Kaifa has listed greenhouse gas management as one of the company's sustainability goals and included it in the company's performance evaluation indicators. In order to achieve the goal of net zero emissions, Kaifa strongly supports energy-saving and emission reduction projects, uses renewable energy, installs photovoltaics, and plans to reduce carbon emissions in Scope 1, Scope 2, and Scope 3 of the production, operation, and value chain through carbon offsetting, and purchasing carbon credits. In 2024, Kaifa achieved the greenhouse gas goals of increasing renewable energy usage by 2% annually, reducing greenhouse gas emissions intensity by 2% annually, and promoting 50 emission reduction projects annually.

Environmental Protection: We take measures to minimize environmental pollution and energy consumption by optimizing resource utilization, adopting eco-friendly technologies, and reducing the negative impact of our production and operations on the environment. We conduct ISO14001 internal audit annually to supervise the environmental protection situation of various departments in the company.

Energy Management: We are committed to minimizing our environmental impact by reducing energy consumption and optimizing energy utilization. Through the promotion of energy-saving technologies and the adoption of renewable energy sources, we achieve effective energy management.

Water Resource Management: We prioritize water resource protection and rational utilization. Through a water resource management system, monitoring, and control of water usage, optimized production processes, and reduced water pollution, we strive for sustainable water resource utilization.

Air Emissions Management: We implement effective measures for exhaust gas treatment to minimize emissions. By utilizing advanced emission control equipment and technologies, our goal is to reduce pollution to the atmosphere and safeguard air quality.

Waste Management: We are committed to improving waste management efficiency by reducing waste generation and ensuring safe and compliant waste disposal. Our goal is to minimize the environmental impact through responsible waste management practices.

Environmental Risk Assessment and Improvement: We conduct regular environmental risk assessments to identify and evaluate potential risks. Based on the results, we implement control measures to mitigate these risks. We also monitor and measure our environmental performance using key indicators to track progress in our improvement efforts.

Employee Training and Involvement: We promote environmental awareness and adherence to management policies through communication and diverse employee training programs. We provide necessary resources and support to encourage active employee participation in environmental protection activities.

Information Disclosure and Communication: Prioritizing transparency and accountability, Kaifa actively communicates and collaborates with stakeholders. We share our environmental achievements, welcome feedback, and foster a collaborative approach to environmental stewardship.

ISO14001 Certification: Kaifa has established long-term sustainable green manufacturing strategic goals, promoted the standardization of environmental and energy-related management systems, and continuously improved its environmental and energy management capabilities. We obtained ISO14001 certification in 1999, and as of 2024, the coverage rate of ISO14001 system certification for domestic factories and major overseas companies is 100%.

ISO14064-1 Certification: We actively respond to the global call for low carbon, and since 2007, Kaifa Headquarters, Kaifa Dongguan, and Kaifa Suzhou have gradually implemented third-party carbon verification reports. Since 2021, Kaifa Chengdu has established a greenhouse gas management system in accordance with the ISO14064 standard and obtained a third-party verification. In 2023, Kaifa Dongguan established the ISO14064 system and obtained third-party verification. In 2024, Kaifa established a greenhouse management system among all factories and obtained third-party verification.

ISO14067 Certification: Kaifa attaches great importance to the product carbon footprint, with the goal of having four factories obtain product carbon footprint certification by 2030. In 2024, Kaifa Dongguan Company and Kaifa Chengdu obtained third-party certification for product carbon footprint.

ISO50001 Certification: To achieve rational energy management, Kaifa has implemented the ISO50001 energy management system, with the goal of achieving a 100% coverage rate of ISO50001 system certification for domestic factories and major overseas companies by 2030. Until 2024, Kaifa Chengdu and Kaifa Dongguan obtained third-party certification.

Green Factory Certification: In order to further enhance our comprehensive environmental management capabilities, we launched a green factory certification program in 2024, with the goal of achieving a 100% coverage rate of green factory system certification for domestic factories by 2030 and a 100% coverage rate of green factory system promotion for overseas companies by 2030. During the reporting period, Kaifa Dongguan and Kaifa Chengdu obtained green factory certification.

Energy Efficiency：Taking all necessary measures to improve energy utilization efficiency and reduce energy waste and losses. By optimizing production processes, promoting energy-saving technologies and equipment, we aim to minimize our energy consumption and carbon emissions.

Renewable Energy：Actively promoting the use of renewable energy sources, including solar and hydro energy. Through investment and procurement of renewable energy facilities, we aim to reduce reliance on traditional energy sources and improve the sustainability of our energy supply.

Energy Management System：Establishing an ISO 50001-based energy management system. Collecting and analyzing energy data to address abnormal consumption and waste. Setting energy targets, developing energy-saving measures, and monitoring implementation for continuous performance improvement.

Employee Engagement：Encouraging employee participation in energy-saving actions, raising awareness of energy consumption, and strengthening their understanding and implementation of energy-saving measures through training and education.

Monitoring and Reporting：Regularly monitoring and measuring energy consumption. Conducting energy performance assessments and developing key indicators to measure effectiveness. Kaifa discloses energy management results and improvement measures to stakeholders, ensuring transparency and communication.

Kaifa integrates environmental protection and safety-related specifications for chemicals into every stage of the product life cycle, including research and development, procurement, production, and shipment, in accordance with regulatory requirements and customer standards. This ensures the compliance of chemicals used throughout the product supply chain. To minimize environmental pollution and prioritize the health and safety of personnel, Kaifa strictly controls chemicals according to the regulations, directives, and requirements of China, the European Union, and other relevant jurisdictions. We have implemented the General Chemical Management Process Instruction and the Chemical Safety Operating Instruction to regulate the handling of chemicals. Regular sampling inspections are conducted to ensure that all chemicals meet legal requirements. Additionally, we provide annual training on chemical safety, protection, first aid, and emergency response, focusing on areas such as chemical storage, usage, disposal, and emergency procedures, to enhance employees' awareness of chemical safety. Kaifa has developed a comprehensive and efficient system for chemical management, encompassing product research, design, material supply, procurement, production, and sales. By implementing this process-oriented system, we ensure compliance and prioritize safety in the use of chemicals.

Kaifa's Material Science Laboratory is equipped with advanced analysis capabilities for detecting toxic and hazardous substances in chemicals, including RoHS, HF, BPA, PAHs, and hazardous heavy metals, and is equipped with a complete set of equipment for detecting toxic and harmful substances. We implement differentiated management based on the risk levels of these substances, conducting sampling and testing at high, medium, and low frequencies. Our RoHS 2.0 testing for the ten hazardous substances is accredited by CNAS, and the results are recognized by global accreditation bodies. Through these measures, we ensure that our products comply with environmental regulations and directives, demonstrating our commitment to product safety and environmental responsibility.