Responding to global climate change, high-quality development and green and intelligent manufacturing upgrading have become core issues related to the sustainable development of mankind. ESG stands for Environmental, Social and Governance, which is not only a disclosure requirement for listed companies, but also represents an innovation in a new social collaboration model. In 2023, Midea Group will accelerate its green and intelligent development, actively innovate in its business activities, implement ESG strategies that meet the needs of enterprise development and give full play to its own resource advantages, and work with employees, communities, domestic and overseas partners and users to embark on a path of ESG practice with Midea's characteristics.
Safeguard the Blue Planet and work with local communities and partners
The planet is facing various environmental challenges such as climate change, ocean acidification, plastic pollution, and overfishing. Midea focuses on companies and organizations that promote diversity and inclusion, and engage with local communities in a responsible and sustainable way to safeguard the blue planet. In May 2023, Midea Group officially joined the UN Global Compact to jointly promote global sustainable development.
This summer, for island countries with developed tourism, Midea Air Conditioning provided comprehensive anti-corrosion solutions and the application of environmentally friendly refrigerants, using the brand's patented reliability technology to protect the air experience of business partners and family users, and joining the action of marine ecological protection with local communities, residents and partners by launching the "Beach Cleaning Action" to create a blue sustainable economic development and escort the future of the blue planet. In November 2023, Midea Building Technology organized the City Walk beach cleanup of the Marine Carbon Recycling Program. Volunteers, employees, community residents, etc. formed the "Carbon" Road team. Their eyes were fixed on the beach, and underneath it were discarded plastic bottles, plastic bags, packaging foam, worn leather shoes, rope, clothes, gloves, cigarette butts...... They bent down and leaned down to pick up pieces of garbage. After the event, Midea Building Technology will also donate the corresponding special funds according to the weight collected to support marine environmental protection projects.
Build a harmonious community and create a home for local talents and culture
As a responsible corporate citizen, Midea actively shares the fruitful results of enterprise development with users, employees and the public while realizing its own development. We are user-centric, and bring a better life experience to every user by providing high-quality products and services; Adhere to an open employment mechanism, promote the diversity of employees, and create a fair, open and inclusive organizational culture; Caring for the development of the local community, giving back to the society with practical actions, and creating sustainable value in a responsible way.
Midea Group was shortlisted in the 2023 Forbes "World's Best Companies to Work for Women" and the 2023 Fortune Most Admired Chinese Company. Midea Group has always adhered to the principle of equal employment, and implemented equal employment and basic rights and interests of employees in its global operations through a sound employment compliance management system. The company signs labor contracts in accordance with the law, strictly prohibits all discrimination based on nationality, region, race, ethnicity, gender, age and other factors, and the rights and interests of employees around the world can be protected in accordance with local laws, regulations, terms and guidelines.
In 2023, Midea will continue to carry out the "Beauty One Public Welfare" activity, hoping to make the world "a little bit beautiful" through every small act of kindness, and give greater value and meaning to "perfect science and technology, perfect life". In May this year, Midea carried out the public welfare activity of "Beauty Once Science and Technology Dream Building Plan", assisted the construction of the first primary school of Guansuo Street, Guanling Buyi and Miao Autonomous County, Anshun City, Guizhou Province, and provided 600 scientific experiment kits for the local area; In July, it cooperated with Zhejiang Riyue Xingchen Autistic Children Growth and Support Center to launch the Budding Healing Public Welfare Program and held an exhibition of autistic children's paintings. In August, the official announced the official adoption of giant panda Yu Keyu Ai and the creation of a suitable habitat for it, and the start of the National Treasure Beautiful Life Plan; In September, Midea and Yixin social workers jointly launched a public welfare activity that led students to the Foshan Science Museum and Midea AI Innovation Center, stimulating the curiosity and interest of Foshan children in science.
On May 12, the groundbreaking ceremony of the junior high school of Shunde Mei School affiliated to East China Normal University was held in Beijiao Town, Shunde District, Foshan City. Midea will fully support the development and running of the school, and at the same time adhere to the long-term plan of "leading science and technology, talent first", vigorously attract high-level talents to come to Shunde, settle in Shunde, and make greater contributions to the development of regional economy and science and technology.
In April 2023, ALSO, the first co-creation comprehensive cultural business complex in China, officially opened. ALSO pays attention to the exploration and practice of the local community in Beijiao, Foshan, and organizes Shunde handicraft and manager activities to build their own homes for the locals, co-create and incubate more than ten local brands, explore local intangible cultural heritage handicrafts, and support the development of Lingnan cultural conservation. The representative of the domestic bookstore, One-Way Space, has the first store in South China to settle in ALSO. As a comprehensive cultural and creative institution, One Way will create a humanistic and avant-garde youth life sample for Lingnan: bringing together the most powerful thinkers and creators of our time, and holding cultural activities for young people in the local community such as humanistic salons, poetry and music, creative flash mobs, and podcast LIVE.
Practice science and technology to make a better life sustainable
In 2023, Euromonitor, a world-renowned consulting agency, conducted a detailed survey on the world's leading R290 air conditioner companies, and the data shows that Midea's R290 product air conditioner sales rank first in the world. R290 air conditioner refers to the air conditioner that uses R290 (propane) as the refrigerant, compared with other refrigerants, R290 has obvious advantages in energy saving and environmental protection. As an industry pioneer in the field of green environmental protection, Midea has been committed to the development and application of R290 environmentally friendly refrigerant products. The relevant achievements have been recognized by the United Nations Environment Programme "Low Carbon Environmental Protection Leading Award", the United Nations Industrial Development Organization "Outstanding Contribution Award for Energy Conservation and Environmental Protection", and the United Nations Montreal Agreement 30 Years Outstanding Contribution Unit Award, and has been certified by the Blue Angel for many times.
In September 2023, Midea appeared at the International Consumer Electronics Exhibition (IFA 2023) in Berlin, Germany. With excellent product design and innovative technology, Midea's fresh and clean air machine and Midea's portable mobile split air conditioner (PortaSplitac) have successfully won two gold awards at the IFA2023 Global Product Technology Innovation Award.
In October 2023, the 28th Science and Technology Month and Awards Conference with the theme of "Focus, Pragmatism and Leadership" was held in Foshan Midea's Global Innovation Center in Beijiao, Shunde. The awards of Science and Technology Month focus on Midea's core industries and leading technologies, with a prominent theme of "either first or only", focusing on promoting common collaborative technology projects such as next-generation refrigeration, next-generation deodorization, home brain, energy storage, and the world's highest energy efficiency, and continue to strengthen basic common research to escort the Group's core strategy of leading science and technology.
By building a scientist system, establishing a mechanism for introducing top global talents, and setting up a number of academician workstations in the direction of green and low-carbon, new energy, artificial intelligence, etc., jointly conducting scientific and technological research, and producing more than 100 scientific and technological achievements, at the same time, introducing dozens of strategic cooperative academicians to explore and promote forward-looking technological innovation in the form of full-time or joint laboratories; In 2023, Midea Blue Orange Laboratory will be approved to build a national key laboratory, which is the first batch of enterprises to be built after the reorganization, and has a national enterprise technology center, a national industrial design center, a national postdoctoral research workstation and a number of provincial key laboratories to gather and cultivate outstanding scientific and technological talents and enhance the innovation ability of enterprises; By increasing R&D investment and technological breakthroughs, we continue to make breakthroughs in the direction of strategic technologies and leading products, and more than 300 technologies have been appraised at the international leading level; Related technical products have won national, provincial and ministerial science and technology awards, and have won 3 national awards and more than 400 awards at all levels; In addition, since 2023, Midea has added more than 100 new external standards to lead and participate, of which 50% are the leading units, continuing to lead the development of the industry and make a better life sustainable.
Create a prosperous ecology and work together to create a green future
Midea's "smart industry" is the precipitation of Midea Group's practical experience in digital intelligence, from self-reconstruction to external empowerment, injecting transformation and upgrading momentum into industrial and other physical industries, and promoting enterprises to reduce costs and increase efficiency, industrial integration and innovation, and macroeconomic green and sustainable development. In 2023, Midea will accelerate the creation of a wider range of 5G+ green factory application scenarios with the "Digital Green Integration Sample". Looking through the "2023 5G Factory Directory", it can be found that 9 "Midea" factories are listed, including Midea's Wuhu Kitchen Heating Factory, Midea's Kitchen Heating Handan Factory, Midea's Washing Machine Jingzhou Factory, and Midea's Household Air Conditioning Wuhan Factory. Headquartered in Shunde, Foshan, Midea Group is replicating more of its 5G factory experience to factories across the country and overseas. In 2023, Midea's home air conditioner Thailand factory will be a national green factory in Thailand, and it is also a green benchmark factory that combines Midea Group's best lean practices.
In September 2023, Midea Group will bring its five business units, Midea Industrial Technology, Midea Building Technology, KUKA, Ander Zhilian, and Meiyun Zhishu, to the 2023 Industry Expo. Based on nearly a decade of digital practical experience and technical capability accumulation from zero-carbon & lighthouse factories, Midea has released Midea's smart industrial solutions covering green energy, intelligent manufacturing, smart logistics, smart buildings and other fields.
Midea starts from itself and provides a model for corporate ESG upgrading and transformation through model innovation; Starting from the manufacturing industry, it extends to the energy, Internet, cloud computing, and even medical fields, realizing the migration of ESG capabilities across industries. In response to its own digital and green transformation needs, Midea relies on its original advantages to flexibly respond to the current challenges faced by the transformation of China's manufacturing industry, help partners reduce costs and increase efficiency, and help China's intelligent manufacturing go overseas.
At the same time, Midea actively embraces the wave of carbon peaking and carbon neutrality and builds a zero-carbon pilot factory. As one of the first batch of zero-carbon pilot factories of Midea Group, Chongqing Midea General Refrigeration Equipment Co., Ltd. (hereinafter referred to as Chongqing Factory) has also opened up a digital and intelligent zero-carbon road belonging to Chongqing Factory. Following the principle of "green power first, emission reduction and offsetting as a supplement", the Chongqing plant carried out zero-carbon planning from multiple dimensions such as innovating energy-saving management technologies, increasing the proportion of renewable energy, deepening digital energy management, and exploring zero-carbon resources, and achieved the goal of zero-carbon factory in a digital and intelligent way, and finally obtained the PAS2060 carbon neutrality achievement certification certificate. Through best practices such as technological improvement and management optimization, the Chongqing plant has continuously improved energy efficiency while reducing carbon emissions per unit of output value, so as to better help the factory achieve its energy conservation and carbon reduction goals. For example, the application of inverter air compressors, fans and other inverter technologies has achieved an annual emission reduction of 103t, and for example, the use of high-frequency induction technology and low-temperature pretreatment cleaning technology has replaced or reduced fossil fuel combustion, with an annual emission reduction of 264t, including the installation of evaporative cooling and energy-efficient air conditioners, which has increased its energy efficiency by 56%.
In terms of green procurement and green suppliers, Midea continuously optimizes risk control and capacity building internally, and actively participates in the compilation of national standard green supply chain standards externally. Through the "Midea Supplier Code of Conduct" and "Material Supplier Cooperation Agreement", Midea provides standardized access standards for suppliers from the dimensions of intellectual property rights, integrity, social responsibility, quality, etc., and continuously strengthens supplier assessment and training empowerment, encourages suppliers to purchase green-related equipment, gives corresponding financial incentives, and cooperates with partners to carry out recycling projects and R&D, application and promotion of environmentally friendly materials. To create a prosperous ecology and expand the radius of green development, Midea will continue to work with partners to move towards a greener, more efficient, smarter and better green future.