Sanhua is committed to develop smart, low-carbon economy, and create eco-friendly environment for mankind.

The company has formulated sustainable development plans and goals, sorted out 23 environmental, social, and corporate governance related issues, and conducted an analysis of ESG importance issues.

Labors and Human Rights

The company strictly abides by relevant national laws such as the Labor Law and local laws and regulations used overseas, adheres to the principle of "openness and impartiality", treats applicants equally, selects talents based on merit, and does not discriminate against any applicants based on age, disability, ethnicity, gender, marital status, nationality, political outlook, etc; Strictly prohibit the employment of child labor and forced labor, and irregularly organize internal inspections to ensure the legality and compliance of employment to the greatest extent possible; At the same time, the company attaches great importance to talent cultivation and constructs targeted training systems at different levels and sequences.

Living Wage Commitment

Note: This statement applies to Zhejiang Sanhua Intelligent Control Co., Ltd. (hereinafter referred to as the "Company") to ensure that the salary level of its employees meets the local minimum wage standard, covering the regions where the Company and its subsidiaries are located, including Hangzhou, Xinchang, Wuhu, and other regions. The company attaches great importance to employee welfare and the maintenance of daily life, so we are committed to ensuring that employee compensation can meet their basic living needs.

The company's salary policy complies with the minimum wage standards stipulated by law, maintains close cooperation with local trade unions and labor organizations, and continuously pays attention to changes in local economic conditions and living costs. If the local minimum wage standard is raised, the consensus will actively evaluate and adjust employee salaries accordingly to ensure that the quality of life of employees is maintained and improved. The company's goal is to establish a fair and sustainable work environment, providing stable compensation and benefits for employees. By ensuring that employees' daily life needs are met, we believe that employees will become more focused and engaged in their work, and play a greater role in the development of the company. 

Anti-discrimination Commitment

Note: This statement applies to Zhejiang Sanhua Intelligent Control Co., Ltd. (hereinafter referred to as "our company" or "the company"). During the recruitment process, our company adheres to the principles of "openness and fairness", treats applicants equally, selects talents based on merit, and does not discriminate against any applicants based on age, disability, ethnicity, gender, marital status, nationality, political appearance, race, religion, sexual orientation, or membership in a labor union.

Our company does not discriminate or treat employees unfairly based on race, religious beliefs, gender, nationality, age, marital status, disability, and sexual orientation in terms of salary, training, promotion opportunities, etc. At the same time, our company has regulations on labor remuneration for female employees during pregnancy, childbirth, and lactation: to protect female employees from discrimination and unreasonable wage reductions during the three periods. The distribution of wages is based on equal pay for equal work between men and women, and the normal distribution of basic wages for female employees is guaranteed during the third period. The company is committed to creating a respectful and equal work environment. We firmly oppose any form of sexual harassment and will adopt a zero tolerance policy towards any sexual harassment behavior. Once the existence of sexual harassment is confirmed, the company will take appropriate corrective measures, including but not limited to warning, suspension, dismissal, or other appropriate disciplinary measures.

Employee Training and Development

Note: This statement applies to Zhejiang Sanhua Intelligent Control Co., Ltd. (hereinafter referred to as the "Company"), which attaches great importance to talent cultivation and constructs targeted training systems at different levels and sequences, including but not limited to various training methods such as "Overseas Factory Manager Training Camp", "Procurement Elite Class", "Management Performance Training", "Management Trainee Training Plan", and "TDR Training" for management personnel Provide more systematic and comprehensive training for technical and professional talents. The company also optimizes employee training plans based on its strategic needs, and increases talent cultivation efforts in areas such as international talent cultivation and digital transformation empowerment.

Protection of Worker’s Rights

Note: This statement is applicable to Zhejiang Sanhua Intelligent Control Co., Ltd. (hereinafter referred to as the "Company"), which has developed a comprehensive human resources regulatory system, including the "Recruitment Management Measures", "Attendance and Vacation Management Measures", and "Quota Employee Management Measures".

During the recruitment process, strictly review the identity of applicants to ensure that child labor is not employed. At the same time, the company respects the human rights of employees, strictly prohibits the employment of child labor and forced labor, and irregularly organizes internal inspections to ensure the legality and compliance of employment to the greatest extent possible.

The company has formulated a series of systems related to labor security, employee compensation and welfare, such as the "Attendance and Vacation Management System," "year-end bonus management system," and "labor contract management system," which comprehensively clarify regulations related to labor employment, employee vacation, overtime, etc., strictly abide by and implement national labor laws and regulations, and protect the legitimate rights and interests of workers. At the same time, provide employees with additional benefits such as annual medical examinations and holiday benefits. At the same time, the company attaches great importance to the construction of relationships with employees, regularly communicates with employees, establishes communication channels, such as Mid Autumn Festival symposiums, excellent cadre symposiums, and organizes satisfaction surveys on catering, vehicles, and other aspects, widely listens to employee opinions, continuously optimizes company management, and promotes the achievement of company business goals.

Environment & Ecology

The company attaches great importance to environmental and ecological protection, and continuously reduces the carbon footprint of the entire product lifecycle by developing low GWP high-efficient products and optimizing the system; Substitution of raw materials, such as using less emission intensive raw materials, design optimization, such as weight reduction. In terms of production, continuously improve the production line to achieve the goal of increasing production capacity efficiency; Install solar photovoltaic power generation in various industrial parks, use energy storage systems, and save electricity.

Business Integrity

The company has formulated and released the 'Employee Integrity and Self discipline Agreement', which promotes, studies, and implements the company's integrity and self discipline regulations within the company, consciously enhances the awareness of integrity and self discipline, and strictly implements various systems for integrity and professional conduct; For suppliers, the company has formulated the "Integrity and Self discipline Cooperation Agreement", advocating for the common goal of pursuing a fair, just, and transparent business environment with suppliers.

Note: This statement applies to Zhejiang Sanhua Intelligent Control Co., Ltd. (hereinafter referred to as the "Company")

Corporate integrity related policies and standards

The company strives to create a positive atmosphere for promoting healthy, sustainable, and high-quality development. For employees, the company has formulated and issued the "Employee Integrity and Self discipline Agreement", which promotes, studies, and implements the company's integrity and self discipline regulations within the company, consciously enhances the awareness of integrity and self discipline, and strictly implements various systems for honest employment. As of the end of the reporting period, the company and its subordinate business units have completed the signing work of all their employees. For suppliers, the company has formulated the "Integrity and Self Discipline Cooperation Agreement", advocating for the common goal of pursuing a fair, just, and transparent business environment with suppliers, in order to ensure smooth cooperation and transactions, and safeguard the legitimate interests of both parties.

Corporate integrity practice work

The construction of a clean government is an important task that the company president tirelessly focuses on. In order to fully leverage the supervisory role of employees and external affiliated units, effectively protect the legitimate rights and interests of whistleblowers, further establish integrity, create a fair, open, and just clean work environment, and stimulate positive energy, the company has carried out multiple clean practice work:

1. For violations of integrity construction, the company's internal system shall be notified and taken as a warning; Organize anti-corruption promotion and training activities. During the reporting period, the company conducted one anti-corruption promotion and training activity in Hangzhou and Xinchang, respectively, to promote management and employees to be aware of their obligations under anti-corruption laws and practice business ethics.

2. The company has announced complaint and reporting channels (including reporting phone number, reporting email, WeChat, address, etc.), encouraging employees or third parties to report any corruption, fraud, and improper behavior in the business operation process. The company accepts anonymous reporting and encourages real name reporting to improve the efficiency of subsequent investigation work. It strictly and highly confidential the information of whistleblowers, and strictly prohibits any actions such as cracking down, retaliation, and unfair treatment against whistleblowers.

Responsible Supply Chain

The company has released a sustainable procurement report, identifying the implementation of sustainable procurement, supplier diversification measures, carbon emissions, and carbon supply chain related plans. By participating in the standard development of various industry associations in various fields, the company has comprehensively standardized the requirements of low-carbon, green, and environmental protection; At the same time, the company has issued a Conflict Minerals Declaration prohibiting the direct and indirect use of any conflict minerals.

Sustainable Procurement Policy

1、 Sustainable procurement policy

The new version of the "Basic Supply Agreement for Suppliers" and the "New Supplier Code of Conduct" and "Letter to Suppliers" incorporate environmental issues into the principles and agreements of the company's supply chain management, while also covering sustainable procurement policies related to labor and human rights, and incorporating labor and human rights issues (such as working hours and wages) into supply chain management. For the internal part, specialized training on sustainable procurement policies was conducted for procurement personnel from all regions to understand social and environmental issues, and included in procurement functional management.

2、 Conflict minerals section

The organization has signed a Conflict Minerals Declaration and developed a Conflict Minerals Report Template. The new version of the supply agreement also supplements the Conflict Minerals Policy, becoming the mining procurement entity in charge.

3、 Implementation of sustainable procurement

Through the signing of the supplier's Basic Supply Agreement, social or environmental clauses are included in the supplier contract, which standardizes the supplier's code of conduct and ensures compliance with rules to ensure the fulfillment of social and environmental responsibilities. At the same time, when new suppliers are included and annual audits are conducted, the corporate social responsibility (CSR) risk analysis item will be included in the rating item. Evaluate suppliers based on environmental or social practices, such as notifying them of REACH's new requirements through official letters, and organizing CTI environmental dynamic training, hazardous substance training, and global environmental regulation training to strengthen the management capabilities of suppliers on this topic. On top of this, there are unique incentives for suppliers who excel in environmental and social issues, such as organizing evaluations and providing incentives such as trophies.

Improve the management of sustainable procurement management in the procurement team, regularly summarize the sustainable development of suppliers, and share case studies.

4、 Supplier diversification measures

The Strategic Procurement Department has issued a "Declaration on Supplier Diversification" to all suppliers, which has a potential significant positive development promoting supplier diversification. Meanwhile, as a global enterprise, Sanhua's actions to promote supply chain diversification are applicable to all suppliers worldwide.

5、 Carbon emissions and carbon supply chain aspects

The company has launched a dual carbon initiative internally, which is a long-term plan and mainly serves as an overall measure for the company to reduce carbon emissions in the future. 2022 is the first year for Sanhua to move towards carbon neutrality, and a dedicated carbon emission management department has been established as the first level department of the company. At the same time, the strategic procurement department is working together to promote carbon emissions and carbon supply chain management, as well as carbon footprint tracking. In procurement practice, firstly, organize research on the recycled material industry, including scrap copper, aluminum, and steel, and gradually purchase alternative electrolytic copper to reduce carbon emissions from the source. Secondly, organize the company's management department to communicate with international suppliers with clear plans and progress in green development and carbon neutrality, such as Sweden's Grangis Company, a leader in the raw material aluminum industry, to learn advanced carbon management concepts and measures. Thirdly, in the internal production process of the company, a large amount of oil and copper foam generated during the production process are used as recycled materials to be re melted in the furnace, significantly reducing the investment proportion of electrolytic copper.

6、 Deep extension and development of sustainable procurement concept

The Joint Research Institute intervenes in the concept of sustainable procurement from the very beginning of product design, comprehensively building low-carbon competitiveness. By participating in the standard formulation of various industry associations in various fields, we have comprehensively standardized the requirements for low-carbon, green, and environmental protection, and quantified them. Through the source, we have standardized the behavior of industry participants to promote sustainable development throughout the industry. The development of industry association standards involved in 2022 includes the Automotive Heating System Branch of the China Association of Automobile Manufacturers, the Research Center of the China Automobile Association, the China Refrigeration and Air Conditioning Industry Association, the Energy Storage Application Branch of the China Chemical and Physical Power Supply Industry Association, and AHRI.

Conflict Minerals Declaration
Our company prohibits the direct and indirect use of any conflict minerals and requires our procurement personnel and suppliers to understand and value human rights and environmental issues related to conflict minerals during the procurement process, and to comply with the Organization for Economic Cooperation and Development's Due Diligence Guidelines for Responsible Supply Chains of Ores from Conflict Affected and High Risk Areas and the China Responsible Mineral Supply Chain Due Diligence Management Guidelines, To ensure that all raw materials come from socially and environmentally responsible sources.
We promise not to use metals from conflict mining areas;
At the same time, we also require our suppliers to:
1. We must fulfill our social and environmental responsibilities, fill out 100% of the Supplier Code of Conduct, and comply with our commitment not to purchase conflict minerals.
2. Trace the sources of gold (Au), tantalum (Ta), tin (Sn), and tungsten (W) contained in all products.
3. Communicate this requirement to your company's upstream suppliers.
The management of conflict minerals relies on full cooperation and deep participation from upstream and downstream of the supply chain. We are committed to establishing a traceability mechanism for upstream and downstream of the supply chain, and establishing a transparent and responsible supply chain.

We request suppliers who contain minerals such as "gold, tungsten, tantalum, tin" in their products to provide upstream smelting and refining plant information using CMRT templates. We will compare the feedback from suppliers with the list of factories that comply with the RMI Responsible Mineral Inspection Process (RMAP) to identify and evaluate potential risks of conflict minerals. We also require suppliers to cooperate with their upstream supply chain to trace the purchased minerals such as "gold, tungsten, tantalum, tin" back to the smelter level. For direct or indirect suppliers with potential risks of conflict minerals, we will take corrective measures to ensure that they meet the requirements. Those who cannot be rectified will be suspended or disqualified from supplying according to internal management policies.

We encourage all stakeholders to report violations of the Sanhua Intelligent Conflict Minerals Policy.
Tel: 18665613310
Email: xxc@ic.sanhuagroup.com

Policies and Reports

Zhejiang Sanhua Intelligent Control Co., Ltd. 2022 Social Responsibility Report

  • Description: 2023 Environmental, Social, and Governance (ESG) Report
    Date: 01/05/2024
  • Description: Zhejiang Sanhua Intelligent Control Co., Ltd. 2022 Social Responsibility Report
    Date: 29/04/2023

Social Responsibilities

As a public enterprise, from the early stages of its development, the company has made social responsibility a part of its business activities, aiming to contribute to the sustainable development of society. Therefore, Sanhua extensively carries out various social activities and contributes to society. The company emphasizes the protection of employee rights and humanistic care. Provide a certain amount of relief fund to employees who suffer from unexpected injuries or accidents, causing temporary living difficulties and similar situations. Regularly carry out employee sports and cultural themed activities to build a diverse cultural atmosphere.