To our stakeholders:

I am pleased to confirm that Vietnam Sunergy Joint Stock Company reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Lewis Cai
CEO

At Vietnam Sunergy Joint Stock Company (“VSUN”), we believe acting ethically and responsibly is not only the right thing to do, but also the right thing to do for our business.
VSUN has developed the Code of Conduct to clarify our expectations in the areas of business integrity, labor practices, associate health and safety, and environmental management.
All employees (including temporary), agents, contractors and consultants are expected to follow this Code and the following principles:
1. Encourage a diverse workforce that is reflective of the diversity of the communities in which they operate, and provide a workplace free from discrimination, harassment, or any other form of abuse.
a. VSUN shall follow all equal employment opportunity laws, create a work environment in which employees and business partners feel valued and respected for their contributions. Harassment, including unwelcome verbal, visual, physical, or other conduct of any kind that creates an intimidating, offensive or hostile work environment will not be tolerated. Employment decisions must be based on qualifications, skills, performance, and experience.
2. Treat employees fairly, including with respect to wages, working hours and benefits.
a. VSUN shall follow all applicable legal and regulatory requirements and will follow sound employee relations practices.
b. Working hours, wages, and benefits will be consistent with laws and industry standards, including those pertaining to minimum wages, overtime, other elements of compensation, and legally mandated benefits.
3. Respect employees’ right to freedom of association and collective bargaining, consistent with local laws. VSUN shall respect employees’ rights to join or refrain from joining associations and worker organizations.
4. Provide safe and healthy working conditions.
a. VSUN shall proactively manage health and safety risks to provide an incident- free working environment where occupational injuries and illnesses are prevented.
b. VSUN must implement management systems that identify, assess, and control hazards and mitigate risks.
c. VSUN shall comply with all applicable health and safety regulations.
d. VSUN will provide education and communications to workers about hazardous materials with which they may come into contact.

Vietnam Sunergy Joint Stock Company (“VSUN”) has always insisted on people-oriented harmonious development ideas represented by rely on employees for development, develop for the benefits of employees, and share achievements with employees for the win-win future of VSUN and its employees.

What VSUN do for employees:
· improve the work environment of our staffs constantly
· care for the health and safety of employees

VSUN attaches great importance to safety in production and provides necessary PPEs, on regular basis, to our employees working on different posts; VSUN adopts accountability system for safety and environment protection issues, carries out all-round exam on the safety in production on irregular basis, and reinforces safety propaganda and trainings, so that to improve the employee’s awareness of safety in production. VSUN shows stable production, and no material safety event takes place.

· 100% of required PPEs are equipped, kept in good conditions, and used correctly.
· 100% of employees were educated, trained, and communicated with occupational disease knowledge.
· 100% of notices, warning signs, warning notices, and notification cards concerning the prevention and treatment of occupational diseases were put up correctly.

Vietnam Sunergy Joint Stock Company (“VSUN”) observes labor laws and regulations and prevents discrimination, child labor, and forced labor; VSUN safeguards the legal rights and benefits of employees and guarantees the participation of employees in democratic management and promotes the development of employees in occupation, social life, and inner world.
1. Prohibit all forms of forced or compulsory labor.
a. VSUN shall maintain and promote fundamental human rights.
b. Employment decisions will be based on free choice and there may be no coerced or prison labor, and no use of physical punishment or threats of violence or other forms of physical, sexual, psychological, or verbal abuse as a method of discipline or control.
2. Prohibit use of child labor.
a. VSUN shall adhere to the minimum employment age limit defined by applicable laws and regulations and comply with relevant International Labor Organization (ILO) standards.
b. In no instance shall VSUN permit children to perform work that exposes them to undue physical risks that can harm physical, mental, or emotional development or improperly interfere with their schooling or developmental needs.
3. Follow related national laws and regulations strictly and guarantees that the salary of VSUN employees is no less than the minimum salary standard required by the local authority.

What VSUN do for employees:
· set up smooth communication channels
· build good platform for the career development and growth of our staffs

VSUN pays the social security expenses for staffs as required by related national laws and provides welfare holidays like paid annual leave, statutory holidays and festivals, sick leave, funeral leave, marriage leave, maternity leave, abortion leave, family plan leave, home leave, and accompanying leave.

Payroll Policy: VSUN pays great attention to defend the rights and benefits of employees have established perfect recruitment and pay policies. The salary of our employees increases constantly, and stable and harmonious labor relationship is established. VSUN follows related national laws and regulations strictly and guarantees that the salary of our employees is no less than the minimum salary standard required by the local authority.

Benefits Package: To reflect the care of VSUN for the employees and further push forward the corporate cultural construction of VSUN and develop good cohesion in VSUN, statutory, unified, and diversified benefits are provided to our employees, and colorful leisure-time activities are held.

Staff Welfare: VSUN pay the social security expenses for our staffs as required by related national laws and provide welfare holidays like paid annual leave, statutory holidays and festivals, sick leave, funeral leave, marriage leave, maternity leave, abortion leave, family plan leave, home leave, and accompanying leave.

· 100% of our employees took medical exams.
· 100% of work-related injury insurance fees were paid.
· 100% of employees having occupational diseases got the insurance claims settled.
· 100% of the employees of VSUN attended employee training.
· 100% of frontline employees have obtained the work permits required for the work they were doing in VSUN.
· Women accounts for 43.6% of VSUN’s workforce, from which, 38.4% are management positions, while 33.3% belongs to the VSUN Executive Committee.
Based on which, we plan to grant 50% of our leading positions to females by 2030 (43.6% women in all employees; 38.4% women in management position; 33.3% women in executive committee).

Vietnam Sunergy Joint Stock Company (“VSUN”) emphasizes environmental protection and has fostered the development ideas of innovative, coordinated, green, open, and sharing and put ecological construction and environmental protection at a strategic height deciding the survival and development of VSUN.

We firmly insist on the route of ecology first and green development and carry forward the five-year action plan for zero emission; we reinforce source control and full-journey governance for environmental protection and push ahead energy-saving and emission reduction, disposal of solid wastes, and clean production, etc.; we highlight the eco-friendly industrial reconstruction so that to build an industrial system for green low-carbon recycling development.

Carbon Emission
VSUN’s financial department makes statistics on power consumption to calculate the emission of greenhouse gas (GHG). Meanwhile, VSUN set up regulations on GHG management of VSUN, contents including: check of GHG emission, reduction of GHG emission, compliance with the GHG requirements defined by the government and the customer, and the awareness of employees in emission reduction, etc.

With our constant efforts, the comprehensive energy consumption per 10,000-yuan output value and the total pollutant release of VSUN drops significantly and the living and work environment of our staffs is improved greatly, while the total economic aggregate rises sharply. The low-carbon and eco-friendly development thoughts and lifestyles become new fashions of VSUN.

1. Energy-saving and Emission Reduction
VSUN monitors energy consumption. By ways of pertinent monitoring, strict measures, and strong implementation, VSUN works attentively and seriously focusing on targets defined by VSUN in energy-saving and emission reduction and follow all the related energy laws and regulations.
a. Examples of Process Improvement
VSUN responds to the requirements of the central government on supply-side structural reform and explores technical reconstruction projects of energy-saving and environmental protection and finally realizes progresses in both economy and environment. VSUN saves energy and reduces emission by eliminating old-fashioned equipment featured with high pollution and high energy consumption.
b. Solar Power Generation
With the rapid growth of new installed capacity year by year, the US market is one of the most active solar markets in the world, and the strategic market for VSUN.
Although 2020 is a challenging year, VSUN has still made great achievements in the U.S. market with sales volume significantly increased. Photovoltaic modules with high-efficiency and reliability were shipped from its Vietnam production base to public utility projects in Texas, North Carolina and other regions of the United States. The project size of many of them exceeds 100MW.
2. Waste Management
VSUN strictly follows all the applicable laws and regulations forbidding or restricting the content or use of special substances and explores harmless substitutions and technologies actively.
VSUN has reduced product packing and set up recycling policies and handling channels for discarded parts and components. VSUN has also taken measures to improve processes and technologies so that to reduce and minimize GHG emission gradually on our premises and even the whole industrial chain.
As for the pollution of hazardous wastes to the environment, preventive measures are taken as the main solution, together with whole-process management and accountability by the pollutant producers. Wastes generated in the process of production are finally handed to competent authority for processing, so that hazardous wastes of VSUN can be collected, stored, transferred, and disposed properly.
3. Management of Chemicals
VSUN manages hazardous chemics by formulating regulations on the management of hazardous chemicals, building chemical warehouses, putting up GHS chemical marks, and classifying and sorting chemicals, so that to prevent the leakage of chemicals.
4. Advocate for Environmental Protection
To improve the awareness of environmental protection of all the employees and making employees protect environment in their daily life, VSUN advocates for energy-saving and emission reduction and publicizes knowledge of energy-saving and emission reduction in the office and via the bulletin board. We propose our employees to live and work in a civilized, economic, green, and low carbon way, give up bad consumption and living habits, and never waste anything. Moreover, we arrange trainings for employees to help them improve the awareness of and develop habits for energy-saving and environmental protection.
VSUN carries out green officing in all the workplaces and reduces the use of oil, electricity, and paper, classifies wastes, and adopts green IT measures to promote paperless officing, etc. We arrange tree-planting, waste-picking, and other environmental-protection activities for public benefits. Moreover, we put up marks advocating for the water-saving, power-saving, and grain saving, etc.; we advocate our employees to turn off lights whenever they leave the workplace and set the air-conditioner to proper temperature for the purpose of green officing.

· VSUN passed the ISO14001 environment management system certification.
· 100% of our staffs attended trainings (internal or external) on environmental issues.
· 100% of our workplaces went through environmental risk assessment.
· 100% of our workers on eco-related posts attended related trainings.
· 1,280,000+ additional trees planted equivalent
· *9.97 tons coal saved from power generation
· *0.30 tons Reduced sulfur dioxide offset
· *3.98 tons of additional carbon dioxide offset

*The emission reduction effect for every 10,000 kwh of PV generates to electricity is equivalent to the relevant amount.

1. Purpose
To ensure the integrity and integrity of the company's business activities or business interactions.
2. Scope of Application
This procedure is applicable to all personnel of the company.
3. Definition
Commercial bribery is the purpose of obtaining commercial transaction opportunities. In addition to the transaction, the direct or indirect payment or receipt of cash, in-kind, and other forms of cash, in-kind, and other forms of rebates, promotional fees, publicity fees, labor fees, reimbursement of various expenses, provision of domestic and foreign travel, etc. will all been sees as an act of unfair competition for interests.
4. Responsibilities
a. The Risk Control Department is responsible for handling all corruption/bribery related matters.
b. The person in charge of each department is responsible for the supervision of the daily work of the employees of their respective departments.
c. The person in charge of the Risk Control Department is responsible for the collection, sorting and regular update of relevant laws and regulations; handling daily corruption/bribery reports and reports, assisting the general manager in investigations, and keeping relevant investigation and handling records.
d. The person in charge of the Finance Department is responsible for supervising all aspects of the use of corporate funds to prevent the loss and waste of corporate assets.
e. All employees are obliged to abide by the relevant company regulations and report or secretly report all violations of company policies.
5. Working Procedures
a. Business Integrity
a) The company focuses on business integrity. Employees must abide by business ethics in their business activities on behalf of the company.
b) The company's funds and assets can only be used for legal and legitimate company purposes. All forms of corruption, extortion and misappropriation are strictly prohibited. The right to pursue legal rights and responsibilities is reserved depending on the severity of the situation.
b. No Undue Interest
a) When dealing with current or future potential customers, suppliers, contractors, or competitors, employees must consider the best interests of the company, refrain from seeking personal gain, and avoid any incidents that may involve conflicts between personal interests and the company's interests. If there is any situation that may involve a conflict of self-interest (including oneself, spouse, parents, children, or relatives), employees must truthfully report to the immediate supervisor and take appropriate avoidance measures.
b) Without the consent of the top supervisor of the management team, employees may not accept gifts, treats, entertainment or other rewards from individuals or organizations that have business dealings with or seek business contacts with the company, nor can they accept those from competitors. When it comes to suppliers, particularly strict standards are followed.
c) With the approval of the top supervisor of the management team, employees who accept or give gifts or entertainment in line with business practices must meet the following conditions:
i. Comply with business practices.
ii. The value should not be high and will not be regarded as a bribe by others.
iii. Do not violate laws and ethical standards of conduct.
iv. Once it is made public, it will not cause the company or employees to fall into an embarrassing situation.
v. The gift items received are handled by the company in an open and transparent manner.
c. The company regularly supervises employees to abide by the ethical standards, and in any of the company's business processes and business activities, there must be no corruption, bribery to customers, suppliers, or related parties, or accepting improper benefits, which damage the company's interests and image. The company prohibits employees from having the following but not limited to the following behaviors in any of the company's business and commercial activities:
a) Invite or accept abnormal business entertainment, banquets, etc.
b) In violation of the regulations, give cash or goods to the related unit and its related personnel in the form of a bonus.
c) Extortion, fraud, extortion of customers, suppliers, internal employees, and other legitimate interests of any related party.
d) In the name of donation, obtain transactions, service opportunities, preferential conditions, or other economic benefits.
e) Provide commercial sponsorship or tourism and other activities that violate the principle of fair competition.
f) Provide various membership cards, consumer cards (vouchers), shopping cards (vouchers) and other securities.
g) Provision and use of houses, cars, and other items.
h) Giving and receiving property or other benefits under the guise of promotion fees, publicity fees, advertising fees, training fees, consultant fees, consulting fees, technical service fees, scientific research fees, clinical fees, etc. through gambling.
i) Embezzlement of company cash, raw materials, accessories, products or other forms of company property.
j) Other violations of laws and regulations.
d. A commitment system to prevent commercial bribery is implemented for personnel in key departments and positions, who must sign the "Employee Integrity Statement".
e. Customers, suppliers, service providers, and contractors who have business dealings with the company must also have clear clean government clauses in the business contracts signed with our company.
f. In carrying out the management of commercial bribery, the company's management department and relevant departments should strengthen information communication and cooperate with each other.
g. Key points of anti-bribery and anti-corruption management and control
a) Set up a suggestion box or report box, and announce the telephone number and email address of the tip-offs.
b) Promptly deal with the problems found in the prevention and anti-corruption and commercial bribery work. It is necessary to promptly stop or deal with violations of discipline and regulations that are discovered and report the situation to the relevant departments. Those suspected of crimes should be transferred to the judicial organs for handling.
c) All departments of the company shall strengthen the management of personnel in important positions and use their implementation of the "Anti-Corruption and Anti-Bribery Commitment" as an important content of inspection and assessment and an important basis for appointment and removal.
d) Personnel in important positions of the company who violate this procedure shall be dealt with according to the severity of the violation in accordance with relevant regulations.
e) For company personnel dealing with the company's economic activities that violate the anti-corruption and anti-bribery clauses, they shall be resolutely disqualified as suppliers and service providers. Those that constitute commercial bribery, bribery, or crime shall be handed over to the judicial organs for criminal responsibility.
h. VSUN encourages employees and companies with business dealings to report and expose corruption, and takes protective measures to ensure that they will not be attacked and retaliated by relevant personnel for reporting behavior.
a) All links such as the acceptance and investigation must be kept strictly confidential. It is strictly forbidden to disclose the name, department, and company name of the whistleblower.
b) It is strictly forbidden to disclose the report to the person or department being reported.
c) When investigating and verifying the situation, the original or copy of the reporting materials shall not be presented, and the informant shall not be exposed.
d) Handwriting identification is not allowed for anonymous report letters and materials.
e) Reporting materials shall not be borrowed.
6. Relevant Documents and Records
a. "Employee Integrity Statement"
b. "Anti-Corruption and Anti-Bribery Commitment Letter"
7. The company's Compliance Department is responsible for the formulation, interpretation and modification of this regulation.
8. This regulation shall be implemented from the date of issuance

1. Anti-corruption Training
VSUN insists on honest and legal business and abides by business ethics, aiming to constitute a real consortium of shared liability and create harmonious business environment. VSUN has integrated these requirements into our daily operation, with the purpose of realizing sustainable development goals.
2. Information Security
VSUN has established the enterprise information security management system to prevent invasion on one hand and leakage on the other hand. In this way, information and information system of VSUN can be kept from unauthorized access, use, leakage, interruption, alteration, or damage. Confidentiality, completeness, truthfulness, availability, and undeniability of business information and information system of VSUN can be guaranteed and no data will be lost in case of failure or catastrophic events.
To protect the privacy and information security of customers, VSUN adopts the information security management policies and assigns specific employee to take care of customer data and a confidentiality agreement is signed with employees on critical posts.

VSUN has set up Signboard for Reporting for anonymous report.
Internal audits work hard to ensure consistency with anti-corruption commitment, and report to senior management team regularly, which has also been inspected by third party yearly as well.
The confidentiality agreement of the Company covers 100% of our employee, which guarantees the reliable security of customer information and we had 0 lawsuit due to the leakage of customer information.