Xinjiang Goldwind Science & Technology Co., Ltd. Sustainable Development Report 2016
Preserving Blue Skies and White Clouds for the Future
Sustainable 2016 Development Report Xinjiang倝毐ꆄ굥猰䪮肅⟧剣ꣳⰖ Goldwind Science & Technology Co., Ltd.
No. 107 Shanghai Road, Economic & Technological Development District, Urumqi, Xinjiang Tel: +86-(0)991-3767402 Fax: +86-(0)991-3762039 Post code: 830026
Beijing⻌❩ꆄ굥猰굥歏霃㢊剣ꣳⰖ Goldwind Science & Creation Windpower Equipment Co., Ltd.
No. 19 Kang Ding Street, Economic & Technological Development Zone, Beijing (first-phase project) Tel +86-(0)10-87857500 Fax +86-(0)10-87857529 No. 8 Bo Xing 1st Road, Economic & Technological Development Zone, Beijing (second-phase project) Tel +86-(0)10-67511888 Fax +86-(0)10-67511983 Post code 100176 About The Report
Following the principle of objectivity, standardization, Reporting Guidelines (CASS-CSR3.0) and other transparency and comprehensiveness, this report standards and guidelines for corporate social aims to explicitly communicate the Company’s responsibility reporting from home and abroad. concepts about sustainable development, action plans and performance, for stakeholders. It Specification on data also serves as a systematic response by giving All financial data in this report are sourced from attention to the sustainable development of the the Annual Report, expressed in RMB unless Company paid by all parties. otherwise indicated.
Scope Promise The time span was from Jan. 1 to Dec. 31, 2016. The report was examined and approved by Some content may look back upon past years to Goldwind’s board of directors. It promises not make the report more systematic. to contain any false information and misleading statements. Frequency This is an annual report. Note on addressing For convenience in reading, Xinjiang Goldwind Reference Science & Technology Co., Ltd. will also be The report was compiled based on the Hong referred to as Goldwind, the Company, the group, Kong Stock Exchanges Listing Rules and or we. Guidance Appendix 27: Environmental, Social and Governance Reporting Guide, as well as Channel to get the report Shenzhen Stock Exchange Social Responsibility The report has both a Chinese and English edition, Guidelines for Listed Companies. It also draws each available in print and PDF. Please log onto extensive reference from Global Reporting www.goldwind.com.cn, www.cninfo.com.cn or Initiative (GRI) Sustainability Reporting Guidelines www.hkexnews.hk to view. (G4), the Chinese Academy of Social Sciences (CASS) China Corporate Social Responsibility CATALOGUE SUSTAINABLE DEVELOPMENT REPORT
About The Report 1
Message from the Chairman 4
About Us 6
Sustainable Development Management 15
Corporate Governance 20
R&D and Innovation 24
Product and Service 32
Environment 40
Employees 48
Supply Chain 62
Society and Public Welfare 68
Prospect 76
Index 78
Feedback form 80 Message from the Chairman
The fundamental difference between a good company and a great one is that a good company can continue to develop good technology and products that provide benefits and value to the customer; and a great company, in addition to the above, will do its utmost to make the world we lived better.
Wu Gang, Chairman
Global accumulated installed As one of the first companies specialized in R&D and manufacturing equipment in wind join hands with suppliers to construct a high-quality industrial chain by creating each capacity by the end of 2016 power industry, Goldwind has existed for 18 years. We progressed from reliance on imported part and component with craftsmanship to jointly optimize wind power products. The technologies to independent research and development of MW class wind turbine generators Company continues to complete our environmental management system to reduce the 38(8 (WTGs); from focusing on domestic market to going global; from providing complete sets influence of wind power products on the environment in their full life circle; we set up the of wind turbine generators to offering the overall solution of wind turbine generators. The first national wind safety test points to drive the improvement of industry safe operation Company’s every step has been written into the development of China’s wind power industry, standardization; we launched the program of a green supply chain to explore and study characterized by diligent exploration, courageous innovation and hard endeavor. the operation modes of supply-chain-based enterprises for energy saving and carbon reduction while accumulating the experience of green transformation for the Chinese Against the backdrop of global resource shortage and climate change, Goldwind provides manufacturing industries. Moreover, we carry out charity activities in communities green and low-carbon energy to help cope with and resolve social problems. And this is regularly. We launched the campaign of “Wind for the Future” to help the development the point of its existence and development. At its infancy, we established our mission as of education, sports, culture and health of the communities in which our companies are “Preserving blue skies and white clouds for the future” adhering firmly to the development of situated. We integrate the concepts of win-win cooperation and common development Number of turbines installed renewable resources. In order to change wind resources into wind energy in an efficient and into our daily actions, to maximize the interests of the Company and its personnel as well reliable way, We continue increasing the R&D investment to achieve independent innovations as the shareholders, customers, suppliers and other stakeholders. 25,800 and to successfully continue further development and improvement of the permanent magnet direct-drive WTGs based on our proprietary technology. We constantly popularize We know well that the ultimate goal of the wind power industry is to bring about affordable the transformation of energy applications of wind turbines in China and around the world and reliable green power to every household, and this is also our aspiration. To realize to generate more green power and to achieve a green low-carbon energy source for the this dream, in the future, we will continue to draw nourishment from the development at Carbon emission reduction present and future. In 2016, the Company achieved a global accumulated installed capacity the time and weed through the old to create the new. With our resources and influence, equivalence of 38GW, which is equivalent to the reduction of 77.79 million tons of carbon dioxide and we will ensure that wherever we go, we will remember our social responsibility. We will reforest an area of 42.51 million cubic meters. make more efforts in culture, education, health, sports, environmental protection and 77.79 million tons other aspects, to promote social civilization and generate social positive power. We pay much attention to fulfilling our social responsibilities and enthusiastically make contributions to the sustainable industrial development and social progress backed by our We hope that all stakeholders can follow and support the development of Goldwind and Rebuild forest equivalence professional advantages and resources. We develop intelligent smart micro-grids, with continue to create a bright future of sustainable development together! the help of distributed energy access system to build intelligent city energy management 42.51 million m3 platform to help the city to achieve regional integrated energy efficiency maximization. We Wu Gang, Chairman
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Total assets in RMB (billion) Total profit in RMB (billion) Global accumulated installed capacity (GW)
38.00 80 4 40 3.55 64.44 3.5 3.25 35 32.00 60 3 30 52.57 45.78 2.5 25 24.00 2.11 40 2 20
1.5 15
20 1 10
0.5 5
0 0 0 2014 2015 2016 2014 2015 2016 2014 2015 2016
$PNQBOZJOGP Goldwind was established in Urumqi, Xinjiang, the PRC in 1998, become a joint stock limited liability company in 2001, and its ordinary shares were listed on the Small and Medium-sized Enterprise Board of Shen Zhen Stock Exchange in December 2007(SZSE: 002202) and the main board of the Hong Kong Stock Exchange in October 2010 (stock code: 2208).
Major businesses of the Company include the R&D and manufacturing of wind power equipment, wind power service, wind power farm developing and environmental protection industry. As one of China’s earliest manufacturers in wind power development, the Company strives to become the world’s leading provider of integrated clean energy and energy conservation solutions. Rich in experience of R&D and manufacturing of wind turbine generator systems, as well as wind farm construction, the Company not only offers high-quality wind turbine generator systems to customers, but also offers wind power services and wind farm development solutions, to fulfill the needs of our customers’ from various links of the value chain in the wind power industry.
Adopting the permanent magnet direct-drive technology, the Company constantly improves and refines its product roadmap to keep pace with the rapid market growth and meet customers’ varied demands. We own the 1.5MW, 2.0MW, 2.5MW, 3.0MW and 6.0MW wind turbine generators, which are capable of sustained operation in both high and low temperatures as well as in high altitude, low wind speed, coastal and other environments. In 2016, the Company's domestic newly installed capacity was more than 6.34GW which ranked first in China for six consecutive years and ranked third in the world's new installed market ranking by Bloomberg New Energy Finance at the same period.
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Business distribution Relying on advanced technologies and products as well as having rich experiences in wind power Goldwind owns 9 WTG Goldwind has established Goldwind has 200 At the end of 2016, development, construction and maintenance, Goldwind’s products and services are well received manufacturing bases. 7 R&D centers, hiring over subsidiaries, 23 direct ones the Company’s global in the market place. While consolidating domestic markets, it actively promotes its global strategy to 2,000 distinguished and 177 indirect ones. accumulated installed expand into the international wind power market. By the end of 2016, Goldwind’s installed turbines senior R&D engineers and capacity was 38GW, spreads 6 continents and over 20 countries.. technology engineers. spreading 6 continents and 20 countries around the world.
Goldwind Denmark (R&D)
Goldwind Germany (R&D) Goldwind U.S.A. (R&D)
Beijing (R&D)
Yancheng (R&D) Wuxi (R&D)
Urumqi (R&D)
Goldwind Tailand
Subsidiaries oversea Wind power projects Goldwind South Africa
Offices oversea R&D Centers
Goldwind Australia
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)JTUPSZ With the spirit of innovation as well as having Timeline a sense of social responsibility, and making contributions to humanities future, Goldwind is committed to the path of developing renewable 1998-2005 2006-2010 2011-till now energy. Its development in over a decade Entrepreneurship Rapid growth Steady growth and transformation is also the epitome of China’s wind power industry. The Company has always played a #VTJOFTTBSFBDPNQMFUFTFUPGXJOEUVSCJOFHFOFSBUPS #VTJOFTTBSFBFYUFOTJPOPGUIFXJOEQPXFSCVTJOFTT #VTJOFTTBSFBEJWFSTJGJFECVTJOFTTCBTFEPOXJOEQPXFS leading role in the industry. We have progressed &WFOUT &WFOUT &WFOUT from participating in wind power tests and • 1998-2000 Goldwind successively undertook three national scientific • 2007 Goldwind developed China’s first seaborne 1.5MW • 2011, 2012 Goldwind was on the MIT Technology demonstrations, to constructing wind farms by research projects including The 863 Program and National Key permanent magnet direct-drive technology and was put Review’s list of the “50 most innovative companies in the attracting government concessional loans from Technology Research and Development Program of China during the into operation in Bohai Bay; world”; foreign countries. We have imported million- “10th Five-Year Plan”; • 2007 Goldwind went public, listing on the Shenzhen • 2013 Goldwind achieved ‘Commercially Proven Status’ in kilowatt class wind turbines and by following the • 2002 Goldwind established China’s first wind turbine assembly plant Stock Exchange, raising funds of about 1.8 billion RMB; the North American Market, which was prescribed by the world’s advanced technologies in wind power, in Urumqi, which was also the largest base for R&D and production of • 2008 Goldwind acquired German firm, VENSYS Energy, world’s leading certification institution GL Garrad Hassan; thus becoming the first Chinese turbine manufacturer to • 2014 Goldwind released the GW121/2500 and Goldwind now maintains its own independent wind turbine generator; • 2003 Goldwind signed a contract with Germany VENSYS Energy AG possess its own intellectual property; GW115/2000 wind turbine; research and development for the MW class for the joint design and development as well as technology transfer, • 2008 Goldwind delivered six 750kW turbines to Cuba • 2015 Goldwind launched the 1.5VP series products as wind turbines. In order to realize and expand initiating the research and development of permanent magnet direct- from Tianjin, the first overseas sales; well as 120-meter flexible tower and concrete tower, its our market industrialization, we have progressed drive technology; • 2009 Goldwind’s three newly developed 1.5MW high-end technology filling a number of blanks in the from focusing just on our domestic market to • 2004 Goldwind won the contract for China’s first concession project (100 permanent magnet direct-drive turbines were exported domestic market ; expanding into global market; from providing a thousand kW) in Guangdong Province . to America and achieved successful grid connection in • 2016 Goldwind launched the new generation GW3S complete set of wind power turbine generators January 2010; intelligent fan, breaking the industrial record in to offering the overall solution of wind turbine • 2010 Goldwind was listed on the Hong Kong Exchanges, adaptability to low and ultra-low wind speed. generator systems. Every step of the Company is raising funds of about 8 billion Hong Kong dollar. manifesting its mission to “Preserving blue skies and white clouds for the future”. Amid the trend of global energy reform and climate change, Goldwind is committing itself to a better future for mankind through the development of clean energy and facilitating solutions to solve social and environmental problems.
Goldwind established China's first wind turbine assembly plant in Urumqi Goldwind was listed on the Hong Kong Stock Exchanges China's president Xi Jinping visits Goldwind
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$PNQBOZDVMUVSF Our strategy From accumulations of a decade of years in the wind power industry, the Company Goldwind devotes itself to becoming a leading Mission culture of Goldwind is realized through the exploration and development accumulated international provider of integrated clean energy Preserving Blue Skies and White Clouds for by the wisdom of its employees. All of our achievements have close relations with the and energy conservation the Future excellent cultures of our staff, whose excellent personalities are the foundation on which solutions. We are facing the development trend the Company can play a leading role and maintain sustainable development in the and competition layout for the wind power challenges in future markets. industry, the Company aggressively promotes energy transformation and reform to provide Vision Our core value concepts are creating value and we realize our own value in life. Creating clients with an overall solution spanning the Become a leading international provider value is our pursuit that we insist on all the time to motivate the Company and staff to ‘full circle of life’. It strategically stresses WTG of integrated clean energy and energy continue a healthy development. While realizing our own value, the Company’s and our conservation solutions. equipment, wind power service and wind farms individual’s achievement, drives us all to continue the pursuit for excellent development. investment in the full industrial chain. Meanwhile, makes layout on the smart energy internet services to promote the wind power consumption; with the core of energy solutions, we build core Strategic layout competitiveness and drive sustainable business Wind power industrial chain Smart energy internet expansion of the Company through digitalization, Integrity and honesty Making customer success Treating partners kindly internationalization, service-orientation and The principles that our employees insist The Company always keeps clients at The Company has established a platform. on all the time are the foundation that the the center and responds to the clients’ partnership with all people who agree Company can survive in the intensive demands as quickly as possible, and the with our mission and who would like Measures competition. We think that wind power Company would not have the sustainable to grow and develop with us. We do Digitalization is the industry of Marathon, and the development unless it continues to create our best to provide partners with the Digital wind turbine farms will provide us with the Company that does business openly, the long-term value for clients and assist resources they need such as product, capability of remote monitoring, forecasting, and security alarms as well as independent collaborative with integrity and honesty and maintain the client’s success. service, technology and capital, etc. to operations. It will allow us to automatically adapt to its contractual promises will, in the end, create a good development environment environmental changes and actively respond to the achieve sound development and growth. for them. demands of grid and clients.
Internationalization The wind power businesses will be comprehensively internationalized to increase the sales volume overseas and provide overseas clients with all- around services including equipment, operation Pioneering People first Learning by doing and maintenance and wind farm investment, etc. The achievements of the Company have We always think that our employees who 0OFDBOOPUGJOESFBMFGGFDUJWFTPMVUJPOT close associations with the spirits of our have the same objectives are the biggest Service-orientation OPSIBWFSFBMWBMVFXJUIPVUQSBDUJDBM employees such as daring to endeavor, wealth of the Company and the real value Services include the macro/micro site selection FYQFSJFODF&NQMPZFFTBSFSFRVJSFEUP at early stages of wind farms, design and pursuing exploration and innovation, of an enterprise comes from the devotion TPMWFQSPCMFNTBOEQSPWJEFTPMVUJPOTPO engineering management, wind farm operation and being courageous and knowledgeable and and promises of each staff. The Company maintenance in the full life circle as well as the big UIFJSPXOCVUOPUCFJOHBLFZCPBSENBO bravely striving to initiate development. respects each of our employees by data of internet digital platform services. BOEGPMMPXJOHPUIFSTSFHBSEMFTTPGUIFJS Each of our employees has the spirit creating a good work environment and KPCQPTU Platform of keeping pace with the times without atmosphere for them. We encourage The Company will create the electrical interaction pause and the personality of daring to them to make brave decisions within platform between electricity enterprises and the end users to assist clients to better manage the make breakthroughs. their work scope so as to guarantee the demands for energy consumption through the employee can have the opportunity to do energy devices and energy management cloud their job and be successful at their work, platforms. so that each of them has the capability to make their dream come true.
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Award and honors Management National Science and Technology Progress Award Industrial Brand Cultivation Demonstration Enterprise
The project of “The Independent Innovation and Goldwind won the title of Industrial Brand Cultivation Demonstration As the world’s leading supplier of overall solutions for wind power, Goldwind has been committed to solving energy and environmental Industrialization of Wind Turbine Generator Control Enterprise 2015 awarded by China’s Ministry of Industry and problems in society, based on its expertise. In the process of decision-making and operation management, the Company takes into Technology”, jointed evaluation with Xinjiang University Information Technology. consideration the influence on employees, customers, suppliers and the community. We try our best to guarantee the interests of and State Grid Xinjiang Electric Power Company, won stakeholders providing conditions for their further development, minimizing the adverse influences on stakeholders while making every second place for the National Science and Technology The Most Influential Brand in the Industry of Power effort to maximize the interests of all parties and to achieve the common development. Progress Award. Generation by Renewable Energy
Goldwind won the title of Most Influential Brand in the Industry of In order to strengthen the capacity and level to fulfill social responsibilities, the Company proactively carries out various activities, National Manufacturing Individual Champion Power Generation by Renewable Energy at the third Ave Award builds and improves the system for performing social responsibilities and integrates the awareness of social responsibilities into Demonstration Enterprise selection, held by Dianqi Yu Nengxiao Guanli Jishu (Electrical & management and operations. Goldwind received the title of China’s first group of National Energy Management Technology) magazine and Chinese Renewable Manufacturing Individual champion Demonstration Energy Society. The chairman takes charge of the sustainable development affairs of the Company. He guides the system of sustainable development Enterprise granted by the Ministry of Industry and and makes assessments regarding relevant performances. The Company has established broad sustainable development indicators Information Technology, and was also the only one new Best Investor Relations in all industries in Asia and information collection systems according to characters of our sustainable development and requirements of relevant policies energy wind turbine generator manufacturer included. and standards. We will gradually complete the system in the near future to further enhance the effectiveness of the sustainable Goldwind ranked the Best Investor Relations in all industries in Asia, development management; based on our collection system of sustainable development indicators and information, headquarters, held by the US Institutional Investor magazine, and it is the only new National Quality Culture Construction business units/centers and subsidiaries have appointed specific personnel responsible for the continuously improving performance energy enterprise in Asia on the list. Demonstration Unit of those indicators. Centered on the important themes of sustainable development such as product quality, safe production, environmental protection and rights & interests of employees, the Company has established and will continue to complete the ISO Goldwind got the title of National Quality Cultural Global Top 200 Green Company 9000 quality management system, ISO 14000 environment management system and the OHSAS 18000 occupational health and safety Construction Demonstration Unit at the fifth National Goldwind was listed in Top 200 Green Company by Clean 200 administration system. It is important that sustainable development concepts be integrated into the operation and management of the Quality Cultural Construction Results and Experience organization,which listed the first in domestic enterprises. Company. Exchange Conference hosted by China Association for Quality. Global Top 20 New Energy Enterprises Excellent Director Award At the conference of the sixth Global Top 500 New Energy Enterprises Award, Goldwind ranked in the top 20 New Energy Enterprises, and The Company received the Excellent Director Award by also first place among Chinese wind power enterprises. Hong Kong College of Directors and we became the first enterprise in China’s new energy industry to be awarded Outstanding Achievements Award for Chinese Energy such a prize. Enterprises Xinjiang Uygur Autonomous Region Science and (PMEXJOEXPOUIF0VUTUBOEJOH"DIJFWFNFOUT"XBSEGPS$IJOFTF Technology Progress Award &OFSHZ&OUFSQSJTFTBUUIFGJSTU*OUFSOBUJPOBM*OEVTUSJBM$BQBDJUZ The Technology Research and Application of the Wind $PPQFSBUJPO'PSVN(MPCBM&OFSHZ-FBEFST4VNNJUPSHBOJ[FECZ5IF Power Big Data and Wind Power Operation Service, &DPOPNJD0CTFSWFS applied by Goldwind together with Xinjiang Energy (Group), Hami Clean Energy Limited, and China Energy Engineering Group Xinjiang Electric Power Design Institute Co., Ltd, won the second place for the Xinjiang Uygur Autonomous Region Science and Technology Progress Award 2016, granted by Science & Technology Department of Xinjiang Uygur Autonomous Region.
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Stakeholders' attention and the Company's response.
Stakeholders Attention Response
• Sustainable profitability • Enhance our business management capacity • Regulation of company governance • Strengthen management of debt risk Shareholders and creditors • Disclosure of business information • Optimize internal management system of compliance risk • Enhance the profitability to reward • Timely disclose information shareholders • Organize shareholders' meeting
• Strictly implement requirements set forth in contracts • Honor and integrity • Strengthen management of product quality • High-quality products Customers • Offer varied products • Excellent services • Offer excellent services • Respond to customer concerns • Improve the procedure to handle customer concerns
• Equal and standard recruitment • Set up staff congress • Legal interests protection • Appropriate salary and social insurance payments in a • Salary and welfare guarantee timely manner Employees • Health and safety protection • Improve talent development channels • Development platform building • Offer competitive salaries
Wu Gang, chairman, was making speech in the kick-off meeting of 2016 Sustainable Development Report • Offer diversified welfare • Offer healthy and safe work environment
At the end of 2016, the Company organized kick-off meeting of 2016 Sustainable Development Report. It invited a third-party institution • Sunshine purchase • Open and fair purchase to introduce the Environmental , Social and Governance Reporting Guide of the Hong Kong Stock Exchanges, in order to promote Suppliers • Honor and integrity • Timely payment for goods employees’ understanding of related standards and the Company’s information disclosure work. • Win-win cooperation • Support the healthy development of suppliers
• Carry out energy conservation and emission reduction • Protection of local environment Stakeholders engagement • Protect ecological environment Community • Support of community development Since the stakeholders have a direct relevance with the sustainable development of the Company, they play an important role in the • Support public affairs of the community • Charity and welfare decision making process. The Company continues to communicate and interact with stakeholders during the daily operation and • Carry out charity activities within the community management to further learn the demands and concerns of all parties and actively respond to them. • Obey laws and regulations • Observation of disciplines and obey laws • Pay taxes according to law In addition to communication with stakeholders in daily operations, the Company also increases exchanges with them through Government • Tax payments • Offer job opportunities meetings, regular visits, and by other means. For example, it organizes shareholders’ meetings on a regular basis to learn and • Drive local economic development • Drive development of related industries understand shareholders’ demands and to respond. It also organizes supplier meetings at the beginning of every year, to communicate about the new concepts and trends in product quality, technological innovation and other aspects. • Implement strategic cooperation Financial institutions, • Common development • Strengthen cooperation between company, research R&D institutions, media, etc • Information disclosure institutions and universities • Organize visiting activities
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Determining the material aspects for the report Matrix of material sustainability aspects for Goldwind 2016 In 2016, the Company implemented the procedure for deciding the material aspects related to sustainable development, so as to R&D innovation determine the focus of the sustainable development and key information to be disclosed. Tackle climate change Product quality Major information sources: Customer service Background and trends of the new energy industry in home and abroad Occupational health and safety