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Build Responsible Supply Chains

Adhering to the IATF 16949 management system, Ganfeng Lithium creates responsible supply chains. In 2021, the Company implemented a more stringent procurement policy. We informed upstream suppliers about the concept of sustainability and the requirements for it, and we asked them to commit to clean production, legal labour, safety and environmental protection, and anti-corruption. By engaging with suppliers, we have reduced social and environmental risks in the industrial chain and developed responsible supply chains.
The Company has put in place a system for supplier development, evaluation, judgment, admission, and management that strictly adheres to the Administrative Measures for Bidding, Negotiated Tendering, and Contract Review, as well as the Supplier Management Procedures. With this action, the Company ensures that supplier management continues to develop as the business grows. The Company has 544 suppliers from Jiangxi Province, 2,965 from other areas of China, and nine overseas suppliers by the end of 2021.

Build Sustainable Supply Chains

Because it is closely tied to the growth of the new energy industry, Ganfeng Lithium places a high value on securing lithium supply chains. We buy environmentally friendly products and include sustainability in our procurement process. To guide and regulate suppliers' behaviour in law-abiding operations, employment compliance, resource consumption, pollution control, health and safety, and business ethics, we developed the Code of Conduct for Suppliers. Ganfeng Lithium adheres to sustainability-oriented responsible supply chain decision-making, explores ways of shaping responsible supply chains, transfers corporate responsibility from the upstream to the downstream of the industry chain, mitigates social and environmental risks, and ensures that both industrial economic value and environmental value can be realized.
The Company updated the Due Diligence Management Control Procedures for Responsible Mineral Supply Chains and other documentation in 2021, headed by the Company’s Due Diligence Management Team for Responsible Supply Chains, and advanced the due diligence management of lithium supply chains. The Code of Conduct for Suppliers incorporates Ganfeng Lithium’s standards for suppliers to guide and regulate upstream lithium mine suppliers’ behaviour. It encourages them to adopt more environmental and social obligations. The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, the Guidelines for Social Responsibility in Outbound Mining Investments, and the Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains are used to manage the sustainability of lithium raw material supply chains. The Company has consistently followed the “five-step process” in due diligence management of lithium supply chains and the supplier management principles of “transparency in the supply chain, responsible procurement, no human rights issues, and minimum environmental impact”. To maintain secure lithium supply chains, we review supplier information on a regular basis to understand their links, such as raw material mining, shipping, and processing.
The Company has invested in and engaged in lithium mining rights projects in Australia, Argentina, Mexico, and Ireland, as well as negotiated off-take agreements with them, in order to ensure upstream lithium supply chains. By the end of 2021, the Company had procured all of its raw materials directly from the mines in which Ganfeng Lithium had stakes, with no artisanal mining or procurement through middlemen. We can reduce the risk of conflict minerals by ensuring clear source of mineral sources, well-defined transit routes, manageable hazards, and traceability through equity and off-take agreements.

Ganfeng Lithium Pledges

Where identifiable：

?To not use minerals from Risk I territories1
To control and continuously improve the use of minerals from Risk II territories2
To prioritise the use of internationally available list of legal minerals
To identify, manage and avoid serious human rights violations in business activities
To identify, manage and avoid direct or indirect support to illegally organised armed groups and public or private security forces in business activities
To eliminate corruption, money laundering and other corrupt practices in business activities
To protect employees' occupational health and safety

III. Review of appeals?

1. A complaint shall be admissible if: It?is related to the due diligence management of the supply chain of Ganfeng?Lithium, including any identified risks; It could identify deficiencies, inconsistencies or deficiencies in the due diligence system; Including sufficient objective evidence to reasonably support the allegations of the complainant; It violates the requirements of the Human Rights and Labor Practices Policy and the Environment, Health and Safety Policy; It violates the requirements of the Code of Business Ethics and Conduct; Submit in good faith

2.A complaint shall not be accepted if: It is irrelevant to the due diligence management of the supply chain of Ganfeng?Lithium; It is related to issues other than control, influence or responsibility of Ganfeng?Lithium; It lacks sufficient objective evidence to support the complaint reasonably; It is not submitted in good faith.

3.All complaints must be based on facts and truthful contents. Assumptions and false contents shall not be used as the basis for complaints. No malicious attacks and slander shall be allowed.

Ⅳ.Handling of complaints?

If the complaint does not meet the conditions of Item 1, Ganfeng?Lithium?will notify the complainant of the decision, including the reasons for Ganfeng's refusal to appeal.

If necessary, Ganfeng?may advise the complainant to submit the complaint to other parties. If applicable, Ganfeng?will inform the complainant of the complaint mechanism of the specific certification scheme related to the complaint. Once the complaint is accepted, Ganfeng?Social Responsibility Office will organize relevant departments to investigate all the elements of the complaint and inform the complainant of the investigation results and the corrective measures (if any) determined for resolving the complaint within 7 working days (the results shall be notified in a manner consistent with the confidentiality policy). Ganfeng?Lithium?takes one of the following actions to address each complaint: Acceptance of complaints and adopting corrective action Acceptance of complaints and not adopting corrective action Dismissing complaint Publish the outcome or inform the complainant

Ⅴ.Confidentiality of information?

After receiving the complaint information, the social responsibility office shall be responsible for the preservation of the information, the transmission of the information review, and the processing and feedback of the information. Disclosure to persons outside the office is prohibited without the consent of the person in charge of the director's office. If there is a violation, the related party shall be punished in accordance with the company's regulations on rewards and punishments.?

Ⅵ.Complainant protection?

The handling personnel shall keep the complaint information strictly confidential. The complaint materials shall be strictly managed as confidential information, and no one may access them without the approval of the company's main leader or the leader in charge. It is strictly forbidden to transfer the complaint materials to the respondent, or to retaliate against the whistle-blowers. The relevant party shall protect