1、55Ians Address to 2022Environmental,Social&Governance Report2022ContentsLetter from Managing Partner01Align with UN Sustainable Development Goals0809ESG Management System10ESG Key Indicators in Investment Procedures11Sustainable Strategy&Management System0711NIO Capital Managing Partner Participated

2、 in COP271819Our Carbon Profile2021The Path to GreatNIO Capital CEO Club2223Resilient Team&Sustainable Family24Firm-Level Reporting&Database1724Get to Know NIO Capital0206NIO Capital Leads Sustainable Investment in China0304Mission,Vision&Values0506Portfolio-Level Reporting&Database1216Drive for Car

3、bon Neutrality1316NIO Capital Environmental Social&Governace Report 202201Letter from Managing PartnerThe year of 2022 was full of challenges and evolution.Despite the impact of the pandemic,we continued our eff orts to invest in forefront companies in decarbonization and digitalization,while simult

4、aneously creating signifi cant values with our companies for the environment and society.At NIO Capital,we are committed to promoting sustainable and responsible practices throughout our organization,and aligning our contributions with global common objectives,such as the UN Sustainable Development

5、Goals(UN SDGs)and the Paris Agreement.Since inception,we recognize that integrating environmental,social,and governance(ESG)considerations into our investment decisions is not only the right thing to do,but also makes good business sense.We build our ESG management system in line with high-level glo

6、bal institutional standards and measure our impact with reference to the European Unions Sustainable Finance Disclosure Regulation(SFDR).By benchmarking these global standards,it allows us to achieve remarkable fi nancial performance and make signifi cant contributions to combating climate change.We

7、 have also been working closely with our portfolio companies to support their ESG eff orts and drive positive changes in their industries.We believe a respected leader in the industry should stand out not only in technology advancement and business growth,but also in good governance and positive soc

8、ial impact.In 2022,we are thrilled to fi nd our companies collectively saved more than 7.4 million tons of carbon emissions,meanwhile,making strides in promoting diversity and inclusion.We have no doubt that our companies will grow to set industry standards and create sustainable impact throughout t

9、he supply chain and ecosystem as a whole.As we continue to navigate a rapidly changing world,we recognize that there is still much work to be done.At the 27th United Nations Climate Change Conference(COP27)in 2022,we witnessed the demand for clean and innovative technologies to fi ght against climat

10、e change while maintaining economic development.As an investment fi rm,we feel responsible to mobilize changes,commercialize critical technologies,and generate substantial value for our investors,partners,and the society.Ian ZhuManaging Partner55Ians Address to 2022Get to Know NIO CapitalNIO Capital

11、 Environmental Social&Governace Report 202203NIO Capital Leads Sustainable Investment in ChinaNIO Capital is a Chinese private equity fi rm established in 2016,investing in themes reshaping the energy and automobile industries.With core strategies focusing on Digitalization and Decarbonization trans

12、formation of scalable industries,NIO Capital leads sustainable investment,ESG management system and climate advocacy in China.As of March 2023,we manage fi ve institutional funds with over 2 billion USD total AUM.Riding the wave of worldwide rapid adoption of electric vehicle and clean energy,NIO Ca

13、pital dedicates to making our contribution to the Paris Agreement target by supporting disruptive technologies and business model innovations.In 2020,NIO Capital established and issued our Environmental and Social Management System(ESMS),benchmarking international top-tier requirements.The policy wa

14、s updated on an annual basis to refl ect our upgrade in investment strategy and ecosystem,and identify potential ESG-related risks and impact on portfolio companies.With our persistent eff orts in investment,proprietary ecosystem,unparalleled industry networks and deep sector expertise,NIO Capital c

15、ontinues to foster great companies and create long-lasting values for the industry.BeijingShanghai(HQ)Get to Know NIO Capital04NIO Capital Leads Sustainable Investment in China1.NIO Capital USD Funds include the Eve ONE series and NIO Capital Opportunity Fund(NCOF).20020201920212022NIO Ca

16、pitalFoundedRMB Fund IEstablishmentEve ONE Fund I Launch1 Eve ONE Fund II&NCOF1 LaunchRMB Fund II EstablishmentStart from Electrification Forward-Looking on Intelligence Expand Ecosystem in Decarbonization&DigitalizationNIO Capital Environmental Social&Governace Report 202205Invest in Innovations an

17、d Sustainability to Advance Humankind.Pursue ExcellenceLead with IntegrityThink Long TermTake InitiativeCare for PartnersSucceed as TeamMISSION&VISIONVALUESPursue ExcellenceWe strive for top performance and relentless improvement.We are always looking at how we can do better and holding each other a

18、ccountable for excellence.We take the long-term view of all decisions that we make.Our choices,whether its about an investment or a collaboration,refl ect a 10-year horizon looking at a sustainable future.Think Long TermWe carefully chose our colleagues and partners.We give feedback,provide room for

19、 people development and take responsibility for our own growth.Care for PartnersWe do things the right way,not the easy way.We demand openness and intellectual honesty because this enables us to do the right thing.Lead with IntegrityWe act,take smart risks to win,and be responsible for our results.T

20、ake InitiativeWe value collective contribution rather than individualism.Company results come before team and individual interests.Succeed as Team55Ians Address to 202255Ians Address to 2022Sustainable Strategy&Management SystemSustainable Strategy&Management System08Align with UN Sustainable Develo

21、pment GoalsNIO Capital focuses on Automobile and Energy,the foundations of the industry and economy,and shifts both to climate-friendly regarding production,distribution and consumption.We create economic values to our investors,as well as social values to our community.Decarbonization Digitalizatio

22、nBig DataAI5GSemi-conductorCloud ComputingNew EnergyAutomationNew MaterialsElectric VehicleBattery TechAutoLogisticsServicesManufacturingEnergyNIO Capital Environmental Social&Governace Report 202209Build resilient infrastructure,promote inclusive&sustainable industrialization&foster innovation.Ensu

23、re sustainable consumption and production patterns.Ensure access to aff ordable,reliable,sustainable and modern energy for all.Make cities and human settlements inclusive,safe,resilient and sustainable.Promote sustained,inclusive&sustainable economic growth,full&productive employment and decent work

24、 for all.Industry Awards&Recognition in 2022Special Contribution in ESG By 21st Century Private Equity&Venture Capital Competitiveness Study&RankingESG Best Practice Award for Chinas VC Firms By CYZONE 10Sustainable Strategy&Management SystemESG Management SystemESG CommitteeESG Evaluation Embedded

25、in the Due Diligence ProcessESG Monitoring Throughout Portfolio ManagementEmpower Portfolio Companies in Sustainable DevelopmentAuthorityEvaluationMonitoring&ReportingValue CreationAn ESG Committee led by the Managing Partner was formed to facilitate company-level implementation of the ESG policy In

26、itial screening will be conducted based on NIO Capitals restricted investment list Initial analysis of ESG risks shall be presented on the fi rst IC Further information will be collected during the further due diligence process post the fi rst IC gate to comprehensively understand the companys ESG m

27、erits,potential risks&mitigation ESG analysis results will be presented on the fi nal IC together with other due diligence outcomes Key items identifi ed during the due diligence process will be tracked throughout the portfolio management process with periodic review NIO Capital requires all portfol

28、io companies to submit relevant data and supporting documents on certain ESG metrics NIO Capital issues ESG report annually to the public and investors to record our footprint and share our practices NIO Capital publishes GRM channel on the webite to receive social monitoring Introduce relevant reso

29、urces to companies leveraging our strong and unique ecosystem Provide trainings and knowledge sharing sessions to guide companies Help identify risk profi le and advise on solutionsNIO Capital Environmental Social&Governace Report 202211ESG Key Indicators in Investment ProceduresGuided by our ESG Po

30、licy,we created the ESG Assessment to preview and track ESG performances of each investment.Sections Covered ESG Commitment&GRM Labor,Working Conditions and OHS Environmental Protection&Biodiversity Conservation Community Responsibilities Land Acquisition&Cultural Heritage Business Ethics&Reporting6

31、Negative-Screening Industries14Items in Pre-Investment Screening60+Industries Included in Categorization100+55Ians Address to 2022Portfolio-Level Reporting&DatabaseNIO Capital Environmental Social&Governace Report 202213Drive for Carbon NeutralityGlobal warming is already impacting our lives and eco

32、nomic activities.We have seen international collaborations to tackle it.Domestically,Chinese top leader has announced the countrys pledge to be carbon neutral by 2060.This long-term ambitious nation-level goal is to support the international common target towards fi ghting against climate change.And

33、 globally,the Paris Agreement,also known as the Paris Climate Accord,was adopted by 196 countries at the 21st United Nations Climate Change Conference(COP21)in 2015.The parties agreed to limit global warming to well below 2,preferably to 1.5,compared to pre-industrial levels.These goals require tech

34、nological innovations and vast investments in all economic sectors globally.NIO Capital dedicates to making our contributions in mitigating climate change and helping vulnerable groups in adaptation.From day one,we invest in companies that have great potential to make our energy systems,transportati

35、on,and daily lifestyles clean and resilient.Now,we are leading the sustainable investment in China and are delighted to generate positive impact together with our portfolio companies.Portfolio-Level Reporting&Database14Carbon Emissions Reduction ProfileCarbon saved by adopting our portfolio companie

36、s products or services(tCO2e)202120221,145,147918,010Carpool Services1,042,1852,159,000Energy Services601,1661,479,909Energy Storage930,2582,041,624EV Charging Operation56,860376,825Battery Swapping82,327221,053Auto Parts Recycling52,452206,460Lightweight Solar MaterialNote:The data is calculated ba

37、sed on companys reporting,industry data and market common practices for the best estimation.NIO Capital Environmental Social&Governace Report 202215Portfolio Carbon Emission Database1Total Emissions:59,841 tCO2e41%908CompaniesHoursThough many of our portfolio companies are at early stage,we encourag

38、e them to train the management team regarding climate,responsible production,etc.41%of the companies provide ESG training to the management team in 2022.73%47%CompaniesCompaniesNIO Capital believes that a good ESG management system helps our portfolio companies to grow.73%of companies review their s

39、upply chain annually in production qualifi cation,safety,and compliance,etc.NIO Capital encourages portfolio companies in environmentally friendly activities.In 2022,47%of companies adopted various energy and water saving,production efficiency improvement,renewable energy replacement methodologies.I

40、n 2022,our portfolio companies collectively spent 908 hours in training management teams and employees on ESG knowledge sharing and risks identifi cation.gCO2e/RMBCarbon Intensity:11.This database covers scope 1 and scope 2 emissions of Eve ONE Fund I,Eve ONE Fund II and NCOF portfolio companies.Por

41、tfolio-Level Reporting&Database16Labor,Equity&Social Care1,463,521RMBIn 2022,our portfolio companies donated 1,463,521 RMB to support poverty alleviation,children education,and care for disabled people.12,78130%Full-time Employees(FTE)Female-FTEPortfolio companies have 12,781 employees in total from

42、 a global talent pool.Among them,8,874 people are from Eve ONE Fund I and 3,970 people are from Eve ONE Fund II.NIO Capital advocates for gender equity for our investment ecosystem.In 2022,30%of full-time employees are women.In addition,we have 24%of female representatives in the management team,22%

43、of female representatives in the C-level senior positions,and 14%of female representatives seating on boards of portfolio companies.5,632100%New Jobs CreatedEmployee TrainingDespite the challenging environment,our portfolio companies strived to achieve solid business milestones and created high-qual

44、ity job opportunities for society.Smart companies grow with the employees together.In 2022,100%of our portfolio companies provide working skill,health,and cultural training for employees,aiming at shaping a competitive team equipped with humanistic care.55Ians Address to 2022Firm-Level Reporting&Dat

45、abase18Firm-Level Reporting&DatabaseNIO Capital Managing Partner Participated in COP27In November 20,over 100 heads of state and more than 35,000 delegates from NGOs,research institutions,and fi nancial sectors gathered in Egypt for the 27th United Nations Summit on Climate Change,also known as COP2

46、7.This annual conference is the largest gala on earth for countries to discuss climate change mitigation.Kyoto Protocol was adopted in 1997 at COP3 and,subsequently,Paris Agreement was signed by 196 countries in 2015 at COP21.The Paris Agreement set a goal to limit global temperature rises to well b

47、elow 2 above pre-industrial levels and pursue eff orts to limit the increase to 1.5.The world is getting to realize that this goal could not be achieved without technological revolutions.On the Multilateral Development Banks(MDB)Pavilion,our Managing Partner Ian Zhu joined the panel hosted by the As

48、ian Infrastructure Investment Bank(AIIB).The panel themed“Unleashing the Power of Climate Tech”gathered a few experienced and impactful investors globally to discuss the role of technology innovations in energy transition and carbon emission reduction.NIO Capital Environmental Social&Governace Repor

49、t 202219Zhu said,that Digitalization and Decarbonization are two crucial ways of climate tech.In Digitalization,NIO Capital invested in the electrifi cation of the drivetrain.With the rapid increase of New Energy Vehicle(NEV)penetration rate,we foresee a major trend of digital transition in every as

50、pect of transportation industry.Meanwhile,the growing number of electric vehicle mutually promotes the development of renewable energy.Zhu believes that discovering new technologies and supporting their commercialization has become the core capability and contribution of an investor.Energy and trans

51、portation sectors are some of the biggest contributors to the carbon emissions of China.NIO Capital is devoted to investing in disruptive technologies that will solve some parts of the problem.Ian ZhuFirm-Level Reporting&Database20Our Carbon ProfileESG investment has been in NIO Capitals genes since

52、 our inception.We are keen to talk to partners and align with international standards in the sustainability arena.In October 2022,NIO Capital is delighted to become a signatory of Initiative Climat International(iCI),a global community of private market investors who seek to display leadership in im

53、proving the industrys understanding and management of the risks and opportunities associated with climate change.iCI is a supporting partner of The Investor Agenda and,is a UN PRI-supported initiative.Since its inception after the launch of the Paris Agreement,iCI has gathered 206 members globally w

54、ith over 3 trillion USD under management.Initiative Climat International SignatoryNIO Capital Environmental Social&Governace Report 202221In May 2022,iCI and ERM launched a new standard for the private equity sector to consistently track,audit,and report greenhouse gas(GHG)emissions.Following the gu

55、idance,NIO Capital initiated the new carbon tracking program internally to calculate and report our carbon footprint.In 2022,NIO Capital as the fi rm generated 3,605 tons of carbon emission,of which 99%was fi nanced emissions from portfolio companies.For Scope I,we adopted electric vehicle which sav

56、ed around 7 tons of carbon emissions as compared with fuel vehicle.Scope I:Emissions from combustion in owned or controlled boilers,generators,vehicles,as well as process and fugitive emissions.Scope II:Emissions from purchased electricity,heating,cooling and steam.Scope III:Financed emissions-The t

57、otal scope 1 and 2(and scope 3 optional)emissions of portfolio companies attributed to the GPs share of value and debt;Operational emissions-GPs business travelOur Carbon FootprintOn GP-LevelGP Level Carbon Emissions(tCO2e)Scope I 13,5987Scope II(Location Based)Scope IIIOwened/leased Vehicles1Electr

58、icity ConsumptionOperational Emissions 19Financed Emissions23,579 171.We use Electric Vehicle so that the carbon emission is minimum2.Share of portfolio companies scope I and II tCO2e22Firm-Level Reporting&DatabaseThe Path to Great NIO Capital CEO Club NIO Capital CEO Club as launched in 2021 aiming

59、 to provide organizational empowerment and link industry resources to help companies achieve innovative businesses and breakthrough growth.The vision,ambitions and execution capability of the CEO are key to the success of startups.Striving to become the most trusted partner for our portfolio compani

60、es in value chain,NIO Capital facilitates inspiring interactions among the ecosystem and provides various resources along the entrepreneurial journey.Together we build the blue earth and enlighten the future of the community.William shared his heartfelt journey during the past 7 years as the founder

61、 and CEO of NIO Inc.92 senior executives from 43 portfolio companies participated.A series of events held monthly to share precious knowledge and experiences.100+senior executives from 60+portfolio companies participated.Key topics include:ESG Investing&Sustainability IPO&ESG Communications Macroeco

62、nomy Trend European Energy IndustryCEO Thematic SalonEngage in EnlightenmentNIO Capital Environmental Social&Governace Report 202223NIO Capital celebrated our“Five and Beyond”5-Year Anniversary in August 2022.We released an Investment Outlook Whitepaper to share our vision and views of digitalizatio

63、n and decarbonization.NIO Capital launched From Tech Geek to Great Leader training programs in 2022.We accompany entrepreneurs to become more outstanding leaders and organizations to grow and develop in a healthy way.Our camp includes Becoming an Outstanding Leader and Building Sustainable Organizat

64、ion.Belief in Sustainable FutureInvestment Outlook WhitepaperEntrepreneur Leadership Camp24Firm-Level Reporting&DatabaseResilient Team&Sustainable Family55%LEED 222Female-FTECertifiedkg CO2eNIO Capital has 55%female full-time employees by the end of 2022NIO Capitals officies in Shanghai and Beijing

65、acquired Leadership in Energy and Environmental Design(LEED)Advocating for no plastic pollution,we abandoned all plastic bottle water in office.In total,we have potential to save 222kg CO2 in one year.313,950PointsWe care for employee health and proactively encourage fi tness activities.In 2022,we a

66、warded 313,950 points to employees with good fi tness record.NIO Capital Environmental Social&Governace Report 202225This report covers portfolio companies in Eve ONE Fund I,Eve ONE Fund II and NCOF.If not stated otherwise,our carbon emission data covers scope I and scope II.For public-listed compan

67、ies,we provide public information extracted from fi lings,news,and other media.Reporting ScopeThis report cannot be copied,revised,or distributed without written consent from NIO Capital.Scope of UseIf you have any questions regarding the report,please contact ContactData in this report is generated

68、 from portfolio companies reporting or public information,with reasonable calculations or best estimations based on industry common practice or scientifi c research.NIO Capital does not guarantee on the accuracy or completeness of the data presented.The information and opinions in this report do not

69、 constitute any recommendation,purchase or sale of any fund,equity product or other investable underlying assets.Historical data of the portfolio companies mentioned in this report is for illustrative purpose only and should not be considered as indicators of current or future performances.NIO Capital holds interpretation rights of this report.Disclaimer55Ians Address to 2022