On April 24, 2024, the European Parliament approved the "EU Corporate Sustainability Due Diligence Directive" (CSDDD) by voting. In response to the CSDDD, the EU’s "Corporate Sustainability Reporting Directive" (CSRD), as well as an increasing number of regulations on sustainable procurement and information disclosure, LONGi, as a world-leading photovoltaic company, has attracted more and more attention from all kinds of customers in terms of its supply chain environment risk control in global markets. Given that LONGi has numerous suppliers, extensive procurement categories, complicated transactions, and differentiated supplier capabilities, it started cooperation with the Institute of Public & Environmental Affairs (IPE) in 2019. Through the "Records" and "Supply Chain" modules on the IPE platform, LONGi is able to monitor the environmental compliance performance of suppliers in real time. With the help of the platform, LONGi facilitates the environmentally underperforming suppliers to rectify or remove incompliance and go through the IPE’s GCA audit, so as to improve the environmental performance and build a green and compliant supplier team.

In 2023, LONGi Supply Chain established a mechanism for monitoring and managing  suppliers' environmental violations, and a total of 451 suppliers were under monitoring.We work with IPE to coach suppliers on the impact of violations, removal methods, and continuous clearing. As many as 30 suppliers successfully removed the violation records, including suppliers of materials, equipment and services. In the process, suppliers were taught to self-check, report, and submit rectification proof for the third-party IPE to conduct environmental audit and public disclosure. The interactions amongst LONGi, IPE, and suppliers were highly effective and cooperative, creating an atmosphere for a triple-win. Suppliers learned the preventive approach to manage water, air, soil, and violations, addressing the importance of environmental protection, while also enhancing, green supply chain capabilities of LONGi.

With the environmental monitoring and supervision practice with IPE in 2023, LONGi will expand the scope of supplier supervision in 2024, and expand service and logistics suppliers in the supervision and disclosure. It has planned and completed a round of supplier carbon inventory survey on site, identified energy conservation and emission reduction projects as well as organizing empowerment training to promote suppliers to join the SBTi Initiative, supplier EcoVadis rating, supplier water questionnaire and water resource management, and EHS compliance. These measures will facilitate suppliers to pay continuous attention to the supply chain environmental performance, and to drive suppliers’ green production with green procurement. With these measures, the environmental violation information helps to alert suppliers to take prevention measures to reduce environmental pollution and emission reduction, to put environmental protection into practices, and to monitor and manage secondary suppliers’ environmental violations. Upholding sustainable procurement principles, LONGi would like to work with suppliers to further green and sustainable supply chain!