Supplier Code of Conduct

Updates on 01 Jun,2023

I. Purpose

Concord New Energy Group Limited ("the Group") adheres to the philosophy of honest operation and fair competition, and is committed to developing as a leading enterprise in clean energy pursuing sustainable development. This Code of Conduct (CoC) is formulated with a view to providing high-quality clean energy and professional services as well as further improving the harmonious development between humankind and nature.

The suppliers will be subjected to relevant assessment by the Group for compliance with this CoC during the conduct of purchase-related activities. The Group may terminate the future cooperation or even invalidate the existing agreement should any violations of this CoC is identified. The Group provides relevant training pertinent to integrity and compliance or on this CoC to the suppliers.

II. Applicability

Contractors, suppliers in cooperation with the Group and any other potential business partners of the Group ("the Suppliers") shall strictly observe the relevant laws and regulations, the integrity compliance policy of the Group as well as this CoC.

III. Business Ethics & Conduct to be Observed

(I) Compliance with Laws and Regulations

The suppliers shall strictly follow the laws and regulations or any other relevant requirements promulgated by the local government or related authorities in areas where their businesses are operated or carried out, and shall implement immediate corrective actions as required by the competent regulatory authorities to ensure the proper compliance with relevant laws and regulations of their businesses.

(II) Compliance with Business Ethics

1. The suppliers shall conduct fair business competition in terms of price, quality, performance and standards of their products and services.

2. The Group requires the supplier to have transparent business procedures in place and execute high-level business ethics.

3. The suppliers shall execute honesty- and fairness-based moral standards during their cooperation with the Group.

4. The suppliers shall avoid any conflict of interests with the Group during the conduct of business contacts with the Group; if such conflict of interests cannot be avoided effectively, the Group should be informed in advance.

5. The suppliers shall strictly observe all relevant laws and regulations on bribery, corruption, anti-competition and any other forbidden commercial practices. Bribery or corruption of any form (both direct and indirect) is strictly prohibited, including but not limited to the following acts:

(1) The suppliers shall not provide kickbacks to any member of the Group in any possible forms.

(2) The suppliers shall maintain appropriate business contacts with the Group by not bestowing any gifts, marketable securities and valuables to any member of the Group and not bearing the individual expenses that should be borne by any member of the Group.

(3) The suppliers shall not arrange banquets or provide any recreational activities that may compromise the fair and just conduct of businesses to any member of the Group.

(4) The suppliers shall not provide conveniences for any member of the Group in housing decoration, weddings, funerals, work arrangements for his/her family members and children, travelling and going abroad.

(III) Practice of Environmental Protection

1. The suppliers shall comply with the law and regulations as well as other requirements pertinent to environmental protection in areas where their businesses are operated, and ensure proper licensing has been granted for the conduct of their respective business activities.

2. The suppliers must prevent any pollution by implementing effective treatment of sewage and dispose of waste materials in a safe and responsible manner, to minimize the environmental impacts.

(IV) Standardization of Labor Standards

1. The suppliers shall abide by all laws and regulations on labor management relations, including but not limited to the following aspects including human rights, working hours, legal minimum wage, working conditions, and occupational health and safety.

2. The suppliers shall implement fair, human-based and non-discriminatory labor standards, and establish appropriate communication mechanisms and complaint handling procedures so that their employees can directly report their concerns and complaint to the management.

3. The suppliers shall not employ anyone under the legal age to work. Nor shall any workers be subjected to forced, coerced, or trafficked labor of any kind.

(V) Providing A Safe and Healthy Working Environment

The suppliers shall comply with the laws and regulations governing occupational safety and health as well as any relevant requirements, and provide a safe and healthy work environment for their employees.

(VI) Keeping Business Secrets Confidential

The suppliers shall comply with laws and regulations as well as relevant requirements on data protection and privacy. The suppliers shall handle all information provided by the Group in confidence, and shall not disclose the information obtained to any unauthorized third parties or the public.

(VII) Respect for Intellectual Property

The suppliers shall recognize and respect the rights of the Group and any other intellectual property owners in trademarks, copyrights, designs and patents.

(VIII) Fulfilling Due Responsibilities

1. The suppliers shall propagate this CoC among their employees and ensure that this CoC is properly followed.

2. The suppliers shall comply with the environmental, social and management requirements stated in this CoC during their business cooperation with the Group.

3. The suppliers shall be trained on the integrity compliance or code of conduct provided by the Group.

4. The suppliers shall formulate relevant policies similar to this policy for their respective supply chains.

(IX) Reporting Misconduct

For any improper conduct of any member of CNE identified by the suppliers, the suppliers may report to the Audit Department of the Group. The whistleblower will be assured of confidentiality of the reported information and the personal contact information in accordance with relevant provisions. Relevant details are provided in the “Whistleblowing Policy” of the Group. Reports can be made using the following approaches:

1. Mailing address for reporting and complaint: Audit Department at CWP Building, No. 9 Building, Interwest International Center, No. 9 South Shouti Road, Haidian District, Beijing, zip code: 100048.

2. Landline for reporting and complaint: 010-88314950/010-88314954.

3. Email for reporting and complaint: complaint@cnegroup.com.

IV. Compliance Check

The Group reserves the right to conduct scheduled or non-scheduled reviews with the suppliers on this CoC.

V. Policy Review

The Group will carry out necessary periodic reviews of this CoC as appropriate.