As a global leader with over a decade of dedication to the renewable energy industry, GoodWe fully recognizes the critical importance of building a green supply chain.
Next, I will share GoodWe's insights and actions, focusing on two key dimensions: supply chain empowerment and corporate carbon management.
Regarding supply chain risk monitoring, we have established a tiered ESG management and control system for the supply chain. Simultaneously, we conduct CSR risk assessments at critical points such as onboarding and annual reviews. We utilize the IPE Blue Map Database as a key monitoring tool to prompt suppliers to resolve environmental and safety regulatory non-compliance records, thereby enhancing the risk management performance of the entire supply chain.
In terms of organizational carbon emission verification, in 2024, we began by collecting activity data from suppliers to calculate GoodWe's Scope 3 emissions. In 2025, we plan to use the IPE tool to assist suppliers online in completing their Scope 1 and 2 carbon emission accounting and disclosure, conducting comprehensive capacity building for them to solidify the emission reduction foundation throughout the upstream and downstream supply chain.
We also place high importance on green digital management. During 2024, we conducted 3 centralized training sessions and 55 specialized coaching sessions to strengthen hazardous substance management. In August 2025, we launched our self-developed Green Product Management System. This system integrates cross-platform information from SRM, PLM, etc., enabling real-time data reporting, risk alerts, and collaborative management, and features automated notifications. This is projected to reduce material compliance risks by 30% and shorten pre-market compliance preparation time by 50%. These actions will ensure our products comply with global requirements like RoHS and REACH.
As a core enterprise in the chain, motivating and leading industry development is our relentless pursuit. In June 2025, we jointly initiated a supply chain ESG management proposal with 12 benchmark enterprises. In terms of routine management, we also employ various methods such as partner conferences, annual awards, and irregular visits and exchanges to promote suppliers' understanding of GoodWe's ESG strategy.
Therefore, when addressing global carbon management requirements, GoodWe makes breakthroughs in both certification and products. For product carbon footprint certification, since 2022, we have certified the carbon footprint of 17 products based on the ISO 14067 and PAS 2050 standards. Furthermore, 2 products obtained Environmental Product Declarations, commonly known as EPD certification. In 2025, we expanded certification to a total of 6 series and 28 products. Concurrently, we are exploring digital systems to enhance accounting efficiency and strengthen international competitiveness.
Product design is indeed the source of carbon reduction. Thus, we spare no effort in design optimization. For example, our DNS G3 inverter utilizes lightweight metals, resulting in an 11% size reduction and a 9% weight reduction. Our SDT G3 achieved a 36% weight reduction through structural optimization. These measures not only reduce overall carbon emissions but also significantly decrease logistics costs.
While implementing these two management approaches, companies commonly face several challenges. First, global carbon footprint factor databases and accounting models lack uniformity, and carbon emission factors in some countries are updated with delay. This increases the difficulty and cost of corporate accounting. Second, supply chain data involves commercial secrets, such as material pricing contracts, delivery schedules, etc., which reduces the willingness to share data within the supply chain. Third, regarding green trade rules, companies need to achieve a balanced optimization across technical design, supply chain compliance, and other aspects to balance the pressures of innovation and cost.
Therefore, based on the above outlook, GoodWe will continue to deepen supply chain collaboration in the future. Leveraging integrated "Generation-Grid-Load-Storage-Intelligence" solutions, we will help decarbonize the entire value chain and jointly build a sustainable ecosystem, infusing sustainable competitiveness into "Manufactured in China".