Gotion High-Tech 2025 Sustainability Report: ESG Overview

Key highlights

• Gotion committed to carbon peak in operations by 2027 and carbon neutrality by 2035, releasing its formal Zero-Carbon Strategy during the reporting period.
• Total GHG emissions across all scopes reached 26.1 million tCO2e (location-based), with Scope 3 accounting for 91.6 % of the total — reflecting the dominance of supply chain and product lifecycle emissions.
• Two factories achieved TUV Rheinland zero-carbon/carbon-neutral certification (Jinzhai and Tangshan), with Wuhai’s anode material plant running on 100 % green electricity.
• The workforce grew 29.4 % to 33,087 employees, with zero work-related fatalities for the third consecutive year — though the lost-time injury frequency rate rose significantly.
• R&D investment reached RMB 3.37 billion (7.47 % of revenue), with cumulative granted patents growing to 7,534 across 8 global R&D centers.
• The report is Gotion’s fifth sustainability report and the first prepared with reference to IFRS S1 and S2 alongside GRI Standards.

1. Environmental

1.1 Climate and emissions

Gotion recorded total GHG emissions of 26,063,736 tCO2e (location-based) and 25,972,088 tCO2e (market-based) across all scopes in 2025. Scope 3 emissions — primarily from purchased goods and services, processing of sold products, and capital goods — accounted for 91.6 % of the total at 23,861,864 tCO2e.

GHG emission intensity per million RMB of revenue was 578.29 tCO2e (location-based), down from the prior year as revenue grew faster than emissions.

The company released its formal Zero-Carbon Strategy in 2025, structured around five pillars: zero-carbon R&D, zero-carbon supply, zero-carbon manufacturing, zero-carbon operations, and circular economy. A total of 169 energy-saving initiatives were completed during the year, saving 140 million kWh of electricity and reducing GHG emissions by 75,300 tCO2e.

Two factories achieved third-party carbon certification during the year: Jinzhai Gotion received TUV Rheinland Zero Carbon Factory certification, and Tangshan Gotion received TUV Rheinland Carbon Neutral Factory certification. The Wuhai anode material plant achieved 100 % direct-sourced green electricity. Gotion procured 1,578 tCO2e of verified carbon credits (from EIB and Verra registries) to offset residual emissions at the certified plants.

GHG emissions — full breakdown

Metric	Unit	2025	2024	2023
Scope 1 (direct emissions)	tCO2e	316,695	248,513	121,903
Scope 2 — location-based	tCO2e	1,885,176	1,634,317	1,135,507
Scope 2 — market-based	tCO2e	1,793,529	1,634,317	1,135,507
Scope 3 (indirect — value chain)	tCO2e	23,861,864	4,012,360	1,786,210
Total — location-based	tCO2e	26,063,736	—	—
Total — market-based	tCO2e	25,972,088	—	—
GHG intensity (location)	tCO2e/RMB M	578.29	—	—
GHG intensity (market)	tCO2e/RMB M	576.25	—	—

1.2 Energy

Total energy consumption reached 3,267,901 MWh in 2025, up 37.8 % from 2,371,052 MWh in 2024, driven by production capacity expansion. Energy intensity improved 9.8 % to 31.72 MWh per MWh of battery system production.

Renewable energy consumption grew 77.4 % to 758,400 MWh. Clean energy consumption (including natural gas) reached 1,429,103 MWh. Purchased green electricity totaled 606,273 MWh (42.42 % of the clean energy mix), while on-site solar photovoltaic generation reached 152,126 MWh (10.64 %). Renewable energy comprised 16.13 % of total energy consumption.

Solar power generation across the company’s complexes reached 163,734 MWh during the year, a 122.67 % increase over 2024, reducing GHG emissions by 99,812 tCO2e. Purchased green electricity of 602,229 MWh further reduced emissions by 367,118 tCO2e.

Energy consumption — full breakdown

Metric	Unit	2025	2024	2023
Total energy consumption	MWh	3,267,901	2,371,052	1,752,091
Direct energy	MWh	825,504	613,698	476,807
Indirect energy	MWh	2,442,397	1,757,354	1,275,284
Energy intensity	MWh/MWh	31.72	35.16	36.53
Renewable energy	MWh	758,400	427,417	49,649
Electricity consumption	MWh	2,521,491	1,762,400	1,268,696
Natural gas consumption	MWh	670,703	562,955	427,158
Steam consumption	MWh	73,032	45,697	56,238
PV generation ratio	%	10.64	5.12	10.41
Purchased green electricity ratio	%	42.42	38.03	—

1.3 Water and waste

Freshwater withdrawal reached 7,127,033 tonnes in 2025, with freshwater consumption of 6,577,296 tonnes. Water intensity was 63.84 tonnes per MWh of battery production. Data coverage for water metrics reached 83.33 % of operations, up from 78.00 % in 2024.

General industrial solid waste totaled 172,390 tonnes, of which 169,616 tonnes (98.4 %) was recycled or reused. Hazardous waste totaled 2,257 tonnes. Waste generation intensity rose to 1.67 tonnes per MWh from 1.07 in 2024, reflecting the expanded reporting scope and increased data coverage (83.33 % of operations vs 78.00 %).

On biodiversity, Gotion issued a formal Biodiversity and No-Deforestation Policy applying to all operational sites and adopted the TNFD’s LEAP framework for biodiversity risk management. A third-party biodiversity baseline survey was conducted at the Morocco production hub prior to construction.

Water, waste, and emissions — full data

Metric	Unit	2025	2024	2023
Water
Freshwater withdrawal	Tonnes	7,127,033	3,040,713	2,834,897
Freshwater discharge	Tonnes	549,737	396,358	296,229
Freshwater consumption	Tonnes	6,577,296	2,644,355	2,538,668
Water intensity	t/MWh	63.84	—	—
General solid waste
Total generated	Tonnes	172,390	72,459	53,348
Recycled / reused	Tonnes	169,616	67,473	50,833
Landfill	Tonnes	206	4,588	2,261
Generation intensity	t/MWh	1.67	1.07	1.11
Hazardous waste
Total generated	Tonnes	2,257	1,684	1,179
Intensity	t/MWh	0.02	0.02	0.02
Air pollutant emissions
VOCs	Tonnes	43.69	11.60	5.77
NOx	Tonnes	43.45	23.78	11.72
SO2	Tonnes	37.25	16.74	0.24
COD	Tonnes	34.04	19.38	13.56

2. Social

2.1 Workforce

Gotion’s total headcount grew 29.4 % to 33,087 employees in 2025, driven by the commissioning of new production lines, overseas expansion, and enhanced R&D capabilities. The workforce was 74.05 % male and 25.95 % female. By education, 11.96 % held a master’s degree or above, while 88.04 % held a bachelor’s degree or below. Overseas employees numbered 395, representing 1.19 % of the total.

Annual employee turnover improved to 23.20 % from 25.10 % in 2024. Employee engagement scored 90.00 points, up from 89.30. The mean gender pay gap was 8 %, with female-to-male pay ratios of 0.99 at executive level, 0.89 at management level, and 0.92 at non-management level.

Women held 19.59 % of management positions (up from 18.10 %), 21.21 % of revenue-generating management roles, and 18.68 % of STEM positions. At the board level, 1 of 11 directors (9.09 %) was female.

Average training hours per employee rose to 40.44 hours from 26.71 in 2024, with total training investment reaching RMB 12.72 million (RMB 384 per employee). Job-related skills training coverage was 100 %.

Gotion reported zero incidents of employee discrimination during the period.

Workforce — full breakdown

Metric	Unit	2025	2024	2023
Total employees	Person	33,087	25,575	22,939
Male	Person	24,500	18,728	16,518
Female	Person	8,587	6,845	6,421
Under 30	Person	12,788	9,366	9,533
30–50	Person	19,618	15,583	12,759
Over 50	Person	681	626	647
Doctoral degree	Person	311	257	208
Master's degree	Person	3,646	2,741	2,299
Bachelor's and below	Person	29,130	22,577	20,432
Chinese	Person	32,692	25,282	22,689
Overseas	Person	395	293	250
New employee hires	Person	17,552	6,827	11,880
Annual turnover rate	%	23.20	25.10	28.40
Employee engagement score	Points	90.00	89.30	87.70
Mean gender pay gap	%	8	—	—
Average training hours	Hours	40.44	26.71	—
Training investment per employee	RMB	384.44	421.41	290.27

2.2 Health and safety

Gotion recorded zero work-related fatalities for both employees and contractors in 2025, maintaining this record for the third consecutive year. All mature battery production entities maintained 100 % occupational health and safety management system certification.

However, the lost-time injury frequency rate (LTIFR) rose to 0.92 per million working hours from 0.10 in 2024 — a significant increase. Lost working days increased to 2,999.50 from 639.50, and total hours lost to work-related injuries reached 23,996 compared to 5,116 in the prior year. The work-related injury frequency rate was 1.84 per 1,000 employees, down from 1.99 in 2024.

Safety investment totaled RMB 14.61 million, with 100 % work-related injury insurance coverage.

Safety metrics — full data

Metric	Unit	2025	2024	2023
Work-related fatalities — employees	Person	0	0	0
Work-related fatalities — contractors	Person	0	0	0
Injury frequency rate (per 1,000)	‰	1.84	1.99	2.68
LTIFR (per million working hours)	Rate	0.92	0.10	1.92
Lost working hours	Hours	23,996	5,116	17,226
Lost working days	Days	2,999.50	639.50	2,153.25
OHS certification coverage	%	100	100	75
Safety investment	RMB 10k	1,461	—	—

2.3 Supply chain

Gotion managed 262 total suppliers in 2025 (up from 257), of which 228 were Tier-1 and 123 were classified as key Tier-1 suppliers. All suppliers (100 %) have contracts that include environmental, labor, and human rights requirements.

Of key suppliers, 82.44 % were assessed through written or on-site evaluations. No suppliers were identified with significant actual or potential negative impacts, and none were terminated for sustainability reasons. All 144 key suppliers participated in capacity-building programs.

The report notes that 75 % of key material suppliers — including anode, electrolyte, and separator providers — have obtained product carbon footprint certification. Within the supply chain, 34.35 % of suppliers are located within the company’s home province (Anhui), and more than 99 % are domestic.

3. Governance

3.1 Board and oversight

The board comprises 11 members, including 4 independent directors and 1 female director (9.09 %). During the reporting period, the board held 4 meetings, with special committees meeting 7 times, all at 100 % attendance.

Gotion established a new Strategy and ESG Committee under the Board of Directors during 2025, comprising 5 directors and responsible for ESG strategic planning, goal-setting, and major decisions. The company operates a three-tier ESG management structure spanning group, regional, and hub/subsidiary levels, with an ESG Management Office coordinating implementation across 12 functional teams.

3.2 Ethics and compliance

The company reported 3 internal corruption or bribery violations in 2025, down from 4 in 2024 but up from zero in 2023. No fines or convictions were recorded. All employees (100 %) signed integrity commitment letters, were informed of the anti-corruption policy, and completed business ethics training.

On data protection, the report records zero customer privacy breaches, zero information security incidents, and zero data security breaches across all three reporting years. A total of 26 complaints or whistleblowing reports were received and resolved (down from 31 in 2024).

4. Innovation

R&D investment grew 14.9 % to RMB 3.37 billion in 2025, representing 7.47 % of revenue. The R&D team expanded to 3,910 personnel (11.82 % of total staff), operating across 8 global R&D centers in China (Shanghai, Hefei), Japan (Tsukuba), Singapore, and the United States (Silicon Valley, Cleveland).

Gotion filed 2,698 new patent applications during the year, bringing cumulative applications to 13,254 — including 5,951 invention patents and 496 foreign applications. Cumulative granted patents grew to 7,534, including 1,631 invention patents and 120 foreign patents.

R&D and patents — full data

Metric	Unit	2025	2024	2023
R&D investment	RMB 10k	336,452	292,939	276,800
R&D as % of revenue	%	7.47	8.28	8.76
R&D personnel	Person	3,910	3,754	3,132
R&D as % of employees	%	11.82	14.68	13.65
New patent applications	Patent	2,698	2,473	1,739
Cumulative patent applications	Patent	13,254	10,556	8,083
New patents granted	Patent	1,505	964	779
Cumulative patents granted	Patent	7,534	6,029	5,065
Foreign patents granted (cumulative)	Patent	120	101	83
Invention patents applied (cumulative)	Patent	5,951	4,622	3,573
Invention patents granted (cumulative)	Patent	1,631	1,367	1,253

5. What to watch

Safety metrics show a mixed picture. The lost-time injury frequency rate (LTIFR) rose from 0.10 to 0.92 per million working hours, and lost working days increased from 640 to 3,000. However, the injury frequency rate per 1,000 employees actually improved (1.84 vs 1.99), and the 2023 LTIFR was 1.92 — suggesting the 2024 figure may have been anomalously low rather than 2025 being unusually high. The report expanded its data coverage scope during the year, which may also contribute to the increase.

Scope 3 accounts for 91.6 % of total emissions. Scope 3 emissions of 23.9 million tCO2e dwarf Scope 1+2 combined (2.2 million tCO2e). The 2025 report expanded Scope 3 coverage to 9 categories (from fewer in prior years), which partly explains the large year-on-year increase. For context, this pattern is typical across battery manufacturers — the majority of lifecycle emissions come from raw material extraction, component manufacturing, and product use. The carbon neutrality target (2035) covers operations only, not Scope 3.

Two factories have achieved third-party zero-carbon certification. TUV Rheinland certified the Jinzhai and Tangshan plants, and 75 % of key material suppliers have obtained product carbon footprint certification. This is relevant context as the EU Battery Regulation introduces carbon footprint declaration requirements for industrial batteries, including energy storage systems.

Three internal corruption violations were reported in 2025 (four in 2024, zero in 2023). No fines or convictions resulted. The board has 11 members, including 4 independent directors and 1 female director (9.09 %). A new Strategy and ESG Committee was established at board level during the reporting period.

6. Sources