Board (SASB), and(IFRS S2) issued bythe International Sustainability Standards Board (ISSB).
Shanghai StockExchangefor the Self-regulation of Listed Companies — Standard Operation (Revis ed in December 2023), GRI Standards 2021
Financial Reporting Standards 2 — Climate-related Disclosures
and
the International
"ESG Performance
Data Table"
hai Stock Exchange,
Linglong Tire.
Guidelines No. 1 of
Chairman MessageLooking back to 2023, the world is undergoing significant transforamation, from international politics and technological innovation to economy, trade, society and cul-ture. The intertwined contradictory factors, such as conflict and détente, opportunities and challenges, recovery and freezing have constituted a sophisticated worldeconomic situation in 2023.The recovery of global travel has rejuvenated the automotive industry chain, as well as the consumption in the new energy vehicle market, driving the increasing de-mands in the tire industry. Simultaneously, the global political and economic landscape stands amidst tremendous changes, bringing more uncertainties to future de-velopment.As an international technology-based tire manufacturer, Linglong Tire puts sustainability capacity building and development resilience on the top agenda, striving toachieve high-quality development. In 2023, the Company built a sustainability management system led by the Sustainable Development Committee of the Board ofDirectors, covering all topics, branches, subsidiaries and manufacturing bases. It has sought to lay out and optimize the sustainability management of supply chains,manufacturing chains and marketing chains in an all-round way, and foster a series of development strategies such as "7+5" strategy
, "carbon peaking and carbon neu-trality goals”, "Intelligent Manufacturing" and "New Retail 3.0”, fueling the achievement of the Company's sustainable development goals.
Green Linglong, contributing to the carbon peaking andcarbon neutrality goals through low-carbon actions
2023 marks the third year for China to propose the carbon peaking and carbonneutrality goals. Insisting on empowering the green development of the wholeindustry with low-carbon actions, Linglong Tire has set ambitious goals of "peak-ing carbon dioxide emissions by 2030 and achieving carbon neutrality by 2050”. In2023, Linglong Tire took the initiative to identify climate change risks and oppor-tunities in an orderly manner and conduct the carbon inventory for manufactur-ing bases. It continued to increase the use of green power and explore new waysto save energy and reduce emissions.Driven by the above-mentioned goals, industrial transformation still has un-tapped potential. As one of the key industries to achieve carbon peaking andcarbon neutrality, the automobile industry chain has ushered in opportunities forgreen development. As a pioneer in the auto components industry, Linglong Tireactively promotes green innovation. In 2023, it has completed the research andapplication of several sustainable materials, facilitating green development of theindustry.
The "New Retail 3.0" based on big data and cloud computing technology ushered innew breakthroughs in 2023. The Company launched "Linglong Vehicle Mainte-nance Workshop" and "Atlas Truck Mate Home" to realize a new retail operationmode of full-service and full-scene management for auto repair stores. This movehas effectively expanded the Company's business channels and provided newenergy for its further development.
Innovation-driven growth has interpreted the Company's long-term developmentstrategy and the core of its growth history up to now. In line with the national "14thFive-Year Plan”, the Company works to facilitate industrial digital transformationand the "New Retail 3.0" strategy, building four-orientation factories ("automatic,unmanned, digital and intelligent"). In 2023, upon the preliminary completion ofthe automated logistics system of the manufacturing base, the Company en-deavored to create a flexible automation technology-based production modeand open up the supply chains, manufacturing chains and marketing chains.
Harmonious Linglong, striving to repay the community inline with a people-oriented philosophyInsisting that talents are the core driving force for corporate development, Lin-glong Tire follows the people-oriented philosophy to manage and motivate tal-ents. The Company makes efforts to guarantee the legitimate rights and interestsof employees, treats every member equally and provides a favorable working en-vironment. It also cares about the employees' growth and enables them to har-vest better career development through systematic training.Linglong Tire regards the community as the source of its development resilienceand seeks to give back. All branches, subsidiaries and manufacturing bases areactively involved in the construction of local communities and facilitate local com-munity development through public welfare activities and localized staff teambuilding. Linglong Tire focuses on user groups. In 2023, it continued the "TruckMate Care Plan" to provide work and life support for truck mates.
Smart Linglong, seeking innovation-driven growth forboth quality and efficiency improvement
Forging ahead in 2024Even difficult things are easier to do for a man of firm will. And a man who keepswalking is bound to reach his destination despite a long distance. The advent of2024 will not stop the constant changes. Only enterprises with an ambition forsustainable development can seek growth and opportunities in an ever-changingenvironment.Based on the medium and long-term development plan, Linglong Tire will workwith stakeholders, coordinate the upstream and downstream of the industrialchain, and make continuous efforts in fields such as carbon emission reduction,green innovation and intelligent transformation in 2024. In doing so, the Companyexpects to promote the sustainable development of the industry and thehigh-quality development of the society and economy.
Shandong Linglong Tyre Co., Ltd.
Chairman President
[ 7+5 represents 7 domestic production bases and 5 overseas production bases]
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Sustainable Development
Progress of Linglong Tire
in 2023
Linglong Tire grounds efforts in the new developmentstage, applies the new development philosophy andformulates the 2030 sustainable development strate-gy. By optimizing the industrial and energy structures,and advocating green and low-carbon productionand life, the Company works hard to realize the 2030sustainable development goals and the Company'sgreen and high-quality development.
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Sustainable Development Progress of Linglong Tire in 2023
Green Linglong
LayerKey monitoring metricsTargetsPerformance in 2023Progress
Carbon intensity per unit product2% decrease in 2023 vs. 2020
0.96tCO
/t,11% decrease vs. 2020
Completed
Number of four-orientation factories
New factories are built intofour- orientation factories
Four four-orientationfactories in total in 2023
In progress
Complete the construction ofautomatic logistics system in
manufacturing base
One domestic lighthouse
factory by 2025
In progress
In progressOne overseas lighthouse
factory by 2030Number of lighthouse factories
Coverage rate of quality managementsystem in manufacturing base
100%Not less than 97.75 points in 2023
100%
100%
>15% in 2023>5% in 2023100% in 2023＜1.0 in 2030
100%
99.61 points
100%100%
17.86%
6.97%
100%
1.52
CompletedCompletedCompletedCompletedCompletedCompletedCompletedCompletedIn progress
Customer satisfaction
Coverage rate of annual occupational diseasephysical examination for hazard position.Number of occurrences of occupational diseasesProportion of newly recruited female employeesProportion of newly recruitedethnic minority employeesProportion of employees withcollective contractsRecordable work-related injuryrate per million working hours
Harmonious
Linglong
Smart Linglong
Recordable work-related injury rate per million working hours = Number ofwork-related injuries accidents / Total working hours * 1,000,000
"Four- orientation Factory" refers to a factory with automated, unmanned, digital, and intelligent operation."Lighthouse Factory" program is jointly selected by McKinsey & Company and World Economic Forum. ”.Lighthouse Factories are regarded as world'smost advanced factories, the benchmark of "digital manufacturing" and "globalization 4.0”, representing the highest level of intelligent manufacturingand digitalization in the global manufacturing sector today.
"Hazard position" refers to the position of exposure to occupational disease hazards.
Coverage rate of occupational healthmanagement system certification at workplaces
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Sustainability-related Honors in 2022-2023
Sustainability-relatedHonors in 2022-2023
Top-notch Tire Intelligent ManufacturingDemonstration Factory won the title of"2022 Intelligent Manufacturing Demon-stration Factory"
Ministry of Industry and Information Technology
Winner of "Golden Wisdom Award"-Outstanding
Frontier Technology Enterprise
JRJ.com
China's 500 Most Valuable Brands
World Brand Lab
Top 500 Asian Brands 2023
World Brand Lab
With SPORT MASTER series products, the Companywon the "Gold Award for Lingxuan Award 'Mass Pro-duction · Chassis and Tire’," becoming the only cor-porate winner of the award for four consecutiveyears in the industry
With GRIP MASTER C/S products, the Companywon the "Excellence Award for Lingxuan Award'Mass Production · Chassis and Tire'"
The Company won the "Gold Roundtable Awardof the 18th China Listed Company Board: SpecialContribution Award for Corporate Governance"
Board of Directors journal
Investor Relations Management Best PracticeAward for Listed CompaniesCHINA ASSOCIATION FOR PUBLIC COMPANIES
Linglong Vehicle Maintenance Workshop waslisted in the "Top 100 Chain Stores" of the auto-motive aftermarket
AC Cars
The Company won the "2023 ESG Pioneer En-terprise Award”, becoming the only leading en-terprise winning the award in the industry
The 13th Charity Festival
The Company won the Best ESG Practice Award 2023
Yidong App and VALUEONLINE
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Auto Business Review
Auto Business Review
About
Linglong Tire
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Company Profile
Founded in 1975, Shandong Linglong Tyre Co., Ltd. is a technology-oriented tiremanufacturer integrating the design, development, manufacturing and sale oftires. Listed on the main board of the Shanghai Stock Exchange (stock code:
601966) on July 6, 2016, the Company has been included in three major interna-tional indexes ----MSCI Index, FTSE Russell Index and S&P Emerging BMI Index,winning the unanimous favor of the capital market.The Company has formed differentiated brands for the global market, such as"Linglong”, "Leao”, "ATLAS" and "EVOLUXX”, providing abundant products for roadtransportation systems. Its markets cover 173 countries in Europe, the MiddleEast, America, Asia-Pacific and Africa.
Chinese name
English name
Headquarters
Main business
Product introduction
Operation network
Operating revenue
Total output
Total assets
Total number of in-service employees
Basic Information about Linglong Tire
山东玲珑轮胎股份有限公司
Shandong Linglong Tyre Co., Ltd.
Zhaoyuan, Shandong
The design, development, manufacturing and sales of tires
Product type: passenger vehicle and radial light truck tire, radial truck and bus tire and off-road tireProduct application: Widely used in passenger vehicles,commercial and engineering machinery vehicles, sold to 173 countries worldwide
It has 31 subsidiaries, 7 R&D institutions and 7 manufacturing bases worldwide;More than 100,000 global marketing outlets, including more than 10,000 brandstores.
RMB 20.165 billion
79.117 million units of tires
RMB 43.33 billion
19,347
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Linglong Tire’s Strategic Layout
Through firmly facilitating the worldwide implementation of the "7+5"strategy
, the Company seeks to enhance the corporate core competi-tiveness, produce and sell more than 160 million tires by 2030, with asales revenue exceeding RMB 80 billion. It manages to make its pro-duction capacity rank among the top five worldwide, building itself atechnology-oriented tire manufacturer with world-class technology,management and brand influence.
Serbia
Linglong Tire’s Brands
Shandong Linglong Tyre Co., Ltd.
Jilin Linglong Tyre Co., Ltd.
Linglong Tire Research Institute (Zhaoyuan, Yantai)Beijing Linglong Research InstituteShanghai Linglong Research InstituteJinan Linglong Research Institute
U.S. Linglong Research Institute
German Linglong Research Institute
Linglong International Europe d.o.o. Zrenjanin
Linglong International Tire (Thailand) Co., Ltd.
Dezhou Linglong Tyre Co., Ltd.Shaanxi Linglong Tyre Co., Ltd.Hubei Linglong Tyre Co., Ltd.Guangxi Linglong Tyre Co., Ltd.
Shandong Linglong Tyre Co., Ltd.
["7+5" refers to the 7 domestic production bases and 5 overseas production bases of Linglong Tire.]
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
S硫
How to manufacture a tire
The mixing process is the first process of tire produc-tion, which is the process of mixing and dispersing rawmaterials such as raw rubber, filling reinforcing agent,antioxidant and vulcanizing agent in the mixing ma-chine. Mainly through PLC system and MES system,from the material complexing, feeding, mixing, testing,storage, release for a full range of accurate control, andthe implementation of comprehensive error preventiontechnology at each key station, so as to prepare therubber material required by each tire component withdifferent properties, pass the test and release to thenext process.
This process is the preparation process of each halfpart of the tire, including the tread, sidewall, carcass,belt, bead, liner, cap ply, etc. After the completion ofthe half part will be transported to the tire buildingprocess for assembly.
The tire building process is to assemble all the halfparts on the tire building machine to generate thegreen tire. After the appearance and weight of thegreen tire are checked, it will be transported to thecuring process for vulcanization.
Mixing process
The curing process is to load the green tire into themold of the specified size, pattern and logo, and turnthe green tire into a finished tire with the correspond-ing pattern and sidewall logo through the appropriatetime, pressure and temperature on the vulcanizationmachine. After vulcanization, the finished tire is trans-ported to the finished product inspection process fortesting to ensure that the quality of the tire meets therequirements.
Curing process
In the process of designing new tire specifications, tiresmust undergo rigorous safety tests such as high-speeddurability. According to the performance requirementsof different models, roll resistance, noise and other per-formance tests will be carried out, as well as varioussubjective and objective evaluation tests such as dryand wet braking and handling stability for real vehicles.
Tire testing
This process is the inspection process of finished tires.After 100% visual inspection of tire appearance qualityis qualified, tire dynamic balance & uniformity detec-tion and X-ray detection are carried out. After passingthe inspection, the tire is transported to the finishedproduct warehouse for shipment.
Finished products inspectionComponent preparation process
Tire building process
How to manufacture a tire
S硫
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Organization Chart of Lingling Tire
General Meetingof Shareholders
Board of Directors
Remuneration and Appraisal Committee
Nomination Committee
Strategy Committee
Audit CommitteeAudit Division
Sustainable Development Committee
Compliance Management Committee
Procurement DepartmentFinance DepartmentLean Manufacturing Management CenterGlobal Marketing CenterGlobal Central ResearchInstituteQuality ManagementCenterHuman Resources DepartmentPlanning and Supply ChainManagement Department
President
Board of Supervisors
Secretary of the Board of Directors
Board of Directors' Office
President Office
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Sustainability
Management System
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Sustainable Development Philosophy
Adhering to the philosophy of "Creating opportunities for employees, value for customers, profits forshareholders and wealth for the community" and "inheriting Linglong's power and building a bettercommunity together”, Linglong Tire is committed to the green, high-quality and sustainable develop-ment by optimizing industrial and energy structures, advocating green production and lifestyle. TheCompany strives to build itself a green and sustainability pioneer in the domestic tire industry.
To become a technologyoriented tire manufacturerwith world-class technolo-gy, management andbrand influence
Creating opportunities foremployees, value for custom-ers, profits for shareholdersand wealth for the community
Values
Mission
Donated to the communityand serve the country bypromoting industry
SocialResponsibility
Inheriting Linglong's power andbuilding a better community together
Vision
CORPORATE CULTURE
AND PHILOSOPHY
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Sustainability Governance Framework
ESG management is a cornerstone of corporate sustainable development. Based on ESG management, Linglong Tire integratedsustainable development and ESG philosophies into its operation and management, established a sustainability governanceframework in 2023, facilitate the Company's sustainable development strategy through corresponding management mode, pro-mote the sustainable development of the industry through the improvement of its own behaviors and brand influence and movetowards a better life together with stakeholders.
Responsible for the compliance operation, risk management, economic perfor-mance, formulation of business ethics policies and codes of conduct, informa-tion/cybersecurity management, customer privacy protection, etc.
Responsible for social responsibilities (poverty alleviation, charitable donationsand volunteer activities); supporting community development (infrastructure,hospitals, schools, etc.).
Responsible for promoting the work on "carbon peaking and carbon neutrality”,developing eco-friendly and low-carbon products; product quality safety andrecall; application of recycled materials; environmental management systemand certification audit; focusing on energy use and increasing the proportion ofrenewable energy; conducting carbon footprint and carbon inventory, andbuilding any green factory and zero-carbon factory.Responsible for respecting and guaranteeing human rights; prohibiting forcedlabor or employment of child labor, etc.; freedom of association; respecting forlegal working hours; occupational health and safety of employees; working con-ditions (welfare benefits, working environment); labor relations; career develop-ment planning; employee turnover; diversity equality and inclusion; basichuman rights of external stakeholders; signing collective agreements; focusingon women's rights and interests.
Responsible for supplier management, risk control, and ESG oversight to suppli-ers.
The Company's Board of Directors and Sustainable Development Committee are the highest responsible body for the manage-ment and disclosure of ESG matters, exercising leadership and regulatory functions over the overall ESG targets, strategies, risksand policies.The Sustainable Development Committee comprises five special committees as Management. They are responsible for propos-ing ESG targets, strategies and systems to conduct ESG-related research, analysis and risk assessment, and coordinating the im-plementation of ESG-related policies, management performance and targets.Functional departments under the jurisdiction of the special committees and the Sustainable Development Sub-committees ofthe manufacturing bases are at the executive level, which sets up an ESG team to formulate and implement relevant policies andaction plans in line with ESG targets and strategies.Board of DirectorsOversee ESG work and hold ultimate account-ableSustainable Development CommitteeReview the Company's ESG strategy and ob-jectivesOversee the execution and implementation ofESG objectivesAssess ESG-related risks and opportunitiesESG Special CommitteeResponsible for proposing ESG objec-tives, strategies and systems to con-duct ESG-related research,analysisand risk assessment, and coordinat-ing the implementation of ESG-relat-ed policies. management perfor-mance and objectives.
Functional DepartmentsResponsible for the implementationof ESG matters
Sustainable DevelopmentSub-committeeResponsible for the formulation, de-composition and implementation ofsustainable development obiectivesof branches and subsidiaries.
Decision making
level
Management
level
Executionlevel
Company headquarterBranch and subsidiary
Responsibilities of Management-level Special Committees under the Sustainable
Development Committee
The Sustainability Governance Framework of Linglong Tire
Committee
Governance and Economy Committee
Supply Chain Committee
Product, Safety, Environment andClimate Change Committee
Human Rights and Labor Committee
Social Responsibility Committee
Scope of responsibilities
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Sustainability Governance Framework
In 2023, the Board of Directors fully performed its decision-making and supervision duties on matters related to sustainability, de-liberated and approved proposals and matters in corporate governance, compliance management, community co-constructionand public welfare charity, guaranteeing to integrate ESG philosophy into relevant strategies and decisions.
The Company places significant emphasis on the promotion of the sustainable development strategy and incorporates environ-mental protection-related indicators into the performance evaluation of relevant senior executives and directors.
In 2023, the Company conducted 3 ESG trainingsessions for its directors and senior executiveswith a total duration of 11 hours, and 6 ESGtraining sessions for all employees with a totalduration of 19 hours.
Sustainable development capacity building is an important way for the Company to achieve its sustainable development goals.
Focusing on strengthening sustainable development and ESG capacity building, the Company endeavors to improve employees'awareness and understanding of ESG work, hire professional third-party trainers to conduct practical training on ESG work andencourage more employees to involve in ESG-related activities.
In 2023, the Company revised and released multiple ESG management systems on its official website such as theCapacity Building for Sustainability
Sustainable development-related policiesCapacity-building for sustainable development
Revising theDeliberating theAppointing senior executives and replacement of the Chief Financial Officer, adjusting the Com-pany's organizational structure, and implementing daily related transactions, etc.;
Establishing the Compliance Management Committee of the Board of Directors and formulated workingrules, etc.;Management Rules for External Donations, etc.
Revising theReviewing the
Key ESG-Related Matters Deliberated by the Board of Directors in 2023ESG topics of concern
Corporate Governance
Investor relationmanagementCompliant operationCommunity co-constructionand public welfare charity
Content
Environment-related Indicators for Performance Appraisal of Directors and Senior Management
The Company hires third-party lecturers to conduct ESG training for relevant employees
Indicator typeIndicator
Waste generationProductionEnergy consumptionLoss of defective productsDesign cost reduction-weight reduction and application of new materials
R&D
Research and launching of concept tires with sustainable materials accounting for more than 70%
The application of sustainable development skeleton materials in products.
R&D of retreading tire
Water Resources PolicyClimate and Environmental PolicyQuality Policy and Product Safety StatementBusiness Ethics Management Policy StatementReport Management Policy Statement
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Articles of Association, Rules of Procedures for the General Meeting of
Shareholders Rules of Procedures for the Board of Directors;
Board of Directors' Work Report President's Work Report;and the
Management System for Investor Relations;2022SustainabilityReport,covering a variety of topics such as addressing climate
change, health, safety and environmental protection, and social responsibility fulfillment;
and
Business Ethicsto make sustainable information transparent, to make public commitments on key topics, Management Policy Statementto improve the management mechanism, as well as the employees' awareness and implementation of sustainable developmentgoals.
Communication with Stakeholders
The Company attaches importance to communication with stakeholders and their demands and expectations, seeking to establish an effective stakeholder communication mechanism.In 2023, the Company identified topics that key stakeholders concerned about according to daily management and operation, and responded positively. According to the characteristics of actual business, the key stakeholders identified by the Company include employees,shareholders and investors, customers and users, agents and suppliers, governments and other regulators. The Company sets up corresponding departments to communicate with key stakeholders through different channels, respond to their concerns regularly and actively.
Topics of Concern to Key Stakeholders and Corresponding Responses
Stakeholder(s)Topics of concernCommunication methods and channels
Employees
Shareholders and investors
Customers and users
Agents and suppliers
Government and other regulators
Local communities and the public
Compliant Operation
Cleantech Opportunities
Responsible Procurement
Compliant Operation
Energy ManagementManagement of Raw Materials and Water Resources
Emission and Waste ManagementClimate Change Mitigation and AdaptationCleantech Opportunities
Biodiversity ConservationCommunity Co-construction and Public Welfare Charity
Business Ethics
Corporate GovernanceEmission and Waste Management
Climate Change Mitigation and Adaptation
Product Quality Management
Product Quality ManagementCustomer Relationship Management
Business EthicsCorporate Governance
Workplace Diversity and Inclusion
Employee Training and DevelopmentOccupational Health and SafetyEmployees' Rights, Interests and Welfare
Annual training and regular meetings
Irregular meetingsCompany email and other network platforms
Employee satisfaction surveysLabor Union Staff and Workers’ Representative Congress
Roadshows·Business performance communication meetingsBoard of Directors’ meetingAnnual report, semi-annual report and announcementGeneral Meeting of Shareholders
Customer satisfaction surveyRegular/irregular telephone follow-up or email communicationCustomer quality review
Agent and supplier assessmentAgent and supplier trainingTelephone communication and feedbackRegular communication and reportingInstitution inspectionPolicy Briefing of RegulatorsAnnual report, semi-annual report and announcement
Public welfare activitiesEnergy conservation and emission reduction project
Environmental protection project
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Analysis of Material Topics
Material topics function as an important means for sustainable development management and information disclosure. In 2023,the Company summarized 19 material topics (see Appendix II of this report: List of Material Topics in 2023) based on daily com-munication with stakeholders, the characteristics of the industry, actual operation, policy trend, the information disclosurerequirements of Shanghai Stock Exchange, and the priorities of rating agencies and the SASB "Auto Components" Industry Stan-dards, to conduct key management in 2023.The Company prioritized 19 material topics through internal and external expert consultation, the Management feedback and keytopics concerned by ESG rating agencies to obtain a matrix of material topics. This report focuses on the management and per-formance of ESG topics with high materiality in 2023.
Major Changes in Material Topics in 2023
2022 TopicsEnergy resource managementWater resources and effluentsExhaust emissions, wastemanagement and environ-mental complianceMitigate and adaptto climate changeTraining and educationEmployee benefitsOccupational health andsafety, production safety
2023 TopicsChangesReasons for change
Diversity and equalopportunitiesLocal communities
Governance structureAnti-corruption
Scientific andtechnological innovation
Energy managementManagement of RawMaterials and Water Resources
Emission and wastemanagementClimate changemitigation and adaptation*Employee Training andDevelopment*
Optimizedexpression
Optimizedexpression
Added new topicProduct qualitymanagement
Added new topicBiodiversity conservation*
Deleted topicEconomic performanceNote: Topics with an asterisk (*) are contribution-oriented topics, including risk management and sustainable development.
The Company sought to integrate, split oroptimize the relevant topics in combinationwith the actual industry development and theCompany's management practice to discloserelevant information in a more targetedmanner
The Company sought to optimize the topicsin combination with ESG rating prioritiesand the Company's management, andenrich the disclosure contentNew topic added in combination with indus-try regulatory trends, rating priorities or theCompany's management practicesNew topic added in combination with indus-try regulatory trends, and the Company'smanagement practices
Employees' rights,interests and welfare*Occupational Healthand SafetyWorkplace diversityand inclusion*Community co-construc-tion and public welfare &charity*Cleantech opportunities*Digital transformation*Corporate governanceBusiness ethics
Relevant contents are presented in the ESGPerformance Data table
High
High
IMPORTANCE TO ECON-
OMY, SOCIETY AND ENVIRONMENT
IMPORTANCE TO LINGLONG TIRE'S FINANCIAL PERFORMANCE
Matrix of Material Topics in 2023
High-materiality issuesMedium-materiality issuesLow-materiality issues
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Identification
Evaluation
Sequence
Report
Procedures for Analysis of Material TopicsIdentify the Company's impacts and form a issuses Library by interpreting macro policies, regulatory requirements and industryhotspots in 2023, benchmarking with requirements of Shanghai Stock Exchange, GRI standards, SASB standards for"automotiveparts," and communicating with stakeholders in light of the Company's actual operation.Continuously communicate with stakeholders and intemal and extemal experts in daily business activities, assess the sig-nificance of impacts to the Company, and carry out targeted management of key issues.Sequencing the 19 issues based on their importance to stakeholders and Linglong Tire through communication with inter-nal and external experts, taking into account the focus of international and domestic authoritative ESG rating agenciesand other important information users.Develop a material issues matrix based on the issues priority sequence, which is verified and confirmed by the SustainableDevelopment Committee of the Board of Directors of the Company, and disclose key material issues for 2023 in the report.
Workplace diversity andInclusion*
Community co-constructionand public welfare & charity*
Biodiversity conservationResponsible procurement
Emission and waste management
Climate change mitigation andadaptation *
Employees’ rights and Interestsand welfareCorporate governance
Compliant operation
Cleantech opportunities*
Product quality management
Occupational health and safety
Business ethics
Energymanagement
Intellectual Property protection
Management of rawmaterials and water resourcesEmployee training anddevelopmentDigital transformation*Customer relationshipmanagement
GreenLinglong
HarmoniousLinglong
SmartLinglong
Part I: Linglong Tire’s
Sustainable Impact
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Green Linglong
As "low carbon" and "green" emerge as the market trend, the R&D innovationcapability has become the corporate core competitiveness, thus realizingharmless and resourceful disposal of waste tires is a crucial means to seekkey technological breakthroughs in the industry.Adhering to the goals of "peaking carbon dioxide emissions by 2030 andachieving carbon neutrality by 2050" and the principle of "reduction, reuseand recycling”, Linglong Tire actively explores opportunities for clean tech-nology production and strengthens research on the recycling of new materi-als and waste tires. It works to advance carbon emission reduction andcarbon inventory, conserve biodiversity with practical actions and fuel theCompany's sustainable development process.
Climate change
mitigationand adaptation
Biodiversityconservation
Cleantechopportunities
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Respond to Climate Change
Implement Green and Low-Carbon Practice to Fuel Sustainable Ecosystem
Biodiversity Conservation
[Case] Tree-planting Activity
Natural rubber is one of the important raw materials for tire manufacturing. As a special commodity, it may lead to large-scaledeforestation, land degradation and biodiversity loss. The impact of natural rubber on global biodiversity and ecosystems maybe extensive, and forest destruction is one of the most important factors leading to global climate change. Therefore, forestdevelopment and protection are among the most fundamental measures to mitigate global climate change, as well as aneffective way to respond to climate change.Deforestation and forest degradation are important drivers of two major environmental challenges, global climate change andbiodiversity loss. In June 2023, the EU formally reached an agreement on the EU Zero Deforestation Regulation (EUDR), whichaims to reduce the EU's impact on global forests by promoting the consumption of zero deforestation products, thus reducingthe increase in greenhouse gases caused by deforestation and helping cope with global biodiversity loss. The EUDR bringsseven commodities, including rubber, into the scope of regulation. Traceability and transparency of commodities or productsare strictly controlled.In early 2024, the Ministry of Ecology and Environment issued China National Biodiversity Conservation Strategy and ActionPlan (2023-2030), which clarified China's biodiversity conservation strategy in the new era and deployed four priorities: main-streaming biodiversity, addressing the threat of biodiversity loss, sustainable use and benefit sharing of biodiversity, and mod-ernization of biodiversity governance capacity to strengthen biodiversity conservation. It aims to contribute to global biodiver-sity governance and the realization of the Kunming-Montreal Global Biodiversity Framework.Linglong Tire is aware that biodiversity conservation constitutes an integral part of sustainable development practice. Strictlyabiding by the laws, regulations and rules such as the Forest Law of the People's Republic of China and Regulations on NatureReserves, international conventions such as the Convention on Biological Diversity, China National Biodiversity ConservationStrategy and Action Plan (2011-2030) and national strategic plans, the Company seeks to implement the philosophy of "lucidwaters and lush mountains, green development”, and take actions to protect the forest, strengthen soil and water conservationand consensus on biodiversity in the supply chain, facilitating biodiversity conservation.
In tree planting activities, the Company encourages employees to participate, regu-larly publishes excellent units with tree planting achievements and shares practicalmethods. In 2023, more than 2,000 trees have been planted in Zhaoyuan Base. Thespecies are mostly cedar, black pine, magnolia, etc., which are maintained by specialpersonnel.
As the first tire enterprise in the Chinese mainland to join the Global Platform for Sustainable Natural Rubber(GPSNR), the Company has publicly released and implemented the Sustainable Natural Rubber Policy, promis-ing to purchase natural rubber produced in a way that will not lead to deforestation or reduce high conservationvalue (HCV), promote cooperation with stakeholders and suppliers to build sustainable natural rubber supplychain. In September 2023, the Company submitted the GPSNR Annual Report and passed the review.
Biodiversity Conservation Measures
Participatein industryorganizations
Strictly abiding by national laws and regulations of the ecological protection red line in the place where the newprojects are located, the Company investigates their ecological status quo and possible impact on the ecosys-tem, makes efforts to conserve the soil and water in the whole process, and reduce surface disturbance andvegetation damage.Strengthenwater and soilconservation
Linglong manufacturing base in Europe conducted a biodiversity impact assessment during the project con-struction stage. It also conducts a detection survey on the impact on local biology quarterly after the comple-tion of the project. As at the end of 2023, there was no adverse impact on local biodiversity and environmentaldiversity found through data analysis and comparison.Organizeinspection andinvestigation
The Company seeks to incorporate afforestation activities in the sustainable development plan, encourage manufacturing basesto be involved in afforestation activities and continuously make positive contributions to local biodiversity and environmental pro-tection. As at the end of 2023, the Company’s actual total greening area reached 1,920,100 m
.Organizetree-plantingactivities
The Company issued and implemented the Greenhouse GasInventory Procedure, and the carbon inventory promotion planfor each manufacturing base. It is expected to complete thecarbon inventory of all bases in 2024, form a greenhouse gasinventory and report annually thereafter, and regularly disclosegreenhouse gas emission performance;Set carbon emission reduction targets and evaluates progress.
The Company conducted an identification and impact analysis of substantive climate risks and opportunities,and formulated targeted mitigation and adaptation measures based on the results;and integrated climate risk management into its overall risk management.
Linglong Tire Climate Change Management System
Govern
ance
Strategy
Risk management
Metricsand Targets
The Board of Directors and Sustainable Development Committee are the highest responsible body for the man-agement and public disclosure of ESG matters, exercising leadership and regulatory functions over theclimate-related risk management targets, strategies, risks and policies.The management set up the Product, Safety, Environment and Climate Change Committee to manageclimate-related risks and opportunities such as the promotion of "carbon peaking and carbon neutrality" goals,the development of eco-friendly green and low-carbon products, and the construction of green factories.The Company incorporated environmental management KPI into the performance assessment of the manage-ment.
Photovoltaic (PV) Power GenerationDiagram of Guangxi Base in 2023
Targets and Progress on Respondingto Climate Change in 2023TargetProgress in 2023Carbon intensity per unitproduct 2% drop vs. 2020
0.96 tCO
/t(11% drop vs. 2020)
2023 Tree-planting activity
The Company worked to formulate the "carbon peaking and carbon neutrality"plan and theaccording to international and domestic policies and the actual situation. It alsoset up a carbon inventory plan;Identified climate-related risks and opportunities and assessed their impact onthe Company's business;Took actions to respond to climate change in terms of green materials, intelli-gent equipment, clean energy and waste management.
Against the backdrop of "carbon peaking and carbon neutrality" in China, Linglong Tire actively responds to national strategicdecision-making and practices the sustainable development philosophy. Under the framework of the sustainable developmentmanagement system, the Company seeks to set the strategic goals of "peaking carbon dioxide emissions by 2030 and achiev-ing carbon neutrality by 2050”, comprehensively respond to climate change such as climate risk and opportunity identification,and carbon inventory, to improve the Company's climate change management level. The Company also continues to exploreenergy conservation and emission reduction schemes, and launch initiatives for upstream and downstream enterprises to fulfilltheir social responsibilities such as ecological environment protection, to facilitate low-carbon development of the whole indus-try chain with concerted efforts.With full awareness of the severity and urgency of responding to climate change, Linglong Tire worked to sort out and disclosethe management of climate change-related risks and opportunities from four levels: governance, strategy, risk management,metrics and targets, according to the recommended framework of(IFRS S2) issued by the International Sustainability Standards Board (ISSB). It identified and analyzed climate risks andopportunities with high impact. Please see the chapter for details.
International Financial Reporting Standards 2 — Climate-related"Identification of Climate Change Risks and Opportunities"Disclosures
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Climate and Environmental Policy of Shandong Linglong Tyre Co., Ltd.
The Company strengthens innovation in high-performance, environmental protection andcarbon reduction, and expands the application of bio-based and other renewable materials;increases the use of eco-friendly materials, develops degradable tire materials and com-plete engineering applications;increases the recycling of waste tire resources and the application of recyclable materials;
endeavor to the R&D of energy-saving low rolling resistance tires and new energy vehi-cle tires, and intelligent technology transformation
Development Goal and Action Path of Linglong Tire Cleantech
Path
Raw materialinnovation
Productinnovation
Make Green Innovations to Empower Low-Carbon Travel
Promoting a circular economy, economic growth and climate goals have emerged as an inevitable trend and consensus world-wide. The Circular Economy Action Plan issued by the EU in 2020 incorporates the circular economy philosophy into the wholelife cycle of product design, production, consumption, recycling and disposal to reduce resource consumption and "carbon foot-print”. The 14th Five-Year Plan for the Development of Circular Economy issued by the National Development and Reform Com-mission in 2021 is based on the principle of "reduction, reuse and recycling" to improve resource utilization efficiency and lever-age the innovation role in this field by means of developing green design of key products.Focusing on implementing the innovation-driven growth strategy, R&D of new materials, technologies and formulas, LinglongTire seeks to leverage advantageous technologies to comprehensively improve its independent innovation capability, set cleantechnology innovation and development goals, facilitate the development of a circular economy in China, and lift its own brandcompetitiveness. In 2023, the Company continued to promote clean technology innovation and R&D from three aspects: rawmaterial innovation, product innovation and industrial ecosystem cooperation.
By 2030, the Company will reach the world's first-class tire enterprise level, spearheading thekey sci-tech and emerging frontier and interdisciplinary fields.Goal
The Company continued to conduct research on the use of eco-friendly materials such as renewable,recyclable and degradable materials, including dandelion rubber, which are the second natural rubber，biomass reinforcing agent, biomass plasticizer, bio-based nylon 56, etc. The Company set relevant tar-gets to realize "whoever produces will be responsible for recycling”.
The Company cooperates with industry associations, enterprises and universities to establish laboratories,launch cutting-edge research in the field of green high-performance tire new materials, and promote cleantransformation of technologies and products.
It is committed to the low rolling resistance tires R&D to reduce the carbon emissions of products and therolling resistance of tires. The Company set the R&D goal of low-rolling resistance tires taking 2019 as thebase year.In the research, the Company proposes the "1+N tire use cycle" method, wherein the existing carcass is uti-lized for retreading purposes without requiring steel consumption. The resource consumption involved inprocessing a retreaded tire is approximately 70%
lower compared to that of manufacturing a new tire. Ac-cording to the trials and users’ feedback,the carcass life is extended by 3 times.
The Company comprehensively strengthened the R&D of new energy vehicle tires to solve the problems ofendurance mileage and noise of new energy vehicles, by means of low rolling resistance, mute sponge,self-healing, etc. This move makes products safer and improves customers' driving experience. In 2023, theCompany's sales in new energy vehicles exceeded 9 million, and the overall market share of new energytires reached 24%, with its share of tires in the market standing at the forefront of the Chinese market.
The Company is expected to develop andapply all kinds of recyclable and renewableframework materials to the cap ply, belt, car-cass and bead steel wire of tires by 2025.By 2025, the proportion of recyclable andrenewable framework materials applied totires will reach 15%.
The average application ratio of renewable(bio-based) framework materials has been
4.5%; The average proportion of recycla-
ble framework materials in the low-voumeproduction validation stage is 12%.
Cleantech Development Initiatives and Target Progress in 2023
Raw materialinnovation
Productinnovation
Industryresearch
Raw Materials R&D and Application Targets in the Cleantech Development
Product Innovative Development Progress
Metrics and targets
Metric
Number of product retreading2021The product can be retreaded 3 times in 2024Twice
Base yearTargetProgress in 2023
The proportionof recyclableand renewableframeworkmaterials
In progress
Progress in 2023
Note 1: Source: Ernst & Young Report: Socio-Economic Impact of Truck Tyre Retreading in Europe
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Natural rubber is a kind of green and low-carbon strategic resource. The main source, three-leafrubber tree is demanding for the growth environment, likes high temperature, high humidity, fertileacidic sandy loam, and is intolerant of wind and cold, mainly distributed in tropical areas. Theself-sufficiency rate of natural rubber in China is less than 20%, and it is urgent to alleviate the short-age of raw materials by opening up new rubber resources.The Company actively carries out the development and application of the second natural rubberresource - dandelion rubber grass. Dandelion rubber grass is less dependent on the climate, theplanting conditions are reduced, and the molecular structure of the extracted rubber is exactly thesame as that of natural rubber. At present, it has a mature mechanized planting system and sup-porting equipment, and has the first domestic dandelion rubber tonnage test line and 100-tonextraction demonstration line, preparing the first domestic dandelion rubber concept tire; Duringthe "14th Five-Year Plan" period, the Company will actively promote the industrialization projectresearch of rubber grass and realize the industrial preparation of dandelion rubber tires.
[Tips] The second natural rubber
The manufacturing process of liquid reclaimed rubber has no wastewater discharge, low overallheating temperature and less waste production. The Company processes waste tires into liquidrecycled rubber by special methods, and applies them to the production of its tires, thus realizingthe recycling of waste tires.Through the liquid recycled rubber project, the Company disposes of about 10,000 tons of wastetires and produces about 6,000 tons of liquid recycled rubber annually, reducing the use of resourc-es and improving the utilization rate of raw materials.
[Case] Application of Liquid Recycled Rubber in Tire Formula
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
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For conventional fuel vehicles, about 80% of their life cycle carbon emissions come from the use phase. For new energy vehi-cles, despite the problem solving of carbon emission in the use phase, the Company still cannot provide enough mileage dueto the limitation of battery technology at present.Upon long-term technical research, the Company has made breakthroughs in PCR contour and structural design. The Com-pany's Research Institute has integrated dynamic design into product mold design to form a unique PCR contour and structureultra-low rolling resistance technology design system, realizing iterative innovation of the technology. By the end of 2023, therolling resistance performance of the product has exceeded 5.0, significantly lower than the figure of EU Class A and leadingthe industry in terms of rolling resistance test.
[Case] Research on PCR Ultra-low Rolling Resistance Technology
In 2023, Linglong Tire launched eco-friendly concept tires with exceeding 79% sustainable materials, becoming the first Chi-nese enterprise to launch such a product. The tire uses more than 79% sustainable raw materials, including renewable resourc-es such as silicide from rice husk ash, vegetable oils and resins. This move effectively reduces the demand for petrochemicalsin the production process; recyclable materials include reclaimed steel, recycled carbon black, etc.With the application of sustainable materials and the new lightweight technology of Linglong Tire, the overall performance ofthe tire has been improved, and the noise performance and roll resistance performance have reached the highest level A ofthe EU. This environmentally friendly tire is of great significance for environmental benefits and economic benefits.
[Case] Launching Eco-friendly Concept Tires with Exceeding 79% Sustainable Materials
[Case] Establishing "Guangxi Laboratory of New Energy Automobile,New Energy Automobile Tire Application Laboratory"
Make Green Innovations to Empower Low-Carbon Travel
Eco-friendly Concept Tire
Cap ply material
100% extracted from woodCarcass material
Utilization of recycledand renewable steel
Bead material
Derived from bio-based rubberand nascent carbon black material
Compound material
Derived from bio-based materialsuch as maize straw
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
In September 2023, the "Guangxi Laboratory of New Energy Automobile, New Energy Automobile Tire Application Laboratory"established by Linglong Tire, SGMW and Liuzhou Zhongdong Zhilun Technology Co., Ltd. was unveiled. The Company plans tomake forward-looking, professional and due support in the research of high-precision design simulation, virtual evaluationtechnology, ultra-low rolling resistance technology and performance standard systems of new energy tires, accelerate thecommercialization of new technologies to actual products, and create new smart tire products that meet SGMW's scenar-io-based and personalized needs.
Unveiling ceremony
People-oriented and harmonious development is the core of modern corporatedevelopment.Talents are the core driving force for corporate development. Linglong Tirealways adheres to the principles of fairness, impartiality and openness, andtreats every employee equally. The Company respects the legitimate rights andinterests of employees, seeking to provide more opportunities and platforms fortheir career development.Externally, the Company actively gives back to the community by employmentsupport, material donation and educational assistance, seeking harmonious co-existence with the public and common growth.
Workplacediversity and
inclusion
Employees'rights and inter-ests and welfare
Employeetraining anddevelopment
Communityco-constructionand publicwelfare charity
Harmonious
Linglong
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
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Diversity and Inclusion
[Case] 94 Points High Evaluation in the Social Compliance Audit of Third-party Institutions
Care activities for female employees
Partial content of ELEVATE Audit Report
Create a Harmonious and Pleasant Workplace
Linglong Tire adheres to the principles of fairness, impartiality and openness, striving to create an equal and inclusive workplace.The Company formulates the Anti-discrimination Management Procedure to guarantee the employees' equal development op-portunities.The Company adopts open recruitment internally or externally, and eliminates the inclusion of non-working factors such as na-tionality, race, gender, religion and skin color into the recruitment decisions. In 2023, the total number of new employees reached7,176 (including 4,744 Chinese employees), including 1,282 female employees and 331 minority employees, achieving the annualquantitative diversification target.
The Company priorities guaranteeing the rights and interests of female employees. According to the Special Provisions on LaborProtection of Female Employees and the laws and regulations of the place where it is located, the Company actively improves thelabor safety and health conditions for female employees, provides special protection during special periods such as pregnancyand lactation, through arranges working period properly and position adjustment.
In 2023, the Company’s customer hired a third-party organization ELEVATE, to conduct a social responsibility audit on LinglongEurope under a sustainable development topic. Linglong Europe receivedThe audit evaluated the Company's social compliance performance from 9 dimensions: comprehensive management, child laborand underage workers, forced labor, labor rights and interests, employee participation in management, working hours and remu-neration, occupational health and safety, environment and supply chain management. No indicators or events of Major level orabove were found.The Company stresses the localization of enterprises and helps communitiesto create more jobs. It has created 14,000 jobs in five major manufacturingbases in Zhaoyuan, Dezhou, Jilin, Hubei and Guangxi, involving more than10,000 local people. In the two manufacturing bases in Europe and Thailand,the Company formulated localized recruitment policies to foster localizationoperations.
Metric
Proportion of newly recruited female employeesProportion of newly recruited ethnic minority employees
＞15%＞5%
17.86%
6.97%
CompletedCompleted
TargetCompletion
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
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Zhaoyuan
Dezhou
Jilin
HubeiGuangxiSerbia
Thailand
a green evaluation of 94 points.
Employee Retention and DevelopmentFocus on Employee Retention
Working Procedure for Employee Retention and Elimination
[Case] Eyas Program Phase II Project
Trend Change of Employee Satisfaction Survey
Employee Satisfaction
Year2021
76.80%
76.17%
76.54%
20222023
Create a Harmonious and Pleasant Workplace
Linglong Tire puts employee satisfaction and retention rate on the top agenda and formulates theto create a quite pleasant workplace through pre-management, process management and post-management and improveemployee satisfaction and retention rate.
Promote Employee GrowthEmphasizing the cultivation of talents, the Company regards the employees’ growth as a key driving force for corporate develop-ment, and continuously devotes itself to this field. The Company has established a systematic training framework for different po-sitions, in combination with online and offline, internal and external resources around lecturers, courses, corresponding incentivepolicies and personnel training processes.The Company actively introduces external resources to optimize training courses. In 2023, the Company cooperated with institu-tions to conduct targeted training for employees. The total duration of external training was 348 hours, and 910 people involved.Supporting all employees’ academic advancement, the Company conducted school-enterprise cooperation with colleges anduniversities such as Shandong University of Science and Technology and Qingdao University of Science and Technology, to launchthe top-up program. The program is accessible to all employees, and the tuition fee will be reimbursed by the Company aftergraduation. In 2023, a total of 251 employees graduated from the program with a total tuition reimbursement of RMB 677,750.
In 2023, the “Eyas Program” Phase IIfacilitated the application of knowl-edge, tools and methods learnedthrough experiential training, practicalexercises of tools and methods, andtraining competitions, to improve thecomprehensive management ability oftrainees. The Company selected atotal of 41 outstanding trainees for theprogram, and 102 trainees joined thereserve talent pool.
[Case] Skill Level Appraisal of Rubber Mixing WorkerWith the independent evaluation qualification of rubber mixing workers, molding workers and vulcanization workers issued by theYantai Occupational Skill Testing Authority, the Company organizes relevant employees to conduct skill level evaluation annually.In 2023, the Company organized a total of 78 rubber mixing workers to conduct skill level evaluation, and all have obtained Level 3(Senior worker) certificate.
[Case] Elite Program Phase IIIn 2023, the Company launched thesix-month “Elite Program” Phase II andselected a total of more than 60 excel-lent managers to join the second train-ing camp, completed 7 company-levelprograms, and selected more than 50outstanding talents.
[Case] Skills Competition forFront-line Maintenance Worker
In 2023, the Company conducted 176skill competitions for front-line mainte-nance workers, comprehensive training,improvement and skill appraisal fortheoretical knowledge and operationskills of posts. More than 2,000 front-linemaintenance workers involved, and theCompany selected more than 200model employees and issued a totalreward of more than RMB 60,000.
In 2023, the Company carried out an employee stability and satisfaction survey, covering 27 dimensions such as development pros-pects, corporate culture, team atmosphere, work interests, family factors, etc., to investigate employees' job satisfaction and predictpotential staff turnover.The Company collected a total of 8,036 valid questionnaires in the survey, with a coverage rate of 57% (excluding Thai and Serbian em-ployees). The employee satisfaction reached 76.54%, and the Company identified multiple staffing issues of concern. The Company for-mulates targeted improvement plans and strengthens their implementation.
Item
Pre-managementProcess managementPost-management
Optimizing employee satisfaction by establishing an early warning system for employee turnover andimplementing stability and satisfaction surveysImproving employees’ stability and reducing turnover rate is through employee retention workingprocess of planning, implementation, monitoring and improvementFormulating the priority of employee retention for the next month according to the turnover situationin the current month, and the employee management measures are optimized to improve employeesatisfaction
Content
The Eyas Program Phase II in 20232023 Linglong Tire Elite Program (Phase II)2023 Skills Competition for
Front-line Maintenance Worker
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Employee Retention and Elimination P-rocedure,
Democratic Communication among Employees
Main Democratic Oversight Work in 2023
Create a Harmonious and Pleasant Workplace
Linglong Tire fully respects employees’ rights of freedom of association, expression and supervision according to law, continuously pro-motes democratic management, the Staff and Workers’ Representative Congress (SWRC), builds communication channels betweenemployees and the Company, to maintain harmonious and stable labor-capital relations. In 2023, the Company organized 3 SWRC, with525 employees participating, processed a total of 4 proposals.The Company listens to employees' suggestions, builds channels for communication, and conducts daily feedback and employee satis-faction surveys. The Company’s Labor Union has 23 branches, which exercise supervision and management functions around fivedimensions: the implementation of policies and systems, the work style of managers, the fairness of performance appraisal and thevital interests of employees. They continue to promote the work of “connecting front-line and serving employees”, improve the servicequality and employee satisfaction.
[Case] Conducting Cultural and Sports Activities
The Company set up the “Lulutong” Mediation Committee to provide free legal services. In 2023, the Committeeprovided employees with 18 times of legal services including employee pensions, labor protection, labor contractdisputes, and labor remuneration, effectively solving their legal difficulties and guaranteeing the smooth proceed-ing of work.
Enhanced Employee Care
December 5, 2023: Guangxi Linglong organizeda visit to an employee
Upholding the people-oriented principle, the Company cares for em-ployees’ health and their work-life balance.The Company strives to help employees solve practical difficulties bymeans of exchanges, free legal support, and targeted assistance, guar-anteeing that care services are in place.
In 2023, the Labor Union negotiated with the Company on an equal footing, and implemented the items upon contract signing after theapproval of the Staff and Workers’ Representative Congress. As of December 31, 2023, the proportion of employees with signed collec-tive contracts in the Company has reached 100%. The Company has conducted collective negotiation for the year 2024 in March 2024.
Calling for work-life balance and a harmonious workplace, the Company seeks to enrich employees’ leisure time by organizing rec-reational activities with sports themes and internal associations, thus fostering a healthy atmosphere. In 2023, the Company held aseries of activities including “2023 World Earth Day Cycling Activity””, “16th Staff Sports Event” and “Painting and Calligraphy Com-petition” to tie bonds among employees.
Through symposiums, pre-shift meetings, post-shift meetings, special exchange meetings, and individual dis-cussions, the Company organized all front-line labor unions to supervise the implementation of the Company’ssystem and policy, work style of the managers, fairness of performance appraisal, vital interests of employeesand other aspects monthly, to identify and collect problems or rationalize suggestions in time.The Company focused on the employees’ fresh ideas in factory management and collects suggestions andproposals through labor union branches monthly for deliberation.In 2023, the Company obtained a total of 4,331 employee management improvement proposals and imple-mented 4,331 results. The improved financial amounts reached RMB 41.439 million.
Item
Optimize democratic andopen management of fac-tory affairs
Collect employee ques-tions and suggestions
The Company standardized the assessment of democratic and open management of factory affairs.
Content
Employee Care Measures and Effectiveness in 2023Aspects
Exchange
Free legal support
The Company solved the employees’ practical difficulties in work through exchanges;In 2023, the Labor Union organized 12,000 individual discussions among employees and helped more th-an 80 employees with a turnover intention stay in their posts.
Measures and Results
The Company provided targeted assistance for employees with difficulties. The Labor Union establishedfiles, conducted classification and registration, forming an accurate and complete feedback mechanismfor bringing warmth;The Company solved the employees’ difficulties in a timely manner, particularly their occasions of wed-dings and funerals, seeking to pay visits and assistance in time.
Targeted assistance
2023 World Earth Day Cycling Activity
Fishing Competition held by Fishing AssociationPainting and Calligraphy Competition
Table Tennis CompetitionBasketball Competition
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2023 Sustainability Report
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Co-construct a Harmonious and Pleasant CommunityLinglong Tire always prioritizes communication with local communities, actively fulfills its social responsibilities and gives back to the community by creating jobs, public welfare donations, infrastructure support and voluntary services. The Company has formulated the Management Mea-sures for External Donations and set up a social responsibility working group to manage the communication, public welfare donations and voluntary services.In 2023, the Company initiated numerous voluntary public welfare activities, benefiting communities where the manufacturing base is located, product users and other groups. The cumulative public welfare investment reached RMB 3.4762 million.
Feedback on the rescue oftruck mates along the Qinghai-Xizang Highway
Linglong in Thailand donatedmaterials to Pluak Daeng Primary School
Linglong Thailand donated daily nec-essaries and awarded scholarships to
Khaokhansong Primary School
Linglong Thailand participated in thecaring activities for the elderly orga-nized by Tasit Subdistrict Administrative
Organization
Linglong Thailand sponsored theSports Event of CHUMCHONBORISAT-
NAMTANTAWANAOK SCHOOL
The Company’s youth service team conducted special
cleaning activities for the off-site environment
Equipment of LinglongTire Atlas Truck Mate Home
Group photo of players at the 2023 “Teenson the Wolf’s Back” Football Training Camp
[Case] "Teens on Wolf's Back" Football Training CampIn 2023, the 5th Linglong Tire & Wolfsburg "Teens on Wolf's Back" Football Train-ing Camp was a great success. Football-loving teenagers from all over the coun-try gathered to receive football training from top coaches of VfL Wolfsburg,expanding horizons and experiencing Germany's profound culture in footballfield. Youth growth is a consistent concern of Linglong Tire. With football as thebond, the Company did everything within power to extend love and hope andhelp kids realize their dream.
[Case] Setup of Offline Truck Mate Care StationsIn 2023, Linglong Tire took the initiative to fulfill social responsibility, by setting upoffline truck mate care stations ingeniously. In tight collaboration with variousdepartments, the Company established a public service chain to expand the out-reach of public services in its outlets. Partnering with like-minded outlets, it setup offline truck mate care stations, each featuring a cozy environment, plenty ofamenities, such as washing machines and microwave ovens, foods and othersupplies. By providing free laundry and dining services to truck mates en route,the stations were intended to make truck mates feel at home and safeguardthem on the way.
[Case] “Truck Mate Care Plan” - Support Truck Mate to Overcome Adversity on Qin-ghai-Xizang HighwayIn March 2023, a truck mate driving along the Qinghai-Xizang Highway went into comaowing to altitude sickness and couldn‘t be got hold of. Linglong Tire, hand in hand withFAW Jiefang, instantly responded by summoning three brave members of the TruckMate Zone, who, driving at full throttle, arrived on the scene, saved and transported thelorry back to the hometown of the unconscious in Shandong, safe and sound. Initiatedby Linglong Tire, “Truck Mate Care Plan” is a manifestation of the humanity. With thereturn of the first responders at its own expense, including refueling cost, toll andaccommodation, the Company also subsidized their transport. Taking concreteactions, it ensured safety of truck mates and passed on love and care of society.
Attaching great importance to its cultural blending and sustainability in Thailand and Europe, Linglong Tire donated school supplies and sportsfacilities to local pupils, in support of their growth. In addition, the Company, mindful of local elders, also brought warmth and care to themthrough regular donation. In doing so, the Company was effusive in its affection for local community and championed its philosophy of sustain-ability.
[Case] Devote to Public Services via Production Bases Worldwide
Group photo of players in Linglong VehicleMaintenance Workshop Amateur Basketball League
[Case] Host Zhaoyuan Basketball LeagueIn 2023, the 11th Zhaoyuan Amateur Basketball League jointly held by LinglongTire and Zhaoyuan Basketball Association, it involved basketball amateurs inaround 60 matches, including regular tournaments, youth challenge matches,basketball parent-child games and star games. The challenge matches and par-ent-child games in particular gave teenagers a glimpse of basketball, a captivat-ing sport, and nurtured their teamwork spirit and athletic skills. Always advancingshoulder to shoulder with teenagers, Linglong, brimming with love and hope,aspires for writing a remarkable chapter with them in their growth.
The Company set up a youth service team to conduct cleaning activities for the off-site environ-ment, volunteer service for sports meetings, and employee welfare activity of mooncakes pack-aging. In 2023, the Company’s youth service team has accumulated 6,474 hours of service timeand 6 star-rated service providers.
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
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Furthermore, Linglong Tire organized corporate family fun day at regular intervals. Paying a visit to Linglong factory, staff families experiencedthe corporate culture and got a picture of the workplace. Such an event not only deepened the emotional association between staff and theirfamilies, but also made Linglong Tire better known by local community and cemented the Company's clout in society.
Linglong Europe sponsored Serbiancollege students for joining digital conference
Linglong Europe donated toconstruction of children's playground in Zrenjanin
Smart
Linglong
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
DigitalTransformation
IntelligentRetail
IntelligentManufacturing
Over recent years, the development of technologies such asartificial intelligence, big data and cloud computing has greatlyexpanded the corporate development space and made theutilization of human wisdom and strength more efficient. Intel-ligence has become an irreversible trend of corporate devel-opment.As a technology-oriented tire manufacturer, Linglong Tirealways upholds innovation-driven growth, driving the reformof the business model and corporate development. The Com-pany makes steady efforts in intelligent manufacturing andretail, connecting the supply, manufacturing and marketingchains to provide more efficient and higher-quality services.
Develop Intelligent Manufacturing to Advance Digital Transformation
Linglong Tire actively responds to the guiding spirit of the Made in China 2025 Action Plan and 14th Five-Year Plan for Intelli-gent Manufacturing Development, and adheres to an innovation-driven growth strategy, fueling intelligent manufacturingtransformation.Upon the formulation of the Outline of Medium and Long-term Strategic Development Plan (2020-2030) and the intelligenttransformation plan for 2020-2030, the Company seeks to chart out intelligent production modes, production processes andbusiness models by means of AI and big data, facilitating changes in industry ecosystem.In 2023, the Company’s manufacturing bases continued to promote the construction of four-orientation factories (“automatic,unmanned, digital and intelligent”), introduce new technologies to optimize production efficiency and build lean managementmodels and intelligent manufacturing factories. They implemented EPF flexible manufacturing models, adjusted productionlines according to market demand, catered to customer needs timely, and connected the supply, manufacturing and market-ing chains to achieve the fastest delivery with the lowest cost, highest efficiency and best inventory. By 2023, the Companyhas preliminarily realized intelligent production, logistics and warehousing.
Intelligent deviceinterconnection and data
platform
Intelligent productionand logistics storage
AI/Big data applicationintegration platform
2020202320252030
Intelligent Transformation Planning of Linglong Tire
The Company implemented the QMSsystem (quality management system) andEAMS system (equipment asset manage-ment system).
The Company achieved the electronic management ofstandard documents and the paperless management of5,258 standard documents.
Actions and Achievements of the Intelligent Construction in 2023
Field
Intelligentmanufacturing
The Company strengthened the establish-ment of the MES system (manufacturingexecution system).
Action
The Company completed the development and implemen-tation of a MES system for Liuzhou engineering tires, Chang-chun PCR tires, European TBR tires and PCR tires.
Achievements
The Company widely used intelligentequipment such as industrial robots, laserAGV (automated guided vehicle), and EMS(electric monorail system) to build an intelli-gent logistics system and stereoscopicwarehouse.
The Company realized the fully automatic transportation andwarehousing of raw materials, semi-finished products andfinished products. The Company significantly improved theoperation efficiency of the factory’s internal logistics system,guaranteeing production continuity and product quality sta-bility.
Intelligenttransportation
The Company added functions to the QMSsystem, such as FMEA (Failure mode andeffects analysis) full life cycle online man-agement, review management and productcertification management.
The Company standardized 32 business processes and 67business forms into the system. The system generated 77statistical reports in total, saving about 1.5 million pieces ofpaper and improving the statistical efficiency of quality databy about 90%. The maintenance module of the equipmentmanagement system realized stable operation.
The Company focused on building a finan-cial analysis module covering core financialbusinesses such as income, cost and pay-ment collection. It also completed the dataintegration of 26 businesses system andMES systems.
The Company realized the integration of business data suchas production, quality, warehousing, logistics, energy, pro-curement, after-sales and finance, sorted out the data fromSAP and MES systems according to the rules setting, and au-tomatic generation of the branch index data in the materialreport.The Company deeply analyzed business data, assistedin decision-making, and completed all-business modelingand thematic analysis of business.The Company provided the capability of pre-warning, in-pro-cess problem handling decisions and post-problem analysisand reflection.
IntelligentmanagementIntelligent hardware andintelligent device
data collection
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
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Develop Intelligent Manufacturing to Advance Digital Transformation
Through the establishment of complete enterprise equipment asset files, the Companyseeks to conduct full life cycle management of equipment assets, including procure-ment, deployment, operation, maintenance, repair and scrapping.In terms of equipment maintenance, the system automatically generates maintenancetasks according to the operation and maintenance plan and reminds relevant person-nel to complete maintenance operations on time. The Company seeks to avoid main-tenance omission or delay caused by human factors, thus indirectly reducing the failurerate of equipment.In terms of equipment repair, the Company standardizes the repair process by system-atically executing steps such as equipment failure reporting, repair planning, issuanceof repair work orders, and tracking of the repair process. This can improve equipmentrepair efficiency and quality.In terms of cost reduction, the equipment management system centrally manages andanalyzes the maintenance records of equipment, including maintenance times, dura-tion, costs, etc. The Company provides a database for optimizing maintenance plansand reducing unnecessary costs. The Company also monitors the procurement, useand inventory of spare parts in real-time, seeking to reduce the inventory cost and theoccupation of funds through reasonable spare part inventory management, and toguarantee normal operation.
In 2023, the Serbian production base completed the construction of a fully automatedlogistics and warehousing system, upgrading from a traditional factory reliant onmanual labor for the transfer of rubber materials, semi-components, and green tire toa fully automated process for equipment transfer and storage. The implementationincluded an automated vertical storage system for rubber sheets, a three-dimensionalwarehouse for semi-components, an AGV (Automated Guided Vehicle) transportsystem, a vertical storage for green tires, and an automated vertical storage system forfinished tires.The project reduced the land area used by about 20%. Taking a project with an annualproduction of 12 million sets of PCR tires as an example, labor use decreased by about50%, labor costs were reduced by 40% compared to traditional factories, and produc-tion efficiency increased by more than 30%. The system provides real-time manage-ment and control support for the first-in-first-out process, inventory management, andquality traceability of all production components.
[Case] Electronic Work Order to Optimize Work Efficiency
[Case] Automated Logistics and Warehousing Constructionof Serbian Factory
In 2023, the Company:
Participated in the preparation of three national standards, including Intelligent Tire Manufacturing __ Data Dic-tionary, Intelligent Tire Manufacturing __ Manufacturing Execution System (MES) Deployment General Specifi-cation and Unified Internet Architecture Standard for Intelligent Tire Factory;The high-end tire intelligent manufacturing demonstration project listed in the "2022 Intelligent ManufacturingDemonstration Factory" sponsored by the Ministry of Industry and Information Technology.This List was pub-lished in 2023.
Intelligentproduction logistics
managementsystem
Mixing rubbersheet stereoscopic
warehouse
Half-partsstereoscopicwarehouse
AGVtransport
Green tirestereoscopic warehouse
and transport
Finished products ste-
reoscopic warehouse
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2023 Sustainability Report
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List of units for the unveiling of intelligentmanufacturing demonstration factories in 2022
[Case] ATLAS Products Passed the Quick After-sales Review through the Company’s New Retail PlatformReview Procedure of Online After-sales Service Platform
Develop Intelligent Retail to Improve Customer Satisfaction
Upholding the product quality and service policy of “excellent quality, superior service, reputation-based and customer satisfaction"and the marketing concept of “all for the market and all for users”, Linglong Tire continuously optimizes customer service and providesa convenient and secure purchasing experience. The Company formulated a “new retail” strategy, and developed a smart marketingcloud platform with Tencent and HUAZHI Intelligent, connecting the information chain of “factory-dealer-store-consumer” and buildingan efficient upstream/downstream collaborative system.The Company's “New Retail 3.0” strategy focuses on the “product + service + value” concept, empowering offline terminal stores frommultiple dimensions such as technology, team, operation and system. It also helps stores to provide professional and standardized ser-vices for consumers, effectively improving sales channel.
Intelligent Retail 2023 Project Achievements
The launch of “Linglong Vehicle Maintenance Workshop”and “Atlas Truck Mate Home” realized the newretail operation mode of full-channel management of upstream and downstream of PCR and TBRbusinesses, full-link management of upstream/downstream transactions, and full-business andfull-scene management of auto repair stores.The Company developed the functions in the initial planning of “Linglong Vehicle Maintenance Work-shop” in multiple provinces and cities.
At 8:00 a.m. on April 15, 2023, when passing by Chengdu City, Sichuan Province, a customer ap-plied for national joint warranty due to auto faults. Combined with the tire information providedby the user, the Company quickly dispatched the nearest store staff through network inquiry forhandling joint warranty service. It took about 1 hour to complete the procedure and the cus-tomer was highly satisfied with the service.
Item
Development projects underNew Retail 3.0 strategy
Transformation projects un-der New Retail 2.0 strategy
Achievements
The Company completed the transformation of the core business systems in “New Retail2.0”, optimiz-ing numerous cloud resources and saving the annual cost of consumption exceeding RMB 600,000.
Construction Achievement of “Linglong Vehicle Maintenance Workshop” Platform in 2023
The Company built five application terminals, including headquarters, operator, supplier, store and vehicle owner.In general, it involves 34 major business processes, with its functions mainly covering management in fields likeorder, inventory, supply chain, member, and customer relationship.
Customers applyfor after-sales ser-vice through theonline platform or24-hour hotline.
The Company'safter-sales personnel
establish contact
with customerswithin 10 minutesand negotiate solu-tions within 2 hours
The Company sendsthe order to the near-est store through the
online platform
Stores completeafter-sales service
and submit claiminformation to theCompany throughthe online platform
Developed 26 operators in 26 cities and 415 auto repair stores as partners.
Platformdevelopment
Channel
Reached out to 99,087 vehicle owners and assisted auto repair stores in activities such as packagecards, value cards and discount coupons.User-terminaloperation
It applied for 2 software copyrights, both of which are passed and issued with certificates.
Software copyright application
Headquarters Interface of Linglong Vehicle Maintenance Workshop
The user evaluated the store service
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2023 Sustainability Report
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Support the UN
Sustainable
Development Goals
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
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Support the UN Sustainable Development Goals
Linglong Tire has a global reach, with 7 manufacturing bases and 7 research institutions worldwide.The Company has recognized the link between corporate growth and global sustainable develop-ment, and actively responded to the United Nations’ Sustainable Development Goals (SDGs).Based on corporate attributes and business priorities, the Company identified five SDGs that arehighly relevant to its business, seeking to incorporate them into its operational strategy, disclose itsprogress in action, and contribute to global sustainable development.
SDGs Management Procedure of Linglong Tire
Major SDGs Contribution Actions of Linglong Tire in 2023
The Company investigates and identifies SDGs thatare highly relevant to the company, conducts in-depthcommunication with departments, and learns abouthow the Company’s business model is involved in theSDGs plan.
The Company strives to maintain employees’ interests, conduct regular detection of occu-pational hazard factors on operation site, danger notification, prevention and pre-controland regular health examination for posts exposed to occupational hazards, implement thefile management of health surveillance for posts at all levels. This move guarantees occupa-tional health and safety management is controllable and under control.
新零售2.0项目改造The Company combines SDGs with their own highlymaterial topics, and identifies the contribution of top-ic-related management actions to SDGs;Starting from the integration with the value chain, theCompany seeks to work with stakeholders such asemployees, customers and supply chain partners, toset strategic goals and align SDGs with practicalactions.The Company conducts self-review to identify thecontribution of business and operational actions toSDGs, and to reprioritize SDGs timely;The Company discloses management performance,target achievement and subsequent promotion of im-provement annually, and maintains transparent com-munication with stakeholders.
Learn about the definitionof SDGs and identify priorities
Objective integration
and strategy development
Regular disclosureand communication
SDGs
Goal 3: Good Healthand Well-being
Occupational Health and Safety
Linglong Tire’s ActionsSection of disclosure
The Company actively responds to the national call for a “carbon peaking and carbonneutrality” policy and adopts PV power generation to reduce non-renewable energy con-sumption.In 2023, the PV power generation of all manufacturing bases accounted for 5.74% of thetotal.Goal 7: Affordable andClean Energy
Implement Green and Low Carbon Practice to Fuel SustainableEcosystemEnergy ManagementThe Company has adopted the "7+5" global strategic layout and the "three countries andseven places" global open R&D layout to provide multiple jobs for local communities.The Company formulated the Working Procedures for Rescuing Child Labor and Protect-ing Minors, Management Procedures for Employee Opinions, Suggestions, GrievanceFeedback Handling and Feedback, etc. to prohibit child labor and forced labor and guar-antee employees’ rights and interests.According to local laws and regulations, market level and operating conditions, the Compa-ny designed an incentive salary system and fair incentive systems such as performance bo-nuses and equity incentives.Goal 8: Decent Workand Economic Growth
Create a Harmonious andPleasant WorkplaceEmployee Recruitmentand Employment
By establishing cutting-edge scientific research and innovation platforms such as nationalindustrial design centers, state-certified enterprise technology centers and state-accredit-ed laboratories, the Company established a global open R&D and innovation system of“three countries and seven regions”, seeking to promote innovation in fields like products,materials, production technology and business modelsThe Company promotes the construction of automated, unmanned, digital and intelligentfactories to improve efficiency.Goal 9: Industry, Innovation,and Infrastructure
Make Green Innovations toEmpower Low-Carbon TravelDevelopIntelligent Manufacturingto Advance Digital TransformationTo conduct comprehensive carbon management, the Company issued and implementedthe Greenhouse Gas Inventory Procedure, formulated a carbon inventory promotion planfor each manufacturing base, and It is expected to complete the carbon inventory work ofall production bases by 2024The Company comprehensively promotes energy conservation and carbon reduction, andfocuses on improving energy efficiency to improve equipment use and management pro-cedures.Goal 13:
Climate Action
Implement Green and Low-CarbonPractice to Fuel Sustainable EcosystemMake Green Innovations to EmpowerLow-Carbon Travel Energy Management
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Note1: "three countries and seven places": the Company has set up R&D institutions in China (Zhaoyuan, Yantai, Beijing, Shanghai, Jinan), Germany, and the UnitedStates, forming a global and open R&D layout in the three countries and seven places
This Chapter includes all defensive ESG topics. Contributory topics such as cleantech oppor-tunities, digital transformation, community co-construction and public charity are fully de-
scribed in PART I and will not be repeated in the next step.
Part II:
Linglong Tire’s ESG
Management
EnergyManagementWater ResourcesManagementEmission and Waste
Management
Product QualityManagementCustomer Relationship
Management
ResponsibleProcurement
CorporateGovernanceBusiness EthicsCompliantOperation
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
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Carbon intensity per unit product
MetricTarget
Progress in 2023PerformanceCompletion
Proportion of renewable energy
2% drop in 2023 vs. 2020
More than 5% in 2023
0.96tCO
/tCompleted
CompletedPV power generation:
62,552,500 kWh,accounting for 5.74%
Environmental
Responsibility
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Metrics and Targets:
Identification of Climate Change Risks and Opportunities
Under the guidance of IFRS S2 recommendations, the Company identifies and analyzes climate risks and opportunities with a high degree of impact on theCompany according to its business characteristics, internal and external development environment and expert opinions. It also assesses the impact on theoperations and takes corresponding measures.
Probability of occurrence of risks and opportunities
Degree of impact of risks and opportunities
Identification Matrix of Climate Change Risks and Opportunities
HighMedium
High
Technical risks
Acute physical risks
Reputational risks
Adaptability
Chronic physical risks
Products and services
Market opportunities
Physical risksTransition risks
Policy and legal risks
Market risks
Sources of energy
Resource efficiency
Climate-related risksOpportunitiesClimate-related opportunities
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Identification of Climate Change Risks and Opportunities
Identification of and Response to Climate Change Risks
Risk categoryRisk descriptionPotential financial impactsResponse measures
Climate change is increasing the frequency of extremeweather events such as typhoons, floods, snowstorms,and hurricanes, which may cause asset damage, humantoll or service interruption to the Company.Rising average temperatures are impacting the climateor ecosystems, thereby affecting the Company's regularoperations and causing economic losses to the Company.Physicalrisks
Increase of operating costDecrease of operating revenueDevaluation of fixed assets
Develop contingency plans and reinforce emergency measuresand flood control drillsKeep tabs on urban climate information platforms and improvethe access-to-information timelinessIncrease facility overhaul frequency and enhance the water-proofing capabilities of factory facilities and equipmentTake an active role in activities carried out by GPSNR
Acutephysical risks
Chronicphysical risks
Climate-related laws, regulations, and policies in theplaces where the Company and its subsidiaries operateare becoming more stringent, such as the EuropeanUnion's Carbon Border Adjustment Mechanism ("CBAM")Regulation, which may bring legal liabilities such as law-suits or economic losses to the Company for in-compli-ance of them.The Company may burden more spending on developingresource cycle technology to use low-carbon technology orlow carbon raw material . The leading companies in theindustry, as market pioneers, may acquire core technolo-gies before the Company so that the Company may fail tobe cost and price-competitive.
Transition
risks
Increase of operating cost
Decrease ofoperating revenue
Increase of operating cost
Keep tabs on the updates and implementation time ofclimate-related laws, regulations, and policies, and improve theCompany's carbon-related management mechanismMake high-quality disclosures of environmental data on energyconsumption, water consumption, greenhouse gas emissions,etc., regularly in accordance with the regulatory requirementsMake full and active use of nascent technologiesPromote the R&D and application of low carbon raw materialMake great efforts in collaboration with intra-industry compa-nies or associations on R&DCustomers are increasingly demanding low-carbon andeco-friendly products, which may increase the Company'spurchase cost of renewable materials and need for productcarbon inventory.Fossil fuel prices are significantly increasing, leading tohigher energy burdens on the Company.NEV buyers are increasing, resulting in greater demandand higher R&D costs for NEV tires.
Increase ofoperating cost
Decrease ofoperating revenue
Use more sustainable materials in tiresMake active efforts to advance the R&D andapplication of NEV tiresConduct product carbon inventory regularlyEnhance the application of PV power generation and exploreother alternative renewable energy sources
Policy andlegal risks
There has been a growing concern from the Company'scustomers, consumers, and other stakeholders on theCompany's response to climate change. In case of a lackof active efforts for climate change, the Company mayfail to meet the expectations of stakeholders, resulting indamage to its image and reputation.
Decrease ofoperating revenueDecreases in companyvalue and investment
The Company's Board of Directors and senior managementattach great importance to climate change-related manage-ment and supervision and keep a close eye on climate-relatedpolicy trends.Incorporate "Respond to Climate Change" into the Company'sdevelopment strategy and carry out relevant response mea-sures based on the Company's status quoDisclose climate-related information as per IFRS-S2Increase communication with stakeholders
Reputational risks
Technical risks
Market risks
Note
: The Global Platform for Sustainable Natural Rubber ("GPSNR") is an independent, non-profit, non-governmental organization founded by the World Business Council for Sus-tainable Development ("WBCSD"). It is committed to leading improvements in the socio-economic and environmental performance of the natural rubber value chain and bringingtogether various stakeholders to a common ground to build a fair, equitable, and environmentally sound natural rubber value chain.
Opportunities and Response Measures in Climate ChangeOpportunitycategory
Opportunity description
Potentialfinancial impacts
Response measuresThe introduction of green energypolicies in China has led to progres-sively enlarged RE availability anddecreased prices. As a result,increasing use of RE in productionand operation can lower directenergy costs.
Decrease ofoperating costSourcesof energy
Resourceefficiency
Higher resource efficiency and loweroperating cost are achievable byutilizing RE, reusing water resources,recycling raw materials, promotinggreen smart manufacturing, etc.,which help increase production effi-ciency and curb greenhouse gasemissions to a certain extent.Social demand for green andlow-carbon products and services isincreasing. Continuous innovationand development of new low-car-bon products are necessary for theCompany to be more competitive inthe industry, decrease its carbonemissions, develop potential carbonreduction partners, and raise indus-try barriers.
Increase in
operatingrevenue
Decrease ofoperating cost
Continuous efforts are made todevelop environmentally friendlyraw materials and technologies andensure product diversification.
Productsand services
Adaptability
Make continuous effortsto improve the resourcemanagement system.Increase the use of RE andthe proportion of PV forpower generation.Increase the use of greenmaterials and step upefforts to develop sustain-able materials.Promote green smartmanufacturing.Gain insight into marketdemand and promotediversified business.Increase cooperation withpeers and promote in acoordinated way the R&Dof green and low-carbonproducts.Promote suppliers todevelop green raw materi-als and new technologiesand jointly boost greendevelopment.
Increase inoperatingrevenue
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2023 Sustainability Report
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Building of an Environmental Management SystemEnergy Management
Organizational Structure for Energy Management
Linglong Tire's Energy Consumption Target and Progress in 2023
[Tips] Advanced energy consumption values stipulated in GB29449 2012
Organizational Structure for Environmental Management
Linglong Tire improves its environmental management system and builds an environmental management organization structurecomposed of "decision makers - the management - executors" with on-going efforts. The Sustainable Development Committeeof the Board of Directors comprehensively oversees emission and waste-related topics. The Product, Safety, Environment and Cli-mate Change Committee develops environmental management systems, plans, and goals and supervises relevant departments'implementation of them. The Sustainable Development Sub-committee of relevant departments and subsidiaries of the Companyscrupulously implements national and local environmental laws and regulations, as well as environmental management-relatedplans and measures in project design, construction, and production. In 2023, Linglong Tire had no major accidents in environmen-tal protection or pollution.
Electricity and steam for production and natural gas for boilers are the main energies of Linglong Tire. As a strict follower of the Lawof the People's Republic of China on Energy Conservation, the Law of the People's Republic of China on Renewable Energy, etc., theCompany conserves energy and reduces emissions under the policy of “obeying laws, energy saving, full participation and continu-ous improvement”. The documents prepared by the Company for energy management include the Energy Management System,the Energy Conservation Management System, and the Energy Measurement Management System. The Company has madegreat efforts to better its energy management system and played an active role in promoting cleaner production, low-carbonmanufacturing, the use of photovoltaics and other renewables to reduce energy consumption at source and promote the develop-ment of circular economy.
In 2023, the Company's manufacturing bases currently in operation all passed ISO 14001 environmental management system cer-tification. Among them, European Linglong was first certified. The Company proceeded with the improvement of relevant Environ-mental Management Systems, implemented environmental protection measures, and improved environmental management per-formance by virtue of the use of environmental management system standards.
Sustainable DevelopmentCommittee
Product, Safety, Environment andClimate Change Committee
Sustainable Development Sub-committeeof relevant departments and subsidiaries ofthe Company
TargetCompletion
The energy consumption per unit product("ECPUP") of PCR radial tires, TBR radial tires,and OTR tires reaches the advanced energyconsumption values stipulated in relevant na-tional standards (GB 29449 2012).
The ECPUPs of PCR and TBR radial tiresreached the advanced energy consumptionvalues; that of OTR tires reached the admit-tance value.
Tire typeTBR radial tirePCR radial tireOTR tire
ECPUP (unit: kg ce / t)≤285≤380≤415
公司相关部门及子公司
董事会Board of Directors
Energy Conservation and
ConsumptionReduction Leading Group
Relevant Departments andSubsidiaries of the Company
The BOD serves as the top leader of the energy management system. It plays aleading role in giving guidance on the Company's energy management system.With President as the group leader and the responsible person of departments asmembers, the Energy Conservation and Consumption Reduction team is respon-sible for formulating energy conservation management systems, plans, and goalsfollowing the Company's strategic goals and supervising relevant departments'implementation of them
They are entrusted with the implementation of energy conservation plans tohelp achieve energy conservation goals.
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
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Energy Management
AspectsConcrete measures
Category202120222023
The Company used the primary steam to pressurize the secondary stream recycled by power and supplied the mixed stream to calendaring dryers or other low-pressure steam devices to save the cost of the primary steam. The energy conserva-tion rate was up to ≥40%.The Company updated, coated, and retrofit the equipment within the water pump of power stations; changed the original air compressor to the two-stage variable frequency screw air compressor; renovated water pumps in a customizedmanner; and sprayed coatings in the water pump for damage repair. These measures helped the Company reach an energy conservation rate of ≥15%. In 2023, Linglong Tire spray-coated and renovated 44 water pumps whose energy conserva-tion rate reached about 20%. After the renovation, the Company could save 3.33 million kWh of electricity every year.The Company obsoleted and replaced lithium bromide refrigerators with centrifugal refrigerators with control systems adopting variable frequency control. It is estimated that, with them, the annual energy consumption can be saved by about
7.14 million kWh and the energy saving rate can be up to ≥30%.
The Company purchased high-efficiency and energy-saving air compressors with energy efficiency levels that meet the national first-class energy efficiency standards, some of which adopted variable frequency control, to replace and renovatethe original high-efficiency air compressors. These compressors could help the Company save the electric consumption by 5.56 million kWh annually.The Company tracked unit consumption data of air compressors, nitrogen, cooling water, etc., and refined the indicators of power stations;The Company built a smart energy management platform at Hubei Base to collect the data of electricity, flow and water meters in parallel for online data collection and remote transmission, to monitor indicators, horizontally compare and auto-matically identify abnormalities for early warning through intelligent analysis, and to enable better energy management.The Company carried out training on the interpretation of Energy Management System standards, transformation of technologies for energy conservation, retrofit of lithium bromide refrigerators, ECPUP limits of tires, etc. Such training raised employ-ees' awareness of the Company's energy-related policies, energy management systems, and transformation of technologies for energy conservation. improved energy use efficiency, and promoted the achievement of energy management goals.The energy management system supported the collection and analysis of energy data from all branches of the Company to manage the information of all equipment and meters online. It was an important information-supportive system that helpedthe Company reduce energy costs.
Construction of new factories: New processes and new technologies was introduced, designs such as waterproof roof structures,high-performance exterior windows, light pipes on warehouse roofs for lighting, thermal pressure natural ventilation, external sun-shade systems, and thermal insulation exterior walls were employed, intelligent system operation and maintenance managementwas adopted, and PV design and installation on the steel roof was added to reduce building energy consumption during operation.Renovation and upgrading of old factories: The Company replaced the roof panels of warehouses in industrial parks with panels withhigher performance, strength grades, and corrosion resistance to improve the energy consumption efficiency of old factories. In 2023,the Company's PV installations covered Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base, and Jilin Base, with a covering areaof 900,000 m
and a total power generation of 62.5525 million kWh, which accounted for 5.74% of the total power consumption,increased by 88.27% YoY, and achieved a total carbon emission reduction of 35,673.69 tCO
.In December 2023, the Company's Dezhou Base and Guangxi Base were selected for the list of "Green Factories" by the Ministry ofIndustry and Information Technology.
Continuous promotion of
transformation oftechnologies forenergy conservation
Improvement ofmanufacturing processmanagement and controlEnhancement of staff
training on energy
consumption
Enhancement of
support forinformation system
Construction ofgreen factories
PV Generation by Linglong Tire's Manufacturing Bases
Proportion of PVgeneration (%)
17,154,77330,745,78262,552,500
1,089,061,765
5.74%
879,699,606
3.50%
1,037,234,665
1.65%
In 2023, the Company made efforts in energy conservation technology transformation, manufacturing process management and control, information system construction, and green factory construction to enhance energy consumption management and improve energy utili-zation efficiency.Measures for Energy Management in 2023
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2023 Sustainability Report
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PV generation (kWh)
Total electricityconsumption (kWh)
Note 1: The PV power generation covered Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base, and Jilin Base in 2023 and Zhaoyuan Base, Dezhou Base, and Guangxi Base in 2021-2022.Note 2: The total electricity consumption covered Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base, Thai Base, and Jilin Base in 2023 and Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base, and Thai Base in 2021-2022.
Management of Raw Materials and Water Resources
Raw materials managementLinglong Tire mainly uses raw rubber (including natural, synthetic, and reclaimed rubber), carbon black for filling, steel cords,cord fabrics, and auxiliary chemical materials for plasticizing and vulcanizing as raw materials for production.
The Company has developed systems such as the Instruc-tions for Raw Material Inspection and the Requirements forRaw Material Quality Control, and in 2023, formulated andissued the Packaging, Transportation, and Storage Require-ments for Raw Materials for Tires. These systems andrequirements standardize the packaging materials and itemsposted on the packaging of various raw materials for tires andclarify requirements on raw material shipping vehicles, inter-nal transfers and storage in manufacturing bases. They workwell in preventing the leakage of liquid raw materials and theimpact of dust generated during the storage and transporta-tion of solid raw materials on the environment.In 2023, the Company's experiment center conducted scien-tific and reasonable sampling of raw materials in accordancewith specified requirements. A total of 402 batches of rawmaterials of around 400 types including SVHC, Hbay, PAHsand asbestos were tested to ensure product quality andreduce the impact of tire production on the environment.
In terms of the use of raw materials for office, such as paper, theCompany implements the principle of resolutely not to printthose that are not printable, try not to print those that are notnecessary, and print as little as possible for those that must beprinted”. It formulated the Office Paper Management System ofShandong Linglong Tyre Co., Ltd. and promoted the institution-lization and standardization of office management. The Compa-ny advocates the promotion of paperless offices, adoption ofduplex printing, rational use of paper, and higher utilization rateof office paper.The Company uses technologies to stay as economical withresources as possible and adopts innovative measures for greenraw materials such as renewable, recyclable, and degradable ma-terials. For details, please see in the chapter “
The Company strictly abides by laws, regulations, and policiessuch as the Water Law of the People's Republic of China andthe Water Pollution Prevention and Control Law of the Peo-ple's Republic of China. It makes concrete efforts to build Lin-glong Tire into a water-saving enterprise, and gives full play toits leading role in building a resource-saving society. It formu-lated institutional documents such as the Water ResourcesConservation Management System and the RecirculatingCooling Water Quality Management System and adopted anumber of water-saving measures to protect water resourcesand improve water-use efficiency. It has a long-term man-agement mechanism for water conservation to achieve sus-tainable utilization of water resources.The Company's Energy Conservation and Consumption Re-duction Leading Group assumes full responsibility for theCompany's water-saving
The Company recycles wastewater, recycled rainwater, and boilercondensate for manufacturing base greening, road spraying, toiletflushing, fire protection, cooling tower, and power station afterup-to-standard wastewater treatment. In 2023, the Companyrecycled water of about 563,000 m
, accounting for 32.3% of itstotal water consumption, which resulted in a higher water-use effi-ciency.
Water resources managementLinglong Tire mainly uses municipal water for production and operation, while its Thai Base uses collected rainwater.
Measures for and Results of Water Conservation in 2023
Smart device application
The Company installed an automatic water replenishment device, which was connected to the cooling waterreturn pipeline, on the pipeline of the power water tank to regularly replenish cooling water to the powerwater tank, helping save water up to 20 m
/day.The Company installed the water tray, water pipe, stainless steel water tank, and water pump on the compos-ite roller to pump water in the water tank to the second-layer spray tank at the set liquid level for water reuse,which helped save water up to 15 m
/day.The Company pumped the condensed water of the secondary steam refrigerator to the cooling tower for usethrough the new condensed water tank, which helped save water up to 20 m
/day.The Company used the refrigerator from June to September to provide low-temperature cooling water forPower Workshop (Area A) and mixing process, which formed a closed-loop supply. In the remaining months,the Company provided normal-temperature cooling water from the open cooling tower. This method helpedreduce water usage.The Company installed outdoor reservoirs to collect rainwater in Thai Base, which was filtered through a sandfilter tank and an activated carbon tank, pumped to the power workshop where it was softened and then sup-plied to each process.In 2023, 170,000 m
of water was collected in Thai Base, accounting for 44.73% of thetotal water consumption there.The Jilin Base Plant was designed and constructed in accordance with the Requirements for Sponge City Con-struction. After its completion, the rainwater collected there was used for car washing, in-plant greening, andtoilet flushing.
Sponge City construction site in Jilin BaseAdhering to the management philosophy of “prioritizing resource conservation and giving first place toenvironmental protection”, the Company continuously bettered the office water management system,and used methods, such as using water-saving appliances, regularly inspecting faucets and pipes, andstrengthening water conservation promotion among employees, to reduce the waste of water resources.
Rainwater collection
and use
Recycling and reuse
Office water management
[Tips] Sponge citySponge City means that a city could function like a sponge that has great "resilience" to environmental changes and natural disasters caused by rain. Thestormwater could be absorbed, stored, infiltrated and cleaned during rainy days, and could be released and utilized as needed to realize the free migra-tion of rainwater in the city. The core of building a "sponge city" is building a water ecological infrastructure across scales with a variety of specific tech-nologies.
management in all aspects. Its duties include studying how to for-mulate water-saving management systems for the Company, for-mulating water conservation development programs and annualwork plans, and supervising and guiding the water conserva-tion-related work of all departments. It is under the leadership ofthe Company's Administrative Department and in collaborationwith the Production Department to comprehensively manage thewater conservation work carried out by all departments.
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
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Cleantech Development Initiativesand Target Progress in 2023Make Green Innovatio-ns to Empower Low-Carbon Travel”.
The Company's Energy Conservation and Consumption Re-duction Leading Group assumes full responsibility for theCompany's water-saving
The Company recycles wastewater, recycled rainwater, and boilercondensate for manufacturing base greening, road spraying, toiletflushing, fire protection, cooling tower, and power station afterup-to-standard wastewater treatment. In 2023, the Companyrecycled water of about 563,000 m
, accounting for 32.3% of itstotal water consumption, which resulted in a higher water-use effi-ciency.
Emission and Waste Management
Laws and regulations
observed
具体措施
The Company attaches great importance to pollutant management. In 2023, the ZhaoyuanBase was the first to implement the Company’s Pollutant Reduction Plan.
Hazardous Waste Management Plan
Management measures
Management system
Metrics and Targets
Management improvement, process substitution
Emission and Waste Management System
Linglong Tire's manufacturing bases follow close to the laws, regulations, and emission standards of the places where they oper-ate. They strengthen pollution prevention and control throughout the manufacturing process, develop reduction programs, andsupervise and evaluate the reduction process. Their methods for reduction targets cover process substitution and managementimprovement.
Key Metric
2023 reduction reference
value (2021)
2023 Target
Progress by 2023PerformanceCompletenessWaste waterExhaust GasHazardous wastes
286,719 m
5% Reduction252,350 m
270 t50t
CompletedCompletedCompleted5% Reduction5% Reduction295 t
62t
Manufacturing bases in China:
Wastewater Management
Types of and Treatment Measures for the Company's Wastewater
The Company's wastewater generated from production and operation mainly includes the water from circulating cooling towers, washingwastewater from the exhaust gas treatment system, floor cleaning wastewater, wastewater for pure water preparation, boiler blow-downwater, and sanitary wastewater.The Company formulated the Wastewater Control and Management Procedure and achieved its annual goals by establishing wastewatertreatment stations, improving its sewage treatment system, and arranging dedicated personnel to perform regular equipment mainte-nance. Each production base of the Company has rain and pollution diversion, and has a perfect sewage treatment system. In accor-dance with the regulatory regulations of relevant authorities, online monitoring systems are installed at the wastewater discharge outletsor sewage treatment stations of the Company's manufacturing bases in China (excluding Guangxi Base). For their monitoring, third-partytesting agencies are regularly entrusted to ensure up-to-standard wastewater discharge.
TypesTreatment measures
Reuse such water with boiler blow-down water for plantgreening, road spraying, and toilet flushing after beingcentrally treated at the factory wastewater treatmentstation till reaching the standard.
Discharge such water into the municipal sewage pipelines.
Water drained fromcirculating cooling tower
Washing wastewater fromexhaust gas treatment system
Floor cleaning wastewater
Wastewater for pure waterpreparation
Sanitary wastewater afterpretreatment by the Company
Emission and Waste Management Targets and Achievement Status for 2023 of Zhaoyuan Base
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Thai Base: Industrial sewage discharge standards in the ,exhaust emission standards in the ,te-related management regulationsEuropean Base: Serbian laws, regulations, and standards on wastewater, exhaust gas, and waste
Water Pollution Prevention and Control Law of the People's Repu-blic of China, Atmospheric Pollution Prevention and Control Law of the People's Republic of Chin-a, Solid Waste Pollution Prevention and Control Law of the People's Republic of China, Integrated Wastewater Discharge Standard, Emission Standard of Pollutants for Rubber Products Industry, and Standard for Pollution Control on Hazardous Waste Storage
Statement of the Federation of ThaiIandManagement Measures of the Federation of ThaiIand
Pollutant Reduction Plan
and was-
Emission and Waste Management
Exhaust Gas ManagementLinglong Tire's exhaust gas generated from production and operation is mainly from tire preparation and from boilers atDezhou Base, Guangxi Base, and Jilin Base. Particulates, sulfides, odor factors, volatile organic compounds (VOCs), etc. are themain types of pollutants.The Company formulated systems and procedures such as the Exhaust Gas Control and Management Procedure and adopteda series of measures for VOCs and NOx treatment to reduce the emission of exhaust gas pollutants and promote the achieve-ment of annual emission targets.The Company makes efforts to promote exhaust gas treatment work on an on-going basis. It uses exhaust gas treatment de-vices for processes such as mixing, vulcanization, and semi-component processing that emit VOCs, replaces existing coal-firedboilers with gas-fired boilers, and installs desulfurization and denitrification devices to reduce emissions of atmospheric pollut-ants such as nitrogen oxides and sulfur dioxides.
BaseEmissionsStandard
Concentration (average, mg/m
)202120222023
Emission of Exhaust Gases of the Company
Zhaoyuan Base
Dezhou Base
Hubei Base
Jilin Base
Guangxi Base
European Base
Thai BaseNote 1: The above statistics only cover the Company’s tire manufacturing bases and are weighted mean values of the third-party detection data.
PMsVOCsPMsVOCsPMsVOCsPMsVOCsPMsVOCsPMsSOXTotal dustSO
10mg/m
10mg/m
10mg/m
10mg/m
12mg/m
10mg/m
12mg/m
10mg/m
12mg/m
10mg/m
5mg/m
10mg/m
400mg/m
500ppm
6.51
0.72
1.89
2.37
2.07
1.5
--
3.185
5.18
--
1.26
1.25
5.16
1.85
3.19
1.98
1.51
0.42
--
3.64
3.87
--
1.28
1.32
5.61
1.23
3.94
4.29
4.7
0.15
4.93
2.21
4.04
3.08
0.01
4.5
1.24
1.23
Waste Management
Emissions Compliance Management
The Company's non-hazardous wastes generated from production and operation mainly include waste steel cords, fiber cord fabrics,waste steel wires, waste rubber edges, and domestic waste; and hazardous wastes mainly include used engine oil, laboratory wasteliquid, chemical wrappers, etc.
Linglong Tire formulated the and adopted measures such as recycling and reusing harmless waste to reduce waste emissions and build a circular economy.The Company's domestic waste is collected and disposed of by the environmental service department in places where the Company op-erates. Waste steel cords, fiber cord fabrics, waste steel wires, waste rubber edges, etc. are shortly stored in general solid waste ware-houses and then all recycled and disposed of by qualified third-party entities. Hazardous wastes are classified and shortly stored in thehazardous waste warehouse of each manufacturing base and then transported outward and disposed of by qualified units on a regularbasis.The Company upholds the tenet and concept of protecting the environment and reusing resources and maintains ongoing research onmethods for reducing waste, such as process improvement, material recycling, and waste reuse to promote corporate sustainable devel-opment.
Zhaoyuan Base improved its mold cleaning process from using mold cleaning agents to sandblasting and laser clean-ing. In 2023, there was no use of any additional mold cleaning agent, and the remaining agent was completely disposedof, down by 96% compared with 2022.The Company used its self-manufactured PE film in the preparation process of semi-finished products, achieving 100%recycling and reuse of materials, which has been implemented in all subsidiaries.The Company developed the “10,000-ton Waste Tire Resources Recycling Project”. In this project, Linglong Tire dis-mantled waste tires as raw materials to recycle their wire skeletons, rubber, and tires through the continuous desulfur-ization process under atmospheric pressure - dismantling, crushing, dressing by magnetic separation, stirring, desulfur-ization, extrusion, and cooling.
In 2023, Shandong Linglong Tyre Co., Ltd. and its subsidiaries Dezhou Linglong Tyre Co., Ltd., Hubei Linglong Tyre Co., Ltd., and Jilin Lin-glong Tyre Co., Ltd., were identified as national or regional major polluters for atmospheric or water environment. They all performed theirlegal duties in environmental protection including self-monitoring and information disclosure in accordance with the law, formulated con-tingency plans for emergent environmental incidents, and adopted measures to prevent and control environmental pollution and risks.In 2023, the Company's major pollutant-discharging units followed close to laws, regulations and management provisions. These unitsmonitored exhaust gas and wastewater discharge and outsourced the disposal of wastes on a regular basis. They took anti-seepagemeasures for the factory, regularly organized emergency drills for environmental emergencies, and reduced possible impacts on the en-vironment.
Measures for and Results of Waste Management in 2023Improvementof processes
Recycle
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Solid Waste Control and Management Procedure
Social Responsibility
Metrics and Targets:
Coverage rate of qualitymanagement system in
manufacturing base
MetricTarget
Progress in 2023PerformanceCompletion
Customer satisfaction
Coverage rate ofoccupational health
managementsystem certification at
workplaces
Coverage rate of occupational
disease physicalexamination forhazard positions
Number of occurrencesof occupational diseases
100%
Not less than
97.75 points
100%Completed
Completed99.61 points
100%Completed100%
100%Completed100%
0Completed0
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
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Note 1: "Hazard position" refers to the position of exposure to occupational hazardousfactors.
5M1E
Man
Method
Environment
Measurement
Material
Machine
Product Quality Management
In 2023, the Company selected 371, 479 and 43 batches of rubber materials, semi-components, and tires, respectively, inits factory for Hbay testing, and the test results were all qualified. The Company conducted routine tests on 937 specifica-tions of PCR tires and 212 specifications of TBR tires, and all tested items met the Company's standard requirements. Thethird party sampled 85 tires for SVHC, Hbay, Asbestos, and Flame Resistance testing, and the test results were all quali-fied.
Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base,Jilin Base, Thai Base, European Base
Zhaoyuan Base, Dezhou Base, Guangxi Base, Hubei Base, Thai BaseJilin Base, European Base (Declaration of Conformity)ISO 9001:2015IATF 16949:2016
Quality Management System Certification of Linglong Tire
In order to ensure product quality and effectively monitor the content of banned and restricted substances in tires, the Compa-ny regularly cooperates with third-party testing agencies to conduct quality testing of various products. The Company formu-lated the , providing regulatory handling of substandard semi-finished and finish-ed products in the production process within the manufacturing base. In 2023, the Company achieved a finished product quali-ty compliance rate of 99.30%
and had no products recalled for poor product quality.
As of the end of 2023, 100% of the Company's manufacturing bases had obtained ISO 9001:2015certification for quality management systems.
Linglong Tire strictly complies with laws, regulations, and provisions such as the and the adhering to the quality policy of " Focus on custo-mers, staff oriented; Environmental protection, energy saving, safe and lean; High brand competitiveness, harmonious andwin-win ", and revised thein 2023, improved the QMS quality management system, achieved full process quality data sharing for R&D quality,supplier quality, manufacturing quality, after-sales quality, real time monitoring and early warning throughout the entire pro-cess, and achieved a quality management mode of full staff, full process, and pre prevention.
The Company continuously strengthens the construction ofquality management system, establishing a quality manage-ment organizational structure, and adopts the "5M1E" (Man,Machine, Material, Method, Measure, and Environment) qualitymanagement analytical model to control the product quality. Ituses high accurate process equipment and conducts regularequipment maintenance to improve control over raw materialquality. It provides skills training for employees at key posi-tions, controls the temperature and humidity of the produc-tion environment, tests the quality of products and calibratesthe equipment and instruments on a regular basis. It has madevigorous efforts to improve production and refine manage-ment to keep improving product quality and manufacturinghigh-quality products.
"5M1E" Quality Management Analytical Model
Disposal Measures for Substandard Products
Substandardsemi-finishedproducts
具体措施
Substandard finished
products
Disposal methods: rework, repair, dispose, downgrade, and scrap.Substandard semi-finished products that need self, mutual or special inspection for rework, repair,scrap and disposal shall be labeled, isolated, stored and managed by the production department,and disposed of in accordance with the substandard product management measures issued by theCompany's Research Institute.Substandard semi-finished products, after rework or repair, shall be re-inspected by the QualityManagement Department. The number of reworked or repaired items and the disposal details anddate of rework or repair shall be recorded by the Production Department.
Disposal of such products shall be made in accordance with the review opinions of the Company'sResearch Institute.Finished tires with appearance defects inspected and within the scope of repair shall be re-inspect-ed and judged after repair. Other substandard tires shall be disposed of as per the finished productinspection standards.Special appearance requirements from customers shall be followed.The Company's Materials Management Office and relevant departments should ensure that sub-standard finished products and products to be scrapped that are labeled and isolated in the ware-house are all enclosed or under controllable management.
[Case] Establish and carry out quality awareness training for employeesIn order to make the quality awareness deeply rooted in the people's mind and serious process implementation discipline, the Companyestablished nine quality red line bans in July 2023, and carried out publicity and training throughout the company to enhance the qualityawareness of managers and front-line employees, strictly adhere to the quality bottom line, truly achieve quality first, do not manufac-ture, do not exchange, do not use unqualified products, and achieve "every process meets criterions , every tire makes customer satis-fied." Through training, the Company's employees have a deeper understanding of the "impact of quality on tire safety", and there is noviolation of the nine quality redlines in 2023.
Nine quality redlines
Training site
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
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Control Procedures for Substandard Products
9 quality redlines of Linglong
Note1:By the end of 2023, the European factory has been put into operation for less than one year, so the finished product quality of its products isnot included in the statistics.
Product Quality Law of the People's Republic ofChinaManagement Regulations on Compulsory Product Certification,
Quality Exception Handling Management Regulations and Finished Product Inspection Management Re-gulations
Customer Relationship Management
Initiatives and Results in Services to Key Customers in 2023
Customer Service System
Adhering to the service concept of “All for Customers”, Linglong Tire revised theandand established an online and offline service system including customerservice centers, nationwide joint warranty, and service plans for road rescue. Lin-glong Tire made continuous efforts in bettering pre-sales and after-sales custom-er service procedures, and improved service quality and customers' satisfaction in2023.
Customer Service Center Nationwide Warranty Roadside Assistance
Build a 7*24-hourafter-sales custom-er service centerand open a 24-hourhotlineOpen nationwidewarranty storesthrough New Retailplatform simplifyingthe joining proce-dure and realizingonline full-processimplementation
Realize thenationwide warranty
Introducethird-party road-side assistancecompanies
Replacement tireservice is availableOpening of roadrescue storesthough the Newretail PlatformProvide online andoffline Q&A, fol-low-up, handling,and return visitsUnify schedulingof serviceresources
Establishmentof platformsfor customerservices andcommunication
具体措施
The Company built a new retail platform and developed WeChat mini-programssuch as Linglong Chip Guarantee, Atlas Truck Mate Home, and Linglong VehicleMaintenance Workshop for customers to provide feedback and consultation. In2023, the Company signed with 13,032 stores for joint warranty and road rescue.
Customercomplaintmanagementprocedure
Customersatisfactionsurveymechanism
After-salesservice
The Company introduced a third-party service cooperation platform to providecustomers with consultation services through hotlines in a timely manner. In 2023,the Company provided first-rate services to 10,209 incoming customers, and theseservices were all recognized by the customers.The Company reformed the visit mode from visiting agents only to visiting bothagents and stores to have direct contact with customers to answer their questionsand remove their doubts. In 2023, the Company visited a total of 2,957 stores.The Company carried out customer satisfaction surveys and issued satisfaction ques-tionnaires covering quality, delivery, R&D, prices and services to key customers.
The Company launched a free product insurance policy. The Company launcheda bulge worry-free extension policy for PCR tires of 15 inches and above. Cus-tomers of such tires were provided with such insurance for free. In 2023, therewere 5,014 new beneficiaries, bringing the number of total beneficiaries to15,936.The Company realized online review and processing of the TBR Truck MateHome after-sales services through the Company's new retail platform for ATLASproducts in 2023, where stores could conveniently and quickly submit claiminformation and then review the processing status through the APP at any time.
Responsible departments made prompt arrangements for cause analysis and for-mulated and implemented rectification plans in accordance with their respectiveduties stipulated in the Customers' Complaints Handling Procedures.The Company monitored customer satisfaction with products through monthlycontinuous evaluation of customers' internal and external performance, each witha weight percentage of 50% in the annual comprehensive evaluation of customersatisfaction.
The business department that receives the feedback should timely fillin the and specify theurgency and severity of the problem according to the customer'sdemand and market conditionsThe Company's Quality Management Department shall classify andhandle the complaints. After internal rectification and processing,the relevant departments shall reply to the customer with the solu-tion results, and follow up the internal rectification.The Company shall formulate recurrence prevention measures,improve standard documents after validation of the measures, andhorizontally assess the problem rectification in each subsidiary forpreventing recurrence.
In 2023, the Company's customer satisfaction score was 99.61 points, exceedingthe target indicator of 97.75 Points.Complaint channels included 400 hotlines and new retail platforms.
In 2023, the Company received a total of 11 customer complaints, all compliantswere properly solved and recognized by customers.
ComplaintReceiptResolution byClassification
RectificationAssessment
Nissan 2023 "Best Technical
Contribution Award"
Core Supplier of FAW Jiefang
Shaanxi Heavy Duty Automobile's2023 "Three Synergy Contribution
Award" for Excellent Supplier
BESTUNE——New Bestune
Quality Lean Award
Guangxi Liugong's 2023 "Delivery
Excellence Award"
FOTON's 2023 Win-win
Cooperation Award
Customer Complaint Management Process
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
vice and Feedback Management Procedures
Ser-Customers' Complaints Handling
Disposition Form for Customer Complaints
Pro-cedures,
Information Security and Privacy Protection
Measures for Information Security in 2023Linglong Tire's Ten-year Plan for Information Security
Goal: It is planned that by 2030, Linglong Tire will realize trust certification for itsimportant systems, complete a number of international and domestic informationsecurity certifications, and enhance brand security and competitiveness.
1. TISAX VDA-ISA 5.0: The VDA and the ENX launched TlSAX (Trusted Information Security Assessment Exchange) assessment and exchange mechanism of information security based on the VDA-lSA information security
assessment standard, which can realize the mutual recognition of information security assessment in the automotive industry, and provide a common assessment and exchange mechanism.
2. PDCA: The information security management system is developed under PDCA Cyclic Model, which is divided into four stages: security risk assessment, the planning of system construction program (Plan), the establish-
ment and implementation of information security management system (Do), the assessment of system performance (Check), and continuous improvement (Action)
The Company improved problems such as insufficient monitoring ofserver running status, and utilized monitoring kits to achievereal-time monitoring and real-time alarms.The Company reinforced the security of corporate servers and data-bases, and repaired high-risk vulnerabilities to avoid threats of mali-cious attacks and data leaks. In 2023, a total of 9,630 virus attacksand 146 risk attacks were resisted, and no information security inci-dents such as server crash occurred.
The Information Technology Department organized information se-curity personnel of all departments to conduct information securityawareness training, and then the information security personnel ofall departments shall conduct information security awareness train-ing for their own personnel. In the first half and the second half of2023, the Company carried out one information security awarenesstraining covering all employees of the company respectively, improv-ing employees' risk prevention and response capabilities such asemail security, data security, and personal information protection. In2023, there were no information security incidents.In order to strengthen the ability of information emergency response, theCompany organized 2 emergency drills for data centers, 2 cyber attackdrills, and 10 database recovery drills for various business systems in 2023.
System upgradesand reinforcement
Training on information security
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
In 2023, the Company formulated and released data management systems such asthe Regulations on Data Management and to standardize cross-border data security management, and furth-er clarify data protection duties. The Company was officially labeled TISAX (TrustedInformation Security Assessment Exchange) 5.0 and received the CybersecurityGraded Protection 2.0 Linglong Tire Network System Level 3 and Linglong Tire Pro-duction Management System Level 2 ratings by the Ministry of Public Security ofPeople’s Republic of China. It further promoted information security managementby managing its systems and providing training for awareness improvement.
In 2023, the Company had no major information security incidents and its overall in-formation was in a sound condition.
2021-2023Passed TISAXVDA-ISA 5.0 anddomestic net-work rating pro-tection certifica-tion
2023-2025
Operate the infor-mation security-system in a PDCAmanner and roll itout company-wide
2028-2030
Form a set of com-plete and matureinformation securitymanagement systemand reach theworld-class informa-tion security manage-ment level.
2025-2028Focus on the pro-tection of the fivesecurity priorities,combine theinformation secu-rity system withproduction,office,and business, andcomprehensively-enhance technol-ogies and man-agemert
It formulated a ten-year plan for information security and ensured the security of itsbusiness and customer data with multiple measures.
regulations such asthe Personal InformationProtection Law of thePeople's Republic
the Measures forSecurity Assessmentof OutboundData Transferthe Data SecurityLaw of the Peopl-e's Republic of Chinathe Cybersecurit-y Law of the Peo-ple's Republic of
China
Linglong Tire strictly observes
Regulations on Cross-border Data Securi- ty Management
Note:
Innovation and IP Rights Protection
R&D and innovationLinglong Tire has established a globalized open R&D innovation system, a nationaltechnology center and cutting-edge innovation platform, and an industry allianceand academic workstations, providing strong platform support for the Company'sproduct R&D.
Linglong Tire is in strict compliance with the , and other laws an-d regulations. It formulated systems such as the It has continuously strengthened the Company's IP management, and e-nhanced its employees' awareness of IP management and protection to protect its own IP rights and ensure no infringement of others' IP rights.In 2023, the Company organized a total of 120 technicians and engineering equipment personnel from bases in Zhaoyuan, Dezhou, Guangxi, Hubei and Jilin toparticipate in patent risk control training. In the training, the Company introduced Chinese enterprises' patent portfolio planning and risk control work in the do-mestic and overseas markets from angles of patent work strategy, the establishment of the patent risk control system, response to patent infringement warn-ings, precautions involving standard essential patents, patent litigation procedures and risk control in the United States.In 2023, the Company obtained 181 new authorized patents, 6 new software copyrights and 7 new trademarks, ranking top in China interms of patent ownership.
The Company has actively cooperated with external parties to seek new op-portunities for R&D and innovation. It has invested in the construction of theSino-Asia Tire Proving Ground, China's first and world-class comprehensivelarge-scale tire proving ground, with the highest international standards incooperation with IDIADA Spain, and established a research center integratingproduction, learning, and research with research institutes and universities tojointly promote the innovative development of the industry and achieve effec-tive testing and research on the performance of innovative products.By the end of 2023, the Company had participated in the formulation and revi-sion of 166 international, national, local, and industry standards, of which itpresided over a total of 23.In 2023, China officially initiated the National Key Research and DevelopmentProgram during the “14
thFive-Year Plan” Period, covering 4 projects and 6subjects in total. The Company takes charge of 1 of the projects and 1 of thesubjects.
R&D PlatformsGlobalized R&D institute
in threecountries and seven regions
China: Zhaoyuan, Yantai, Beijing, Shanghai, JinanGermany, USAA national industrial design center, a nationalenterprise technology center, a nationallyrecognized laboratoryThe “TKS Rubber Technology Development and Inno-vation Alliance”, and an academician workstation
The tire NVH laboratory, dynamics laboratory, etc.
Industrial alliance andacademic workstations
National research and
innovation centers
Cutting-edge scientific
research andinnovation platform
Intellectual property protection
New added and cumulative patents in 2023
Number of new patents in 2023Cumulative amount by the end of 2023
Patent for invention 134 Items
Patent for utility model 688 Items
Design patent 568 Items
Patent for invention 39 Items
Patent for utility model 124 Items
Design patent 18 Items
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
People's Republic of China, the Trademark Law of the People's Republic of ChinaPatent Law of theIntellectual Property Management System.
Employee Recruitment and Employment
Employee RecruitmentThe recruitment types include labor contract, labor dispatch and re-employmentafter retirement. According to the laws and regulations in the areas where theCompany operates, such as the EU'sthe Company formulatedsystems such as to est-ablish a sound recruitment and employment system, provide equal opportunitiesand diversified workplace and guarantee that employees are not discriminatedagainst or treated preferentially due to non-work factors such as race.
To prohibit the employment of child labor, the Company formulated systemssuch as. In the recruitment stage, the Company works to make clear the background(including age) of employees and incorporate them into the correspondingmanagement scope.The employees in all forms of employment shall sign labor contracts with theCompany or the dispatching and outsourcing companies within one monthafter induction. The Company requires the companies above to file the laborcontracts. In 2023, no child labor or forced labor recruitment, confirmed viola-tions of laws and regulations, or any litigation in employment and labor stan-dards occurred.In 2023, the Company implemented the recruitment process, formulated anannual plan, and introduced competent personnel in line with the corporateculture and future development needs through diversified recruitment chan-nels.
Recruitment channels
Management Procedures for Child Labor and Juvenile Workers
Internal recruitmentSocial recruitment
Internal referralCampus recruitment
Online recruitment
Recruitment Priorities in 2023
Conduct on-cam-pus recruitment fair
The Company took the initiative to contact the employment offices ofcolleges and universities in the Province and beyond, and applied forholding on-campus recruitment fairs, including Shandong University,Harbin Institute of Technology, Shandong University of Technology,Shandong University of Science and Technology, Beijing University ofChemical Technology, etc. with a total of more than ten fairs.Participate in theon-campus mutualselection fair
The Company actively participated in the on-campus mutual selectionfairs in "Yantai, Qingdao, Jinan, Heilongjiang, Jilin and Liaoning" organizedby Yantai City or other places.Conduct school -enterprisecooperation
The Company established the "Linglong Class" with Qingdao University ofScience and Technology on talent training at home and abroad.It cooperated with Yantai Vocational College on the training of "on-siteengineers" and received the honorary title of Provincial Excellent Project.
ItemContent
Clear Age range for child labor:
China: under 16 years old(excluding 16years old)Thailand: under 15 years old(excluding 15 years old) Serbia: under 15 years old(excluding 15 years old).Clear Age range forunderage labor:
China: 16-18 years oldThailand: 15-18 years oldSerbia: 15-18 years old
Arrange appropriate work under registration and management in accordance with relevant laws and regu-lations. The work duration for underage workers shall not exceed 10 hours.It is strictly prohibited to provide underage workers with dangerous or unhealthy jobs.Ensure that underage workers receive equal pay for work of equal value done by adult workers.If underage workers under work need to retireand accept education, the Company shall not deal withit with a delay for any reason, and shall pay wages in full so as to support underage workers to continueto accept education.
The Company shall immediately send works who are found to be child laborsto the original place of residence and assume relevant expenses.The Company shall full pay the remuneration of the dismissed child labors.If child labors are sick or disabled before being sent to the original place ofresidence, the Company shall provide medical treatment and bear all expens-es and responsibilities therefrom.Repatriated child labor do need to attend school and their families have difficul-ties, and the Company should pay the school fees according to local standardsuntil they reach the current national legal requirements (China pays until the ageof 16, Thailand, Serbia pays until the age of 15) to ensure that they can continue toreceive compulsory education.
Identify the age ofthe employee at therecruitment stage
Exclusion fromemployment
If found to be childlabor
If found to be underagelabor
The Company shall include those found to be underage labors in themanagement of underage workers
The Human Resources Department shallcarry out irregular child labor inspec-tions for those considered to be adultworkers in the recruitment process.
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Labor Law of the People's Republic of China, Labor Contract Law of the People's Republic of China, Thailand's Labour Protection Act,Employment Directive, Employment Contract Directive,
Recruitment Management Regulations, Employee Dismission Settle-ment Management System and Internal Recruitment Management Regulations,
Working Procedures for the Rescue of Child Labor and Protection of Minors
Employee Recruitment and Employment
Employee Recruitment
Employee Welfare System
Linglong Tire strictly prohibits mortgage or forced labor to guarantee the basic rights and interests of employees.
Remunerationand benefits
The employee's salary consists of post salary, skill salary, performance bonus, overtime compensation andother subsidies.According to the laws, rules and regulations of the place where the Company operates, social insurance ispaid in full, and the social insurance payment rate under labor contacts reaches 100%.
Working hoursand leaves
Non-statutorywelfare
Legal holidays such as statutory holidays, marriage leave, maternity leave and sick leave.The Company formulated the to guaran-tee employees' rights and interests in paid annual leave.The Company collaborated with external agencies to provide diversified health benefits for employees.
Holiday benefits for all employees such as the Spring Festival and Mid-Autumn Festival, birthday andinduction commemorative benefits.Meal allowance, heatstroke prevention and labour protection appliances.Labor Union benefits for members.
Physical examination service of YingchengHospital
Employees employed exceeding for 10 years, middle-levelmanagers and March-Eighth Red-banner PacesetterEmployee Care Voucher (four denominations, foremployee self-conducted physical examination)
All employeesPhysical examination for occupational diseasesAll employees in occupational disease-risk postsOverseas health insurance handing and matterscommunication such as claims
Dispatched employees
Health benefitsScope
In 2023, the Company revised the Salary Implementation Plan for Employees of Tire Company Branch and the Regulationson Attendance and Leave Management of Tire Company to optimize the salary structure, reward distribution standardsfor front-line employees in terms of quality, safety, efficiency and management, and improve the employee leave man-agement system.
The Company formulated the Anti-discrimination Management Procedure and other systems to guarantee that employees are notunfairly treated due to non-work factors such as race. The Procedure is implemented by all departments of the Company. The man-agement representative is held accountable for its implementation, and the employee representative is held accountable for com-munication matters. In 2023, no discrimination incidents related to factors such as race, gender, religion, or skin color occurred inthe Company.
Anti-discrimination Procedure
The Company formulated the systems including the to guarantee that employees make complaints through multiple channels, and that complaints shall be handled toprevent forced labor incidents. In 2023, no forced labor incidents or infringements on employees' legitimate rights and interests oc-curred, and no complaints or penalties were received from regulatory authorities.
If an employee suffers or witnesses an incident of discrimination or harassment, he or shemay report it orally or in writing to the employee representative, the manager's representa-tive, the Office of the President, or other management the employee deems appropriate.
Employees report inci-dents of discrimination toemployee representatives
or other managers
Upon receiving a report of a discrimination incident by an employee, the Company will con-duct an investigation in a discreet, confidential and expeditious manner.The Company investigatesthe incident of discrimina-
tion
If the investigation results confirm the discrimination or harassment, the Company will takepunitive measures against the perpetrator, including admonishment, warning, transfer,suspension, dismissal, etc.The Company takes mea-
sures for the perpetratorbased on the investigation
results
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Regulations on Attendance and Leave Management of Tire Company
Management Procedure for Handling Employee Opinions, Suggestions, Complaint-s and Feedback
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Employee Training and Development
The Company formulated the which is centrally implemented by the HumanResources Department. It organized training activities from four major processes: training demand analysis, plan formulation,implementation and effect evaluation, and formulated customized training plans for employees in different posts.
The Company adopts a unified performance management system to conduct work fairly and openly, and applies the results to rewarddistribution, professional title promotion etc., to standardize talent management and maximize the value of human resources.
The Company formulated systems such as the Management System for Promotion of Professional Titles and the Scheme for Cultivationand Skill Level Evaluation of Managers to provide double promotion channels in professional technology and management, as well asclear promotion evaluation methods and assessment standards, and employees’ clear career development.
(Dual promotion channel)
(Dual promotion channel)
Employee Training
Employee Performance Appraisal and Development
Diversified Training Programs and Achievements in 2023
SubjectSystemFrequencyAchievements
Managers
Special Skills Advancement
Plan for Managers
Annual/Monthly
Annual training: Elite Program Phase II, SigmaTraining Project and FMEA Training Project in2023Monthly training: The Company held one ses-sion of the talent corner activity every 2 months(three in total).
Reserve managerechelons
Management Measures forReserve Echelon
Annual special trainingSpecial improvement aroundweakness on a quarterly basisThe Company conducts trainingand appraisal according to fourstages: induction, 3 months, 6
months and 12 months
In 2023, the Company conducted Eyas Pro-gram Phase II, with a total of 150 participants.
New engineer-ing techni-cians/manage-ment personnel
Management Regulations on Cultivation
of New EngineeringTechnician/ManagementPersonnel Excellent Tutor Incentive Scheme
40 Training sessions for 264 new engineeringtechnicians/management personnel in 2023
Maintenanceworker
Management Measures for Cultivation andAbility Evaluation of Maintenance WorkersSkills Competition Scheme for Front-line
and Maintenance Workers
Conduct at least once a yearfor relevant personnelFormulate specialimprovement plans
The Company organized a total of 2,089 skillstraining and appraisal projects for maintenanceworkers. A total of 8,539 person-times partici-pated in the training, and all passed.The Company organized 176 skill competitionsfor front-line maintenance workers and selectedmore than 200 model employees.
Front-lineemployees
Management Procedure for Standardized
Training of Front-line EmployeesSelection Scheme of Excellent Working MethodsSkills Competition Scheme for Front-line and M-
aintenance Workers
Conduct once a quarter
for relevant personnel
As of 2023, the Company selected a total of 136working methods named after operatorsIn 2023, the Company organized 176 competi-tions and selected more than 200 model em-ployees.
Quality inspector
Training Operating Procedure for Employeesof Finished Products Training OperatingProcedure for Rapid Inspection Post of
Quality Management DepartmentTraining Operating Instructions for
Laboratory Center of QualityManagement Department
Conduct once a quarterfor relevant personnel
The Company conducted a total of 120trainings for quality inspectors, with acoverage rate of 100%
To encourage the knowledge application of managers, divisional employees and backbone personnel and promote service quality, the Com-pany established an internal training tutor system and formulated documents such asAs of December31, 2023, the Company had 1,333 qualified lecturers and 236 pairs of excellent tutors and apprentices through internal appraisal, covering allbusiness areas, which effectively improves the top-down application of professional business knowledge.
The Company prioritizes the establishment of talent pool and formulated the which requires ma-nagers, division-level and key employees to cultivate reserve talents for posts. The Company adopts a dynamic management mechanismfor the talent team, cultivates talents with excellent evaluation performance, and conducts the last elimination system to maintain the vitalityof the management team. In 2023, the Company trained a total of 286 qualified personnel in the talent pool, and another 483 are undertraining.
The Company set up multiple dimensions such as work experience, quality, knowledge and skill level, performance andcontribution to improvement and innovation to conduct performance appraisal in a fair and open manner. In 2023, thecoverage rate of employees subject to regular performance and career development evaluation reached 100%, with atotal of 269 promoted.
Deputy CadresUnit Leader
Deputy GeneralManagerBranch OfficesExecutive VicePresident
Vice President
Senior Director
New Recruits
Administrators
AssistantManager
Manager
Promotion channels for employees in management posts
Promotion channels for employees in engineering technical posts
Deputy CadresUnit LeaderVice PresidentSenior Director
Vice President of the
Research Institute
DeputyGeneral Manager
New Recruits
Technician
AssistantEngineer
EngineerSenior Engineer
Engineer inCharge
TrainingOperation and Management Procedures ,
Lecturer Management Regulations, Excellent Tutor Incen-tive Scheme, Front-line/Maintenance Apprenticeship Instructing Incentive and Outstanding Master-apprentice Selection Scheme.
Management Measures for Reserve Echelon,
To encourage the knowledge application of managers, divisional employees and backbone personnel and promote service quality, the Com-pany established an internal training tutor system and formulated documents such asAs of December31, 2023, the Company had 1,333 qualified lecturers and 236 pairs of excellent tutors and apprentices through internal appraisal, covering allbusiness areas, which effectively improves the top-down application of professional business knowledge.
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Occupational Health and Safety
Linglong Tire strictly abides by local laws, regulations and international conventions including theand upholds the policy of "safety first, prevention foremost and comprehensive treatment", formulates systems such as and to establish the occupational health and safety (OHS) management system, and to promote the construction of comprehensive, systematic and sustainable safety management.In the Company, zero safety accident is the unswerving goal. To effectively manage safety accident indicators and safety man-agement performance, the Company set up metrics that can record work-related injury rate and serious accident rate per mil-lion working hours, formulated Targets and measures to achieve the targets.
Certification of Occupational Health and Safety Management System
Zhaoyuan Base, Dezhou Base, Guangxi Base,Hubei Base, Jilin Base, Thai Base, European BaseISO 45001
In 2023, all manufacturing bases passed ISO 45001 occupational health and safety management systems (OHS) certifi-cation, and the system construction covered 100% of the workplaces, wherein, Linglong Europe passed the certifica-tion for the first time.To reduce work safety risks, the Company organizes compliance evaluations and establishes a systematic plan forsafety risk management, guaranteeing the effectiveness of the system.
Work Safety Targets and Progress in 2023
＜1.0＜0.3
1.52
0.36
Metric2030 Target
Performance in
2023
Note 1: Recordable work-related injury rate per million working hours = number of work-related injuries accidents/total working hours *1,000,000Note 2: Serious accident rate = number of serious accidents/total working hours * 1,000,000. A serious accident refers to an accident thatcauses serious injury and requires recovery for more than 105 days, excluding fatal accidents
Recordable work-related injury rate per m-
illion working hours (%)
OHS Management System
Intrinsically safemanagement
Adopts high-standard and safe processes and equipment.Conducts systematic safety risk analysis in routine maintenance.Introduces intelligent automated logistics system.The workshop strictly implements the 5S standard (Seiri, Seiton, Seiso, Seiketsu and Shit-suke) to guarantee the occupational safety of employees while improving the site environ-ment and production efficiency.Strengthens health and safety training for employees.Sets up full-time safety management personnel for the Company and its subsidiaries.
Intrinsically safe system
Intrinsically safeprocess equipment
Intrinsically safeenvironment
Intrinsically safepersonnel
The Board of Directors supervises the Company's OHS system.Creates an occupational health and safety culture with full participation.Conducts risk classification assessment and potential risk identification and governance.Conducts quantitative assessment of occupational health and safety targets.Develops occupational health and safety-related policies applicable to employees and suppliers.Incidence of serious accidents (%)
Law of the People's Republic of China on Prevention and Control of Occupational Diseases, Measures for the Administration of Emergency Plans for Work Safety Accidents, Code for Provision of Personal Protective Equipment — Part 1: General Rules, Convention on the Prevention of Major Industrial Accidents, Emergency Response Plan for Production Safe-ty Accidents, Safety Management System of StakeholdersLinglong Tire's Territorial Management Safety Management System,
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Occupational Health and Safety
Occupational Health and Safety Measures and Achievements in 2023
MetricTargetPerformance
Category of measuresMeasures
Coverage rate of occupational health management system
certification at workplacesCoverage rate of occupational disease physical examination
for employees at hazardous position
The Company signed the occupational health and work safety responsibility warrant with different levelsto convey the Company's "safety, occupational health and environment" principles and implement themin detail.The Company formulated safety management procedures and systems, qualitatively and quantita-tively analyzed the Company's potential risks, implemented hierarchical control of safety risks, andregularly conducted potential risk identification, rectification and elimination.
Relevant personnel turned off the equipment and facilities with occupational hazard factors, toreduce the spillage of toxic and harmful substances and noise decibels, and provided labour protec-tion appliances for posts with occupational hazard factors.The Company organizes the detection of occupational hazard factors in all manufacturing sites an-nually, publicizes the detection data, and organizes the situation evaluation of occupational hazardfactors every three years.
The Company conducts occupational health examinations and prepares thefor employees exposed to occupational diseases. It also dispatches special personnelto centrally manage the personal health information of employees and the occupational healthsupervision files for posts at all levels. In 2023, a total of 6,407 employees exposed to hazards com-pleted occupational health examinations, with a coverage rate 100% and no employee is diagnosedwith occupational diseases.
Identify hazardous factors of occupational diseases for production posts.
100%
100%
Clarify safetyresponsibilitiesConduct potentialrisk identification on a
regular basis
Prevention of occupatio-
nal diseases
PostHazard factors of occupational diseasesSome postsPower station
There are toxic and harmful gases containing volatile organic compounds
such as benzene, toluene and xylene decomposed from rubber
materials when heated at high temperature
Noise hazards
In 2023, the Company recorded more than 15,000 potential risks identified, with a rectification rate of100%.
The Company prepared theducted emergency drills, including comprehensive emergency drills, special emergency drillsand on-site disposal plans, to improve employees' emergency response speed and disposalability.In 2023, the Company organized a total of 28 fire emergency drills and 16 on-site emergencyresponse drills.The Company worked to evaluate the qualification of suppliers according to the standardize the on-site safety operation of suppliers, and co-nduct safety training, supervision and inspection for suppliers and other personnel enteringthe factory, to guarantee the on-site safety of suppliers.
Category of measuresMeasures
The Company formulates an annual safety training plan, covering training in accident cases,safety laws and regulations, fire protection, special operations, occupational health,post-hazard spots and operating procedures, etc., and arranges necessary special trainingto improve the employees' safety awareness.In 2023, The Company organized 36 training sessions on safety, occupational health and en-vironmental protection with a total duration of 24 hours.
Conduct safetytraining
Conduct emergency
drilling
Guarantee the safety
of stakeholders
The Company's fire emergency drill site in 2023Potential risk identification site
Number of occurrences of occupational diseases
100%100%
In 2023, the Company worked to strengthen occupational health and safety management, prevent occupational diseases and guarantee the safety of suppliers by means of safety responsibility clarification, regular potential risk identification and safety training conducting, occu-pational hazards prevention, and emergency drills.
Occupational Health Su-rveillance File
Emergency Response Plan for Production Safety Accidentsand con-
Safety Mana-gement System of Stakeholders,
Note 1: "Hazardous position" refers to the position of exposure to occupational hazardous factors.
The Company hires security experts to diagnose the current situation of the Company every year, an-d compile the Company Security Diagnosis Report. The Company hires security experts every threeyears to evaluate the Company's current situation, and compile the Company's Security Current Situ-ation Evaluation.
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Responsible Procurement
Following the laws, regulations and rules of the places wherethe Company operates, such as thethethe of Thailand,and the of Serbia, the Companyformulated management systems such as theand the , andrevised the in 2023 upon the entryof GPSNR to increase requirements related to sustainable natu-ral rubber policies. It sought to improve supplier behavior man-agement, encourage suppliers to identify and resist deforesta-tion acts in raw material sources and product production pro-cesses/methods, and promote sustainable development of thesupply chain in a collaborative manner.
The types of suppliers mainly include raw material suppliersand infrastructure suppliers. Wherein, the latter is divided intoinfrastructure builders and suppliers. The former is divided intokey raw materials, important raw materials and general rawmaterial suppliers. The type of raw material suppliers is deter-mined according to whether the raw materials are related totire safety or laws and regulations. Aiming to build an open,transparent and responsible supply chain, the Company inte-grates the sustainable development philosophy into suppliermanagement and audit.
In 2023, the Company explicitly proposed environmental andsocial responsibility requirements for suppliers that meet theCompany'sto reduce the sustainable development risk of the supply chainwhile ensuring their products and services quality.
Responsible Procurement Measures and Achievements in 2023
Environmental and Social Risk Management and Aud-
it of Linglong Tire's Raw Material SuppliersThe Company’s manufacturing bases in China, Thai Base, and European Base give priority to local suppliersfor improving the procurement of green raw materials and packaging materials. The Company also conductsenvironment and energy related risk assessments of suppliers, and strives to reduce both costs and productcarbon emissions and promote green and sustainable development.
The Company regularly signs the Anti-bribery Agreement with suppliers, which ensures the fulfillmentof business contracts between the two parties and avoids corruption incidents.
The Company regularly carries out anti-corruption training for suppliers, with a coverage ratio of 100%among suppliers. The Company also organized standardized training on project quality, operationsafety, and working environment in the construction process for construction units.
The Company publicizes the requirements of achieving carbon peaking andcarbon neutrality to all suppliers and the requirements of obtaining FSC cer-tification and joining GPSNR for natural rubber factories. It also establishes acarbon risk assessment model, “Linglong Tire Green Supplier AssessmentCriteria”, for suppliers. In 2023, 6 of Company’s suppliers joined GPSNR，and3 of Company’s suppliers got the FSC certificationThe Company also publicizes relevant policies among suppliers to raise theirawareness of fulfilling environmental and social responsibilities and providinghigh-quality products and services. In September 2023, the Company com-missioned an external organization to conduct Responsible Supply ChainInitiative (RSCI) training for seven suppliers, raising their awareness of socialresponsibility.
In 2023, the materials purchased by the Company include recycled carbon black, rapeseed oil,bio-based cord fabric, environment-friendly reclaimed rubber, etc. The Company requires suppliersto reduce the use of disposable wooden pallets and increase the use of recyclable packaging, includ-ing metal packaging boxes, shared plastic pallets, and recyclable packaging materials, which hasreduced pollution to the environment and waste of resources. About 75% of Company’s raw materi-als used various recycled pallets.
RSCI Training site
Supplier
access
Audit of exis-ting suppliers
Supplie rectifi-cation andimprovement
In the application stage, new suppliers shouldsubmit materials including IATF 16949/ISO 9001,ISO14001, authorization letter of product safetyresponsible person, supplier anti-terrorismquestionnaire, and supplier social responsibilityassessment form. They should also pass thesample quality inspection audit and workshoptest verification.Suppliers regularly conduct risk assessment,social responsibility investigation, and on-siteaudits of process, quality management systemand environmental and energy and socialresponsibility according to classification.In 2023, 93 suppliers were routinely audited,and the rectification of supplier problemsreached 100% in view of the risks found in theaudit.Carried out product quality training for variousraw material suppliers for 3 times.
Suppliers with high risk are subject to necessaryrisk prevention and control measures of the Com-pany. It is not advisable to establish new business orextend existing business with suppliers whoseactual or potential adverse impacts cannot beidentified and eliminated.
Continuous promotion
of green procurement
Promotion ofanti-corruptionmanagement for
suppliers
Advocacy for supplier
obtain certificatesor join industry
organizations
Government Procurement La- w of the People's Republic of China,Law of the Peopl-e's Republic of China,Ministry of Interior Act 55
New Law on Construction Products
Supplier Code of Conduct
Sustainable Development Requirements for Suppliers,
Company’s new suppliers are subject to social res-ponsibility investigation,environmental, energy,an-d social responsibility audits.
Bidding
Supplier Manag-ement RegulationsProcurement Strategy Process
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Corporate Governance
Responsibility
Metrics and Targets:
MetricTarget
Progress in 2023PerformanceCompletion
100%
100%
100%
100%
Completed
Completed
Completed
Completed
Attendance rate of BOD members100%
100%
100%
100%
Business partners' signing rate of the
Anti-bribery AgreementProportion of directors participating
in anti-corruption trainingProportion of employees participating
in anti-corruption training
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Corporate Governance
Governance Structure
The Company strictly abides by the
and other laws and regulations and relevant requirements. It has con-tinuously improved its corporate governance structure, established and opti-mized the governance structure of “General Meeting of Shareholders, Board ofDirectors, Board of Supervisors, and Management”, and ensured the sustainable,standardized and healthy development of the Company.
In 2023, the Company revised thethe and other systems in light of the latest requirements of laws a-nd regulations and the Company's business practices. It also established aCompliance Management Committee under the Board of Directors andformulated thentinuously improving the corporate governance system. As of the end of2023, the Company has disclosed a total of 28 corporate governance sys-tems to the public.
Linglong Tire's Corporate Governance Structure and Operation of "General Meeting of Shareholders, Board of Directors, Board of
Supervisors, and Management" in 2023
Board of DirectorsPresident
Board of Supervisors
Secretary of theBoard of Directors
President OfficeBoard ofDirectors' Office
General Meeting of Shareholders
Remuneration andAppraisal Committ-
ee
NominatingCommittee
Strategy Committee
Audit Committee
ComplianceManagementCommitteeSustainableDevelopmentCommittee
GeneralMeetingof Shareholders
Board ofDirectors
Board ofSupervisors
Management-
level
The General Meeting of Shareholders is operated as the authority of the Company. It is responsible formaking decisions on the Company's business policies and investment plans in accordance with the law.In 2023, the Company held a total of 4 General Meetings of Shareholders and deliberated 24 proposals.
The Management performs their duties in accordance with laws and regulations and the Company'sinternal regulations. It strictly implements the resolutions of the General Meeting of Shareholders andthe Board of Directors and promotes the sustainable and stable operation of the Company.The Management of the Company consisted of 8 senior executives, including 1 female executive,accounting for 13% of the total.
Members of the Board of Directors of Linglong Tire
and Their BackgroundTypesNameGender
Professional CompetenceIndustryExperience
FinancialManagement
Wang FengWang LinLiu HuirongWen Decheng
Pan AilingZhang QiSun SongtaoFeng Baochun
Li Wei
MaleMaleFemale
MaleFemale
Male
Male
Male
Male
√√√√√√√√√
√
√
The Board of Directors is responsible for the General Meeting of Shareholders. The term of each direc-tor is no more than three years. A director may serve consecutive terms upon expiration of his/her term,and the consecutive term of an independent director is no more than six years.In 2023, the Company held 7 meetings of the Board of Directors, deliberated 46 proposals, and held 11meetings of various special committees. The attendance rate of directors at these meetings was 100%.The Board of Directors is composed of diverse members from accounting, law, rubber, and other pro-fessional fields. They possess rich management experience in large enterprises, which helps improvethe operational efficiency of the Board of Directors and facilitates directors' decision-making with viewsfrom multiple perspectives.In 2023, the Company's Board of Directors consisted of 9 members, including 3 independent directors,accounting for 33% of the total, and 2 female directors, accounting for 22% of the total.The Board of Supervisors is responsible for the General Meeting of Shareholders. It exercises the right ofsupervision to protect the rights and interests of shareholders and investors, the interests of the Company,and the legitimate rights and interests of employees from infringement.In 2023, the Board of Supervisors consisted of 3 members, including 2 shareholder representatives and 1employee representative. The Company held 5 meetings of the Board of Supervisors and deliberated 26proposals.
ChairmanDirectorIndependentDirectorIndependentDirectorIndependentDirectorDirectorDirectorDirectorDirector
Company Law, Securities Law, Code of Corpor- ate Governance for Listed Companies, Guidelines No. 1 of Shanghai Stock Exchange for the Self-regulation of Listed Companies — Standard Operation (Revised in Decem-ber 2023)
Articles of Association, the Rules of Proced-ures of the General Meeting of Shareholders,Rules of Procedures for the Board
of Directors,
Working Rules of the Compliance Management Committee,co-
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Corporate Governance
Information DisclosureThe Company strictly abides by theand other laws, regulations,rules and normative documents. Based on this, the Company has formulated theand other systems, ensuring that the information disclosed by the Companyis truthful, accurate and complete and that all shareholders have equal access to the information.
Protection of Investors' Rights and InterestsIn strict compliance with the requirements of relevant laws, regulations, and normative documents such as the and the,the Company formulates management systems such as the and the Based on the principles of equality, compliance, proactivity,honesty, and trustworthiness, the Company implements various measures to protect the rights and interests of minority investors.The Company has established an investor relations management system with the Chairman as the top responsible person, the Secretary of theBoard of Directors as the person in charge, and the Board of Directors Office as the main executive agency. By carrying out investor briefings,performance exchange meetings, on-site visits and discussions, telephone communication, online exchanges, etc., the Company responds tomajor topics of investor concern, fully interprets its highlights and long-term strategies, and feeds back the needs of the capital market to thedirectors, supervisors, and senior management, enhancing its effective communication with the capital market.
In 2023, the Company held 4 General Meetings of Shareholders, 12 performance briefings through online interaction and on-site communica-tion, and responded to 281 questions from investors. Outside the reporting window period, the Company received 57 investor surveys in total.The Company actively aligns itself with the laws of the capital market, formulates reasonable profit distribution policies, methods, and dividendplans, and makes positive returns to shareholders.
In 2023, the Company actively improved its communication channels with investors. The Company mandatorily and voluntarily disclosed its cor-porate information through the official websites of the Company and the Shanghai Stock Exchange and relevant statutory media designated bythe China Securities Regulatory Commission (CSRC), maintained good communication with the capital market and investors, and continued toenhance the transparency of the Company's information disclosure.In 2023, the Company disclosed a total of 96 periodic reports and temporary announcements and was not punished by regulatory author-ities for information disclosure violations. There were no selective information disclosures or information disclosure violations.The Company was awarded Grade A in the annual evaluation of information disclosure work of the Shanghai Stock Exchange. It is the onlyenterprise in the tire sector of companies listed on the SSE that has been awarded Grade A for 4 consecutive years.
Dividends of Linglong Tire
Dividend ItemsUnit
2021 Dividend(Paid in June 2022)
Annual Dividend PaidRMB MillionNote 1: In 2022, the Company paid a total of RMB 218,066.7 thousand of cashdividends, including RMB 129,990.8 thousand through share repurchase andRMB 88,075.9 thousand for ordinary shares.
2022 Dividend(Paid in June 2023)
The Company received investors for investigation in 2023
The Company formulates and continuously improves the remuneration system and plan for directors, supervisors, and senior man-agement. The remuneration plan for directors and senior management shall be submitted to the General Meeting of Shareholdersand the Board of Directors respectively for deliberation and approval before implementation. Independent directors and supervisorsadopt self-evaluation and mutual evaluation to evaluate their performance of duties.The Company also formulates the and other system documents. Based on this, the Company standardizesrelated party transactions and ensures their fair and impartial decision-making for all shareholders. In 2023, the Company conducteddecision-making and approval procedures for related party transactions in compliance with relevant laws and regulations and the rel-evant provisions of the above-mentioned system and timely fulfilled its obligation of information disclosure. There was no infringe-ment of the interests of the Company and the minority shareholders due to related party transactions.For more detailed information on corporate governance, please refer to the chapter on "Corporate Governance" in the
In 2023, the Company received seven honors and recognitions related toinvestor relations management, including the "2022 Golden InformationDisclosure Award" sponsored by China Securities Journal and the "5ARating for Performance Evaluation of Board Secretaries" by the China As-sociation for Public Companies.
CHINA ASSOCIATION FOR PUBLIC COMPANIES——Investor Relations Management Best Practice Award
for Listed Companies
Management System for Preventing Shareh-olders and Related Parties from Occupying the Company's Funds
2023 AnnualReport of Shandong Linglong Tyre Co., Ltd.
Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code of Co-rporate Governance for Listed Companies, the Rules Governing the Listing of Stocks on the Main Board of Shanghai Stock Exchange,
Management System for Information Disclosure, Management Systemfor Investor Relations, Accountability System for Major Errors in Annual Reports
Securities LawGuidelines Info-r vestor Relations Management of Listed CompaniesInvestor Relations Management Syst-em Management System for Separate Counting of Votes for Minority Investors.
Management System for Related Party Transactions,
The Company has established an investor relations management system with the Chairman as the top responsible person, the Secretary of theBoard of Directors as the person in charge, and the Board of Directors Office as the main executive agency. By carrying out investor briefings,performance exchange meetings, on-site visits and discussions, telephone communication, online exchanges, etc., the Company responds tomajor topics of investor concern, fully interprets its highlights and long-term strategies, and feeds back the needs of the capital market to thedirectors, supervisors, and senior management, enhancing its effective communication with the capital market.
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Business Ethics
Anti-corruption
Business ethics training site
Anti-corruption and Integrity Building Measures and Effectiveness of Linglong
Tire in 2023
Linglong Tire sees integrity as the bottom line of operation, advocates a culture of integ-rity, and adheres to honest and law-abiding operations. The Company formulates sys-tems such asand establishes along-term anti-corruption early warning mechanism, and maintains the integrity of itsemployees and a healthy and positive cultural atmosphere.
According to all applicable laws and regulations such as theand theas well as international standards such as the Linglong Tire continues to improve the business ethics management system, estab-lish a top-down business ethics management structure, and promote the constructionof the Company's business ethics system.
In 2023, the Company formulated and publicly released the It committed to carrying out all business transactions and cooperation with profes-sionalism, honesty, and integrity in the Statement, continuously improved the superviso-ry and whistleblowing management system, further standardized behaviors in businessoperations at home and abroad, and ensured the smooth progress of business ethicsmanagement.In 2023, the Company did not record any violations of bribery, extortion, fraud, or moneylaundering. The Company received three reports internally, all of which were handledand resolved in accordance with procedures without causing any significant impact.
Board of DirectorsSustainable DevelopmentCommittee of the Board
of Directors
Set business ethics management goals and beresponsible for the management effectivenessResponsible for the implementation of businessethics managementDisciplineInspection Committee
[Case] Carried out training on Anti-corruption and Anti-
bribery Control ProceduresOn September 14, 2023, the Company carriedout the publicity and implementation of theanti-corruption and anti-commercial briberysystem for key departments and positions andexplained the scope of application and thespecific procedures. A total of 326 peopleparticipated in the training, including thosefrom the Board of Directors, Engineering De-partment, Administrative Department, Sup-plier Management Department, ProcurementDepartment, and the relevant business de-partments of each subsidiary.
Anti-unfair Competition
In accordance with the Anti-Unfair Competition Law of the People's Republic of Chinaand other laws and regulations, combined with the actual business situation, theCompany formulated and revised the Anti-Unfair Competition Control Procedures in2023, standardized the market competition behavior, implemented the "7+5" develop-ment strategy, and improved the internationalization level. This effectively prevented,identified and responded to unfair competition risks, and ensured the sustainable androbust development of the Company.
Anti-money LaunderingThe Company strictly abides by the applicable anti-money laundering laws and regula-tions of the country (region) where it operates, formulates anti-money laundering policies,and promises not to participate in or assist any third party in money laundering.The Compliance Management Committee of the Board of Directors is responsible foroverseeing anti-money laundering work. Before developing external partnerships,the Company fully investigates and understands its trading partners, and establishesbusiness relationships only with those who have legitimate sources of funds for carry-ing out legitimate business activities. It also expressly prohibits the employees fromengaging in or assisting any other person in illegal money laundering activities.
According to anti-unfair competition laws and regulations, the Company identifiedseven types of unfair competition, including market confusion, infringement of tradesecrets, unfair prize-giving sales, commercial bribery, false publicity, commercial def-amation, and unfair competition on the Internet. In view of this, it established aclosed-loop control mechanism for anti-unfair competition compliance risks of pre-vention in advance, control in the process and improvement after the event, imple-mented compliance requirements, and prevented and controlled the risk of violations.In 2023, the Company had no incidents related to unfair competition.
AspectsSpecific Measures and Effectiveness
The Company requires employees in key links, areas, and positions to sign the Integrityand Self-discipline Commitment Letter and encourags more employees to do so. In 2023,all Company’s employees signed theThe Company requires its customers, suppliers, and contractors to sign theIn 2023, all Company’s business partners signed theThe Company issues the Proposal for Celebrating Festivals with Integrity in major festi-vals and advocates and publicizes integrity by organizing Family Observation Days, "TwoExcellent and One Advanced" Commendation, and Probationary Party MemberOath-taking Ceremony;The Company regularly carries out business ethics training, conducts integrity examina-tions for personnel in key positions, and enhances employees' awareness of integrity andself-discipline;In 2023, the coverage rate of business ethics training for both directors and employeesreached 100%. The Company organized 12 integrity examinations for personnel in keypositions and provided briefings, totaling 1,407 person-times;The Company implements the requirements of the work style rectification for the Com-pany's cadres. It collected typical cases of work style rectification and published 16 issuesofThe Company revised the and form-ulated and released theestablished and improved whistleblowing channels including APP, mailbox, email, tele-phone, text message, etc., and encouraged employees and cooperative companies toreport corrupt behavior;and clearly requested strict confidentiality in all aspects of the acceptance, investigation,and other whistleblowing procedures, listed the protection measures for whistleblowersand the handling measures for leakers, and established an effective whistleblowing man-agement and whistleblower protection mechanism.The Company maintained and operated channels such as the mini program "Linglong Whis-tleblowing Information Platform" and learned the work style of cadres and employees. In 2023,there were three cases involving integrity issues.
The Company formulated
The Company conducted systematic anti-corruption risk assessment for each departments;Identified a total of 10 categories anti-corruption risk key departments, including procurementand bidding, finance, human resources, and management;Implemented a commitment system of anti- commercial bribery, and made the implementa-tion of the an important part of the inspe-ction and assessment for employees in key positions and an important basis for their appoint-ment and dismissal;Carried out internal special business ethics audits on key corruption risk points.
Integrity CulturePromotion
Whistleblower
Protection
Violation Handling
Improvement ofManagementMechanisms
Anti-corruption
Review
WhistleblowingPlatform
Anti-Unfair Competition Lawof the People's Republic of ChinaInterim Provisions on Prohibiting Commercial Bribery,United Nations Convention against Corrupti-on,
Anti-corruption and Anti-bribery Control Procedures, Integrity Management C-ontrol Procedures,Supervisory and Whistleblowing Management System,
Anti-corruption and Anti-bribery Control Procedures, Anti-Unfair Com-petition Control Procedures, Integrity Management Control Procedures, and revised Integrity and S-elf discipline Commitment Letter.
Integrity and Self-discipline Commitment Letter
Integrity and Self-discipline Commitment Letter;
Anti-briberyAgreement.Anti-bribery Agreement;
Work Style Briefing.
Supervisory and Whistleblowing Management System,Whistleblowing Policy Statement;
Business Ethics Policy State-ment.
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Compliant Operation
The Compliance Management Committee of the Board of Directors is responsible foroverseeing anti-money laundering work. Before developing external partnerships,the Company fully investigates and understands its trading partners, and establishesbusiness relationships only with those who have legitimate sources of funds for carry-ing out legitimate business activities. It also expressly prohibits the employees fromengaging in or assisting any other person in illegal money laundering activities.
Three-Year Plan for the Compliance Management System of Linglong Tire (2023-2025)
By upholding the principle of honest and law-abiding operation, Linglong Tire strives to build a corporate compliance culture of “dare not,cannot, would not be corrupt”. In accordance with the the and other laws, regulations, and s-tandards, the Company has formulated the and other system documents,improved compliance management system, and continued to implement compliance management.The Company formulated a to clarify the principles and priorities of compliance management, and comprehensively promotethe establishment of the compliance management system.
Steady De-velopment
Stage in
2023
Comprehen-sive Promo-tion Stage in
2024
The Company evaluates the effectiveness of the compliance management system by formulating evaluationindexes for the compliance system construction, special business evaluation indexes, and binding evaluationindexes, identify existing problems through the effectiveness evaluation, take timely rectification measures, con-tinuously improves the Company's compliance management, and progressively pushesforward the realization ofoverall compliance in the Company.
The Company improves the operational mechanism for compliance management, carries out compliance riskidentification in terms of business category, compliance basis, and compliance risk, formulates a compliance risklist, conducts in-depth investigation of compliance issues in business operations, analyzes the causes, compre-hensively rectifies the problems, continuously improves the efficiency of compliance management, and realiz-es the normalization and standardization of compliance management.
On the basis of the original trade compliance system and overseas compliance system, the Company continuesto improve its compliance management system, formulate and release compliance codes of conduct and com-pliance management measures, develop special compliance guidelines in key areas of compliance management,carry out compliance risk identification and review of the rules and regulations of subsidiaries, improve the Com-pany's overall compliance management system.
Optimizationand Enhance-ment Stage in
2025
In 2023, the Company established a Compliance Management Committee under the Board of Directors to comprehensively lead andcoordinate the promotion of compliance management. Focusing on the systems of organization, institution, operation, and security, theCompany improves the compliance management mechanism, clarifies compliance responsibilities, develops compliance culture, andrealizes the compliance operation in accordance with the law. During the reporting period, the Company was not punished or warned bythe regulatory authorities for violating laws and regulations related to the Company's operations, such as product quality, customer ser-vice, intellectual property protection, environmental protection, and employee employment.
Compliance Management Work and Effectiveness of Linglong Tire in 2023
AspectsContent
Organizational system
construction
Institutional systemconstruction
Operational systemconstruction
Security system
construction
The Company established a Compliance Management Committee under the Board of Directors, formulated relevant workrules, and comprehensively led and coordinated the promotion of compliance management.The compliance management organization structure has been established, which integrates the Compliance ManagementCommittee of the Board of Directors, the manager, the person in charge of compliance management, the compliance man-agement leading department, the special department and the supervision department. Establish the compliance manage-ment "three lines of defense" composed of the compliance management leading department, the compliance managementspecial department, and the compliance management supervision department.The Company formulated the and special guidelines for compliance in key areas such as outbound investment and labor and employment.Issued the and standardized the formulation and revision of the rules and regulations of the Company and its branches and subsidiaries.Improved laws and regulations in the fields of labor and environmental protection, and proofread 227 existing laws and regula-tions on their effectiveness.Carried out all-round compliance risk identification and investigation and formed assessment reports on the current compli-ance management, including:
Internally, the Company carried out inspections of rules and regulations and duty performance forms, covering 11 aspectsincluding safety and environmental protection, finance, quality control, manpower, and production. In 2023, the Companyinspected a total of 1,063 rules and regulations and 287 performance forms.Externally, the Company carried out risk reviews of customers and suppliers. In 2023, the Company conducted compliancerisk investigations of 1,161 new distributors, customers, and suppliers at home and abroad, 501 overseas customers, 769 sup-pliers, and 830 existing domestic customers, and reviewed business documents in high-risk countries and neighboring coun-tries, with no serious risks identified.Incorporate the compliance culture into the company culture construction and develop-ment plan, clarify the important role of the compliance culture, publicize the complianceculture, and implement the compliance concept, and make all staff form a work style oflooking for rules when things happen, complying with the rules and acting in accordancewith the rules.Regularly carry out compliance culture publicity in the company, add compliance informa-tion columns in the cultural publicity platform, publish compliance content for companypersonnel to learn, and make the concept of compliance deeply rooted in people's hearts.Formulate training materials on compliance behavior guidelines for expatriate employees,and conduct training and guidance on management methods, attitudes,
Linglong Tire OverseasCompliance Training
The Company requires employees in key links, areas, and positions to sign the Integrityand Self-discipline Commitment Letter and encourags more employees to do so. In 2023,all Company’s employees signed theThe Company requires its customers, suppliers, and contractors to sign theIn 2023, all Company’s business partners signed theThe Company issues the Proposal for Celebrating Festivals with Integrity in major festi-vals and advocates and publicizes integrity by organizing Family Observation Days, "TwoExcellent and One Advanced" Commendation, and Probationary Party MemberOath-taking Ceremony;The Company regularly carries out business ethics training, conducts integrity examina-tions for personnel in key positions, and enhances employees' awareness of integrity andself-discipline;In 2023, the coverage rate of business ethics training for both directors and employeesreached 100%. The Company organized 12 integrity examinations for personnel in keypositions and provided briefings, totaling 1,407 person-times;The Company implements the requirements of the work style rectification for the Com-pany's cadres. It collected typical cases of work style rectification and published 16 issuesof
Company Law of the People's Republic of China, Code of Corporate Governance for List-Compliance Management Measures, Code of Conduct for Compliance, lan for the Compliance Management System
Compliance Management Measures, Code of Conduct for Compliance,the
Provisions on Compliance Management of Rules and Regulations
ed Companies,Compliance Management System Requirements and Guidelines for Use (GB/T 35770-2022)
concepts and daily compliance behaviors of expatriate cadres and employees.In 2023, the Company focused on overseas compliance and risk prevention, and conducted overseas compliance manage-ment training for relevant personnel of various management departments and business departments (including subsidiaries),with a total of 282 participants.
Three-YearP-
In 2023, the Company established a Compliance Management Committee under the Board of Directors to comprehensively lead andcoordinate the promotion of compliance management. Focusing on the systems of organization, institution, operation, and security, theCompany improves the compliance management mechanism, clarifies compliance responsibilities, develops compliance culture, andrealizes the compliance operation in accordance with the law. During the reporting period, the Company was not punished or warned bythe regulatory authorities for violating laws and regulations related to the Company's operations, such as product quality, customer ser-vice, intellectual property protection, environmental protection, and employee employment.
ESG Data
Performance Table
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
ESG Data Performance Table
EconomyIndicatorNet profitTotal amount of taxes payableTotal number of shares issued by the CompanySocial contribution per share
RMB 10,000RMB 10,000ShareRMB
78,855.6348,367.851,372,125,701
2.30
29,178.5821,013.131,476,731,513
1.67
139,060.7160,787.601,473,522,713
2.92
Unit202120222023
EnvironmentEnvironmental Management System Performance
Indicator
Annual environmental investment expenditureRMB 10,000
Person (s)Hour/personCase (s)
%
4,603.2118,507
0.25
4,805.5318,534
0.28
4,913.7819,347
0.24
Unit202120222023
Note 1: [Calculation method] Social contribution per share = (Net profit of the Company + Tax revenue generated for the country during the year +Wages paid to employees + Loan interest paid to banks and other creditors + External donation and other value created for other stakeholders - Othersocial costs caused by environmental pollution, etc.) / Total number of shares of the Company.
Note 1: [Calculation method] Proportion of environmental protection investment to operating revenue = Annual environmental protection investmentexpenditure / Operating revenue * 100.
2023
Water Use Performance
Indicator
Municipal water supplyWater consumption density
m
m
m
m
/RMB 10,000
1,433,224
144,6131,288,611
0.70
1,402,346
176,9011,225,445
0.73
2,040,948
176,2841,864,664
1.01
Unit202120222023
Note 1: [Statistical caliber] The data for 2023 covers Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai Base, and Jilin Base, while the datafor 2021 and 2022 covers Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, and Thai Base.Note 2: Due to the pandemic, the Company's municipal water supply and total water consumption indicators in 2022 were lower than those in 2021. In2023, as the Company resumed normal production and operation, and Jilin Factory officially started production with its production capacity ramping up,both the municipal water supply and total water consumption were higher than those in 2022.Note 3: [Calculation method] Water consumption density = Total water consumption / Operating revenue.
Number of employees participating inenvironmental trainingEnvironmental protection training hoursper capitaNumber of cases punished for violations againstenvironmental protection laws and regulationsProportion of environmental protectioninvestment to operating revenue
Indicator
Power consumption intensity
Scope 1 GHG emissions
Scope 2 GHG emissions
GHG emission intensity
MWh/ RMB 10,000
kt CO
ekt CO
ekt CO
et CO
e/RMB 10,000
0.56
1,213
1,066
0.65
0.521,208
1,091
0.71
0.54
1,102
0.55
Purchased steam consumptionTotal power consumption
GJMWh
2,595,064.811,037,234.67
2,465,200.38
879,699.61
2,746,251.391,089,061.77
Unit202120222023
Energy Usage and Greenhouse Gas (GHG) Emission Performance
1 2
IndicatorUnit202120222023
Note 1: [Statistical Caliber] The data for 2023 covers Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai Base, and Jilin Base. The data for2021 and 2022 covers Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, and Thai Base.Note 2: Total Scope 1 GHG emissions include direct GHG emissions from the consumption of natural gas, official vehicle gasoline, raw coal and stationarysource diesel fuel. Scope 2 Greenhouse gas emissions include indirect GHG emissions from purchased electricity and steam (the Company calculatesthe greenhouse gas emissions from purchased electricity by location-based method) The GHG emission factor parameters are obtained from theand CEIC website. In 2021and 2022, the GHG emission factor for Chinese Mainland’s purchased electricity is 0.581 tCO
e/MWH, the GHG emission factor for Chinese Mainland’spurchased steam is 0.11 tCO
e/GJ. The GHG emission factor for Thailand's purchased electricity is 1.246 tCO
e/MWH, and the greenhouse gas emissionfactor for Thailand's purchased steam is 0.11 tCO
e/GJ in 2021 and 2022. In 2023, the GHG emission factor for Chinese Mainland’s purchased electricityis 0.5703 tCO
e/MWH, the GHG emission factor for Chinese Mainland’s purchased steam is 0.11 tCO
e/GJ. The GHG emission factor for Thailand's pur-chased electricity is 0.407 tCO
e/MWH, and that for Thailand's purchased steam is 0.11 tCO
e/GJ in 2023.Note 3: The total power consumption of the Company includes purchased electricity consumption and photovoltaic power generation. The photovoltaicpower generation is 62,552,500 KWh, accounting for 5.74%.Note 4: [Calculation method] Power consumption density = Total power consumption/ Operating revenue.Note 5: Affected by external factors, Scope 1 GHG emissions decreased. With the trial operation of Jilin plant in 2022 and the formal operation in 2023,production capacity improved, and the scope 1 GHG emissions increased.
Total GHG emissions (Scope I + Scope II)
Total water consumption (by source of waterwithdrawal)Rainwater collected and stored directly by theenterprise
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
nhouse Gas Emission Accounting and Reporting Guide for Enterprise: Power Generation Facilities, China Energy Statistical Yearbook
Gree-
ESG Data Performance Table
Pollutant Emission and Waste Discharge Performance
Indicator
Total water pollutant discharge Chemical oxygen demand (COD) Ammonia nitrogenTotal industrial wastewater dischargeDensity of industrial wastewater discharge
Total non-hazardous waste discharge
Density of non-hazardous waste discharge
Total hazardous waste discharge
Density of hazardous waste discharge
ttm
m
/RMB 10,000
tkg/RMB 10,000
tkg/RMB 10,000
18.26
0.25
388,032.00
0.21
25,313.82
13.62
363.32
0.20
11.97
0.19
218,847.80
0.13
21,612.89
12.71
390.94
0.23
8.46
0.22
455,065.00
0.23
24,071.30
11.94
429.17
0.21
Unit202120222023
Note 1: [Statistical caliber] The data for 2023 covers Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, Thai Base, Jilin Base, and European Base,while the data for 2021 and 2022 covers Zhaoyuan Base, Dezhou Base, Hubei Base, Guangxi Base, and Thai Base.Note 2: Due to the pandemic, the total amount of industrial wastewater discharged has dropped significantly from that in 2021.Note 3: The Jilin Factory commenced trial operation in 2022 and officially started production in 2023. Its production capacity is ramping up with increas-ing wastewater and waste discharge.Note 4: [Calculation method] Density of industrial wastewater discharge = Total industrial wastewater discharge / Operating revenue.Note 5: Non-hazardous waste mainly includes scrap steel cord, fiber cord, scrap steel wire, waste rubber edge and domestic garbage. [Calculationmethod] Density of non-hazardous waste emissions = Total non-hazardous waste emissions / Operating revenue * 1000.Note 6: Hazardous waste mainly includes used engine oil, laboratory waste liquid, chemical packaging, etc. [Calculation method] Density of hazardouswaste emissions = Total hazardous waste emissions / Operating revenue * 1000.
SocietyEmployment and Labor Routine Performance
Person (s)Person (s)Person (s)Person (s)Person (s)Person (s)Person (s)Person (s)Person (s)Person (s)Person (s)Person (s)
%Case (s)Case (s)Time (s)Time (s)Time (s)Time (s)Person (s)
%
18,507
4,68013,82713,990
4,51716,378
1,556
5,56911,995
4,221
1.99
18,534
4,61213,92214,026
4,50816,856
5,19712,144
1,193
4,186
1.91
19,347
4,74114,60614,336
5,01117,668
4,96812,942
1,437
4,202
1.84
By gender
By place of work
By form of employment
IndicatorUnit202120222023
Number of total employees
By age group
Number of female employeesNumber of male employees
Number of part-time employees
Number of employees aged under 30
Number of employees aged over 50Signing rate of labor contractsNumber of labor disputes
Number of employee turnoverEmployee turnover rate
Total number of cases punished for violations against laws andregulations related to child labor and forced laborNumber of cases punished for violations against laws and regula-tions related to recruitment and dismissal of employeesNumber of cases punished for violations against laws and regulationsrelated to working hours and vacations of employeesNumber of cases punished for violations against laws and regulationsrelated to promotion and equal opportunities of employeesNumber of cases punished for violations against laws and regula-tions related to anti-discrimination and diversity of employees
Number of employees working in
China's mainland
Number of full-time labor contract
employees
Number of full-time labor dispatching
employees
Number of employees in other forms
of employment
Number of employees aged between
30 and 50
Number of employees working in Hong
Kong, Macao, Taiwan, and foreign countries
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
ESG Data Performance Table
IndicatorUnit202120222023
Total training hours for employeesAverage training hours for employees
By gender
By form of employment
Number of female employee turnoverNumber of male employee turnoverTurnover rate of female employeesTurnover rate of male employees
Number of female employees trainedNumber of male employees trainedTotal training hours for female employees
Total training hours for male employees
Person (s)Person (s)%%Hour (s)Hour (s)Person (s)Person (s)
Hour (s)Hour (s)
%%Hour (s)Hour (s)
1,0323,189
1.80
1.89
1,499,067.00
81.00
4,68013,827379,080.001,119,987.00
1,326,618.00
126,036.00
1,0213,165
1.81
1.86
1,496,249.82
80.73
4,61213,922372,326.761,123,923.06
1,360,784.00
63,840.00
1,0023,200
1.73
1.79
2,534,457.00
131.00
4,74114,606621,071.001,913,386.00
2,314,508.00
104,669.00
SocietyEmployment and Labor Routine Performance
Note 1: [Calculation method] Employee turnover rate = 12-month cumulative number of resigned employees / (12-month cumulative number of resignedemployees + 12-month cumulative month-end number), with retirees, deaths, and other special circumstances deducted from the number of resigned em-ployeesNote 2: Reasons for the increase in training duration: In 2023, due to the increase of four foreign training projects and the addition of the European LinglongPCR factory, the training demand increased, resulting in the increase of more than 60% of the training duration in 2023 compared with that in 2022.Occupational Health and Safety PerformanceIndicatorTotal investment in safety operationRMB 10,000
%Person (s)
Hour (s)
%Case (s)/million hoursCase (s)/million hours
%
2,794.62
18,507
1.15
0.37
0.15
3,964.97
18,534
1.6
0.39
0.23
4,009.97
19,347
1.52
0.36
0.20
Unit202120222023
Note 1: [Calculation method] Proportion of employees participating in occupational health and safety training = Number of employees receiving occupationalhealth and safety training / (Number of female employees + Number of male employees) * 100Note 2: [Calculation method] Recordable work-related injury rate per million working hours = Number of work-related injuries / Total working hours of em-ployees * 1,000,000Note 3: [Calculation method] Incidence of serious accidents = Number of serious accidents / Total working hours of employees * 1,000,000Note 4: [Calculation method] Proportion of safety operation investment to operating revenue = Total investment in safety operation / operating revenue *
IndicatorUnit202120222023
By form of employment
Total training hours for employeesin other forms of employment(at the end of the period)）
Hour (s)
%
46,413.00
71,042.40
115,280.00
Total training hours for full-time labor con-tract employees (at the end of the period)Total training hours for full-time labordispatching employees (at the end of theperiod)
Proportion of female employees partici-pating in training
。
Proportion of male employees participat-ing in training
Coverage rate of employees receiving regular performance andcareer development appraisals
Coverage rate of physical examination forhazard positionsNumber of employees receiving occupa-tional health and safety trainingTotal hours of occupational health andsafety trainingProportion of employees participating inoccupational health and safety training
Recordable work-related injury rate permillion working hours
Incidence of serious accidents
Proportion of safety operation investmentto operating revenue
By gender
ESG Data Performance Table
Supplier Management Performance
Indicator
%//%
Time (s)%
2.86
15.52
12.00
Unit202120222023
Supplier Management Performance
IndicatorUnit202120222023
Note 1: [Calculation method] Proportion of suppliers participating in product quality training = Number of suppliers receiving product quality training /Number of all suppliers * 100%Note 2: The Company conducts environmental and social negative impact audits on suppliers based on the three dimensions of impact severity, impact scaleand occurrence possibility (divided into four grades: slight, medium, significant and serious). If the comprehensive evaluation of the three factors is significantor above, it is deemed to have significant actual or potential negative impact on the environment or society.Note 3: Key supplier refers to the supplier of critical raw materials related to tire safety or related to laws and regulations.Note 4: [Calculation method] Proportion of suppliers receiving and passing environmental, labor, and ethical investigation among all suppliers = Number ofsuppliers receiving and passing environmental, labor, and ethical investigation / Number of all suppliers * 100
Social Welfare and Volunteer Service PerformanceIndicator
RMB 10,000Person (s)Hour (s)
630.22
2,409
248.97
2,117
347.62
2,007
Unit202120222023
Customer Service Performance
Indicator
Case (s)PointsCase (s)Case (s)Case (s)Case (s)Case (s)
99.84
99.85
99.61
Unit202120222023
Note 1: [Calculation method] Total number of products and service-related complaints received = Product quality and safety-related complaints +Customer service related complaints + Other complaints
Number of product quality training for various rawmaterial suppliersProportion of suppliers participating in productquality training
Proportion of suppliers signing anti-corruptionagreementsNumber of key suppliers
identified as having actualand potential significant negative environmentalimpacts
Total amount of community public welfare investmentNumber of employees participating in volunteer ser-vicesTotal volunteer service hours of employees
Number of key suppliers
identified as having actualand potential significant negative social impacts
Proportion of suppliers receiving and passing environ-mental, labor, and ethical investigation among allsuppliers
Product Quality Performance
Indicator
Time (s)
%
100.00
100.00
100.00
Unit202120222023
Number of product quality training for allemployees
Number of violations of laws and regulations inmarketing (including advertising, promotion andsponsorship)Customer satisfactionTotal number of products and service-relatedcomplaints received
Number of complaintsreceived by type ofcomplaint
Number of confirmed cases of leakage, theft orloss of customer information
Product quality andsafety-relatedCustomer servicerelatedOther
Proportion of employees participating inproduct quality training
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
ESG Data Performance Table
Business Ethics and Compliance PerformanceIndicator
Person (s)
Time (s)
%Person (s)Case (s)Person (s)%%Hour (s)Hour/personPerson-time(s)Person-time (s)Person-time (s)
2,737
14.79
18,507
100.00
100.00
18.00
2.00
5,97713,0001,200
3,400
18.34
18,534
100.00
100.00
18.00
2.00
18,53414,000
1,300
3,910
20.21
19,347
100.00
100.00
18.00
2.00
19,34713,000
1,300
Unit202120222023
Note 1: [Calculation method] Proportion of employees participating in compliance training = Number of employees participating in compliance training/(Number of female employees + Number of male employees) * 100.Note 2: [Calculation method] Proportion of directors participating in anti-corruption training = Number of directors participating in anti-corruptiontraining / Number of BOD members * 100.Note 3: [Calculation method] Proportion of employees participating in anti-corruption training = Number of employees participating in anti-corruptiontraining / (Number of female employees + Number of male employees)*100.Note 4: [Calculation method] Anti-corruption training hours for directors per capita = Total anti-corruption training hours for directors / Number of BODmembers.Note 5: the person-time(s) of integrity visits and cadres inspected is the estimated value by the Company.
Intellectual Property and R&D Innovation Performance
Indicator
R&D expensesProportion of R&D personnel
Proportion of R&D expenses to operating revenue
RMB 10,000
%%
93,409.47
11.66
5.03
74,792.91
12.11
4.40
81,478.44
11.74
4.04
Unit202120222023
Note 1: [Calculation method] Proportion of R&D personnel = Number of R&D personnel / Total number of employees * 100.Note 2: [Calculation method] Proportion of R&D expenses to operating revenue = R&D expenses / Operating revenue (in RMB 10,000) * 100.
Indicator
Number of BOD membersNumber of male directorsNumber of female directors
Number of executive directorsNumber of non-executive directorsNumber of independent non-executive directors
Person (s)Person (s)Person (s)
%Person (s)Person (s)Person (s)
%
11.11
33.33
22.22
33.33
22.22
33.33
Unit202120222023
Corporate Governance PerformanceCorporate governance
Note 1: [Calculation method] Proportion of female directors on the Board of Directors = Number of female directors / Number of BOD members * 100.Note 2: [Calculation method] Proportion of independent non-executive directors on the Board of Directors = Number of independent non-executivedirectors / Number of BOD members * 100.
Number of participants in compliance trainingNumber of compliance trainingProportion of employees participating incompliance training
Number of directors participating in anti-cor-ruption trainingNumber of concluded legal cases regardingcorrupt practices brought against the issuer orits employees during the reporting periodNumber of employees participating inanti-corruption trainingProportion of directors participating inanti-corruption training
Total anti-corruption training hours for direc-torsAnti-corruption training hours for directorsper capita
Number of persons signing the Integrity andSelf-discipline Commitment LetterIntegrity visits
Cadres inspected
Proportion of employees participating inanti-corruption training
Proportion of independent non-executivedirectors in the Board of Directors
Proportion of female directors in the Board ofDirectors
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Report Standard Index
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Report Standard Index
Guidelines No. 1 of Shanghai Stock Exchange for the Self-regulation of Listed Companies —Standard Operation (Revised in December 2023) IndexTerms and Disclosures
8.1 Overview
8.2 Business Principles
8.3 Strategic Planning and Working Mechanism for Social Responsibility
8.4 Social Contribution Per Share
8.5 Disclosure of Social Responsibility Report
Report ChaptersAbout Linglong TireAbout Linglong TireSustainability Management SystemESG Data Performance TableAbout This Report
8.6 (I)
8.6 (II)
8.6 (III) Improvement Measures and Specific Timetables
8.7
8.8 (I)
8.8 (II) Environmental Protection Plan
8.8 (IV) Pollutant Disposal
8.8 (V) Pollution Prevention and Control Facilities
Emission and Waste ManagementEmission and Waste Management
8.8 (III) Natural Resource Utilization
Terms and Disclosures
8.8 (VI) Payment of Taxes and Fees Related to Environmental Protection
8.8 (VII) Supply Chain Environmental Safety
8.8 (VIII) Other Environmental Protection Responsibilities
8.9 (I) Environmental Protection Policies, Objectives and Effectiveness
8.9 (II) Total Annual Resource Consumption
8.9 (III)
8.9 (IV)
8.9 (V)
8.9 (VI)
8.9 (VII)
8.9 (VIII) Incentives from Environmental Protection Departments
8.9 (IX) Other Voluntary Disclosures
8.10 (I)
8.10 (II)
Report Chapters
Emission and Waste ManagementEmission and Waste Management Responsible ProcurementEmission and Waste ManagementEmission and Waste ManagementEnergy Management Management of Raw Materials and Water Resources
Emission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste Management
8.10 (III)
Emission and Waste Management
Development and Implementation of Social Respon-sibility SystemDeficiencies and Problems in the Fulfillment of SocialResponsibilities
Election and Appointment System for Employees Directors, andSupervisors, Employee Rights and Interests ProtectionCompliance with Environmental Protection Laws andRegulations and Industry Standards
Significant Litigation on Environmental Issues or AssetsSeized, Frozen, Detained, Pledged or Mortgaged
Environmental Protection Investments and EnvironmentalTechnology Development
Implement Green and Low-Carbon Practice to Fuel Sustainable EcosystemMake Green Innovations to Empower Low-Carbon TravelTypes, Quantities, Concentrations and Destinations ofEmitted PollutantsConstruction and Operation of Environmental ProtectionFacilitiesWaste Treatment and Disposal and Recycling and Com-prehensive Utilization of Waste ProductsVoluntary Agreements with Environmental ProtectionDepartments
New, Renovated or Expanded Construction Projects orMajor InvestmentsPunishment for Violations of Environmental Laws andRegulations
Green Linglong Harmonious Linglong Smart Linglong EnvironmentalResponsibilities Social Responsibilities Corporate Governance ResponsibilityGreen Linglong Harmonious Linglong Smart Linglong EnvironmentalResponsibilities Social Responsibilities Corporate Governance ResponsibilityGreen Linglong Harmonious Linglong Smart Linglong EnvironmentalResponsibilities Social Responsibilities Corporate Governance ResponsibilityCreate a Harmonious and Pleasant WorkplaceEnergy Management Management of Raw Materials and Water ResourcesEmission and Waste ManagementImplement Green and Low-Carbon Practice to Fuel Sustainable EcosystemMake Green Innovations to Empower Low-Carbon TravelEnergy Management Management of Raw Materials and Water ResourcesEmission and Waste ManagementImplement Green and Low-Carbon Practice to Fuel Sustainable EcosystemMake Green Innovations to Empower Low-Carbon TravelEnergy Management Management of Raw Materials and Water ResourcesEmission and Waste Management
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
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Report Standard Index
8.10 (IV) Key Pollutant Dischargers
8.10 (V)
8.10 (VI) Major Environmental Protection Events
8.12 (I) Pollutant Emission
8.12 (II)
8.12 (III)
8.12 (IV) Pollutant Reduction Measures
8.13 (I)
8.13 (II) Production Environment and Processes
8.13 (III)
8.13 (IV) Other Production and Product Safety Responsibilities
8.14 (I)
8.14 (II)
8.14 (III) Employee Training
8.14 (IV)
8.15 Ethics in Science
2-1 Organizational details2-22-32-4 Restatements of information2-5 External Certification2-62-7 Employees2-8 Workers who are not employees2-9 Governance structure and composition2-102-11
About Linglong TireAbout This ReportAbout This ReportAbout This ReportVerification StatementAbout Linglong Tire
Corporate GovernanceSutainability Governance Framework
Emission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementEmission and Waste ManagementProduct Quality ManagementProduct Quality ManagementProduct Quality ManagementProduct Quality ManagementCreate a Harmonious and Pleasant Workplace Employee Recruitment and EmploymentOccupational Health and SafetyCreate a Harmonious and Pleasant WorkplaceCreate a Harmonious and Pleasant Workplace Employee Recruitment and EmploymentProtection of Intellectual Property Rights
GRI Standard
General disclosures
GRI 2:
General Disclosures2021
DisclosureLocation
Statement of UseGRI 1 Used
Linglong Tire reported in accordance with the Global Reporting Initiative (GRI) Standards for the period fromJanuary 1, 2023 to December 31, 2023GRI 1: Foundation 2021
GRI Standard Content Index
2-12
Terms and DisclosuresReport Chapters
Emission and Waste ManagementImpact of Newly Enacted Laws and Regulationson the Company
Construction and Operation of EnvironmentalProtection Facilities
Product Safety Laws and Regulations andIndustry Standards
Emergency Response Plan for PollutionAccidents
Product Quality and Safety Guarantee Mechanismsand Emergency Response Plan for Accidents
Employee Management System and ViolationHandling Measure
Other Responsibilities for Protecting EmployeeRights and Interests
Prevention of Occupational Hazards and Sup-porting Safety Measures
8.11 Environmental Protection Policy Implementation
and Corrective Measures
Entities included in the organization'ssustainable development reportReporting period, frequency andcontact
Activities, value chain and other busi-ness relationships
Nomination and selection of thehighest governance bodyChair of the highest governance bodyRole of the highest governance bodyin overseeing the management ofimpacts
Chairman MessageSustainability Governance Framework
Create a Harmonious and Pleasant WorkplaceEmployee Recruitment and EmploymentCreate a Harmonious and Pleasant WorkplaceEmployee Recruitment and Employment
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Report Standard Index
3-3 Management of material topics201-1
201-3203-1203-2204-1205-1205-2205-3
301-2301-3302-1
Responsible Procurement
Business Ethics
Energy Management
Analysis of Material TopicsAbout Linglong Tire
Create a Harmonious and Pleasant Workplace
GRI Standard
Material Topics
DisclosureLocation2-13
2-15 Conflicts of interest2-162-182-19 Renumeration policies2-20 Process to determine renumeration2-222-23 Policy commitments2-24 Embedding policy commitments2-27 Compliance with laws and regulations2-292-30 Collective bargaining agreements
3-13-2 List of material topics
Analysis of Material TopicsAppendix ll: List of Material Topics in 2023
Corporate Governance Business EthicsAnalysis of Material TopicsCorporate GovernanceEmployee Recruitment and EmploymentCorporate GovernanceSustainable Development Philosophy
Compliant OperationCommunication with Stakeholders
GRI Standard
GRI 2:
General Disclosures2021
GRI 3:
Material Topics 2021
GRI 201:
Financial Performance2016
GRI 203:
Indirect EconomicImpacts 2016
GRI 205:
Anti-corruption 2016
GRI 206:
Anti-competitiveBehavior 2016GRI 301:
Materials 2016
GRI 204: ProcurementPractice 2016
DisclosureLocation
2-14
Sustainability Governance Framework
201-2
Implement Green and Low-Carbon Practice to FuelSustainable Ecosystem
Co-construct a Harmonious and Pleasant Community
206-1
Business Ethics
Make Green Innovations to Empower Low-Carbon Travel
Delegation of responsibility for man-aging impactsRole of the highest governance bodyin the sustainable development report
Chairman MessageSustainability Governance Framework
Create a Harmonious and Pleasant WorkplaceEmployee Recruitment and Employment
Communication of critical concernsEvaluation of the performance of thehighest governance body
Statement on sustainable develop-ment strategy
Approach to stakeholder engagement
Direct economic value generated anddistributedFinancial implications and other risksand opportunities due to climatechangeDefined benefit plan obligations andother retirement plansInfrastructure investments and ser-vices supportedSignificant indirect economic impactsProportion of expenditure on pro-curement from local suppliersOperations assessed for risks relatedto corruptionCommunication and training aboutanti-corruption policies and proceduresConfirmed incidents of corruptionand actions takenLegal actions for anti-competitivebehavior, anti-trust, and monopolypracticesRecycled input materials usedReclaimed products and their pack-aging materialsEnergy consumption within the orga-nizationProcess of determination of materialtopics
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
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Report Standard Index
305-1 Direct (Scope 1) GHG emissions Energy indirect (Scope 2) GHG em -issions Other indirect (Scope 3) GHG emis -sions GHG emissions intensity Reduction of GHG emissionsEmissions of ozone-depleting subs -tances (ODS)
Waste generation and significant waste-related impacts Management of significant waste -related impacts Waste generated Waste diverted from disposal Waste directed to disposalNew suppliers that were screened using environmental criteria
Implement Green and Low-Carbon Practice to FuelSustainable Ecosystem
Emission and Waste Management
Emission and Waste Management
GRI StandardDisclosureLocation
Energy consumption outside of the organization Energy intensity Reduction of energy consumptionReductions in energy requirements of products and servicesInteractions with water as a shared resource Management of water discharge -related impacts Water withdrawal Water discharge Water consumption
Habitats protected or restored
Energy Management
Management of Raw Materials and Water Resources
GRI 302:
Energy 2016
GRI 303:
Water andEffluents 2018
GRI 304:
Biodiversity 2016
GRI 305:
Emissions 2016
GRI 308:
Supplier Environmen-tal Assessment 2016
GRI 306:
Waste 2020
GRI StandardDisclosureLocation
Implement Green and Low-Carbon Practice toFuel Sustainable Ecosystem
Responsible Procurement
Operational sites owned, leased, managed in, or adjacent to, protec -ted areas and areas of high biodiv ersity value outside protected areas Significant impacts of activities, products, and services on biod -iversity
IUCN Red List species and nationalconservation list species with habit ats in areas affected by operations
Nitrogen oxides (NOx), sulfur oxide -s (SOx), and other significant air e -missions
Negative environmental impacts in the supply chain and actions taken
305-2305-3305-4305-5305-6
305-7
306-1306-2306-3306-4306-5308-1
308-2
302-2302-3302-4302-5303-1303-2303-3303-4303-5
304-1
304-2
304-3
304-4
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Report Standard Index
Average hours of training per year per employee
Create a Harmonious and Pleasant Workplace
Employee Recruitment and Employment
Employee Recruitment and Employment
Employee Recruitment and Employment
New employee hires and employee turnover
Parental leaveMinimum notice periods regarding -operational changes Occupational health and safety ma -nagement system Hazard identification, risk assessme -nt, and incident investigation Occupational health services
Worker training on occupational he -alth and safety Promotion of worker health
Workers covered by an occupation-al health and safety management system Work-related injuries Work-related ill health
Create a Harmonious and Pleasant Workplace
Employee Recruitment and Employment
Employee Recruitment and Employment
GRI 401:
Employment 2016
GRI 402:
Labor/ManagementRelations 2016
GRI 403:
Occupational Healthand Safety 2018
GRI 404:
Training andEducation 2016
GRI 405:
Diversity and EqualOpportunities 2016
GRI 407:
Freedom of Associa-tion and CollectiveBargaining 2016
GRI 406:
Non-discrimination2016
GRI 408:
Child Labor 2016
Occupational Health and Safety
Worker participation, consultation, and communication on occupation al health and safety
Prevention and mitigation of occup-ational health and safety impacts directly linked by business relation -ships
Incidents of discrimination and corr -ective actions taken
Benefits provided to full-time empl -oyees that are not provided to tem -porary or part-time employees
Percentage of employees receiving regular performance and career de -velopment reviews
Operations and suppliers in whichthe right to freedom of association and collective bargaining may be a -t risk Operations and suppliers at signific -ant risk for incidents of child labor
Employee Recruitment and Employment
GRI 409:
Forced or Compul-sory Labor 2016
Operations and suppliers at signific-ant risk for incidents of forced or compulsory labor
Co-construct a Harmonious and Pleasant Community
GRI 413:
Local Communities2016
Operations with local communityengagement, impact assessments, and development programsOperations with significant actualand potential negative impacts on local communities
Diversity of governance bodies and employees
Create a Harmonious and Pleasant WorkplaceCorporate Governance
GRI StandardDisclosureLocationGRI StandardDisclosureLocation
401-1
401-2
401-3402-1403-1403-2403-3
403-4
403-5403-6
403-7
403-8403-9403-10
Programs for upgrading employee skills and transition assistance prog -rams
404-1404-2
404-3
405-1
406-1
407-1
408-1
409-1
413-1
413-2
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Report Standard IndexAppendix I: Definitions of Proper Noun
Automated guided vehicleEU’s Carbon Border Adjustment MechanismEquipment asset management systemElectrical Monorail System
AGVCBAMEAMSEMS
FMEA
FSCGPSNRGlobal Platform for Sustainable Natural Rubber
Volatile organic matterRolling resistance is the energy loss between the tire and the road surface, which affects the rotatio-n speed and fuel consumption of the tire.VOCsRolling Resistance
MESPAHsQMS
Manufacturing execution systemPolycyclic Aromatic Hydrocarbons. PAHs are aromatic hydrocarbons containing two or more benze-ne rings that are toxic, genotoxic, mutagenic, and carcinogenic.Quality management system
Names of Terms in the ReportExplanation of Terms
New suppliers that were screened using social criteria
Responsible Procurement
Customer Relationship Management
Customer Relationship Management
GRI 414:
Supplier SocialAssessment 2016
GRI 416:
Customer Healthand Safety 2016
GRI 417:
Marketing andLabeling 2016
Incidents of non-compliance concer-ning the health and safety impacts of products and services
Negative social impacts in the supp -ly chain and actions taken
Incidents of non-compliance concer -ning product and service informati -on and labeling Incidents of non-compliance concer -ning marketing communications
Information Security and Privacy ProtectionGRI 418:
Customer Privacy 2016
Substantiated complaints concernin -g breaches of customer privacy an -d losses of customer data
Assessment of the health and safety impacts of product and service categ -ories
Failure mode and effects analysis. It is a product reliability analysis method, by which one can analy-ze and list the failure modes, impacts, possible causes or mechanisms of the product, frequency ofoccurrence, and whether it can be monitored and, based on this, evaluate the risk level of the releva-nt problem.
Substances of Very High Concern. It is a hazardous substance specified in the framework of the EU-REACH Regulations. According to EU REACH Regulations, suppliers of an article containing SVHCin a concentration of more than 0.1% must provide related information to downstream.
Hbay
SVHC
Bay-region Hydrogen. NMR hydrogen spectroscopy characterizes the aromaticity of vulcanized rub-ber by measuring the amount of "bay-region hydrogen" (Hbay protons) in the sample, with higherHbay proton content indicating higher aromaticity. The content of Hbay (bay-region protons) produ-ced by polycyclic aromatic hydrocarbon samples taken from different parts of finished automobiletires is not more than 0.35%.
GRI StandardDisclosureLocation
414-1
414-2
416-1
416-2
417-2
417-3
418-1
Forest Stewardship Council. FSC issues certificates to forestry units after conducting independentaudits in line with relevant principles and standards.
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Appendix II: List of Material Topics in 2023
Energy ManagementEnergy Management
The Company's management system,measures, and achievements in energymanagement.Management of RawMaterials and WaterResources
Emission and WasteManagement
Emission and Waste Mana-gement
Make Green Innovations toEmpower Low-Carbon Tra-vel
Implement Green and Low-Carbon Practice to Fuel S-ustainable Ecosystem
Implement Green and Low-Carbon Practice to Fuel S-ustainable EcosystemIdentification of climate chan-ge risks and opportunities
Management of Raw Mate-rials and Water ResourcesThe Company's management system, mea-sures, and achievements in raw materialsand water management.The Company's management system, mea-sures and targets achievements for waste-water, waste gas, and waste in productionand operation.
Material topicsTopic DescriptionRelevant chapter
Topic boundary
Upstreamsuppliers
Group'sown opera-tions
Climate ChangeMitigation andAdaptation
Cleantech Oppor-tunities
Biodiversity Conser-vation
The Company's measures and progress inidentifying, assessing, and managing climate-related risks and opportunities, formula-ting carbon peaking and carbon neutralitystrategic plans, and promoting the implem-entation of the plans' goals with the consi-deration of the climate change impact onits operations and business.
The Company’s identification and manage-ment of its business activities’ significantdirect/indirect positive/negative impacts onbiodiversity and ecosystems, and measuresactively taken to protect the ecological envi-ronment and minimize the impact of its op-erations on biodiversity and the ecologicalenvironment.
The Company's innovation capabilities,strategic development plans, and achieve-ments of measures promotion in the de-velopment of clean technology.
Product QualityManagement
Product Quality Manage-mentThe Company’s quality management syste-m and relevant measures applied for ensu-ring that its products comply with laws, re-gulations, and industry standards and req-uirements.
Customer Relatio-nship Management
Innovation and IP RightsProtection
Create a Harmonious andPleasant WorkplaceEmployee Training and De-velopment
Develop Intelligent Manuf-acturing to Advance Digi-tal TransformationDevelop Intelligent Retail toImprove Customer Satisfa-ction
Customer RelationshipManagement
Material topicsTopic DescriptionRelevant chapter
Digital Transformation
Intellectual PropertyProtection
Employee Trainingand Development
The Company's use of digital technologiesto transform the business processes, cor-porate culture, and customer experience ofa business or organization and adapt tochanges in the market and business envi-ronment.
The Company's mechanism for communi-cation with customers, feedback, and com-plaints, and disclosure of data related toproper disposal, including customer satis-faction, customer service, and complaints.
Responsible Procure-ment
Responsible Procurement
The Company's management system, mea-sures, and achievements in protecting itsown intellectual property rights and notinfringing on the intellectual property rightsof others.
The Company's assessment and manage-ment of suppliers' environmental, labor,and social performance under its supplieraccess and evaluation system.
The Company’s provision of professionaltraining for employees to enhance theirvocational skills, as well as the provision ofopportunities for further study and finan-cial assistance, etc. to ensure employeeretention.
Downstreamcustomers
Topic boundary
Upstreamsuppliers
Group'sown opera-tions
Downstreamcustomers
Create a Harmonious and Ple-asant WorkplaceEmployee Recruitment andEmployment
Employees' Rights andInterests and Welfare
Occupational Healthand Safety
Occupational Health and Safety
Co-construct a Harmonious andPleasant CommunityCommunity Co-const-ruction and PublicWelfare Charity
The Company's achievements in taking me-asures to prevent child labor and forcedlabor, ensure legal employment, protect therights and interests of employees in remu-neration and welfare, recruitment, workinghours, and labor safety, and provide benefitsto employees.The Company's management system foroccupational safety and health, and theactions taken to protect the safety andhealth of employees and contractors,including accident prevention, occupationaldisease prevention, and health and safetyeducation.
The Company's plans, measures, andachievements in reducing social impactson the community environment and sup-porting sustainable development in thecommunity.
Create a Harmonious and Pleas-ant Workplace
Workplace Diversityand Inclusion
The Company's management system, mea-sures, and achievements in promoting equalemployment and employee diversity.
Corporate GovernanceCorporate Governance
The Company's efforts in continuously im-proving its governance structure, enhancingthe transparency of information disclosure,and protecting the legitimate rights andinterests of its shareholders.
Business Ethics
Compliant Operation
Business Ethics
Topic boundary
Upstreamsuppliers
Group'sown opera-tions
Downstreamcustomers
Topic boundary
Upstreamsuppliers
Group'sown opera-tions
Downstreamcustomers
Compliant Operation
The Company's compliance with economic,environmental, and social laws and regula-tions in the course of its operations andmanagement, and the development andachievements of its compliance and super-vision management systems.
The Company's measures and achieve-ments in preventing commercial bribery,embezzlement, fraud, extortion, and con-spiracy, including the development ofrelated systems, anti-corruption educa-tion, and supervision mechanisms.
Material topicsTopic DescriptionRelevant chapterMaterial topicsTopic DescriptionRelevant chapter
Appendix II: List of Material Topics in 2023
Shandong Linglong Tyre Co., Ltd.
2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
VERIFICATION
STATEMENT
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
Shandong Linglong Tyre Co., Ltd.2023 Sustainability Report
About This ReportChairman MessageSustainable Development Progress of Linglong Tire in 2023About Linglong TireSustainability Management SystemGreen LinglongHarmonious LinglongSmart LinglongSupport the UN Sustainable Development GoalsEnvironmental ResponsibilitySocial ResponsibilityCorporate Governance ResponsibilityESG Data Performance TableReport Standard IndexVerification statement
SGS-CSTC’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE 2023SUSTAINABLE DEVELOPMENT REPORT OF SHANDONG LINGLONG TYRECO., LTD. SUBMITTED BY SHANDONG LINGLONG TYRE CO., LTD.
NATURE OF THE ASSURANCE/VERIFICATIONSGS-CSTC STANDARDS TECHNICAL SERVICES CO., LTD. (hereinafter referred to as SGS) wascommissioned by Shandong Linglong Tyre Co., Ltd. (hereinafter referred to as LINGLONG) to conduct anindependent assurance of the Chinese version of 2023 Sustainable Development Report (hereinafter referred toas the Report).
INTENDED USERS OF THIS ASSURANCE STATEMENTThis Assurance Statement is provided with the intention of informing all LINGLONG’s Stakeholders.
RESPONSIBILITIESThe information in the Report and its presentation are the responsibility of the governing body and themanagement of LINGLONG. SGS has not been involved in the preparation of any of the material included in theReport.
Our responsibility is to express an opinion on the text, data, graphs and statements within the scope ofverification with the intention to inform all LINGLONG’s stakeholders.
ASSURANCE STANDARDS, TYPE AND LEVEL OF ASSURANCEThe SGS ESG & Sustainability Report Assurance protocols used to conduct assurance are based uponinternationally recognised assurance guidance and standards, including:
The principles of reporting process contained within the Global Reporting Initiative Sustainability
Reporting Standards (GRI Standards) as:
o GRI 1: Foundation 2021, for report qualityo GRI 2: General Disclosure 2021,for organization’s reporting practices and otherorganizational detailo GRI 3: Material Topics 2021, for organization’s process of determining material topics, its list
of material topics and how to manages each topicand the guidance on levels of assurance contained within the AA1000 series of standards and
ISAE3000.
The assurance of this report has been conducted according to the following Assurance Standards:
SGS ESG & SRA Assurance Protocols (based on GRIPrinciples and guidance in AA1000)
Assurance has been conducted at a moderate level of scrutiny.
SCOPE OF ASSURANCE AND REPORTING CRITERIAThe scope of the assurance included evaluation of quality, accuracy and reliability of specified performanceinformation as detailed below and evaluation of adherence to the following reporting criteria:
GRI Standards 2021 (Reference)
ASSURANCE METHODOLOGYThe assurance comprised a combination of pre-assurance research, interviews with relevant employees onsiteat headquarter,located at No. 777 Jinlong Road, Zhaoyuan City, Shandong, P.R. China, and online review andvalidation of documentation and records with relevant personnel of LINGLONG’s employees of other
subsidiaries as necessary.
LIMITATIONS AND MITIGATIONFinancial data drawn directly from independently audited financial accounts has not been checked back tosource as part of this assurance process.
The data related to carbon emissions in the Report was self-accounted by LINGLONG, and the carbon dataaudit was conducted on the sampling basis during the assurance process.
The on-site verification was only at the LINGLONG’s head-office and did not involve other branches.
This verification only conducted interviews with staff of LINGLONG and access to relevant materials, did notinvolve external stakeholders.
STATEMENT OF INDEPENDENCE AND COMPETENCEThe SGS Group of companies is theworld leader in inspection, testing and verification, operating in multiplecountries and providing services including management systems and service certification; quality,environmental, social and ethical auditing and training; environmental, social and sustainability reportassurance. SGS affirm our independence from LINGLONG, being free from bias and conflicts of interest withthe organisation, its subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience and qualifications for thisassignment, and comprised auditors registered with CCAA registered ISO 9001, ISO 14001, ISO 45001,ISO37001, ISO37301 auditor and SGS recognized CSR/ESG lead auditor with knowledge of GRI, AA1000 etc.
ASSURANCE/VERIFICATION OPINIONOn the basis of the methodology described and the verification work performed, the specified performanceinformation included in the scope of assurance is accurate, reliable, and has been fairly stated.
FINDINGS AND CONCLUSIONSThe assurance team is of the opinion that the Report was prepared with reference to GRI Standards 2021.
PRINCIPLES
AccuracyLINGLONG’s information in the Report was accurate and included both qualitative and quantitative informationon multiple performance indicators for stakeholders.
BalanceLINGLONG has reported sustainability issues based on stakeholder expectations in a factual manner.
ClarityThe Report was presented in different formats, including text, figures, graphics and pictures, and containedcase studies to make it easily understandable for stakeholders.
ComparabilityThe Report disclosed performance indicators of LINGLONG in 2023, most performance indicators weredisclosed the historic information for comparison, which enables stakeholders to visually compare andunderstand the sustainability performance.
CompletenessThe Report covered the identified material topics and boundaries that reflect significant environmental, socialand governance impacts to enable stakeholders to assess the organization's performance during the reportingperiod.
Sustainability ContextThe Report presented its sustainability efforts related to environmental, social and governance aspects anddemonstrated its overall performance in the broader sustainability context.
TimelinessThe assurance process showed that the reported data and information was timely and effective within thereporting period. LINGLONG hashas published CSR/ESG reports for 7 consecutive years with good timeliness.
VerifiabiltyThe data and information in the Report can be traced and verified.
Management ApproachThe Report disclosed the management approach of identified material topics.
General DisclosuresThe Report disclosedinformation on some indicators in accordance with GRI 2: General Disclosures 2021.
Topic-specific DisclosuresLINGLONG’s selected topic-specific disclosures related to the material topics in environmental, social andgovernance areas were made in accordance with GRI Standards 2021.
Findings and RecommendationsGood practices and recommendations for the environmental, social and governance report and managementprocesses were described in the internal management report which has been submitted to LINGLONG’smanagement for continuous improvement.
Signed:
For and on behalf of SGS-CSTC
David XinSr. Director – Business Assurance16/F Century Yuhui Mansion, No. 73, Fucheng Road, Beijing, P.R. China
Apr. 9
th
,2024WWW.SGS.COM
SGS-CSTC’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE 2023SUSTAINABILITY REPORT OF SHANDONG LINGLONG TYRECO., LTD. SUBMITTED BY SHANDONG LINGLONG TYRE CO., LTD.
NATURE OF THE ASSURANCE/VERIFICATIONSGS-CSTC STANDARDS TECHNICAL SERVICES CO., LTD. (hereinafter referred to as SGS) wascommissioned by Shandong Linglong Tyre Co., Ltd. (hereinafter referred to as LINGLONG) to conduct anindependent assurance of the Chinese version of 2023 SustainabilityReport (hereinafter referred toas the Report).