Climate Change Policy

I. Purpose

Concord New Energy Group Limited (“the Group”) is committed to developing and providing premium clean energy resources to help cut carbon emissions and actively address climate change. The Group integrates the climate change risk assessment into its overall corporate risk management process, actively identifies and manages the challenges and opportunities posed by climate change, and crafts and implements measures to adapt to or mitigate the impact of climate change on its business.

II. Governance

The Group has established an ESG Committee at board level to oversee climate change and other ESG-related matters. The Board of Directors is responsible for setting the tone at the top for strategic objectives and is the ultimate responsible party for ESG matters. The ESG Committee is responsible for assisting the Board in oversee climate change related issues. The ESG Committee receives training on climate change where necessary, reviews assessments of climate change risks, monitors the implementation of the Group’s carbon reduction targets and provides guidance on the Group’s strategy to address climate change.

The Group attaches great importance to the impact of risks and opportunities brought by climate change on the Group’s assets and daily business activities, regularly analyzes and reviews climate change opportunities and risks, and develops countermeasures.

III. Mitigation and Adaptation

• The Group actively implements various initiatives to encourage its value chain partners to reduce greenhouse gas emissions, ensuring alignment with the objectives of the Paris Agreement.

• Set medium- and long-term targets for clean energy development to provide more, sustainable, and stable clean electricity;

• The Group commits to not investing in any form of fossil fuel expansion projects, including but not limited to the exploration, extraction, processing, and infrastructure development of coal, oil, and natural gas, aligning with the global transition towards a low-carbon economy.

• Improve energy efficiency in its own operations and reduce carbon emissions;

• Fully assess and respond to the impact of climate factors on its business and performance, increase technical and financial investment, improve design standards, and improve contingency plans for extreme weather;

• Optimize project layout to cope with and mitigate the impact of climate change;

• Continuously optimize and innovate services including smart energy, smart operation and maintenance, and work with customers and partners to explore new opportunities for reducing carbon emissions;

• Enable emission reduction in supply chains, take account of climate factors in procurement, and prioritize the use of low-carbon, energy-efficient equipment and materials;

• The Group commits not to finance or support any activities that deny the scientific consensus on climate change or oppose effective climate regulations, and to promote the global consensus and cooperation on addressing climate change.

• Improve employee engagement in energy conservation and emission reduction, and vigorously advocate low-carbon behaviors.

IV. Policy Review

The Group will conduct necessary reviews of the Policy at regular intervals.