2023 Chery ESG Report: Chery Sets New Benchmark in Circular Economy with Over 95% Vehicle Recyclability

· The 2023 Chery ESG Report showcases significant achievements across various domains, including production, logistics, sales, usage, and recycling.

· Chery anticipates to generate 71,500 MWh of clean energy over the next 25 years, reducing CO2 emissions by approximately 50,000 tons.

· By the end of 2023, Chery achieved a 95% vehicle recycling rate and an 85% reusability rate, leading the industry.

    In today's global trend towards sustainable growth, Chery actively implements environmental, social, and governance (ESG) strategies, striving to create green and low-carbon travel solutions. As a prominent representative in the circular economy, Chery has made significant progress in production, logistics, sales, usage, and recycling, as highlighted in the 2023 ESG report released in June. Notably, Chery has achieved a vehicle recycling rate exceeding 95%, highlighting its strong commitment and significant accomplishments in advancing the circular economy.

Carbon Reduction in Production: Integrating Clean Energy and Low-Carbon Technologies

    Chery has significantly enhanced its green productivity by deeply implementing a clean energy strategy in its production processes, including the installation of photovoltaic systems and geothermal heat pumps. By the end of 2023, Chery's headquarters in Wuhu, China, had installed 76 megawatts of photovoltaic capacity, generating 198,900 megawatt-hours, with self-use reaching 93.9%, effectively reducing CO2 emissions by approximately 140,000 tons. Additionally, new energy factories are also equipped with a 3.25-megawatt photovoltaic power system, expected to generate 71,500 MWh of clean energy over the next 25 years, reducing CO2 emissions by about 50,000 tons.

    In terms of low-carbon processes, Chery is progressively implementing integrated die-casting and low-temperature integrated coating technologies. These advancements not only enhance production efficiency but also significantly reduce energy consumption and carbon emissions. Many models feature these green technologies, establishing a solid foundation for low-carbon production.

Low-Carbon Logistics: Building a Green and Efficient Logistics System

    In response to the rapid growth of global operations, Chery continually optimizes its logistics system to create a low-carbon and efficient logistics chain. The company uses a digital transport management system to analyze logistics data and develop efficient transportation strategies. Methods such as city-cycle pickups, remote consolidation of goods, and transport integration enhance loading efficiency and reduce transportation frequency. Chery also actively adopts low-carbon transportation modes like direct shipping by river and sea, roll-on/roll-off transport, and increasing the use of rail waterways and new energy trucks, thereby cutting carbon emissions. For in-plant parts transportation, Chery fully employs electric forklifts and tow trucks to further lower the carbon footprint of its logistics operations.

Sales and Usage: Guiding Green Consumption and Optimizing Energy Efficiency

    In the sales phase, Chery encourages dealers to meet sustainability requirements in store construction and operations by using eco-friendly building materials and optimizing showroom daylighting and illuminating systems to reduce energy consumption. Chery also installs outdoor charging stations and supporting facilities to provide greater convenience for new energy vehicle users, steering automotive consumption towards a low-carbon and green direction.

    In terms of usage, Chery continuously optimizes the energy efficiency parameters of its fuel vehicles and plug-in hybrids, enhancing energy conversion efficiency, reducing energy transmission losses, and lowering system energy consumption to save users on energy costs. Additionally, Chery focuses on improving the range and charging convenience of its new energy vehicles, ensuring users enjoy a more convenient and economical green travel experience.

Recycling: Creating a Closed-Loop System for Maximum Resource Utilization

    Chery vigorously promotes vehicle scrapping, recycling, and reuse at the end of a vehicle's lifecycle. The company strictly adheres to domestic and international regulations, developing a series of management systems and technical standards to ensure the effective implementation of the circular economy model for vehicle scrapping, dismantling, sorting, and reuse. By the end of 2023, Chery's vehicle recyclability reached 95%, with a reuse rate of 85%, positioning it as an industry leader.

    Through continuous efforts and innovative practices in production, logistics, sales, usage, and recycling, Chery has successfully established new benchmarks for green mobility and the circular economy. Looking forward, Chery will remain committed to sustainable development, contributing even more to building a harmonious coexistence between humanity and nature.