Waste Management

For non-hazardous waste, the recyclable parts will be sold or sub-processes, while the non-recyclable parts will be sent to the environmental sanitation organization regularly for disposal. For hazardous waste, each subsidiary shall clarify the names, sources, characteristics, hazards and treatment measures of various types of hazardous waste, the organization and its responsibilities for accident emergency response, as well as the precautionary measures against the accidents, etc. In addition, we established hazardous waste storage areas to classify wastes and store them according to corresponding requirements, and finally send them to qualified third-party agencies for disposal compliance. During the Reporting Period, Sunny Zhejiang Optics confirmed the disposal method of all outgoing waste, giving priority to qualified treatment providers who can recycle the waste, and ultimately achieving the target of “zero waste to landfill”.
The KPIs of the Group’s greenhouse gas and emission level during the Reporting Period are as follows:

Category	Unit	2022	2021	2020
Greenhouse gas (Scope one) (Note 1)	tCO2e	4,878.5	2,594.3	3,463.8
Natural gas	tCO2e	/	/	869.4
Air conditioning coolant (Note 2)	tCO2e	4,746.8	2,449.3	2,286.0
Liquefied petroleum gas	tCO2e	/	/	161.5
Diesel oil (Note 3)	tCO2e	24.8	38.8	/
Gasoline (Note 3)	tCO2e	106.9	106.2	146.9
Greenhouse gas (Scope two) (Note 4)	tCO2e	362,501.6	380,183.9	325,681.7
Electricity	tCO2e	362,501.6	380,183.9	325,681.7
Total greenhouse gases (Scope one and Scope two) (Note 5)	tCO2e	367,308.1	382,778.2	329,145.5
Greenhouse gas (Scope one and Scope two) emission intensity (Note 6)	tCO2e / RMB million revenue	12.0	10.3	8.9

Notes:
1. During the GHG audit during the Reporting Period, the Group also identified other related emission sources of Scope one, including septic tank emissions, rust removers, high-voltage switches, carbon dioxide and heptafluoropropane fire extinguishers. As the carbon emissions generated by the above emission sources account for a small proportion of the total emissions of the Group, they are not included in the emission calculation range of Scope one.
2. The air conditioning refrigerant emission factors used by the Group are referred to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, and the global warming potential values are referred to the IPCC 6th Assessment Report in 2022. In order to enhance the accuracy and completeness of GHG emission data related to air conditioning refrigerants, the Group changed the statistical method of air conditioning refrigerant emission data from the filling volume method to the fugitive method during the Reporting Period, which resulted in an increase of approximately 93.8% in GHG emission related to air conditioning refrigerants as compared to the whole year of 2021.
3. The carbon dioxide emission factors of diesel oil and gasoline used by the Group refer to the Calculation Method and Reporting Guidance on Greenhouse Gas Emission by Other Industrial Enterprises (Trial) issued by the National Development and Reform Commission.
4. The carbon dioxide emission factors of the purchased electricity used by the Group refer to the average carbon dioxide emission factors of the East China Regional Grid of the 2012 Regional Power Grid Average CO2 Emission Factors in China.
5. During the Reporting Period, the energy structure of the Group improved, with a total of purchase of 90,202.4 MWh of green electricity, which corresponded to a reduction of greenhouse gas emissions of approximately 63,457.4 tonnes of carbon dioxide equivalent, resulting in a decrease in total greenhouse gas emissions of approximately 4.0% as compared to the whole year of 2021.
6. During the Reporting Period, the GHG emission intensity increased by approximately 16.5% as compared to the whole year of 2021 due to the year-on-year decrease in revenue of the Group.
7. The emission coefficients of sulphur dioxide and particulate matter for diesel and gasoline of the Group are referred to the Vehicle Emission Calculation Model of the Hong Kong Environmental Protection Agency.
8. During the Reporting Period, the total amount of hazardous waste increased by approximately 86.3% as compared to the whole year of 2021 due to the expansion of the Group’s scale and the increase in production equipment and production process.
9. During the Reporting Period, hazardous waste intensity increased by approximately 115.4% as compared to the whole year of 2021 due to the year-on-year increase in the total amount of hazardous waste and the year-on-year decrease in revenue of the Group.
10. During the Reporting Period, non-hazardous waste density increased by approximately 23.7% as compared to the whole year of 2021 due to a year-on-year decrease in revenue of the Group.