The global ecological crisis caused by GHG emissions is an unavoidable topic when people discuss sustainable development. Meeting the Paris Agreement's 1.5°C warming target requires collective action and emission reduction commitments from all nations.

INOVANCE announced "2850" and "3030" decarbonization goals in 2022,aiming to achieve peak carbon emissions in its operations by 2028 and carbon neutral 2050 .Additionally, by 2030,INOVANCE aims to reduce the greenhouse gas emission intensity of its major suppliers by 30% compared to 2021 levels.

INOVANCE has implemented a series of GHG reduction actions aligned with the "2850" and "3030" goals. Core initiatives include establishing an energy and carbon emission management platform, building green and zero-carbon factories, and increasing investment in green product design and R&D, to ultimately accelerate the achievement of emission reduction goals across the entire value chain.

The Company has issued the Measures for Control and Management of INOVANCE Conflict Minerals explicitly committed to not using 3TG (Gold, Tantalum, Tungsten and Tin) produced in conflict mineral areas such as Congo and its surrounding countries and regions. The INOVANCE Supplier Management Contract states that our products comply with the Conflict-Free Sourcing Initiative (CFSI), prohibiting suppliers from providing conflict minerals or their derivatives sourced from conflict-affected regions mentioned above. The Company's production process involves the use of gold (Au) and tin (Sn) mineral resources. INOVANCE conducted conflict minerals investigations on suppliers providing these two types of minerals and did not find any suppliers using conflict minerals. The proportion of relevant mineral suppliers that have signed the Conflict-Free Minerals Commitment reached 100%.

INOVANCE respects every employee and ensures the fundamental rights of all:

• Providing a healthy and safe work environment and travel conditions, identifying and analyzing global safety risks, assessing their potential impact, and protecting employees' personal safety in the best possible way;

• Protecting Employees' Occupational Health；

• Ensuring equal opportunities and treatment for all regardless of race, nationality, culture, religion, political affiliation, skin color, sexual orientation, gender, age, or disability status;

• Prohibiting any form of forced labor and child labor;

• Respecting human rights, including freedom of choice in employment, hiring, resignation, overtime work, and movement, etc.; prohibiting any form of modern slavery or human trafficking, such as forced labor, pawn/debt repayment, indentured servitude, involuntary prison labor, etc.; and prohibiting any actions that restrict labor freedom, such as withholding employees' salaries, benefits, property, or documents;

• Ensuring employees' legal rights to organize and join labor unions, as well as their right to engage in collective bargaining；

• Complying with all applicable wage and remuneration laws globally.

The company not only emphasizes the crucial support role of the supply chain in delivering high-quality products and services, continuously enhances the resilience of the supply chain, and guarantees the security of the supply chain, but also pays special attention to the sustainable management of supply chain in operational activities, maximizes the value creation potential of the supply chain in environmental, social, and governance aspects. This effort aims to facilitate the establishment of a green, secure, friendly, resilient, and fair business ecosystem.

We have formulated the "Supplier Code of Conduct" and incorporated it into our supplier contracts, encouraging suppliers to work with us in fulfilling our environmental and social responsibilities.