Beijing Oriental Yuhong Waterproof Technology Co., Ltd. Sustainability Report 2020 Oriental Yuhong Sustainability Report 2020 Contents About the Report.........................................................................................................................1 Sustainable Development Goals................................................................................................. 2 Company Overview.................................................................................................................... 6 Milestones in 2020......................................................................................................................9 Corporate Chart.........................................................................................................................12 Business Ethics and Corporate Behavior..................................................................................14 I. Mechanism of Social Responsibility Management........................................................... 15 II. Communication and Participation of Stakeholders..........................................................16 III. Identification of Substantive Topics............................................................................... 20 Anti-pandemic Efforts.............................................................................................................. 21 I. Anti-pandemic Examples.................................................................................................. 22 II. Well-organized Work Resumption...................................................................................24 Chapter I Quality Management.................................................................................................26 I. Corporate Governance.......................................................................................................26 (I) Operating Targets.........................................................................................................26 (II) Management Mechanism..........................................................................................269 (III) Social Recognition.................................................................................................... 30 (IV) Strict Quality Control................................................................................................32 (V) International Business Operations..............................................................................36 II. Win-win Cooperation.......................................................................................................38 (I) Supply Chain Responsibility Management..................................................................38 (II) Customer Responsibility Management.......................................................................35 (III) Consumer Rights Protection......................................................................................40 (IV) Let Industry Operate Under the Sun......................................................................... 46 Chapter II Scientific and Technological Innovation.................................................................47 I Oriental Yuhong Sustainability Report 2020 I. Innovation Mechanism Leads Development..................................................................... 47 II. Innovation Platform Gathers Strength..............................................................................50 III. Innovative Results Demonstrate Strength.......................................................................52 IV. Innovation Application Examples.................................................................................. 53 (I) Application Technology Research and Promotion...................................................... 53 (II) Innovative Marketing System.....................................................................................62 (III) Innovative Management Model................................................................................ 63 Chapter III Resources and Environment...................................................................................65 I. Green Management........................................................................................................65 (I) Structure of Environmental Management....................................................................65 (II) Support for Green and Low-carbon Development..................................................... 68 (III) R&D and Application of Environmental Protection Technology.............................78 (IV) Building of Green Supply Chain...............................................................................85 II. Performance of Environmental Governance....................................................................86 (I) Policies and Industry Standards for Environmental Protection................................... 86 (II) Energy Conservation and Consumption Reduction....................................................87 (III) Investment in Environmental Protection...................................................................89 III. Green Operations............................................................................................................ 91 (I) Standard Construction of Oriental Yuhong................................................................. 91 (II) Green Life...................................................................................................................93 IV. Planning for Green Development................................................................................... 94 (I) Promotion of Clean Energy......................................................................................... 95 (II) Performance of Green Production.............................................................................. 95 (III) Emission and Consumption Reduction..................................................................... 95 Chapter IV Safety Responsibility ........................................................................................... 97 I. Safety Management System ............................................................................................ 97 II. Safe Production................................................................................................................ 99 III. Product Safety...............................................................................................................102 IV. Social Safety................................................................................................................. 103 II Oriental Yuhong Sustainability Report 2020 Chapter V Human Rights and Labor Practices.......................................................................105 I. Building of Talent Team..................................................................................................105 (I) Employee Composition by Specialties...................................................................... 106 (II) Education Background of Employees...................................................................... 106 II. Vulnerable Groups......................................................................................................... 106 (I) Fair, Just, and Nondiscriminatory Recruitment Policy..............................................106 (II) Protection of Women's Rights and Interests.............................................................107 (III) Vulnerable Group Protection.................................................................................. 107 III. Basic Rights and Protection..........................................................................................108 (I) Protection of Basic Human Rights.............................................................................108 (II) Upholding of Labor Rights and Interests................................................................. 109 (III) Employee Satisfaction.............................................................................................109 IV. Employment and Recruitment...................................................................................... 110 (I) Employment Security.................................................................................................110 (II) Local Employment Promotion..................................................................................110 (III) Campus Recruitment...............................................................................................111 V. Remuneration and Incentives.........................................................................................111 VI. Welfare Benefits and Care............................................................................................112 VII. Health and Safety........................................................................................................ 112 (I) Occupational Health and Safety System....................................................................112 (II) Labor Protection....................................................................................................... 113 (III) Prevention and Control of Occupational Diseases..................................................114 (IV) Psychological Health...............................................................................................114 VIII. Development and Training.........................................................................................115