Sustainability

Sustainable Development
SUSTAINABILITY MANAGEMENT

Sustainability Management

ESG Integrated into Core Business

The Company takes its "Harmony" culture as the foundation, The Company integrates ESG into its three core businesses of Intelligent Cable Network / Electric Power, Smart Battery Energy Storage / Computing & AI, and Smart Airport, systematically promoting the coordinated improvement of environment, society and corporate governance. The Company has established a three-tier governance system of "Decision-Making – Management – Execution", consolidating long-term competitiveness through green and low-carbon manufacturing, responsible supply chain and standardized governance, so that sustainable development and value creation advance in the same direction and forge ahead steadily.

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Sustainability Philosophy

Sustainability Philosophy

The Company takes its "Harmony" culture as the foundation, consistently maintains excellent product quality and steady revenue growth, and provides customers with integrated system services.

In green and environmental protection, we uphold sustainable development, actively respond to national new-energy strategies, seize market opportunities, and have made notable progress in solar, nuclear and wind power cable development—practicing the harmonious coexistence of business growth and environmental protection.

In energy saving and emission reduction, we pursue lean production with the goals of “energy saving, consumption reduction, pollution control and efficiency gains,” focusing on raw materials and energy management, process and equipment upgrades, process control, waste management and employee skills—supporting China’s dual-carbon goals through green manufacturing.

Sustainability philosophy
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Sustainability Governance

Sustainability Governance

To strengthen ESG governance at Far East Electric and ensure effective ESG work, we have established a three-tier structure: the Board of Directors (decision-making), the Social Responsibility Committee (management), and business and functional departments (execution). Clear roles and close coordination form an integrated ESG management mechanism. ESG performance is closely linked to executive compensation, while training and stakeholder engagement continue to deepen the systematic effectiveness of our ESG management.

  • DecisionBoard of Directors

    • Serves as the core decision-making body for ESG governance and oversees ESG-related work.
    • Ensures the company’s development direction remains aligned with sustainability philosophy and goals.

  • ManagementSocial Responsibility Committee

    • Coordinates company-wide ESG work and holds at least one dedicated meeting each year.
    • Organizes annual ESG plans and targets, and monitors implementation of ESG policies and systems.
    • Reviews the annual ESG report and tracks progress on material ESG topics and targets.
    • Drives continuous deepening of ESG management.

  • ExecutionBusiness & Functional Units

    • Act as the direct owners of ESG delivery, cascading and executing specific action plans and measures.
    • Handle day-to-day ESG matters in environment, safety, employees, supply chain and compliance, and collect related data.
    • Build internal ESG capability and embed ESG requirements into business processes so sustainability runs through daily operations.

Environment · Social · Governance

ESG Pillars

We systematically disclose ESG practices across environment, social and governance dimensions, driving sustainable value creation through topic management.

  • ENVIRONMENT

    Green & Low-Carbon Pioneer
    Supporting a Beautiful China

    Through our subsidiaries we have built a specialized climate governance system, set up a carbon emissions management leading group, and identify climate risks and opportunities with reference to the TCFD framework. We advance green operations across governance, strategy, risk and opportunity management, and metrics and targets—continuously reducing our carbon footprint and strengthening climate resilience.

    Material Topics

    • Climate change responseIdentify climate risks and opportunities and deliver emission-reduction targets
    • Energy useImprove energy efficiency and increase the share of renewable energy
    • Environmental complianceComply with environmental laws and strengthen the environmental management system
    • Pollutants & wasteMeet discharge standards, ensure compliant disposal and promote source reduction
    • Water stewardshipWater-saving upgrades, wastewater treatment and recycling
    • Circular economyWaste sorting and recycling to raise resource efficiency
    • Ecosystems & biodiversityMitigate operational impacts and implement ecological protection measures
  • SOCIAL

    Fulfilling Social Responsibility
    Advancing Social Well-Being

    A quality management committee oversees product quality across the full life cycle. We protect employees’ rights and career growth, embed sustainable procurement throughout the supply chain, safeguard customer trust through innovation and information security, and give back to communities through rural revitalization and public welfare.

    Material Topics

    • Product & service quality and safetyFull life-cycle quality control for customer safety and satisfaction
    • Employee rights & developmentFair employment, compensation and benefits, occupational health and training
    • Innovation-driven growthIncrease R&D investment and upgrade green, intelligent products
    • Information security & privacyStrengthen data security systems and protect customer privacy
    • Rural revitalization & social contributionConsumption assistance, philanthropy and community co-building
    • Supply chain securitySustainable procurement and full life-cycle supplier management
  • GOVERNANCE

    Strengthening Corporate Governance
    For Steady, Long-Term Progress

    We strictly comply with the Company Law, Securities Law and Corporate Governance Code for Listed Companies. With the Board as the core governing body—supported by six special committees for strategy, audit, nomination, compensation and performance, social responsibility, and safety—we link ESG metrics to executive compensation and reinforce risk, compliance and business ethics.

    Material Topics

    • Corporate governanceSound operation of the three governing bodies; independent directors and board diversity
    • Risk & complianceStrengthen internal controls, compliance training and risk monitoring
    • Anti-bribery & anti-corruptionIntegrity systems with open whistleblowing and oversight channels
    • Anti-unfair competitionFair dealing to uphold market order and business ethics
    • Stakeholder engagementDiverse communication mechanisms to respond to stakeholder concerns
    • ESG disclosurePrepare and disclose ESG reports to a high standard of transparency

ESG Report

Annual Disclosure
Far East Electric 2025 ESG Report
Far East Smart Energy Co., Ltd. 2025 Environmental, Social and Governance (ESG) Report

Prepared on the principles of objectivity, rigor, transparency and completeness, this report discloses the company’s ESG practices and performance for 2025. The reporting period is January 1 to December 31, 2025.

Download Report PDF · Also available via the Shanghai Stock Exchange or the company website