On February 7, CDP announced the latest results of its reporting. CDP stands for the Carbon Disclosure Project. It's a not-for-profit charity that is in charge of the global reporting disclosure for investors, companies, and regions to measure and publicly acknowledge their environmental impacts. Sennics disclosed its report for Water for the first time this year and received a B (Management) score. Its CDP score on Climate was also increased from C (Awareness) last year to B (Management) this year. The result demonstrated that Sennics was recognized again by this authoritative platform for its sustainability strategy and performance.

To address climate change, Sennics has built a lifecycle carbon management system spanning "strategy-development-production-supply chain". In 2023, its overall energy consumption per RMB 10,000 of industrial output (based on the comparable price) was more than 20% lower than in 2020. By actively purchasing green electricity, implementing photovoltaic power generation projects, and experimenting with the circular economy model, Sennics is constantly increasing the percentage of renewable energy and clean energy used. Sennics Shandong, Sennics Tai'an, and Sennics Anhui purchase green electricity every month. The intelligent carport of Sennics Shandong powered by solar panels is already in use with an installed capacity of 0.518 MW. Meanwhile, the project aiming to reduce the overall energy consumption in manufacturing insoluble sulfur products has achieved remarkable results: the per unit steam consumption is down by 11% YoY, and the overall energy consumption is reduced by 31.4% on average. In addition, the company is continuously enhancing the treatment of "three wastes". Sennics Shandong has successfully reduced the per unit coal consumption of its products by optimizing the entire manufacturing process.

Sennics received a B (Management) score on Water for the first time this year. The company is actively identifying and managing water risks in actual operations. It has set multiple water management goals. The company is vigorously adopting water-efficient technologies in production. For example, it uses water-saving equipment such as a closed water circulation system for cooling to recycle wastewater from production, condensation, sludge, and steam, which can reduce water consumption by 6,000 tons and save 3,000 tons of fresh water each year.

Sennics was granted two B scores in recognition of its strategy of "Embracing the Dual Carbon Goals for a Bluer Sky". As a company with national green factories, Sennics has established a Sustainable Development Committee to set sustainable development goals and improve its decision-making, management, and performance with respect to ESG initiatives. In 2023, Sennics spent a total of RMB 28.16 million on environmental protection and implemented 40 projects for increasing energy efficiency with a total investment of about RMB 4 million. In the future, Sennics will further cement and enhance its core competitiveness, explore new growth drivers and new competitive edges, fulfill its economic, social and environmental responsibilities, and drive the sustainable development of the global polymer additives industry. All in all, it will play a part in driving the industry's green and low-carbon development.

CDP is internationally considered to be the?"gold standard of environmental reporting". Its annual questionnaires are distributed to over 23,000 companies around the world. CDP scores are in 8 levels from A to D measuring a company's environmental management practice from three dimensions: Climate, Forests, and Water. Sennics was able to achieve a B (Management) CDP score in two of the three areas this year, indicating a clear result of its effort to integrate low-carbon transition and resource management into its strategic decision-making.

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