Dahua takes environmental protection with utmost importance. Aside from providing green products and enriching the green and low-carbon attributes of its product offerings, the company also continuously strengthens its environmental management capabilities across three main operational aspects: green manufacturing, green logistics, and green office. In this article, we'll delve deeper into Dahua's sustainable initiatives to achieve green operation and how the company reduces its carbon emissions.

Green Manufacturing

Dahua's 2023 Environmental, Social and Governance (ESG) Reporthighlights the company's energy conservation and emission reduction efforts in its production and manufacturing processes. The company implements intelligent and refined management of energy consumption to consistently enhance the efficiency of recycling raw materials and water resources. In addition, Dahua also prioritizes the compliant and harmless disposal of all types of waste generated during production in order to establish green factories.

Dahua's energy management systemenables online real-time monitoring of electricity, gas, and other energy consumption measurements and billing, along with reporting analysis and energy consumption data. An energy consumption data dashboard for Dahua's enterprise parks was established to enable real-time monitoring of energy consumption, providing precise data support for targeted improvements in energy usage efficiency. An intelligent energy consumption system for the park was also deployed to accurately identify high energy consumption points (or inefficient electricity usage methods) and calculate their corresponding carbon emissions.

In addition, Dahua has also upgraded the equipment in its enterprise parks to lower their carbon emission and save energy. It includes:

• Intelligent methods to set timed temperature adjustments and air conditioning shutdown strategies.
• Installation of motion-sensing radar above the stadium to monitor whether there are people on the premises in real-time, enabling automatic light shutdown when the area is vacant, and achieving an estimated annual electricity savings of approximately 62,000 kWh.
• Utilization of residual heat from workshop air conditioning boilers in the Fuyang factory to heat water tanks for the employee dormitories.
• Upgrade streetlights by replacing energy-saving and fluorescent lights with 26W LED lights, providing an estimated annual electricity savings of approximately 13,880 kWh.

Dahua also constructed the Dahua Cloud Platform that integrates cloud computing, big data, and data centers. In 2023, the platform's data centers continued to optimize and integrate server resources, reducing the dependence of cloud products on hardware and decreasing the demand for server procurement by 27%.

In terms of water management, Dahua has established a strict water management system in accordance with the production process and relevant local laws, regulations and standards. This system ensures the scientific and rational use of water while comprehensively enhancing water utilization efficiency. Implemented initiatives water balance testing, water usage monitoring, and water-saving renovations.

For production resource management, Dahua utilizes digital-intelligent technologies to optimize the use of production materials, minimize resource waste and explore product recycling systems. In 2023, Dahua optimized its production line configuration based on the order structure, and combined equipment resources to schedule products that can be batched together in advance. These efforts increased the batching rate from 3% to 18%, reduced downtime due to line changes by 2,885 hours, and improved equipment utilization by 1.05%. Also, Dahua recycle, dismantle, and reuse returned products and scrapped materials in a compliant and refined manner, recycling 14 types of materials (weighing 1,663 tons in total) from returned goods in 2023.

Dahua's emission managementhas also played a pivotal role in achieving green production. Following its comprehensive and compliant waste management system (e.g. waste gas management, wastewater management, solid waste management), the company exercise stringent control over the generation, handling, and discharge of wastes during production and operations. All production wastes meet the environmental standards of the operation locations before implementing waste and emission reduction initiatives, effectively driving forward green manufacturing throughout the industrial chain.

Green Logistics

Dahua constantly collaborates with its partners in the industry to collectively establish a green and intelligent logistics system. This system spans the entire industry chain, encompassing upstream supplier material supply, internal warehouse management, and product distribution and transportation. It enhances the efficiency of the industry chain while simultaneously achieving energy conservation and emission reduction.

To achieve its green transportation goals, Dahua has implemented various optimization in its logistics processes, including:

• Full-process Tracking: Dahua collaborates closely with logistics companies to monitor the real-time routes and operational status of transportation vehicles. Through big data analysis and cloud computing, transportation routes are optimized to improve transportation efficiency while reducing energy consumption caused by detours, transfers, and traffic congestion.
• Delivery Waybill Optimization:Through data exchanges between Warehouse Management Systems (WMS) and Transportation Management Systems (TMS), order information is electronically transmitted to logistics companies. Dahua's logistics sorting labels and network waybill labels are integrated into a single label, allowing logistics companies to directly input the information into the network without the need for secondary labelling, efficiently reducing resource usage and the negative environmental impact of adhesive.
• Specialized Vehicles for Large Items:By setting a weight baseline in the SCP system, shipments meeting the criteria are automatically intercepted and identified in the system. This allows large shipments to be directly converted into specialized vehicle deliveries, reducing intermediate transportation links, shortening transportation cycles, and achieving energy conservation, emission reduction, and cost reduction in the transportation process.

Moreover, an Intelligent Distribution Centerwas established for green warehousing, utilizing algorithm models for inventory distribution, wave formation, and AGV scheduling. It is equipped with automated equipment such as automatic conveyors, AGVs, lifts, automatic measurement devices, heat sealing packaging machines, and RFID systems. In total, 376 AGVs in both raw material and finished product warehouses were deployed to achieve unmanned operations. The floor area of the dark warehouse has increased from 100,000 square meters to 120,000 square meters, saving energy costs of RMB 900,000 per year. What's more, commonly used wrapping films in warehouses were replaced with reusable straps (for medium- to short-distance transportation) to secure the entire pallets. Packaging sharing programs and recycling turnover boxes were also implemented. Same orders are also packaged together to reduce the use of cardboard boxes.

Green Office

While promoting green production, Dahua also places great emphasis on improving management and implementing measures for green offices, with the objective of establishing a green industrial park. The company has introduced various energy-saving equipment in the park and provided environmental protection training and awareness campaigns for employees.

In its new industrial park, Dahua has implemented a smart lighting systemequipped with dimmable lights and motion sensors. In common areas such as elevator halls, pantry areas, corridors, and meeting rooms, the lighting intensity can be adjusted based on natural light levels, ensuring that lights are only on when people are present and turn off when the area is vacant. This system activates lights in the underground parking lot within the visual range of 30-50 meters upon detecting movements from people or vehicles. When the vehicle leaves or pedestrian departs, the lights automatically dim to reduce energy waste while ensuring adequate illumination for safe passage.

Signs were also placed in the office areas to encourage employees to use water wisely and reduce waste. To avoid water waste from automatic flushing systems, the restrooms in the new building have been equipped with manual flushing ones. Furthermore, relevant energy saving and consumption reduction signs were also posted within the park's premises to promote environment conservation awareness.

To learn more about Dahua's Green Operation and other ESG initiatives, please visit the official webpage here.

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