Social Responsibility

Social Responsibility

Hubei Wanrun New Energy Technology Co., Ltd. 2023 Compliance Report

2025-03-07

2023 Compliance Report
 
Hubei Wanrun New Energy Technology Co., Ltd.
2023 Compliance Report
 
(2023/01/01-2023/12/31, Published January 2024)

 

Company Name: Hubei Wanrun New Energy Technology Co., Ltd. Hu bei WanRun New Energy Technology Co.,Ltd.
Location: No. 557, Tianma Avenue, High-tech Industrial Park, Shiyan City, Hubei Province
Year-End Report: 2023 Compliance Report
Report Date: January 2024
Senior Management Responsible for this Report Management:
 
 
Part 1
Purpose
To comply with the requirements of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, 3rd Edition (hereinafter referred to as the "OECD Guidance"), to avoid any systemic or widespread human rights abuses, to prevent conflict, money laundering, and terrorist financing, our company has established a robust management system and uses supply chain due diligence methods to identify and assess risks for all suppliers, ensuring that our company's lithium supply chain fully complies with the OECD Guidance. To comply with the requirements of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, 3rd Edition (hereinafter referred to as the "OECD Guidance"), and to avoid any systemic or widespread human rights abuses, to prevent conflict, money laundering, and terrorist financing, our company, through the establishment of a strong management system, adopts supply chain due diligence methods to conduct risk identification and assessment of all suppliers, ensuring that the company's lithium supply chain fully complies with the requirements of the OECD Guidance. This report summarizes Hubei Wanrun New Energy Technology Co., Ltd.'s compliance with the requirements of the OECD Guidance during the 2023 fiscal year (January 1, 2023 - December 31, 2023).
This report summarizes Hubei Wanrun New Energy Technology Co., Ltd.'s compliance with the relevant requirements of the OECD Guidelines during the 2023 fiscal year (January 1, 2023-December 31, 2023).
 
 
Part 2
Company Overview
Hubei Wanrun New Energy Technology Co., Ltd. (stock code: 688275), established in December 2010, with a registered capital of 126.11 million yuan, is a listed company on the STAR Market. The company is one of the earliest domestic companies engaged in the production and research and development of new energy battery cathode materials, mainly producing cathode materials and precursors for lithium-ion power batteries and energy storage batteries. Products include lithium iron phosphate and iron phosphate, and are sold to well-known domestic and international companies such as CATL, BYD, and Ganfeng Lithium. cathode materials and their precursors for lithium-ion power batteries and energy storage batteries, with products including lithium iron phosphate and iron phosphate, sold to well-known domestic and international enterprises such as CATL, BYD, and Ganfeng Lithium. The company has obtained a number of national management system certifications: CNAS L12294 ISO/IEC 17025:2017, GB/T24001-2016/ISO14001:2015 、 IATF 16949:2016 、 GB/T 45001-2020/ISO 45001:2018 、 BSOHSAS18001:2007 、 GB/T23331-2020/ISO 50001:2018 、 RB/T 117-2014 、 ISO 14064-3:2006 、 ISO 14067:2018 、 GB/T29490-2013 、 GB/T 23001-2017 and GB/T 23006-2022, etc. The company has won numerous national, provincial, and municipal honors and qualifications: National Enterprise Technology Center, National High-tech Enterprise, National Model Enterprise for Harmonious Labor Relations, Specialized and New "Small Giant" Enterprise, Fifth China Advanced Technology Transformation and Application Competition Bronze Award, Hubei Provincial Science and Technology Progress Second Prize, Hubei Provincial High-Value Patent Competition Gold Award, China Good Technology Title, Hubei Provincial Automobile Industry Corridor "Root Technology" Innovation Competition First Prize, Hubei Provincial Sub-branch Pillar Industry Sub-sector Hidden Champion Demonstration Enterprise, Hubei Provincial Enterprise Technology Center, Hubei Provincial Engineering Research Center, Hubei Provincial Lithium-ion Battery Material Engineering Technology Center, etc. The company has obtained 127 authorized patents in the fields of lithium battery materials, sodium batteries, wastewater treatment, and anodes; as of August 2023, the company owns numerous patents and achievements: 70 domestic authorized invention patents, 7 international invention patents, 49 utility model patents, 1 software copyright patent, 5 registered trademarks, 4 high-tech product registrations; 16 Hubei Provincial scientific and technological achievements identifications; 94 domestic invention patent applications, 24 utility model patents, 5 design patents, and 24 PCT patents. The company's lithium iron phosphate cathode materials are mainly used in the manufacture of lithium batteries, and downstream applications include new energy electric vehicles and energy storage. Lithium iron phosphate products are diverse and the system is complete, covering power-type materials, power-type materials, energy storage materials, and long-life materials. Batteries produced using the company's lithium iron phosphate materials have advantages of high cost-effectiveness, high safety, and high performance, and the future market space is huge. The company mainly relies on independent research and development, implementing a forward-looking and pragmatic research and development strategy of research, reserve, and production innovation, and cooperating with universities and research institutions to research and develop strategic products and technologies, with fruitful research results. Future investment in overseas cathode material factories and mining projects will contribute to the development of the global new energy industry. With years of accumulation and innovation in technological research and development, production and operation, upstream and downstream industrial chain construction, and operation management, the company already possesses relatively mature technological innovation capabilities, customer service capabilities, and product supply capabilities, and its comprehensive competitiveness is at the forefront of the industry, with significant advantages. The company mainly relies on independent research and development, implementing a research and development strategy that is forward-looking and pragmatic, combining research, reserves, and production innovation, and cooperating with universities and research institutes to research and develop strategic products and technologies, with fruitful research results. Future investment in overseas cathode material factories and mining projects will contribute to the development of the global new energy industry. The company, with its years of accumulation and innovation in technological research and development, production and operation, upstream and downstream industrial chain construction, and operation management, has already established relatively mature technological innovation capabilities, customer service capabilities, and product supply capabilities, and its comprehensive competitiveness is at the forefront of the industry, with significant advantages.
The company considers ESG as one of the important cornerstones of sustainable development, combining it with business operations and focusing on environmental protection, actively assuming social responsibility, and continuously improving corporate governance to help the company become a high-quality listed company. The company will be committed to the clean, efficient, and circular new energy industry, providing high-quality solutions and services for global new energy applications, guarding our green and beautiful earth.
 
 
Part Three
Summary of Compliance Activities
Step 1: Establish a strong corporate governance system
Compliance Statement:
Our company has basically met Step 1: Established a strong corporate governance system, conducted external audits, supplier audits, and implemented corrective measures for relevant issues, closing non-conformances.
 
1) Company Policies
Compliance Statement:
On July 5, 2023, the company issued the "Responsible Mineral Supply Chain Management System." Our company's lithium supply chain policy strictly prohibits lithium suppliers from engaging in the following behaviors:
1) Any form of torture, cruel, inhuman, or degrading treatment;
2) Any form of forced or compulsory labor. Forced or compulsory labor refers to any work or service extracted from an individual under threat of penalty that is not provided voluntarily by that person; 3) The worst forms of child labor;
4) Other serious violations of human rights, such as widespread sexual violence;
5) War crimes or other serious violations of international humanitarian law, crimes against humanity, or genocide;
6) Providing direct or indirect support to non-state armed groups;
7) Providing direct or indirect support to public or private security forces that engage in illegal taxation or extortion;
8) Bribery and corruption, and fraudulent misrepresentation of the origin of minerals;
9) Participation in or support/financing of money laundering, conflict, and terrorist activities;
10) Failure to disclose taxes, fees, and royalties paid to governments in accordance with the principles of the Extractive Industries Transparency Initiative (EITI).
The "Responsible Mineral Supply Chain Management System" stipulates internal organizational structures and responsibilities, lithium supply chain due diligence regulations, risk identification methods and evaluation standards for the lithium supply chain, transaction monitoring, document retention, training,
and reporting mechanisms. In 2023, our company strictly followed the system requirements to complete due diligence on all lithium suppliers, and conducted risk identification and assessment, effectively controlling the risks of the lithium supply chain.
At the same time, the company also published this policy on its official website, the URL is www.hbwanrun.com (Hubei Wanrun official website) 2) Internal Management Structure
The company established an internal management system in accordance with the "Responsible Mineral Supply Chain Management System," clarifying management positions and their corresponding responsibilities. The general manager is responsible for approval. The company has appointed a compliance director and five compliance officers.
 
2)The general manager is responsible for the approval of guidelines & policies, including whether to cooperate with high-risk suppliers, and post-contract
Compliance Statement:
supervision of suppliers. The compliance director is fully responsible for lithium supply chain due diligence matters, responsible for everything on the lithium supply chain, ensuring that the company's entire lithium supply chain complies with risk management regulations and can effectively identify and mitigate risks. The supply center is responsible for raw material procurement, ensuring the long-term, stable,
and safe supply of lithium-containing materials and raw materials, and refusing to cooperate with enterprises in high-risk areas. The marketing center is responsible for collecting customer requirements and conveying company policies to customers.
The finance center is responsible for supervising the compliance of transactions and keeping complete records of all customer transactions. The management center is responsible for training on lithium supply chain due diligence and risk control, drafting and updating lithium supply chain policies,
and providing accurate information to senior management.
The production plant inspects incoming materials to confirm whether supplier information meets requirements, the warehouse manages material identification, production
sites maintain traceability records, and closed-loop processes are used during production to ensure the safety and traceability of lithium production and processing.
In 2023, our company strictly implemented the "Responsible Mineral Supply Chain Management System" and conducted risk due diligence on all suppliers. All transactions were monitored to avoid establishing relationships with high-risk suppliers. At the same time, compliance officers reviewed all due diligence findings and results, and all lithium material purchase contracts were approved by
the compliance director. 3) Traceable System and Identification of Other Supply Chain Participants In accordance with the requirements of the management system, the company established a supply chain traceability system to collect and maintain the supply chain information of each batch, including assigning a unique reference number to each input and output:
 
3) Lithium product upward traceability (lithium -> lithium mine)
Compliance Statement:
- Material batch number; - Incoming inspection report;
Lithium product downward traceability (lithium product -> customer)
- Customer information;
- Shipping report, time;
Downstream Traceability of Lithium Products (Lithium Products → Customer) -Customer information -Shipment reports and dates
Based on all retained records, traceability from finished products to raw materials and vice versa can be achieved. It is possible to trace the procurement contracts for each batch of products from each supplier, and based on the contract content, information including origin, procurement weight, analysis reports, and relevant due diligence documents can be traced. Information such as place of origin, purchase weight, analysis reports, and related due diligence documents can be traced according to the contract.
 
4) Interaction with trading partners and assistance in establishing due diligence capabilities for trading partners
Compliance Statement:
When signing contracts with suppliers, the Supply Department, in accordance with the requirements of the management system, signs a "Due Diligence Statement on Responsible Minerals Supply Chain" with all lithium suppliers and conducts questionnaires to ensure that they understand the company's OECD due diligence management requirements, supply chain policies, and required commitments. When signing contracts with suppliers, the Supply Department, in accordance with the management system requirements, signs a "Statement of Due Diligence for Responsible Minerals Supply Chain" with all lithium suppliers and conducts questionnaires to ensure that they understand the company's OECD due diligence management requirements, supply chain policies, and required commitments. In this commitment letter, lithium suppliers should commit and acknowledge in writing that there are no serious human rights violations related to the mining, transportation, or trade of minerals, In this commitment letter, lithium suppliers should commit and acknowledge in writing that there are no serious human rights violations related to the mining, transportation, or trade of minerals; no direct or indirect support for non-state armed groups; no direct or indirect support for public or private security forces; no bribery or false misreporting of mineral sources; no money laundering, etc. no direct or indirect support for non-state armed groups; no direct or indirect support for public or private security forces; no bribery or false misreporting of mineral sources; no money laundering, etc. In addition, no taxes and royalties related to the mining, trade, and export of minerals in conflict-affected and high-risk areas have been paid to the government. In addition, no taxes and royalties related to the mining, trade, and export of minerals from conflict-affected and high-risk areas have been paid to the government. All suppliers signed relevant commitment letters in 2023.
All suppliers who signed contracts in 2023 signed the relevant commitment letters.
 
5) Transaction Monitoring
Compliance Statement:
All payments and receipts related to lithium are conducted through the company's bank accounts; there are no cash transactions. All payments and receipts are subject to supervision by banks and national tax authorities, and annual financial audits are conducted.
According to the management system requirements, transaction monitoring is conducted on the risks in the lithium supplier's supply chain. The lithium plant checks the received waybills, weight bills, inspection reports, invoices, and transfer records for each batch of products. The lithium plant checks the received waybills, weight bills, inspection reports, invoices, transfer records, etc., for each batch of products.
The compliance officer is responsible for transaction monitoring, checking the background of non-compliant or suspicious transactions in any form, and confirming the investigation results in writing and reporting them to the compliance director. The compliance officer is responsible for transaction monitoring; checks the background of any transactions that are non-compliant or suspected of being non-compliant in any form; and confirms the investigation results in writing and reports them to the compliance director. All transactions in 2023 were conducted via bank transfer; there were no cash transfers. All transactions in 2023 were made via bank transfer; there were no cash transfers.
 
6) Communication and Complaint Mechanism
Compliance Statement:
The company has established a complaint mechanism. The email address and contact information of the compliance officer are published on the official website, www.hbwanrun.com (Hubei Wanrun official website), and the complaint mechanism has been communicated to suppliers throughout the lithium material procurement process. The company has established a complaint mechanism. The email address and contact information of the compliance officer are published on the official website, www.hbwanrun.com (Hubei Wanrun official website), and necessary communication has been conducted with suppliers throughout the lithium material procurement process. Internal and external stakeholders can anonymously report violations in the lithium trading process. The factory has set up a suggestion box as a reporting channel for internal employees, and relevant personnel regularly check and summarize the reported content. No reporting incidents occurred in 2023. The factory has set up a suggestion box as a reporting channel for internal employees, and relevant personnel regularly check and summarize the reported content. No reporting incidents occurred in 2023.
In addition, the company has also formulated a system to protect whistleblowers, preventing retaliation against whistleblowers and effectively protecting their rights. In addition, the company has also established a system for protecting whistleblowers to prevent retaliation and effectively protect their rights.
 
7) Training
Compliance Statement:
The company regularly organizes training for all departments related to lithium; two training sessions were conducted in 2023.
1. On July 3, 2023, training was conducted on the requirements of the OECD due diligence responsible procurement system document for supplier investigation procedures, risk registration and evaluation, and response measures; post-training effectiveness evaluation was conducted, and training records were kept. 
2. On August 17, 2023, internal training on the Code of Conduct for Responsible Mineral Supply Chain was conducted.
 
8) Record Retention
Compliance Statement:
In accordance with the company's "Management System for Responsible Minerals Supply Chain", all supplier-related documents, including due diligence documents, risk assessment forms, compliance documents, contract texts, inspection records, and inventory records, are kept for at least five years. In accordance with the company's "Management System for Responsible Minerals Supply Chain", all supplier-related documents, including due diligence documents, risk assessment forms, compliance documents, contract texts, inspection records, and inventory records, are kept for at least five years. All supplier-related documents, including due diligence files, risk assessment forms, compliance documents, contract texts, inspection records, and inventory records, are kept for at least five years.
 
Step 2: Identify and Assess Supply Chain Risks
Compliance Statement:
We have fully complied with Step 2: Identify and Assess Supply Chain Risks.
 
1) Supply Chain Risk Identification
Compliance Statement:
The "Management System for Responsible Minerals Supply Chain" specifies the supplier risk identification method, covering all risks of lithium-containing materials from origin to lithium carbonate plant. The following risks are identified through the supplier due diligence form: such as: supplier basic information, beneficiaries, origin information, responsible mineral supply chain policy, transportation process, anti-money laundering, anti-terrorism financing, bribery and fraud, human rights violations, transaction monitoring, support for non-governmental armed organizations.
Identification methods include establishing supply chain customer files, including: company name, legal representative, address, contact information, operating methods, production methods, and transaction contracts. Existing supply chain customers need to be checked regularly, and if there are any new or changed customers, their files need to be checked promptly to keep the file database up-to-date. Identifying each customer, company, and beneficial owner of the company; using reliable, independent source documents, data, or information to verify their identities; ensuring that each customer, company, and beneficial owner in the supply chain is not on any government's money laundering, fraud, or terrorism wanted list; and regularly obtaining detailed commercial and financial information, lithium trading purposes, and business operations of supply chain customers. 
 
2) Supply Chain Risk Assessment
Compliance Statement:
 Before establishing a business relationship with a supplier, the Supply Department needs to fill out the "Supply Chain Due Diligence Form" and conduct a risk assessment for all lithium-containing materials according to the "Supply Chain Due Diligence Rules".
Mineral lithium: Suppliers need to provide information on the origin of lithium-containing materials, mining licenses, import and export licenses, and mining situation information certificates, due diligence documents. In addition, business licenses, beneficiaries, creditworthiness, and financial information should also be collected, such as whether they are on government money laundering, known fraudster, or terrorist lists, etc. Some suppliers have compliance officers conduct on-site investigations to verify the authenticity of the information to ensure accurate and reliable assessments. 
High-risk supply chain assessment standards are as follows:
1. Mineral lithium or recycled lithium originates from, transits through, or passes through high-risk areas affected by conflict or human rights abuses.
2. Mineral lithium claims to originate from a country with known limited reserves, limited resources, or limited projected lithium production.
3. Recycled lithium originates from or is reasonably suspected of transiting through known high-risk areas affected by conflict and human rights abuses. 
4. Companies in the lithium supply chain or other known upstream companies are located in a country with a high risk of money laundering, crime, and corruption. 5. The beneficial owners of companies in the lithium supply chain or other known upstream companies are politically exposed persons.
6. Companies in the lithium supply chain or other known upstream companies are actively involved in high-risk business activities, such as weapons, gambling, gambling, antiques and art, diamonds, religion and religious leaders. 
7. From or through high-risk countries and regions, including conflict-ridden countries and regions announced by the Heidelberg "Global Conflict Barometer", countries or regions sanctioned by the United Nations, and high-risk money laundering countries and regions announced by the FATF. 
8. From or through high-risk countries and regions, including conflict-ridden countries and regions announced by the Heidelberg "Global Conflict Barometer", countries or regions sanctioned by the United Nations, and high-risk money laundering countries and regions announced by the FATF. Evaluation method: Based on the content of the high-risk mineral due diligence form, combined with the actual received information from suppliers and customers, the evaluation is scored according to the evaluation standards of each project, and the final risk level is determined. 
In 2023, all suppliers of lithium-containing materials were assessed, totaling 3. 2 are domestic and 1 is foreign. According to the assessment results, all suppliers were judged to be low-risk suppliers.
3) Reporting of risk assessment results.
Compliance officers submit a review report to the Compliance Director and senior management on behalf of senior management annually.
 
 
Compliance Statement:
Senior management retains ultimate control and responsibility for the lithium supply chain. If there are medium-to-high-risk suppliers, it is necessary to report/approve to the highest management level and take risk mitigation measures. Step 3: Implement management strategies for identified risks We fully comply with step 3: Design and implement a management strategy to address identified risks
 
1) Implement a risk management strategy for identified risks
Compliance Statement:
(i) Mitigating risks while continuing transactions: When the assessment of a supplier is low-risk, we continue to obtain lithium raw materials from that supplier. During the cooperation process, we gradually improve their investigation data and gradually assist suppliers in establishing their due diligence systems, helping them improve their shortcomings in risk control.
(ii) Mitigating risks when suspending transactions: When the assessment result is medium-risk, suspend cooperation and investigate the suspicious risk until the supplier is determined to be low-risk. At the same time, isolate incoming materials. The company's raw material warehouse has a high-risk incoming material isolation area to deal with emergencies. Within 6 months, the supplier rectifies the risk item, removes the risk, and then resumes trading. If the rectification does not meet the requirements or the risk cannot be removed, cooperation with the supplier will be terminated.
Compliance Statement:
(iii) Stop trading to avoid risks: If the supplier's assessment is high-risk, or if a high-risk item is discovered when cooperating with the supplier, cooperation will be terminated. The assessment report and high-risk items will be reported to the highest management level, and the supplier will be added to the company's blacklist and will not be able to trade with the company within 3 years. 2) Quantitative measures, performance monitoring, reassessment, and regular reporting If the due diligence results are low-risk and the company has implemented an improvement strategy with clear performance goals within the specified timeframe, we will continue to obtain lithium raw materials from it. If the lithium supply chain due diligence results are medium-risk or high-risk, indicating that there may be money laundering, terrorist financing, conflict fueling, human rights abuses, or a high probability of such situations, we will immediately stop obtaining lithium raw materials from it until the information or data provided indicates its low-risk level.
According to the 2023 due diligence results, no supplier requires a risk mitigation management strategy. Regular reassessment and continuous monitoring: 1. Annually, the compliance officer of the raw material procurement department organizes personnel to collect all changes in supplier information, continuously monitors transaction results, and conducts annual supply chain due diligence reassessment to determine whether to continue cooperation. 2. Each batch of purchased lithium raw materials is monitored by compliance officers during transportation, warehousing, production, and payment. Regular reporting: Each quarter, the compliance officer submits a report to the Compliance Director and senior management based on the actual situation managed by the OECD. The report summarizes the operation of the due diligence management system this quarter, points out deficiencies, and proposes improvement measures. In 2023, our company used quantitative methods to score and manage suppliers, except for new suppliers...
 
Annual supplementary risk assessments were conducted for all suppliers. The Compliance Director reviewed the assessment results. And submitted a report to senior management each year.
 
Step 4: Arrange an independent third-party audit
Compliance Statement:
We are fully compliant with step four: Supplier investigation and risk assessment revealed no high-risk mineral suppliers,
Independent third-party audits are not currently required.
Compliance Statement:
After investigating suppliers and assessing risks, no high-risk mineral suppliers were found, and the client did not request an OECD audit of our supply chain; if the client has special requirements later, our company will comply with the client's requirements.
This year, our company prepared the 2023 compliance report in accordance with OECD requirements.
Step 5: Supply Chain Due Diligence Report
Compliance Statement:
We are fully compliant with step five: We completed the supply chain due diligence report according to OECD requirements and published it on the company's official
website;
Compliance Statement:
Our lithium supply chain policy lists more information and specific details on how to implement supply chain due diligence policies, procedures, processes and controls to meet the lithium-specific requirements of the OECD Due Diligence Guidance for Responsible Minerals Supply Chains, This policy can be found on the company website www.hbwanrun.com (Hubei Wanrun official website).
Our company conducted a third-party audit on June 20, 2023, with a total of 12 non-conformances, all of which were rectified, and the non-conformances have been closed.
Step 6: Remedial Actions
Compliance Statement:
We are fully compliant with step six: Our supply chain activities have not caused any significant negative impact on stakeholders, and no remedial actions are required.
Compliance Statement:
Through supply chain due diligence, our supply chain activities have not had a significant negative impact on stakeholders, and no complaints or feedback have been received from stakeholders, so no remedial actions are required.
 
 
Part Four
Conclusion
Management Conclusion: In our annual report as of December 31, 2023, we implemented effective management systems, procedures, processes, and practices to meet the requirements of the OECD Due Diligence Guidance for Responsible Minerals Supply Chains.
Our company is committed to continuous improvement and will regularly monitor all corrective actions identified internally. Continuously meeting the requirements of the OECD Due Diligence Guidance for Responsible Minerals Supply Chains.
Other
If users of this report wish to provide any feedback on this report, please feel free to call + 0719-7676586 or send an email to wanrun@hbwanrun.com to contact us.
 
 
Hubei Wanrun New Energy Technology Co., Ltd.
January 15, 2024

 

 



 

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