ESG

I. Overview of Sustainable Business Operations
Guangdong Kayo New Energy Technology Co., Ltd. specializes in the R&D, custom manufacturing, and end-to-end technical services of photovoltaic mounting systems, consistently integrating environmental sustainability, responsible business practices, and compliance management into every stage of its product development, production, and project delivery. With a core focus on the clean‑energy photovoltaic sector, the company supports the successful implementation of PV projects through reliable mounting solutions and comprehensive one‑stop technical services, while simultaneously upholding environmental and social responsibility and robust internal compliance frameworks, thereby achieving both business growth and sustainable development.
 

II. E Environmental Management

1. Empowering the Photovoltaic and Low-Carbon Industries
The company specializes in photovoltaic mounting‑system accessories and is deeply committed to “PV Plus” applications across diverse scenarios. Its products are tailored for residential PV systems, ground‑mounted power plants, commercial and industrial rooftops, agrivoltaics, and other projects, helping to accelerate the adoption of clean energy, indirectly reducing fossil‑fuel consumption, and supporting customers in achieving their carbon‑reduction goals. For challenging terrains such as mountainous areas, tidal flats, and saline‑alkali soils, the company offers dedicated corrosion‑resistant mounting solutions that extend the service life of solar farms and minimize resource waste associated with equipment replacement.
2. Development of Green Products for Extreme Operating Conditions
For regions prone to extreme weather events such as typhoons, blizzards, and high‑salt‑fog conditions, the mounting structure and surface anti‑corrosion treatments have been optimized: long‑lasting corrosion‑resistant processes like hot‑dip galvanizing and aluminum‑magnesium‑zinc coatings are employed, significantly reducing the frequency of consumable replacements during later operations and maintenance, while minimizing the generation of scrap steel and paint waste. The product is designed for corrosion resistance throughout its entire life cycle, thereby lowering environmental impacts over the power plant’s operational lifespan.
3. Energy Conservation and Pollutant Control in the Plant Area
Energy Management: Production workshops are progressively equipped with distributed photovoltaic systems on the factory premises, replacing conventional grid power and reducing electricity‑related carbon emissions in the manufacturing process. Energy‑efficient upgrades to equipment have been implemented, phasing out high‑consumption, outdated machining machinery, and establishing detailed records of electricity and water usage in each workshop to continuously lower energy and water intensity per unit of output.
Compliant management of the three wastes: Production wastewater and exhaust gases are treated using standardized facilities, with real-time monitoring of discharge parameters, resulting in zero environmental protection administrative penalties for the year. Steel scrap is 100% recovered, recycled, and reused, while hazardous waste is uniformly entrusted to licensed, qualified entities for compliant disposal, effectively preventing unauthorized dumping and pollution.
Green Procurement: Prioritize the purchase of low-pollution, recyclable steel raw materials; select upstream suppliers with environmental compliance certifications; incorporate environmental performance standards into supplier qualification criteria; and build a green supply chain.
4. Environmental Emergency Management
Establish an environmental risk emergency response plan for the plant site, conduct regular drills on wastewater leaks and chemical storage safety, equip the facility with emergency protective supplies, and comprehensively mitigate environmental safety risks throughout the production process. Additionally, allocate dedicated annual funds for environmental protection‑related technological upgrades to continuously enhance green production practices.
 

III. S Social Responsibility Management

1. Employee Rights and Occupational Safety
Employment Assurance: All employees sign standard employment contracts, and social insurance and housing provident fund contributions are made in full. We prohibit child labor and employment discrimination, maintain a fair and transparent compensation and promotion system, and safeguard employees’ legal rights to paid leave, overtime pay, and other benefits. We have also established support channels for employees facing financial hardship.
Occupational Health and Safety (EHS): Production workshops are fully equipped with personal protective equipment, and regular training on fire safety and safe machinery operation is conducted. Dust and noise hazards in the workshops are strictly controlled, and annual occupational health examinations are provided to all employees. An injury‑reporting and safety‑improvement system has been established to continuously reduce the rate of workplace accidents.
Talent Care: We have established an internal skills‑training system that covers specialized courses in stent design, manufacturing processes, and on‑site construction. Complemented by holiday benefits, team‑building activities, and targeted support for female employees, we are fostering a diverse and inclusive work environment.
2. One-stop customer technical services (end-to-end project lifecycle support)
Leveraging a comprehensive service ecosystem, we provide end-to-end technical support for photovoltaic projects worldwide, mitigating project risks through expert services and fulfilling our commitments to our clients.
Project Consultation: Conduct preliminary needs alignment and provide expert guidance on mounting system solutions tailored to site-specific and climatic conditions.
On-site survey: Conduct field measurements of terrain, foundation conditions, and wind and snow load parameters to precisely tailor the mounting structure design.
Customized Design: Develop tailored structural drawings based on complex terrain and extreme weather conditions.
Pull-out testing: On-site tensile tests are conducted to assess the load-bearing capacity of anchor bolts and helical piles, ensuring the structural safety of the power station.
Installation Guidance: Dispatch technical personnel to the project site to conduct on-site briefing and standardize the installation procedures.
Operations and Maintenance Guidance: Following delivery, we provide long-term technical guidance on corrosion protection and support structure maintenance, helping to extend the service life of the power plant.
3. Supply Chain Responsibility Management and Control
Establish a supplier access and annual evaluation mechanism, incorporating labor standards and environmental compliance into the assessment criteria; require partner suppliers to safeguard the rights and interests of frontline workers and eliminate exploitative labor practices; standardize procurement payment terms to ensure stability in upstream–downstream relationships, and issue corrective action plans or terminate cooperation with suppliers that fail to meet evaluation requirements.
4. Community and Public Service Contributions
Leveraging its local production base in Guangdong, the company creates employment opportunities for nearby residents and boosts job availability in the regional manufacturing sector. It proactively maintains environmental hygiene around its facilities and collaborates with local environmental protection and safety supervision authorities to carry out inspection activities. Additionally, the company actively participates in local public‑welfare initiatives and rural photovoltaic projects that benefit communities, harnessing its industrial strengths to promote the widespread adoption of clean energy in rural areas.
 

IV. G’s Internal Compliance Governance

1. Internal Authority and Accountability, and Process Governance
Establish a clear framework of departmental roles and responsibilities, delineate job duties across R&D, production, sales, after-sales service, and quality control, and implement standardized processes for production, sales, and after-sales support, with end-to-end traceability and rigorous oversight to mitigate operational risks.
2. Integrity, Compliance, and Oversight
The company has established policies and procedures to prevent commercial bribery and promote ethical business conduct, set up both anonymous online and offline reporting channels, and conducts regular compliance training for all employees. It strictly regulates related-party transactions, rigorously prevents fraud and the improper transfer of benefits, and has maintained a clean record with no material violations of laws or regulations throughout its operations.
3. Comprehensive Risk Management
Establish a normalized risk‑identification mechanism that comprehensively covers environmental and safety compliance, production safety, project delivery, public sentiment, and financial performance. For engineering risks specific to photovoltaic mounting‑structure projects—such as failure under extreme weather conditions or insufficient foundation bearing capacity—proactively mitigate these risks through pull‑out tests and customized design, thereby reducing both customer‑related and corporate operational risks.
4. Data and Information Security
Establish a confidentiality regime for customer project drawings, site survey data, and corporate business information; strengthen cybersecurity safeguards to rigorously prevent the leakage of commercial information and customer privacy, thereby ensuring the information security of both parties to the collaboration.
5. Performance-Oriented Management
Integrate environmental protection metrics, workplace safety, and customer service quality into the performance evaluations of all departments, thereby guiding all employees to implement sustainability‑related initiatives.

V. Annual Work Summary and Future Plans

1. Key Highlights of ESG Initiatives This Year
Product Side: Several corrosion‑resistant, terrain‑specific photovoltaic mounting systems have entered mass production, serving over a hundred mountainous and tidal‑flat solar farms worldwide, thereby extending plant lifecycles and reducing resource consumption.
Production side: Completed the upgrade of energy-saving equipment in the workshop; achieved a 100% recycling rate for steel scrap; and recorded no environmental penalties or major workplace safety incidents.
Server-side: End-to-end, one-stop technical services are delivered, with pull-out tests and customized design employed to mitigate numerous structural safety risks in projects, thereby ensuring the long-term, stable operation of customers’ power plants.
Humanities Focus: Enhancing the employee safety and welfare system, organizing numerous safety and professional skills training sessions, and participating in local clean-energy public‑benefit projects.
2. Current Areas for Improvement
The proportion of distributed photovoltaic coverage across the plant site remains to be improved; the ESG assessment criteria for upstream suppliers could be further refined; and public‑education initiatives on green photovoltaic technologies tailored to the industry could be held more frequently.
3. Next-Phase Sustainable Development Plan
Environmental Dimension: Expand the photovoltaic capacity at our facilities and continue to implement energy- and water-saving upgrades in production; develop more lightweight, highly recyclable next-generation mounting‑system products; and refine our green supplier‑evaluation criteria.
At the societal level: increase the frequency of professional skills and safety training for employees; expand rural photovoltaic assistance projects; and enhance the efficiency of on-site technical service response, providing overseas customers with localized technical guidance.
Governance Level: Refine the detailed procedures for end-to-end risk identification, update the content of integrity and compliance training, and strengthen information security safeguards for project drawings and customer data.