CATL Contemporary Amperex Technology : Environmental, Social and Governance (ESG) Report 2025

About this update from Contemporary Amperex Technology Co., Limited Class A

‌2025 Environmental, Social and Governance (ESG) Report ‌ CONTENTS Report Preparation Instructions 01 Message from the Committee 03 Zero-Carbon Navigation: CATL' s 05 Operational Carbon Neutrality Practice Overview of CATL Business Scope Global Landscape Corporate Strategy 09 Sustainable Development Governance 15 11 Sustainable Development Philosophy 15 13 Sustainability Management Structure 19 13 Assessment and Management of Material Topics 19 ESG Data Sheet and Notes Benchmarking Index Appendix Assurance Statement 137 148 168 174 Due Diligence 27 Communication with Stakeholders 27 01 Operation 02 Governance 03 Environment 04 R&D Innovation 31 Corporate Governance 65 Climate Actions 83 Employees' Rights and Benefits 115 Intelligent Manufacturing and Lean Management 43 Investor Protection 67 Circular Economy 98 Equality and Diversity 120 Product Quality and Safety 46 Risk Management and Internal Control 69 Resource Management 101 Talent Training and Development 121 Customer Relationship Management 51 Anti-bribery and Anti-corruption 73 Environmental Compliance Management 104 Workplace Safety and Occupational Health 125 Supply Chain Management 54 Information Security and Privacy Protection 77 Emissions and Waste Management 106 Industrial Cooperation and Development 129 Intellectual Property Protection 60 Ecosystem and Biodiversity Conservation 111 Charity and Volunteer Services 132 Fair Competition 62 Community Communication and Development 133 Rural Revitalization 135 Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Report Preparation Instructions This is the fifth Environmental, Social, and Governance (ESG) Report released by CATL, presenting stakeholders with the Company's principles, approaches, initiatives, and progress in sustainability. Scope of Report This report covers Contemporary Amperex Technology Co., Limited and its subsidiaries (hereinafter referred to as "CATL" or the "Company"). The scope of this report is consistent with that of the Consolidated Financial Statements of CATL (stock code: 300750.SZ; 03750.HK). For data coverage, please refer to the "ESG Data Sheet & Appendix" section. Reporting Period This report serves as the annual report for the period spanning from January 1, 2025 to December 31, 2025. Any information outside of this reporting period has been provided with relevant context where necessary. Basis of Preparation This report is prepared in accordance with the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation), the Self-Regulatory Guidelines No. 2 for Companies Listed on the ChiNext Market of Shenzhen Stock Exchange - Standardized Operation of Companies (Revised in 2025), and the Appendix C2 Environmental, Social and Governance Reporting Code of the Listing Rules on the Main Board of the Stock Exchange of Hong Kong Limited. This report also refers to the Self-Regulatory Guidance No. 3 for Companies Listed on the ChiNext Market of Shenzhen Stock Exchange - Preparation of Sustainability Report (Revised in 2026), Appendix I Requirements for the Disclosure of the Social Responsibility Report of Listed Companies to the Self-Regulatory Guidelines No. 1 for Companies Listed on the ChiNext Market of Shenzhen Stock Exchange - Business Processing (Revised in 2026) and the China Corporate Sustainability Disclosure Standards General Standards (Trial), the IFRS Sustainability Disclosure Standards 1 - General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and the IFRS Sustainability Disclosure Standards 2 - Climate Related Disclosures (IFRS S2) issued by the Ministry of Finance of the People's Republic of China. The preparation process of this report complies with the Sustainability Reporting Standards (2021 Edition) ("GRI This report is published in Simplified Chinese, Traditional Chinese and English language versions, the Simplified Chinese version prevails in case of any discrepancy. Supplementary tables, model diagrams, and glossaries are included in this report to complement the text. To facilitate stakeholders in accessing pertinent information efficiently, this report includes the contents and an index table of ESG standards. For specialized terms involved, a glossary is provided in the appendix of this report. Verifiability Timeliness Sustainability Context Completeness Comparability Clarity Unless otherwise specified, this report covers Contemporary Amperex Technology Co., Limited and its subsidiaries. It is the same case with the annual report. This annual report is released concurrently with CATL's 2025 Annual Report, offering stakeholders timely information to support decision-making. Data Description This report reveals ESG quantitative performance indicators for the reporting period and historical data when feasible. This report maintains consistency in the collection, measurement, and calculation methods of the same indicator across different reporting periods. If there are any changes in the collection, measurement, and calculation methods, the relevant data will be retrospectively adjusted in the report, and a full explanation will be provided to enable stakeholders to conduct insightful analysis and evaluation. The Company, considering the characteristics of its scope and business operations, identifies the material ESG topics from the perspective of double materiality. The analysis process and results of these topics can be found in the "Assessment and Management of Material Topics" section of this report. All the sources and computation processes of quantitative data disclosed in this report are traceable and can be used for external verification. Standards") of the Global Reporting Initiative (GRI). This report also refers to the United Nations Sustainable Development Goals (SDGs) and the key issues concerned by mainstream ESG ratings at home and abroad. Principles of Preparation Balance Accuracy The information and quantitative data presented in this report originate from the Company's original records or annual reports reflecting actual operations. In cases of inconsistency with the Company's annual financial statements, the latter shall prevail. The financial data in this report are all in RMB. Contact Us This report ensures that the information is as accurate as possible. For the calculation of quantitative information, standard terms, units, and measurement methods that are commonly recognized both at home and abroad are adopted. When data is cited, the source is indicated. The data scope, calculation basis, and assumed conditions are all explained for the results to ensure that calculation errors will not have a misleading impact on the users of the information hereof. The Board of Directors assures the absence of false records, misrepresentations, or significant omissions in this report. This report presents objective facts and impartially discloses both positive and negative information about the Company. Throughout the reporting period, the Company did not identify any significant negative events that should have been disclosed but were not. CATL Corporate Sustainability Management Committee (CSMC) Address: No. 2 Xingang Road, Zhangwan Town, Jiaocheng District, Ningde, Fujian, P.R. China Tel: 0593-8901666 E-mail: [email protected] Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Message from the Committee In 2025, on the 10th anniversary of the adoption of the Paris Agreement, the world reached a new consensus on climate change at COP30 in Belém, Brazil. More than 190 countries unanimously adopted the "Belém Package of Global Mutirão" - a worldwide mobilization against climate change, affirming that the green and low-carbon transition is irreversible. This has charted the course for global climate governance in the next decade and marked that the global green and low-carbon transition has entered a critical phase. 2025 was also a milestone year for CATL's Zero-Carbon Strategy. During the year, the Company achieved carbon neutrality in its core operations, establishing a replicable and scalable model for the green and low-carbon transformation of the industrial sector. At the moment, new energy sector has achieved initial industrialization. Going forward, we will pursue high-quality development as our guide and technological innovation as our core strength, to provide customers and partners with high-quality products and services, support enterprises through decarbonization and industrial new energy transition, and turn low-carbon competitiveness into a strategic advantage for forging a new growth curve and defining the future energy landscape. To this end, we continue to fulfill the ultimate mission of the new energy sector, which is to achieve decarbonization of the energy system and support global green transition. The lithium-ion battery industry officially crossed the historic threshold of 1 TWh in annual production and sales in 2024. As a zero-carbon new energy technology company, CATL is honored to have participated in and witnessed this history of the industrialization of the new energy sector. According to SNE Research, our batteries have been installed in more than 24 million new energy vehicles, and been deployed in about 2,300 energy storage projects cumulatively. Today, CATL is pushing the expansion of electrification into a broader range of sectors: from passenger vehicles to commercial vehicles, urban air mobility solutions and electric vessels, continuously delivering systematic solutions applicable in diverse use cases. Innovative solutions such as Choco-swapping and Qiji swapping are also expanding rapidly, building an energy replenishment network from convenient urban battery swapping to national trunk logistics, collaborating with value chain partners to build an open and win-win industrial ecosystem. Drawing on our own carbon reduction practices, we have developed a full-scene, integrated zero-carbon solution to support the development of regional zero-carbon ecosystems. Together with leading enterprises across industries, we are exploring zero-carbon pathways for high-emission sectors, comprehensively advancing the new energy transformation of industries and the decarbonization of the global energy system. to drive the commercialization of innovative achievements. By the end of the reporting period, the Company holds and/or is in the process of applying for a total of 54,538 domestic and international patents, ranking second among Chinese companies by the number of international patent applications. Based on sustained innovation, we have built a comprehensive and advanced product matrix addressing a wide range of market needs, including the sodium-ion battery with outstanding low-temperature performance and significantly reduced reliance on lithium resources, the second-generation Shenxing Battery that set a new record of 12C peak ultra-fast charging rate, and the Freevoy Dual-Core Battery that ushered in the "multi-core" era. We have established approximately 1,200 professional service stations in 75 countries. Through our after-sales brand "Ning Service", we accompany users throughout the entire battery service cycle of ten years or longer. In terms of industrial collaboration, we continue to deepen our cooperation models with industrial chain partners at home and abroad, carrying out innovative and diversified cocreation across R&D, brand marketing, aftermarket services, overseas expansion, ESG, and investments. We embrace progress with purpose and growth with responsibility, and while fulfilling our operational obligations, we embed sustainability vision deep into the foundation of our company. We start with self-improvement. Our ESG management has been recognized internationally. We have maintained an MSCI ESG Rating of AA, been awarded a Sustainability Silver Medal by EcoVadis, and been successfully included in the S&P Global Sustainability Yearbook 2026 (Global Edition) and the FTSE4Good Index Series. In addition, we pioneered on committing to and realizing our carbon neutrality targets. We are able to achieve carbon neutrality in core operations with the systematic promotion of factory energy-saving retrofits and process optimization, the increased use of zero-carbon electricity, and the large-scale deployment of photovoltaic systems at production bases. Going forward, we will forge steadfastly toward our goal of achieving value chain carbon neutrality by 2035, guided by the philosophy of "empowering others", work with partners across the entire value chain to advance low-carbon transformation. To create lasting value is to evolve with the times. CATL will continue to reinforce industrial foundations through technological innovation, fulfill green commitments through lifecycle responsibility, and promote win-win development across the global value chain through openness and collaboration. We promote the deep integration of China's ESG practices with global standards, and convey our responsibility and commitment to the world. Together with our partners and stakeholders, we will advance with determination in the era of energy transformation and contribute to building a zero-carbon society and a sustainable future! We are deeply aware that on the journey of global green transition, only technological innovation, quality services and win-win industrial collaboration can forge long-term high-quality development. In 2025, relying on our strong innovation system consisting of six global R&D centers and approximately 23,000 R&D personnel, CATL continued Corporate Sustainability Management Committee Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Pioneering Zero-Carbon: CATL's Operational Carbon Neutrality Practice Achieving Carbon Neutrality in Core Operations by 2025 Against the backdrop of increasingly severe global climate challenges, there is a growing and firmer consensus among governments and industries worldwide that climate action needs to accelerate. Low-carbon transition is no longer an option, but an inevitable path and mainstream trend for global development. As a world-leading zero-carbon new energy technology company, CATL is actively advancing its own zero-carbon transition while contributing to a sustainable zero-carbon society. In 2023, CATL announced ambitious carbon neutrality targets, which is to achieve carbon neutrality in core operations by 2025 and carbon neutrality across the value chain by 2035. The Company continues to honor its corporate environmental responsibility and commitment to sustainable development with concrete actions. Challenges in CATL's Zero-Carbon Journey tool-enabled capabilities has become a core issue in improving the effectiveness of the zero-carbon strategy. On the other hand, the low-carbon transition covers every aspect of corporate operations. The implementation of carbon neutrality goals cannot be driven by a single department alone; instead, it requires a cross-disciplinary team that understands both business operations and carbon expertise. Bridging professional barriers and internalizing carbon capabilities into a common organizational language is the key to turning strategy into execution. Carbon Emission Intensity per Unit Product Proportion of zero-carbon electricity (%) Philosophy and Practices of CATL 100% As a pioneer blazing a trail on the low-carbon transition path of the lithium-ion battery industry, CATL has always adhered to a decarbonization philosophy centered on technological innovation and energy transformation. By combining precise data with science-based decarbonization pathways, the Company has advanced the achievement of its carbon neutrality goal for core operations with high quality. 13.98 75% To accurately identify carbon emission sources, CATL started with a comprehensive data inventory. Leveraging its energy 9.98 66% management system and the self-developed CATL Carbon Chain Management System, the Company accounted for and analyzed nearly 20 types of emission sources within its core operations, pinpointing high-emission areas including electricity for production equipment, plant environmental control, and product baking and heating, thus setting clear targets for subsequent decarbonization initiatives. Based on the inventory and analysis results, CATL formulated its zero-carbon 5.77 strategic plan and set annual decarbonization targets by comprehensively considering business plans, industry trends, 4.56 decarbonization costs and other factors. Decarbonization management has been implemented for over 98% of core operational carbon emissions. Meanwhile, CATL attaches great importance to building carbon expertise, providing 22% 27% 2.34 professional carbon related training in key business departments and establishing a professional carbon talent team. From consolidating the data foundation, developing platform tools and building a talent pool, to formulating strategic plans and implementing actions, CATL has established a comprehensive internal carbon management system. Through six dedicated zero-carbon task forces, the Company has promoted the full implementation of its decarbonization plan, with 2021 2022 2023 2024 2025 priority focused on the carbon neutrality goal for core operations, driving the low-carbon transition of core operations by focusing on higher energy efficiency, zero-carbon energy and low-carbon technologies. As a pioneer in pursuing carbon neutrality in the lithium-ion battery industry, CATL faces an industry-wide dilemma, which is that there are no existing experience, data or authoritative standards to draw on. Against this backdrop, how to inventory the industry's carbon emission status and identify high-emission sources has become the primary challenge for the Company. In addition, amid CATL's rapid and all-round business growth, how to strike a balance between corporate development and carbon reduction and formulate a sound carbon neutrality plan is the second major challenge. Corporate carbon emission management involves complex and diverse data, and manual statistics can hardly meet the needs for accurate and efficient accounting and analysis. How to build an intelligent carbon management platform and replace manual processing with In terms of higher energy efficiency, CATL has carried out energy-saving renovations tailored to local conditions. Since 2023, the Company has implemented more than 1,000 energy-saving renovation projects, significantly improving energy efficiency and reducing carbon emissions from production and operations. In terms of zero-carbon energy, since the launch of the zero-carbon strategy, CATL's core battery manufacturing plants worldwide have consumed a cumulative total of over 18 billion kWh of zero-carbon electricity, covering clean energy sources such as distributed solar PV, utility-scale wind and solar power, and hydropower. In 2025, the share of zero-carbon electricity used in core operations reached 100%, marking the complete elimination of carbon emissions from electricity use in production and operations. In terms of low-carbon technologies, the Company has developed technologies including high-efficiency heat pump systems and low-carbon drying processes, effectively reducing reliance on traditional fossil fuels in production and cutting carbon emissions. Since 2023, amid continuous business expansion, CATL has successfully achieved a simultaneous decline in both energy intensity and carbon emission intensity at its battery factories. In 2025, the energy consumption intensity per unit product of the Company's battery production bases decreased by 28% compared with 2022, and the carbon emission intensity per unit product decreased by approximately 77% during the same period. (tCO 2 e/MWh) Carbon Emission Intensity per Unit Product and Proportion of "Zero Carbon" Power Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report CATL has engaged authoritative third-party institutions to conduct independent accounting and verification of core operational carbon emissions, decarbonization performance, and energy usage in strict accordance with the ISO 14068-1 standard. In 2025, all of CATL's core operational battery bases 1 achieved carbon neutrality and obtained certifications, successfully fulfilling its carbon neutrality goal for core operations. The achievement of carbon neutrality in core operations has enabled CATL to accumulate valuable zero-carbon experience and supported the Company in building more zero-carbon factories worldwide. In 2025, CATL completed its next-phase strategic plan. Going forward, CATL will maintain carbon neutrality in core operations, focus on the development of low-carbon technologies and zero-carbon energy, further reduce fossil energy consumption, and continuously lower residual carbon emissions. Distribution of the Zero-Carbon Factories Henan Province Value of Carbon Neutrality in Core Operations Since the launch of its Zero-Carbon Strategy in 2023, till the achievement of carbon neutrality in its core operations, CATL has reduced carbon emissions cumulatively of more than 10 million metric tons of CO2 equivalent across its core operations. This achievement not only forms a key milestone of the Company's low-carbon transition, but also constitutes a solid response to China's "30·60" Dual Carbon Goals. Furthermore, it serves as proof that the Company is earnestly implementing the Paris Agreement and actively participating in global climate governance. Carbon neutrality in core operations represents not only a valuable attempt by CATL to fill industry gaps, but also a contribution of a replicable zero-carbon model. CATL has taken an active and in-depth role in formulating national and industry-related standards, translating the operational paradigm of zero-carbon factories into replicable industry guidelines, and leading the lithium-ion battery industrial chain toward green and low-carbon development. Furthermore, CATL's zero-carbon practices contribute to the creation of social value: every battery product brought to the market and every completed zero-carbon factory carries authoritative-certified low-carbon attributes. With concrete actions, CATL is driving the energy transition and extending the benefits of zero-carbon development to a broader society. Lastly, the achievement of carbon neutrality in core operations has directly translated into effective reductions in product carbon footprints, providing substantial support for enhancing the market's low-carbon competitiveness. Germany CATT Qinghai Province CATL-QH Sichuan Province CATL-SC CATL-XJ CCEC CATL-GEELY (Sichuan) Guizhou Province CATL-GZ CATL-ZZ Jiangxi Province CATL-YC Guangdong Province CGBC CATL-RQ Jiangsu Province CATL-JS UABC Shanghai CATL-RT Fujian Province CATL-FN CFBC CATL-FD CATL-JC Xiamen Ampace CATL-XM Outlook on Value Chain Carbon Neutrality Achieving carbon neutrality in core operations marks the first milestone of CATL's Zero-Carbon Strategy. Attaining full value chain carbon neutrality by 2035 represents the company's more challenging core goal for the next stage, which is far more demanding than carbon neutrality at the operational level. According to estimates, total carbon emissions from CATL's supply chain are more than five times those of its core operations. The boundary of value chain emissions extends to hundreds of direct raw material suppliers, covers nearly 70 raw material categories, reaches upstream to mineral resource extraction, and extends downstream to recycling at the end of the battery life cycle. Given its large scale, wide scope and complex emission types, value chain carbon neutrality cannot be achieved by a single company alone. It is a shared challenge that CATL must tackle together with its upstream and downstream partners. Guided by its core values of "Refine Enable Strive Innovate", CATL, having taken the lead in achieving operational carbon neutrality, strives to empower its partners to reduce emissions through pioneering practices, driving low-carbon transformation across the entire value chain from source to end applications. Toward 2035, CATL stands ready to move forward hand-in-hand with global value chain partners. We will promote the sharing of zero-carbon technologies with a more open attitude, build consensus on zero-carbon concepts through more practical actions, and jointly deliver on the goal of value chain carbon neutrality. 1 Core operational battery bases refer to battery bases that have been steadily operating for more than 1 year. Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Overview of CATL CATL, a global leader in zero-carbon new energy technologies, is dedicated to offering top-notch solutions and services for new energy applications worldwide. The Company was founded in 2011, with its headquarters located in Ningde, Fujian Province, China. CATL was listed on the ChiNext Market of the Shenzhen Stock Exchange in 2018, with the stock code of 300750.SZ. During the reporting period, the Company was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code 03750.HK, further integrating into the global capital markets, accelerating the implementation of its global strategy, and enhancing its overall competitiveness. 423,701.83 million Operating Revenue 76,786.3 million Net Profit 96.9% Capacity Utilization Rate 748GWh Battery System Production Volume No. 1 Globally Power Battery Usage for 9 Consecutive Years No. 1 Globally Energy Storage Battery Shipments for 5 Consecutive Years Corporate Development and material well-being for employees! Vision, Mission, and Values Vision Rooted in Chinese civilization and embracing global culture, striving to be a world-class technology innovator, delivering superior contributions to green energy for the world, and providing a platform of pursuing spiritual Innovating for customers! Mission Refine Enable Strive Innovate Value Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Power Battery System The Company's power battery products include cells, modules/battery boxes, and battery packs. The Company offers a variety of chemical system product series covering different energy density ranges, including lithium iron phosphate batteries, ternary high-voltage medium-nickel batteries, ternary high-nickel batteries, super hybrid battery, sodium- ion batteries, and condensed matter batteries, which can meet various functional requirements such as fast charging, long lifespan, long driving range, high safety, and wide temperature adaptability. The Company can also adopt dual-core/multi-core architectures within a single battery pack to achieve the integration of multiple chemical systems, thereby fully leveraging the performance advantages of various chemical systems. Based on application fields and customer requirements, the Company designs personalized product solutions through customization or joint R&D to satisfy customers' different needs for product performance. In the passenger vehicle application field, the Company's products can be applied to different market segments such as BEV, REV, PHEV, and HEV, and are widely used in private cars and operating vehicles; in the commercial application field, the Company's products can be applied to buses and commercial vehicles for road passenger transport, urban distribution, heavy-duty transport, and road cleaning. Furthermore, the Company's products can be applied to vessels, aircraft, power tools, electric two-wheelers, and other fields. Energy Storage Battery System The Company provides energy storage solutions such as cells, battery cabinets, energy storage containers, and system integration. The Company's energy storage batteries are widely used in front of-the-meter and behind-the-meter energy storage fields, including utility energy storage, industrial and commercial energy storage, and data center energy storage. In the front-of-the-meter field, relying on technologies such as intelligent liquid cooling temperature control, high-efficiency CTP, and no propagation, the Company has launched outdoor liquid-cooled battery cabinets such as EnerOne and EnerOne Plus, containerized liquid-cooled battery cabinets such as EnerC, EnerC Plus, EnerD, and EnerX for all-weather scenarios, as well as the 6.25MWh per unit TENER energy storage system, the world's first mass-producible 9MWh ultra-large capacity energy storage system solution TENER Stack, and the TENER series solutions adapted to numerous application scenarios. In the behind-the meter field, the Company's products have achieved full-scenar-io coverage from low-voltage and medium-voltage to high-voltage platforms. Among them, the PR series, Unic series, Anxin series, and PU series can meet the needs of home energy storage, industrial and commercial energy storage, and data center energy management, respectively. Based on relevant requirements, the Company has developed battery cells of various specifications applicable to front-of-meter and behind-the-meter markets, covering multiple scenarios and operating conditions. These battery cells feature an ultra-long lifespan, zero degradation, high safety, and wide temperature adaptability. Business Scope The Company is a global leading zero-carbon new energy innovative technology company, principally engaged in the R&D, production, and sales of power batteries and energy storage batteries, aiming to promote the substitution of mobile fossil energy and stationary fossil energy, and to realize integrated innovation in market applications through electrification and intelligence. As of the end of the Reporting Period, the Company had established six R&D centers and 24 battery factories globally, covering the extensive customer base in the application of new energy worldwide. Having established a deep-rooted presence in the lithium battery industry for many years, the Company has developed comprehensive, independent, and highly efficient R&D capabilities covering the entire value chain. It holds core technological advantages and maintains forward looking R&D initiatives across the industrial chain, including battery materials, battery systems, and battery recycling. Through innovations in materials and material systems, system structures, green extreme manufacturing, and business models, the Company provides first-class solutions and services for global new energy applications. Building on its deep expertise in the lithium battery industry, the Company has extended its capabilities to other chemical systems such as sodium ion batteries to establish a comprehensive and advanced product portfolio. These products are applicable to a wide range of fields, including passenger vehicles, commercial vehicles, front of-meter and behind-the-meter energy storage, as well as emerging application scenarios such as ships and aircraft and data centers. The Company has introduced innovative solutions for complex scenarios, including battery swap services to promote full electrification and zero-carbon ecosystem development that reshapes the industrial ecology and extends the value chain. By doing so, the Company is able to fully address the diverse and cross-sectoral needs of its customers, leading the way in the global zero-carbon new economy. Battery Materials Recycling and Mineral Resources The Company's battery material products mainly include lithium salts, precursors, and cathode materials. The Com- pany also processes, purifies, and synthesizes metal materials such as nickel, cobalt, manganese, lithium, phosphorus, iron, aluminum, and copper, as well as other materials, from spent batteries through recycling processes. It produces cathode materials, ternary precursors, iron phosphate precursors, and lithium salts required for lithium battery production. Additionally, the collected copper, aluminum, and other metal materials are recycled through third parties, realizing the effective circular utilization of key metal resources required for battery production. Furthermore, to further secure the supply of upstream key resources and materials required for battery production, the Company participates in the investment, construction, and operation of battery mineral resources such as lithium, nickel, cobalt, and phosphorus, as well as related products through various means such as self-construction, equity participation, and joint ventures. The Company is committed to providing first-class power battery and energy storage battery products and related innovative solutions for global new energy applications, which are set out below: EV Battery Innovative Solutions Passenger Vehicle Applications BEV PHEV Representative Products Qilin Shenxing Freevoy dual-core Naxtra Freevoy Range-Extended/Hybrid Commercial Vehicle Applications E-Bus E-LCV E-Truck/Engineering Machinery Representative Products Tianxing Naxtra ESS Battery Applications Front-of-the-Meter Behind-the-Meter Representative Products TENER ... UniC PU PR Anxin ... Emerging Applications Vessels Aircraft Intelligent application ... Skateboard Chassis Choco-Swap QIJI Energy Swap Zero-Carbon Solutions … Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Innovation in Four Dimensions Innovation in Material and Electrochemistry System Structure System Innovation The Company will continue to enhance its intelligent development platforms, such as the high-throughput materials integration computing platform. Leveraging advanced algorithms and computing power, and utilizing proven platform technologies, the Company conducts materials simulation calculations and design simulations at the atomic level to screen promising material systems. This enables comprehensive innovation in materials and material systems. Simultaneously, the Company will advance the application of its intelligent battery cell design platform, achieving a paradigm shift in battery R&D through intelligent and data-driven approaches to improve battery design efficiency. In this way, the Company maintains its foresight and leadership in the development of new products and technologies. The Company will optimize the system structure design of battery packs and chassis integration by leveraging digitized design tools and methodologies, while continuing to iterate and upgrade its existing CTP and CTC technologies. This will improve the integration of its battery systems and its skateboard chassis products, resulting in more efficient, safer, and cost-effective products. These innovations effectively facilitate the development of EV and enhance the key performance of EV and ESS. Extreme Manufacturing Innovation Business Model Innovation The Company is dedicated to establish- ing an extreme manufacturing system with high efficiency to ensure the safety and reliability of battery products throughout their life cycle. Through sustained R&D investment and experience accumulation, the Company has continuously upgraded the Prismatic Super Line and applied it in new production bases, continuously improving its production efficiency and achieving an industry-lead-ing single- unit cell failure rate at the DPPB level. Looking ahead, the Company will leverage technologies such as big data, cloud computing, digital twins, and 3D printing to enhance its industrial digitalization capabilities, optimize production processes, improve product quality and productivity, and create high-quality delivery capabilities at the "TWh" scale. The Company will fully leverage the ad- vantages of its existing business, and continue to expand into new application scenarios, including vessels, aircraft and others. The Company successfully launched Choco-Swap, QIJI Energy Swap and various other innovative solutions. At the same time, leveraging its extensive experience in carbon reduction across operations and the value chain, the Company will use regional pilot projects as entry points to actively promote the implementation of zero carbon technology products and solutions. This will support the development of regional zero carbon ecosystems and drive green, low-carbon transitions across various sectors. Global Landscape By the end of the reporting period, CATL has established production bases across the battery, battery material and recycling, and battery mineral resources segments of the industry chain. Leveraging global resource advantages, the Company propels the continued high-quality advancement of the battery industry chain. Main Battery Production Bases Main Resources, Materials, and Recycling Bases China: Ningde, Fujian Province; Yibin, Sichuan Province; Liyang, Jiangsu Province; Zhaoqing, Guangdong Province; Jining, Shandong Province; Xiamen, Fujian Province; Yichun, Jiangxi Province; Guiyang, Guizhou Province; Luoyang, Henan Province; Shanghai; Xining, Qinghai Province; Chongqing; Chengdu, Sichuan Province Overseas: Thuringia, Germany; and Debrecen, Hungary Corporate Strategy China: Ningde, Fujian Province; Chengdu, Sichuan Province; Yichun, Jiangxi Province; Foshan, Guangdong Province; Changsha, Hunan Province; and Yichang, Hubei Province Overseas: Weda Bay in Indonesia Guided by "Development in Three Directions" and "Innovation in Four Dimensions", the Company is driving the development of various business areas. The Company is committed to revolutionary battery technology innovation and large-scale commercialization, promoting the application of power batteries and energy storage batteries, and reducing humanity's reliance on fossil fuels by providing integrated innovation and zero-carbon solutions, thereby supporting global sustainable development. Development in Three Directions Utilizing renewable energy gen- eration + electrochemical energy storage to replace stationary fossil energy, reducing reliance on thermal power generation Utilizing EV batteries to replace mobile fossil energy, reducing the reliance of the transportation sector on petroleum Utilizing "electrification +intelli- gentization" to realize integrated innovation of market applications, providing sustainable, scalable, and reliable energy sources for various industries, and promoting regional zero-car-bon ecosystems and the green, low- carbon transformation of multiple sectors Innovation is in CATL's blood, both in its product innovation, as well as its sustainable development practices. Guided by the "development in three directions", the Company has established Innovation in Four Dimensions: "Innovation in Material and Electrochemistry System", "Structure System Innovation", "Extreme Manufacturing Innovation", and "Business Model Innovation". These innovation systems support the development of various business operations, and the Company practices open innovation to implement these systems. The Company will integrate digital and intelligent technologies into R&D, manufacturing, sales, and management, improving the efficiency of electrochemistry system innovation, cell development and design, and manufacturing process design. This will enable the efficient transformation and large-scale, high-quality production of scientific research into technology, products, and commodities, ensuring that the Company remains at the forefront of market competition. Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Sustainable Development Governance Sustainable Development Philosophy Participation in the Global Enabling Sustainability Initiative (GeSI): CATL has formally joined the Global Enabling Sustainability Initiative (GeSI), integrating deeply into its global collaboration network, and align with GeSI's mission of harnessing digital innovation to tackle global sustainability challenges. The Company focuses on the innovative application of Artificial Intelligence (AI) and digital technologies. Through enhanced transparency, data-driven practices, and policy-oriented engagement, CATL contributes innovative pathways for new energy solutions from China in the global market. In collaboration with global partners, the Company is committed to building a technology-empowered sustainability ecosystem and advancing green and low-carbon development commitments. Signing of the Geneva Vision Initiative on "Building Sustainable Brands": As one of the first signatories, the Company formally endorsed the global initiative "Building Sustainable Brands" jointly launched by the Sustainable Business Leaders Forum (SBLF) and the Sustainable Business and Brands Working Committee (SBBC) of the China Association for Standardization. Leveraging zero-carbon technologies as a core driving force, the Company will further deepen its sustainability strategy and collaborate with global business partners to build a green industrial ecosystem, and strike to develop a leading sustainable brand with international influence. Sustainable Development Commitments CATL responds positively to the UN Sustainable Development Goals (SDGs). While providing innovative products and services, CATL integrates the concept of sustainability management into all aspects of its business operation, establishes a sustainability development management system, adheres to ethical and compliant management, and continuously strengthens communication with stakeholders to ensure the sustainable development of CATL and benefit our customers and society. * For details, please see the "Sustainability" column on CATL's official website. Leading a Sustainable Future for the Global New Energy Industry through the Concept of Comprehensive Growth On the 2025 World Power Battery Conference, the Company proposed to lead the global new energy industry toward "comprehensive growth" through technological breakthroughs, scenario expansion, business model innovation and the development of a zero-carbon ecosystem. The International Energy Agency (IEA) stated clearly in its World Energy Outlook 2025 that to meet the 2050 net-zero target, green electricity will account for 55% of global energy supply, supporting low-carbon electrification in transport, power, and industry. Battery technology is central to delivering emission reductions in these sectors. Leveraging its core battery technologies, the Company will continue to expand battery applications from passenger vehicles to commercial vehicles, electric vessels, and electric aircraft, while promoting the global green transition through innovations in battery swapping and other circular economy business models, as well as through its own zero-carbon practices. With the goal of advancing sustainable development for itself, the industry and the world at large, CATL integrates ESG principles into its daily operations and management, leveraging robust ESG management to achieve its sustainability goals. The Company actively participates in international sustainability-related initiatives and associations, and engages in communication and collaboration with industry partners, international organizations and associations, as well as other stakeholders. By identifying and referencing international standards and industry outstanding practices, deepening industry collaboration and promoting experience sharing, the Company continues to advance sustainable development. Participation in International Sustainability Initiatives and Associations in 2025 Sustainable Development Guidelines All-win Harmony Innovate to Achieve Legitimate Operation Eco-friendly Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Accreditation and Honor Mainstream ESG Ratings Corporate Governance Honors Shenzhen Stock Exchange Information Disclosure Assessment: A-Rating (for six consecutive years from 2020 to 2025) "2025 Excellent Practices in Board Governance for Listed Companies" and "2025 Best Practices in Board of Directors Office Operation for Listed Companies" by the China Association for Public Companies MSCI ESG Rating: AA S&P Corporate Sustainability Assessment (CSA): 65 points EcoVadis Sustainability Rating: Silver Medal HKQAA Sustainability Rating: A+ Included in the FTSE 4 Good Index Series CNI ESG Rating: AAA Sino-Securities ESG Rating: AA China Securities ESG Rating: A Wind ESG Rating: AAA R&D and Innovation Honors Multiple researches were published in top-tier international journals such as Nature and Nature Nanotechnology Established the innovative academic journal Watt in partnership with Springer Nature. Awarded the "Global benchmark for AI-driven industrial application " MINDS Award and the "AI Smart Star" MINDS Award Selected for Clarivate's Top 100 Global Innovators Wu Kai, the Chief Scientist of CATL, has been elected as an Academician of the Chinese Academy of Engineering ESG Honors Included in S&P Global's Sustainability Yearbook 2026(Global Edition) Included in the FTSE4Good Index Series "Forbes China ESG 50" list (for three consecutive years from 2023 to 2025) "Fortune China ESG Impact List" (for three consecutive years from 2023 to 2025) "2025 Best and Outstanding Practices in Sustainable Development for Listed Companies" by the China Association for Public Companies "Golden Responsibility Award" 2025 - Annual Sustainable Development by Sina Finance Employment Honors "2025 Global Talent Magnet Employer" by LinkedIn "China Best Employer of the Year 2025" by Zhaopin "Outstanding Employer 2025" by Liepin "2025 Power Global Recruiting Employer" by GUCDC "Outstanding Employer 2026" by 51job Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Sustainability Management Structure The Board of Directors regularly reviews ESG-related work, including ESG impacts, analyses of opportunities and risks, ESG targets, and progress toward those targets. To provide guidance and make decisions on significant ESG matters, the Board has established the Corporate Sustainable Management Committee (hereinafter referred to as the "Committee"), with relevant senior managers and department heads as its members. The Committee has established a Corporate Sustainability Management Council (hereinafter referred to as the "Council"). The key business personnel of each business department serve as council members. The Council is primarily responsible for implementing sustainability planning and managing ESG topics. Through regular mechanisms such as monthly meetings, the Council discusses the identification of ESG-related opportunities and risks, impact assessments, and work progress, reporting on important matters to the Committee. The Council may, as needed, establish dedicated project teams to effectively advance specific sustainability initiatives. The Company has also set up a ESG Office as a permanent executive body for ESG management. It is responsible for the day-to-day coordination and oversight of related efforts. Furthermore, ESG officers have been designated within each first-tier departments and at major domestic and overseas subsidiaries. These coordinators serve as ESG liaisons, ensuring the Group's sustainability strategy, policies, and management requirements are effectively implemented and enforced. During the reporting period, the Committee completed the transition to its third Double Materiality Assessment Process Understanding the Context of Corporate Activities and Business Relationships The Company analyzes its internal activities and business relationships, with a focus on identifying sustainability-related impacts across the upstream and downstream segments of its value chain. On this basis, the Company further examines the external operating environment, including macro policy and industrial policies, regulatory requirements and key industry topics, to systematically identify potential impacts on the Company. The Company identifies and maps its key internal and external stakeholders that are most affected. Establishing the List of Material Topics Based on relevant listing regulations and requirements, and further incorporating insights from industry standards, the Company further incorporates regulatory policies, legal and compliance requirements, industry standards and development trends, as well as peer analysis, to identify Company-specific topics and develop a comprehensive list of topics. During the reporting period, the Company consolidated "Production safety" with "Occupational health". In total, 30 relevant topics were identified. Materiality Assessment and Validation term. In line with the results of the ESG materiality assessment, it added expert members in relevant fields, further strengthening the alignment between sustainability management and the Company's business operations. The Company has integrated ESG performance and target progress into the annual appraisal system for the Group and relevant departments, establishing quantifiable and trackable key indicators. Performance evaluations are linked to compensation incentives, creating an effective accountability mechanism and thereby creating an internal driver for the continuous improvement of ESG performance. Assessment and Management of Material Topics The identification of material topics forms the foundation of the Company's ESG management, helping focus on key areas and clarify ESG strategic planning and working priorities. The Company conducts a comprehensive materiality identification and assessment biennially. In even-numbered years, a full double materiality assessment is performed. In odd-numbered years, based on the results of the previous year's comprehensive assessment, relevant topics are reviewed and adjusted as needed, taking into account the Company's business developments, industry practices, and regulatory disclosure requirements. In 2025, based on the results of the double materiality assessment conducted in 2024, the Company carried out a dynamic identification and analysis of sustainability topics. Taking into account industry characteristics and actual business operations, it assessed the financial impacts of each topic on the Company over the short-term, medium-term, and long-term financial, as well as the actual and potential effects of its performance on economic, social, and environmental aspects. Assessment of impact materiality Based on interviews and questionnaire surveys, the Company conducted a preliminary analysis of the potential impacts of sustainability-related topics. Through communication with stakeholders, the Company broadly collected stakeholders' perspectives on the nature (positive or negative) and status (actual or potential) of these impacts. The Company then carried out a comprehensive scoring across two dimensions: the "severity of impacts", including scale, scope and irremediability, and the "likelihood of impact occurrence". On this basis, the Company integrated the views of diverse stakeholders and, with reference to recommendations from internal and external experts, ultimately finalized the impact materiality assessment results. Assessment of financial materiality Through interviews and questionnaire surveys, the Company conducted a preliminary analysis of the relevant impacts of sustainability-related topics and invited external shareholders, relevant members of senior management, and heads of departments to participate in the assessment. Based on two dimensions, the "likelihood of impact occurrence" and the "magnitude of financial impacts", the Company carried out a systematic assessment of all applicable topics across different time horizons, including the short term (within one year), medium term (one to five years) and long term (more than five years). Material Topic Review and Confirmation Based on input from stakeholders and subject matter experts, and taking into account its strategic priorities and operational management situations, the Company establishes materiality boundaries. On this basis, it identifies strategically relevant topics and defines the scope of applicability for each topic. Subsequently, by analyzing consolidated stakeholder assessments of these topics, including both impact materiality and financial materiality, together with expert recommendations, the Company constructs a double materiality matrix to present the evaluation results systematically. The matrix is reviewed and approved by the Corporate Sustainability Management Council and is disclosed in this report. By consolidating inputs from shareholders, senior management and department heads, and with reference to recommendations from internal experts, the Company ultimately finalized the financial materiality assessment results for all topics. Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Assessment Results of Material Topics In 2025, the identification results of the material topics are shown in the following matrix. After identification, 9 topics were both financially material and impact material to the Company; 2 topics were identified as having only financial materiality; and 14 topics were recognized as having only impact materiality. Impact, Risks and Opportunities of Financially Material Topics Topic Description of impacts, risks, and opportunities Scope of impact Impact period Climate actions Impact description Actual positive impact: The Company continuously develops low-carbon products and services and actively promotes global climate change mitigation. Furthermore, the Company formulates a "Zero-Carbon Strategy", actively promoting carbon reduction in its operations and the industrial chain. Potential negative impact: If the Company's greenhouse gas (GHG) control is inadequate, it may lead to an increase in greenhouse gas emissions. Upstream of the value chain Enterprise operations Downstream of the value chain Short term Medium term Long term Description of risk and/or opportunity impact Opportunity: The Company enhances performance in aspects such as design, manufacturing, and supply chain. Through technological innovation and improved management, it continuously reduces the carbon footprint of its products to meet customer needs and expand its market share in the current situation. Circular economy Impact description Actual positive impact: The Company continuously expands its recycling channels on a global scale, and uses advanced recycling technologies to recycle waste batteries, production waste materials, etc. By doing so, it gradually reduces its dependence on primary mineral resources and avoids the potential harm to the environment and human health caused by improper disposal of waste batteries. Upstream of the value chain Enterprise operations Downstream of the value chain Medium term Long term Description of risk and/or opportunity impact Opportunity: Circular recycling enables the Company to lower raw material costs, enhances the resilience of the supply chain, effectively meets the requirements of customers and regulations, and improves the market competitiveness of its products. R&D innovation Impact description Actual positive impact: Innovation is one of CATL's core competencies. The Company drives innovative development with significant R&D investment and creates leading R&D achievements, to meet customer needs. Potential positive impact: CATL adheres to open innovation and strengthens internal and external integrated development, and continuously deepens cooperation with universities and scientific research institutions, contributing to the industry's innovative development. Upstream of the value chain Enterprise operations Downstream of the value chain Short term Medium term Long term Description of risk and/or opportunity impact Opportunity: CATL implements a forward-looking R&D strategy and conducts R&D innovation guided by customer needs, which helps the Company more flexibly respond to market development trends and improve its market performance. Intelligent manufacturing and lean management Impact description Actual positive impact: The Company establishes a complete intelligent manufacturing system, achieving an innovative upgrade from "manufacturing" to "intelligent manufacturing", improving production and operation efficiency, as well as the delivery quality to customers, and empowering the development of the industry. Enterprise Short term operations Medium Downstream of term the value chain Long term Description of risk and/or opportunity impact Opportunity: By leveraging intelligent manufacturing technologies, the Company has established a digital and intelligent foundation covering the entire process from R&D and design to production execution and supply chain management. The Company continues to refine its advanced manufacturing system and deeply integrate lean principles with digitalization to build a more efficient, intelligent and agile manufacturing model, enabling a rapid response to market demand. Material Topics Matrix Impact materiality 18 05 19 08 16 25 28 20 26 Information security and privacy protection Sustainable development governance Communication with stakeholders Corporate governance 05. Anti-bribery and anti-corruption 17 01 13 12 Investor protection Due diligence 09 02 11 27 08. Risk management and internal control 24 06 Environment 04 09. Emissions and waste management 10 10. Ecosystem and Biodiversity Conservation 07 03 11. Energy utilization 12. Climate actions 13. Circular economy 22 15 14 29 Environmental compliance management Water resource utilization 23 Society 21 30 16. Workplace safety and occupational health 17. Employees' rights and benefits 19. Equality and diversity 19. Industrial cooperation and development 20. Talent training and development 21. Charity and volunteer services 22. Rural revitalization 23. Community communication and development Operation 24. Fair competition 25. Product quality and safety Governance With both financial materiality and impact materiality Financial materiality With financial materiality but without impact materiality R&D innovation Supply chain management Intelligent manufacturing and lean management Intellectual property protection Customer relationship management With impact materiality but without financial materiality With neither financial materiality nor impact materiality Regarding financial material topics², the Company understands the demands and expectations of stakeholders concerning relevant topics of CATL, fully identifies and summarizes the impact, risks, and opportunities of these topics. 2 In accordance with Article 11 of the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation), topics deemed to have financial materiality in this report are disclosed under the structure of "Governance", "Strategy", "Impact, Risk and Opportunity Management", and "Indicators and Targets". Among these, "Indicators and Targets" are addressed through "Management Objectives and Progress of Financially Material Topics" and the "ESG Data Sheet and Notes". Topic Description of impacts, risks, and opportunities Scope of impact Impact period Topic Description of impacts, risks, and opportunities Scope of impact Impact period Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Product quality and safety Impact description Actual positive impact: The Company empowers its full-life cycle quality management with digitalization, and improves the efficiency and accuracy of product quality management, exceeding customer expectations with high-quality delivery. Potential negative impact: If the product quality and safety management is insufficient, it may lead to the occurrence of relevant negative events, harming the interests of stakeholders including customers and end-users. Upstream of the value chain Enterprise operations Downstream of the value chain Short term Medium term Long term Description of risk and/or opportunity impact Opportunity: The Company enhances its quality competitiveness and service capabilities, which strengthens overall product competitiveness. High-quality products and services generate positive word-of-mouth, driving business growth. Risk: Should a major product quality or safety incident occur, it could lead to loss of customers and orders, and incur additional costs, including litigation. Customer relationship management Impact description Actual positive impact: The Company continuously enhances customer service efficiency and experience through digital and intelligent solutions, while ensuring service quality and customer satisfaction. Potential positive impact: The Company actively participates in the formulation of after-sales service-related standards, contributing to the overall improvement of service levels in the industry. Enterprise operations Downstream of the value chain Short term Medium term Long term Description of risk and/or opportunity impact Opportunity: Through comprehensive pre-sales, in-sales, and after-sales services, the Company deepens its cooperative relationship with customers, enhancing customer satisfaction and loyalty. At the same time, by cultivating high-caliber customer service professionals and establishing efficient customer feedback mechanisms, the Company continuously enhances service experience and strengthens customer relationships, providing support for long-term business development. Supply chain management Impact description Actual positive impact: The Company strengthens ESG risk oversight of its suppliers to enhance the sustainability capabilities of the supply chain, while alleviating customers' compliance concerns related to their supply chains and supporting customers in meeting local regulatory requirements. Potential negative impact: If the Company fails to promptly identify the ESG risks of suppliers and provide support for improvements, it may lead to suppliers losing market opportunities due to their insufficient ESG capabilities. Upstream of the value chain Enterprise operations Downstream of the value chain Short term Medium term Long term Description of risk and/or opportunity impact Opportunity: By building close partnerships with supply chain partners, the Company enhances supply chain resilience, safeguards business stability, and continuously strengthens its market competitiveness. Risk: In case of a major incident occurring in the supply chain, it may have an impact on the Company's reputation and business continuity. If the Company fails to meet customers' requirements for the supply chain, it may lead to the loss of market opportunities. Talent training and development Impact description Actual positive impact: The Company attaches great importance to talent training and development, providing employees with continuous training and career development opportunities to enhance their skills. Potential positive impact: The Company collaborates with multiple stakeholders to cultivate industrial talents, providing a high-quality talent reserve for the industry. Upstream of the value chain Enterprise operations Long term Description of risk and/or opportunity impact Opportunity: The Company cultivates high-quality core talents and builds a systematic talent pipeline, ensuring the Company's R&D capabilities and production competitiveness, and promoting business innovation and long-term business development. Work safety and occupational health Impact description Actual positive impact: The Company continues to enhance work safety and occupational health management. Safety and occupational health training programs are conducted for employees, suppliers, and partners. Through ongoing process optimization and implementation of protective measures, the Company effectively reduces the risks of workplace safety incidents and occupational health hazards. Potential negative impact: Inadequate workplace safety and occupational health hazard management may give rise to safety hazards and occupational health risks, posing threats to the physical and mental well-being of the Company's employees as well as those of its suppliers. Upstream of the value chain Enterprise operations Long term Description of risk and/or opportunity impact Risk: Inadequate workplace safety and occupational health hazard management may result in employee health impairment, reduced production capacity and order defaults, as well as accident-related compensation, thereby leading to direct economic losses. Intellectual property protection Impact description Actual positive impact: The Company actively strengthens its intellectual property management, respects the intellectual property rights of others, and maintains a healthy industry competition order. The Company also actively conducts external cooperation on intellectual property rights to empower the joint development of the industrial chain. Upstream of the value chain Enterprise operations Downstream of the value chain Medium term Long term Description of risk and/or opportunity impact Opportunity: Relying on the accumulation of intellectual property, the Company establishes a technological advantage and improves product performance and customer experience, to safeguard the Company's market share. Furthermore, the Company obtains operating income through patent licensing and technology transfer. Risk: If the Company's intellectual property rights are infringed upon, it may cause economic losses to the Company. Risk management and internal control Impact description Actual positive impact: The Company proactively identifies potential risks relevant to its business and integrates due diligence into its daily operations to identify in advance potential risks across strategic, market and operational areas, thereby reducing uncertainty in business operations. Through the establishment of collaborative risk management mechanisms with value chain partners, the Company further strengthens risk management capabilities of itself and its value chain partners. Upstream of the value chain Enterprise operations Downstream of the value chain Medium term Long term Description of risk and/or opportunity impact Opportunity: The Company has established a comprehensive risk management framework and, through mechanisms such as due diligence, proactively identifies and assesses various risk factors to address a complex and evolving risk environment. By implementing dynamic risk monitoring, the Company is able to adjust business strategies in a timely manner, better adapt to market conditions and customer needs, and enhance the confidence and trust of investors and regulatory authorities through robust risk management processes. Risk: If risk management is insufficient, it may lead to decision-making errors in the enterprise under the influence of policy changes and market fluctuations, resulting in direct or indirect economic losses. Failure to effectively address policy changes may give rise to legal disputes or penalties, which could further lead to reputational damage and customer attrition. Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Material topics Management Targets Management progress Management of Material Topics Product quality and safety Ensure product quality and safety to meet customer needs. 100% of the Company's production bases with stable operation and certification qualifications should pass international quality certifications (IATF 16949: 2016 Automotive Quality Management System Standard or ISO 9001: 2015 Quality Management System Certification). Conduct internal quality management system audits for production bases in mass production at least once a year. Received a nomination for the China Quality Award. 4 new production bases with certification requirements have completed system certification or are being promoted as planned. Conducted internal audits of the quality management system at all mass-production bases, achieving a 100% closure rate. No product recalls were initiated as a result of product quality issues. Customer relationship management Optimize complaint resolution efficiency and solution quality, maintaining a 100% response and closure rate for customer complaints. Continuously improve the customer service experience, with the annual customer satisfaction should not be lower than 90%. The customer complaint rate was 100%. The customer satisfaction reached 95%. Supply chain management 100% of suppliers should sign the Supplier Code of Conduct. Empower suppliers to strengthen their sustainability awareness and capabilities. Continuously carry out the CREDIT value chain audit program to enhance the sustainable management level of suppliers 100% of suppliers signed the Supplier Code of Conduct. 90 suppliers participated in sustainability-themed training programs. Conducted CREDIT audit on 60 core suppliers, and the pass rate of the suppliers reached 95%. Talent training and development Conduct training for all employees to enhance their professional knowledge reserves. Employee training coverage rate reached 99.24%, and the new employee training coverage rate reached 100%. As of the end of the reporting period, the "CATL E-Learning Academy" offered nearly 14,000 courses. Developed specialized courses covering R&D, quality, integrity, information security, and environmental protection, systematically enhancing the training framework across all business areas. Workplace safety and occupational health 100% of the Company's battery and wholly-owned material production bases with stable operation and certification qualifications should pass the ISO 45001:2018 Occupational Health and Safety Management System Certification. The effectiveness rate of fire protection systems reaches 99%. The pass rate of blind tests across various emergency scenarios reaches 96%. No major workplace safety incidents occurs during the reporting period. As of the end of the reporting period, 100% of the Company's battery and wholly-owned material production bases with stable operation and certification qualifications passed the ISO 45001:2018 Occupational Health and Safety Management System Certification. The effectiveness rate of fire protection systems reached 99.8%. The pass rate of blind tests across various emergency scenarios reached 98.6%. No major workplace safety incidents occurred during the reporting period. The Company is committed to strengthening the systematic management of material topics and, by leveraging its internal risk management and internal control mechanisms, effectively managing risks while capturing development opportunities. By deepening topic management, the Company aims to promote its long-term and stable development and achieve sustainability goals. The Company incorporates topics identified through materiality assessment into its ESG management priorities, progressively translating them into specific management targets and actions. Simultaneously, it makes the management targets and phased progress of these material topics a core part of its communication with stakeholders. By establishing regular and institutionalized communication channels, the Company responds promptly to stakeholders' concerns and expectations, thereby continuously enhancing information transparency and communication effectiveness. Building on this foundation, the Company continuously clarifies management targets and tracks implementation progress for all financially material topics. By continuously refining the closed-loop management mechanism of "topic identification-management implementation-information communication," it strengthens ESG governance capabilities, driving steady improvements in sustainable development performance and long-term value creation. Material topics Management Targets Management progress Objectives and Progress of Financial Material Topic Management Climate actions Achieve carbon neutrality in its core operations by 2025 and carbon neutrality across the supply chain by 2035. Core operations achieved carbon neutrality in 2025. Completed the layout of 30 low-carbon materials patents. The overall carbon footprint of cathode and anode materials decreased by 18% year-on-year, while the overall carbon footprint of structural components decreased by 35% year-on-year. Circular economy Strengthen the recycling of renewable materials and increase the scale of lithium-ion battery and waste recycling. Rely on 3R1D management strategy (Reduce, Reuse, Recycle, Degradable), deepen the recycling and reuse of packaging materials. The recycled volume of end-of-life batteries and materials reached 210,000 tonnes, with 24,000 tonnes of lithium salts regenerated. The proportion of recyclable and renewable packaging materials used at the battery production bases reached 94.58%. R&D innovation Maintain a high level of R&D investment to enhance R&D efficiency and precision, while driving industry innovation. Build a high-level R&D team, establish a high-level talent pipeline, and strengthen the foundation for technological innovation. Invested RMB 22,146.58 million in R&D, up 19.02% on a year-on-year basis. As of the end of the reporting period, the Company employed 22,901 R&D personnel, including 745 with doctoral degrees. Established the postdoctoral work station. As of the end of the reporting period, the postdoctoral researchers stationed at the workstation have cumulatively led or participated in 235 research projects and filed 516 patents. Intelligent manufacturing and lean management Continue to explore more efficient and agile intelligent manufacturing models for the future, enhancing operational and manufacturing efficiency, improving product yield, and building a sustainably leading manufacturing competitive advantage. Leveraged Industrial IoT (Edge Intelligent Control), automation equipment, and visual defect detection technology, achieved a 70% replacement rate for manual visual inspection, thereby enhanced production line operational efficiency. Relied on equipment status monitoring and lifespan prediction algorithms, enabled an upgrade from reactive repairs to predictive maintenance, and reduced equipment unplanned downtime by 30%. Material topics Management Targets Management progress Stakeholders Concerned Topics Communication Methods Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Intellectual property protection Continue to strengthen the patent application and layout of independent R&D achievements to ensure the coverage of intellectual property in key technology areas and enhance its technological competitiveness. As of the end of the reporting period, the Company held a total of 54,538 patents and patent applications, including 33,106 domestics, and 21,432 overseas. Contributed to Ningde City's inclusion in the Global Innovation Index 2025 (GII)list published by the World Intellectual Property Organization (WIPO). Ranked 4th globally and first in China in terms of per capita innovation intensity. Risk management and internal control In accordance with the Basic Standards for Enterprise Internal Control and its supporting guidelines, and following the principles of materiality and comprehensiveness, continue to advance and strengthen CATL's internal control system construction. Establish a systematic and comprehensive risk management framework, clearly defining governance structures and deeply integrating risk management requirements into key business processes and decision-making. Ensure 100% of mitigation measures are formulated for all identified medium-and high-risk issues, and promote the efficient closed-loop implementation of corrective action plans. Strengthened internal audit and internal control assessments, promoting the integration and optimization of risk control processes for core businesses and key operational areas with existing business processes, to ensure the continuous and effective operation of an improved internal control system. Advanced the enhancement of risk prevention and control mechanisms across subsidiaries, supporting subsidiaries in strengthening risk and compliance awareness and reinforcing internal control capabilities. Systematically reviewed risks across the Group's functional departments, clarified cross-departmental risk management responsibilities and collaboration interfaces, and assigned risk accountability to specific positions. All remediation measures for medium- and high-risk issues have been fully migrated to online management and tracking, thereby establishing a comprehensive closed-loop risk management process. Due Diligence The Company places strong emphasis on the identification and management of sustainability-related risks. The relevant business departments and subsidiaries carry out specific tasks in accordance with their respective roles and responsibilities. The scope of the Company's due diligence covers major business activities and key segments of the supply chain. Drawing on the results of the double materiality assessment, the Company prioritizes areas that may give rise to significant environmental and social impacts. Based on business characteristics and risk profiles, the Company dynamically adjusts the depth and breadth of its due diligence activities. The Company through the stakeholder engagement, impact assessments and other approaches, the Company identifies potential adverse impacts and risks arising from its operations and value chain. For identified sustainability-related risks, the Company adopts a classified management approach based on the nature and severity of the risks. Response measures include, but are not limited to, risk avoidance, risk mitigation and risk transfer. The effectiveness of these measures is continuously monitored. Details regarding the implementation and management of the Company's due diligence practices are set out in the sections of this report covering material topic assessment and management, communication with stakeholders, risk management and internal control, climate actions, emissions and waste management, and supply chain management. Communication with Stakeholders The Company regularly engages with key stakeholders to gather their opinions and expectations regarding sustainability, and conducts targeted communication and responses, to establish long-term and mutually trusting cooperative relationships with stakeholders. During the reporting period, the Company proactively engaged in in-depth communication with key stakeholders on the phased progress of material topics. It systematically collected stakeholder feedback and, based on these inputs, continuously refined its sustainability management system and enhanced overall ESG performance. Stakeholders' Concerned Topics and Communication Methods Investors/ shareholders Corporate governance R&D innovation Circular economy Supply chain management Climate actions Investor protection Intellectual property protection General meeting of shareholders Financial statements and announcements Q&A on the Shenzhen Stock Exchange interaction platform (Hudongyi) Investor hotline Roadshow and reverse roadshow Performance briefing Site visits Customers R&D innovation Product quality and safety Customer relationship management Intelligent manufacturing and lean management Industrial cooperation and development Sustainable Development Governance Energy utilization Anti-bribery and anti-corruption Customer on-site audits Customer satisfaction survey Customer on-site visit & audits Customer meetings Suppliers Supply chain management Information security and privacy protection Circular economy Anti-bribery and anti-corruption Supplier training Supply chain review Supplier conferences Employees Employees' rights and benefits Talent training and development Workplace safety and occupational health Equality and diversity Labor Unions and Staff Representative Meeting Internal information communication platform Organizational promotion committee Employee Assistance Program (EAP) Partners Climate actions Industrial cooperation and development Talent training and development R&D innovation Exchanges and visits between associations and working groups Communication on strategic cooperation projects Academic-industry cooperation projects Community Ecosystem and Biodiversity Conservation Charity and volunteer services Rural revitalization Community communication and development Emissions and waste management Water resource utilization Social welfare projects Community volunteer activities Community communication meetings Government and regulators Corporate governance Fair competition Sustainable Development Governance Information security and privacy protection Environmental compliance management Risk management and internal control Anti-bribery and anti-corruption Exchange visits Communication on standards and policies Special inspection Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report 01 Operation R&D Innovation Intelligent Manufacturing and Lean Management Product Quality and Safety Customer Relationship Management Supply Chain Management Intellectual Property Protection Fair Competition Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report R&D Innovation Governance CATL has established a comprehensive and efficient R&D innovation governance system. It drives business development and pursues customized innovation based on customer needs to continuously strengthen its core competitiveness. The Chairman, serves as the President of the Research Institute, collaborates with Co-Presidents of the R&D Division to jointly oversee the overall technology development strategy, make key technical decisions, and promote key technological breakthroughs, as well as the allocation of innovation resources. The Company has established multiple dedicated R&D units focused on specific fields and priority areas, each led by a domain expert who is responsible for formulating and executing its R&D and innovation plans. These institutions conduct cutting-edge research and product development in different technical fields, regularly evaluate and optimize the research directions, actively promote cross-institutional collaboration, and promote the commercialization of innovations, providing strong support for the Company's sustainable innovation. Strategy Innovation is not only the core value but also the core competitiveness of CATL. The Company is committed to reducing human dependence on fossil energy with innovative new energy technology, and realizes the shared vision of global sustainable development. CATL's innovation and R&D activities are centered around the "Innovation in Four Dimensions" which includes "Innovation in Material and Electrochemistry System", "Structure System Innovation", "Green Extreme Manufacturing Innovation", and "Business Model Innovation". It ensures that CATL meets the diverse needs of its customers, providing premier solutions and services for new energy applications worldwide, and promoting the global sustainable transformation. CATL's R&D efforts span the entire battery industry chain, covering basic materials, product design, advanced manufacturing and recycling. On this basis, the Company proactively advances the deployment of forward-looking zero- carbon technologies, and integrates green attributes into its products. The Company actively leverages digitalized and intelligent R&D tools to continuously enhance research efficiency and accuracy. At the same time, the Company maintains a high level of R&D investment as a core engine for technological innovation, strengthening its technology reserves and optimizing innovation mechanisms, with a view to capturing new opportunities arising from industry transformation. Impact, Risk and Opportunity Management Leading R&D Platform CATL operates multiple R&D institutions, including the National Engineering Research Center for Electrochemical Energy Storage Technology, the Key Laboratory of Lithium-Ion Battery Enterprise in Fujian Province, a Testing and Validation Center accredited by the China National Accreditation Service for Conformity Assessment (CNAS), the 21C Lab, the CATL Future Energy Research Institute (Shanghai), the CATL (HK) International R&D Center, and the Xiamen Institute of New Energy. Leveraging the strengths of its R&D platforms, the Company focuses on electrochemical materials, new energy batteries and intelligent technologies. It has established high-performance electrochemical material systems, promoted iterative advancements in new energy battery technologies, and enabled more efficient energy allocation, thereby comprehensively driving technological breakthroughs and industrial development. The Company has built an innovation platform that leverages its technological accumulation. Through material screening, decoding, and transformation, it efficiently develops electrochemical material systems that deliver high performance, reliability, and cost-effectiveness. Drawing on a deep understanding of battery characteristics and extensive manufacturing experience, the Company continuously drives product iteration and innovation, providing users with cutting-edge new energy solutions. The Company is committed to establishing an R&D system powered by advanced computing, enabled by intelligent design, and accelerated by high-throughput experimentation. Through the co-optimization of software and hardware, it has built efficiency advantages in the critical computations for material simulation, providing robust support for microscopic material research. Simultaneously, the Company has developed a battery material intelligent design platform that establishes a data-driven model. It integrates tens of millions of material data resources, supports high-efficiency concurrent computing and intelligent retrieval, and constructs a comprehensive data system covering key battery materials. This platform addresses the challenge of precisely matching characteristics across different cell levels and enables automated intelligent design from materials to cells. It not only provides the core data and algorithmic foundation for rational material design but also strengthens the protection of core technologies while improving the R&D efficiency of personnel. CATL Honored with " Global benchmark for AI-driven industrial application" MINDS Award In January 2026, the Company received the " Global benchmark for AI-driven industrial application" MINDS Award at the World Economic Forum Annual Meeting in Davos, Switzerland, for its project " "Augmented Intelligence Leading Next-Generation Lithium-ion Battery Design." By leveraging deep learning on over 100,000 battery design cases, 600 TB of test data, and a broad range of new energy vehicle after-market data, the project has built an intelligent cell design platform. This platform can generate design proposals within seconds and deliver virtual cells within minutes based on user-defined performance metrics, with a performance prediction accuracy of 95%. It has increased design efficiency by 30% compared to traditional methods, achieving a paradigm shift in R&D from "experimental trial-and-error dependence" to "data-driven forward design." This accolade signifies global authoritative recognition of CATL's continued leadership in the integrated innovation of intelligent manufacturing and artificial intelligence. The Company will persist in deeply empowering technological innovation with AI, injecting stronger momentum into the global energy transition. Strong Innovation Culture CATL places significant emphasis on fostering independent R&D capabilities and developing high-level R&D talents. The Company establishes a comprehensive talent evaluation system that provides more suitable positions for R&D personnel according to the assessment results. Competitive salaries and broader career development spaces are provided, creating a talent highland in the industry. As of the end of the reporting period, the Company had a professional R&D team of 22,901 employees, including 5,242 employees with master's degrees and 745 employees with doctoral degrees. The Company is committed to fostering an open, inclusive and collaborative R&D environment. Through diversified innovation initiatives, it stimulates team vitality and builds momentum for cross-disciplinary breakthroughs. In parallel, the Company has established a comprehensive empowerment system, leveraging targeted training programs and multi-dimensional knowledge base development to support continuous capability enhancement of R&D personnel, thereby strengthening its overall technological competitiveness. Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Cultural Day Centered on four innovation pillars, i.e., co-creation of cultural values, development of an innovation-friendly cultural environment, cultivation of cultural activities, and design of creative cultural products, the Company aims to build an organizational culture with strong cohesion and innovation capability. During the reporting period, the 21C Lab organized its first Cultural Day event and delivered more than 20 cultural activities in total, effectively enhancing team cohesion and facilitating the practical application of innovative outcomes. CATL Xincai (Core Talent) Program In term of professional talent development, the Company continues to deepen the implementation of the CATL Xincai (Core Talent) Program. Focusing on the core needs of industry advancement, the program targets cutting-edge fields such as materials R&D, artificial intelligence, smart manufacturing, and zero-carbon technology, precisely recruiting top talent from leading universities and research institutions worldwide. This sustained effort strengthens the talent foundation that underpins the Company's innovation and growth. Professional Course and Training CATL offers professional courses on topics such as R&D design, process equipment, and engineering methods, providing employees with sufficient and professional knowledge to inspire innovative ideas. As of the end of the reporting period, the Company had launched nearly 2,000 related courses. During the reporting period, total employee participation in these training programs exceeded 55,000 attendances. "Core Thinking" Capability Development Program The Company has established a tiered talent development framework tailored to different employee groups. By systematically introducing innovation mindsets and toolkits, and combining them with real business challenges through hands-on practice, the program transforms innovation into an organizational capability that is learnable, predictable and scalable, thereby enhancing company-wide innovative thinking. During the reporting period, five training cohorts were conducted under the "Core Thinking" program, generating more than 700 technical solution outputs. Knowledge Base The Company has established and continues to operate multi-dimensional online resource center, with a focused emphasis on news, academic literature and patent information in key areas such as battery processes, materials, metals and AI. Beyond aggregating frontier industry information, the resource center promotes efficient knowledge circulation and accumulation through continuous knowledge curation and technological innovation. It supports the Company's exploration of frontier new energy technologies by enhancing the identification and analysis of emerging technology opportunities and the efficiency of resource utilization. As a digital carrier for the Company's research publications on energy electrochemistry, patent analysis reports and frontier technology studies, the platform covers core topics including energy materials, electrochemical reaction mechanisms, battery technology innovation and environmental impact assessment. By integrating cutting-edge research and innovative achievements, the platform facilitates information exchange and academic discussion among internal researchers, while providing comprehensive data support and case analyses for research activities, thereby accelerating the advancement of frontier technologies. In addition, the platform's AI-enabled intelligent search and analytics tools enable users to quickly track industry developments, identify sustainability trends, and efficiently analyze and synthesize key insights from academic literature, supporting dynamic insights into frontier technology research. Innovation Award CATL grants annual innovation awards to teams that have achieved significant scientific research breakthroughs and technological innovations in the material and electrochemistry system, system structure, and green extreme manufacturing. This award represents the Company's top honor, aiming to commend outstanding teams and provide financial incentives. In addition, CATL offers additional rewards to outstanding individuals who demonstrate bold innovation and make remarkable contributions to the Innovation in Four Dimensions. Creative Platform Themed by "Innovation and Collaboration" The Company has established an online platform that encourages employees to actively participate in creativity applications. Meanwhile, an expert committee has been set up to provide thorough and professional reviews and guidance for creativity projects. Covering six creative categories, i.e., material systems, system structures, extreme manufacturing, testing technologies, digitalization and intelligence, and safety, the platform aligns innovation projects with appropriate technical resources and application scenarios, stimulates innovation vitality, and promotes the deep integration of innovation directions with business needs. During the reporting period, the Company further optimized its mechanisms for intellectual property protection, duplication checks, project evaluation and incentives, and established a clear exit mechanism to define the lifecycle of creative projects. These measures enhanced the efficiency of innovation project initiation management and the precision of resource allocation. As of the end of the reporting period, the Company had completed 100 innovation projects, of which 65 had been successfully implemented and generated tangible benefits. Incentives for Creative Teams: CATL provides project initiation and completion incentives to creative individuals and teams, thereby enhancing company-wide innovation motivation. Department incentives: The Company established an evaluation and incentive mechanism for outstanding judges, creative talents, and departmental specialists to promote enhanced expert guidance and creative quality control across departments to effectively increase the pass rate of creative project approvals and incubation efficiency. To continuously stimulate innovation awareness and cultivate a strong culture of company-wide innovation, the Company has further enhanced its innovation incentive mechanisms. Through innovation awards, digital innovation platforms and incentive point systems, the Company provides attractive incentives for R&D personnel, fully mobilizing their innovative initiative. Contemporary Amperex Technology Co., Limited Overview of CATL Sustainable Development Governance Operation Governance Environment Society 2025 Environmental, Social and Governance (ESG) Report Open Innovation Ecosystem While maintaining a strong focus on independent R&D as its core capability, the Company actively builds an open innovation ecosystem characterized by internal and external collaboration. By continuously expanding its global R&D network, the Company deepens cooperation with leading domestic and international universities and research institutions in areas such as talent development and joint research initiatives, advances the co-development of industry-academia-research innovation platforms, and operates postdoctoral workstations to continuously introduce frontier technological resources. Through these efforts, the Company promotes deep integration between its internal R&D system and external innovation resources, jointly exploring lifecycle-based innovative solutions encompassing energy storage and green energy conversion, and working with partners to foster a sustainable ecosystem for long-term industry development. R&D Cooperation Platforms Integrated Industry-Education Platform for Technological Innovation Postdoctoral Workstation The Company has built industry - university - research co - constructed R & D and innovation platforms such as "CATL Future Energy (Shanghai) Research Institute", "Shanghai Jiao Tong University -CATL Clean Energy Technology Joint Research Center", and "Xiamen University - CATL Clean Energy Research Institute". As of the end of the reporting period, the Company had established in-depth cooperation with 72 universities and research institutes, including Shanghai Jiao Tong University, Xiamen University and the Institute of High Energy Physics of the Chinese Academy of Sciences. A total of 530 joint technology development cooperation projects have been advanced in key areas such as battery materials, cell design and intelligent manufacturing, with a number of research outcomes successfully translated into products and implemented in practical applications. The Company has established a multi-dimensional evaluation system for the deliverables of university-industry technology development projects, covering academic outputs, technology readiness, economic benefits, course development and internal project empowerment. Each year, outstanding completed projects are granted dedicated incentives, continuously stimulating innovation momentum and strengthening collaboration engagement. CATL established a national...

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