2022 ENVIRONMENTAL, SOCIAL 
AND GOVERNANCE REPORT
ESG
DAQO NEW ENERGY CORP.

06
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04   
	
Message from the Chairman
06   
	
About this report  
09   
	
ESG Performance Highlights 2022
10   
	
About Daqo
	
Company Profile
	
Business Overview
15   
	
1. 	Governance
16   	
	
1.1 Lean Governance
23   	
	
1.2 ESG Governance
28   
	
2. 	Social
29   	
	
2.1 Commitment to Innovation and Quality
46   	
	
2.2 Talent Development
62   	
	
2.3 Giving Back to Society
66   
	
3. 	Environmental
67   	
	
3.1 Responding to Climate Change
72	
	
3.2 Environmental Management
78	
	
3.3 Resource Management
80   
	
4. Appendix
80	
	
GRI Standards Content Index
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    CONTENTS
CONTENTS
3

Through vigorous and determined efforts, we 
will continue to apply our green solutions and 
initiatives on a global basis to enhance our 
own sustainability as well as that of the wider 
industry and society, injecting new impetus into 
the global new energy revolution. 
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    MESSAGE FROM THE CHAIRMAN
4

Since its establishment as one of China’s first 
solar photovoltaic (PV) high-purity polysilicon 
manufac turers, Daqo New Energy Corp. has 
made “Dedication to Clean Energy and Green 
Development ” its core philosophy, steadily 
carried out R&D and capacity enhancement, and 
continuously improved deliverability and product 
quality in its core business, contributing to both the 
healthy and rapid development of the photovoltaic 
industry and the stability of the supply chain. 
As we all know, the PV industry is playing a crucial 
role in creating a circular economy, promoting 
the low-carbon transition, and achieving a cleaner 
and more diverse energy mix. PV power is one of 
the most economical sources of clean electricity. 
With growing international geopolitical tensions, 
accelerated transformation of global energy markets, 
and increasing risks and challenges from climate 
change, the PV industry is seizing new opportunities 
for development and growth.
2022 was a year of opportunities and challenges, 
and a year in which Daqo New Energy Corp. steadily 
advanced on its journey towards sustainability. With 
an independent, sound, diversified, and transparent 
governance structure as its foundation, and an 
honest, prudent, and efficient corporate culture 
as its guiding principle, Daqo New Energy Corp. 
strictly complies with the laws and regulations 
in all the regions where we operate, upholds 
the highest business and ethical standards, and 
closely safeguards the rights and interests of all 
stakeholders. Daqo New Energy Corp. embraces its 
responsibility to create social value in areas including 
environmental protection, low-carbon development, 
product quality, employee rights, and social welfare.
During the year, Daqo New Energy Corp. continued 
to invest in technology improvement projects 
geared towards environmental protection, improve 
energy management, and promote energy saving 
and reduced consumption to mitigate the impact of 
climate change. We strove to facilitate the efficient 
use of resources and promote recycling, creating 
synergy between economic value and environmental 
protection. We also continued to promote digital 
management and talent building, constantly 
improving Daqo's operational and management 
capabilities. We remain committed to actively 
carrying out public welfare and charity activities, 
contributing to rural revitalization and community 
development, and giving back to society.
Through vigorous and determined efforts, we will 
continue to apply our green solutions and initiatives 
on a global basis to enhance our own sustainability 
as well as that of the wider industry and society, 
injecting new impetus into the global new energy 
revolution. On behalf of the Board of Directors and 
the entire management team, I would like to thank all 
the employees of Daqo New Energy Corp. for their 
hard work and outstanding contributions, as well as 
all our customers, investors, partners, and the public 
for the recognition, trust, and support.
Chairman
Guangfu Xu
Message from the CHAIRMAN
5

2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    ABOUT THIS REPORT
ABOUT THIS 
REPORT
6

Overview	
This is the third Environmental, Social and Governance (“ESG”) Report 
(the “Report”) released by Daqo New Energy Corp., the aim of which is 
to present the Company’s management, practices, and performance in 
economic and ESG practices to stakeholders.
Reporting Scope	
This Report covers the period from 1 January 2022 to 31 December 2022 
(the “Reporting Period”). The business scope covers Daqo New Energy 
Corp. and its subsidiaries (“Daqo”, “we”, “us” or the “Company”). The 
environmental data refers to our primary operating subsidiary, Xinjiang 
Daqo New Energy Co., Ltd. (“Xinjiang Daqo”).
Reporting Reference	
This Report is prepared with reference to the “GRI Standards” published 
by the Global Reporting Initiative (“GRI”) and the Guidelines No. 1 of 
the Shanghai Stock Exchange on the Self-Regulation Rules - Regulated 
Operation (Chapter 8 Social Responsibility). This Report is prepared in 
accordance with a set of existing procedures, which includes identifying 
key stakeholders, identifying and listing key ESG issues, determining 
the scope, collecting relevant data, and preparing and reviewing the 
information.
Data Source and Reliability Statement
The financial data in this Report are derived from the financial statements 
for the year 2022, which have been independently audited by Deloitte 
Touche Tohmatsu Certified Public Accountants LLP, and other information 
and data are mainly obtained from relevant internal statistical reports or 
documents of the Company. All financial data covered in the Report are 
measured in RMB. 
Report Approval and Confirmation	
This Report was approved by the Board of Directors on August 3, 2023 
after confirmation by the management.
Access and Feedback	
The electronic version of this Report is available on the Company website.
We attach great importance to the opinions of stakeholders 
and welcome readers to contact us through the following 
channels. Your opinions will help us further improve our 
Report and our overall ESG performance.
  Tel: 	
0086-21-5075 2918
  E-mail: 	
dqir@daqo.com
   Address: 	29th Floor, Huadu Building, No. 838, Zhangyang Road, 
Pudong New District, Shanghai 
7

8

ESG Performance 
Highlights 2022 
•  Identified 6 categories of climate change 
risks to the Company
•  Achieved 19.6% reduction in greenhouse 
gas emissions compared to 2021
•  Four consecutive years of declining 
wastewater discharge
•  Achieved 16.67% reduction in water 
consumption compared to 2021
•  Increased use of recycled water by 57.5% 
compared to 2021
•  Recorded 43.45% lower overall energy 
consumption than in 2018
Environmental: Journey to a zero-carbon world
As one of the major market players in the polysilicon industry, Daqo New Energy Corp. is 
committed to fulfilling its sustainable development responsibilities and adheres to the ESG 
philosophy of “Dedication to Clean Energy and Green Development”. This year, we continued 
to identify and actively respond to climate change risks. We will continue to strengthen our 
environmental, energy, and resource management, contributing to resource conservation and 
environmentally-friendly operations and development.
•  National Technology Innovation 
Demonstration Enterprise
•  Average of 110 training hours per employee
•  23,000 total employee volunteer service hours
•  259 total patents
•  100% employee training coverage
•  RMB 3,684,700 in charitable donations
Social: Driving innovation and caring for society
In 2022, we remained committed to creating value for our customers, providing a platform for 
employee growth, giving back to society, and working with our partners to create a sustainable 
industry ecosystem. We further strengthened investments in technological innovation and 
research and development, brought diverse talent into the Company, continuously empowered 
employees, and actively organized public welfare volunteer activities to put our humanistic 
principles into practice.
•  Achieved 100% risk rectification rate
•  Provided anti-corruption training to all 
employees
•  Identified 12 highly material ESG issues
•  Deepened sustainable development efforts 
based on the ESG governance structure
Governance: Lean governance for healthy corporate development 
Daqo New Energy Corp. practices lean governance to promote the Company’s long-term 
development. We rely on ESG governance practices aligned with our values to deepen 
corporate sustainability. During the Reporting Period, we maintained responsible and compliant 
operations, strengthened risk management, explored a high-quality sustainability path with all 
relevant parties, and continuously improved operational resilience and ESG governance.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    ESG PERFORMANCE HIGHLIGHTS 2022
9

ABOUT DAQO 
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    ABOUT DAQO
10

Company Profile 
Daqo is a leading manufacturer of high-purity 
polysilicon for the global solar PV industry. In 
2010, the Company was listed on the New York 
Stock Exchange (NYSE: DQ). With advanced 
equipment and technology, as well as professional 
R&D and management teams, the Company is 
among the polysilicon manufacturers with the 
lowest production costs in the world. Through 
years of development, Daqo has gradually 
established itself as one of the world’s lowest-cost 
manufacturers of high-quality polysilicon.
Since our establishment, we have made continued 
R&D investments and technological innovations  
in line with China’s national new energy strategy. 
Leveraging our key advantages of low-cost 
energy supply and silicon industry clusters, we 
focus on the R&D, production, and sale of high-
purity polysilicon. With an annual production 
capacity of 105,000 tons of high-quality, low 
energy consumption, low-cost, and high-purity 
polysilicon, more than 99% of the production 
is used for monocrystalline silicon wafers. With 
259 core intellectual property patents and 30 
independent invention patents, we are one of 
the major technology players in the polysilicon 
industry.
105,000 tons
polysilicon
comprehensive
capacity
99%
can be used for
monocrystalline
silicon production
259
core 
intellectual
property patents
30
patent for
independent
invention
11

Current Development and History
Daqo has emerged as an industry leader in 
terms of scale, quality, and cost efficiency. 
Since its inception, Daqo has made every 
effort to make solar PV a sustainable 
clean energy source, promoting power 
parity and the world energy revolution 
and aiming to contribute wisdom and 
solutions in relation to present and future 
energy and environmental challenges. 
The Company remains commit ted to 
its innovation-driven strategy and has 
built three national and provincial R&D 
labs, including the National-Local Joint 
Engineering Laboratory of Photovoltaic 
Silicon Material Development Technology. 
We have mastered several key industry 
technologies, such as high-efficiency digital 
control technology for large-scale CVD 
(Chemical Vapor Deposition) reactors for 
the production of high-purity polysilicon, 
and Hydrochlorination technology for silicon 
tetrachloride. The comprehensive energy 
consumption and energy intensity of our 
polysilicon products has outperformed 
relevant national standards and industry 
norms.
Milestones
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    ABOUT DAQO
2007
Registration in Cayman 
Islands
2010
IPO on New York Stock 
Exchange (NYSE ticker: DQ)
2011
Establishment of Xinjiang 
Daqo New Energy Co., 
Ltd., started construction of 
project Phase 2A
2013
Project Phase 2A reaches 
target capacity
2018
Project Phase 3A reaches 
target capacity
2019
Project Phase 4A reaches 
target capacity
2021
Xinjiang Daqo listed on the 
STAR Market of Shanghai 
Stock Exchange (stock 
code: 688303)
2021
Launch of project Phase 4B
12

Corporate Culture
Corporate culture is the soul of any 
enterprise. To enhance corporate cohesion 
and optimize operations, Daqo is committed 
to fostering a positive and inclusive 
corporate culture focused on humanistic 
care, through which we aim to continuously 
create value for our customers, the industry, 
and society and achieve shared growth for 
all stakeholders.
Daqo’s Corporate Culture
Core values: 
integrity,  
dedication,  
innovation
Talent concept: 
Pooling the best  
minds from  
all sectors
Corporate vision:  
building a global company 
with an everlasting  
business
Corporate  
mission:  
creating value 
for customers, 
generating returns 
for shareholders, 
bringing development 
opportunities to 
employees, and 
delivering benefits  
to society
Business strategy: 
innovation-driven, high-
quality development
Business philosophy: 
putting quality first and 
prioritizing efficiency
Corporate 
development 
strategy: brand 
building and  
business diversity
13

Business Overview
Daqo’s main business involves the R&D, pro-
duction, and sale of high-purity polysilicon 
products as well as the by-products of the 
polysilicon manufacturing process (which in-
clude silicon core, caustic soda, silicon tetra-
chloride, trichlorosilane, dilute sulfuric acid, 
hydrochloric acid, sodium hypochlorite, and 
silicon slag). Our main product, polysilicon, 
is mostly used in solar PV products such as 
silicon wafers, solar cells, and solar modules. 
We adhere to the operational philosophy 
of “Dedication to Clean Energy and Green 
Development”, continuously advancing the 
greening of the PV industry, facilitating digi-
tal transformation and upgrade, and making 
breakthroughs in green manufacturing to 
create value for society. During the Repor-
ting Period, our major subsidiary Xinjiang 
Daqo achieved a 185.64% increase in reve-
nue, a 234.09% increase in net profit, and a 
234.06% increase in net profit attributable to 
the parent company.
Revenue (RMB 10,000)
2022
2021
2020
  3,094,031
  466,426
  1,083,187 
Net Profit (RMB 10,000)
2022
2021
2020
  1,912,075
  104,325
  572,331 
Net Profit attributable to the Parent 
Company (RMB 10,000)
2022
2021
2020
  1,912,087
  104,343
  572,384
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    ABOUT DAQO
14

GOVERNANCE
Daqo believes that good corporate governance is the foundation upon 
which all successful enterprises are built, and deeply understands its 
importance to ensuring the Company’s long-term sustainability. Adhering 
to strict compliance standards, we remain steadfast in our commitment to 
improving both corporate governance and ESG governance to protect the 
rights and interests of our shareholders and stakeholders.
1
15

ound corporate governance is the cornerstone upon which Daqo safeguards the 
rights and interests of its shareholders while maintaining stable and healthy cor-
porate development. Daqo always operates in good faith, and strictly abides by 
the Cayman Islands Companies Law, the Company Law of the People‘s Republic 
of China, the Securities Law of the People‘s Republic of China, the Securities Exchange Act of 
1934, the New York Stock Exchange: Corporate Governance Guide, the Law of the People’s 
Republic of China on Enterprise Income Tax, the Code of Corporate Governance for Listed 
Companies in China, the Rules Governing the Listing of Stocks on the Science and Technology 
Innovation Board of Shanghai Stock Exchange and other relevant laws, regulations, and nor-
mative documents. The Company continuously works to enhance its corporate governance 
through initiatives such as improving the governance framework and optimizing internal  
governance policies.
Corporate Governance Structure  
Daqo has established its corporate gover-
nance structure in line with the modern 
enterprise system, establishing a Board of 
Directors and a Board of Supervisors under 
the General Meeting of Shareholders. The 
Board of Directors leads the Company‘s 
business management decisions, delibera-
tes on and approves the Company‘s strategic 
objectives, and monitors and inspects the 
Company‘s business operations, strategic 
decisions, and performance. The Company 
follows the principles of compliance, 
independence, professionalism, and diversi-
ty to ensure a sound governance structure. 
One-third of the members of the Board of 
Directors are independent directors. The 
Board of Directors has established the Audit 
Committee, the Compensation Commit-
tee, and the Corporate Governance and 
Nominating Committee, with clear terms of 
reference for each committee to carry out 
supervision and management in an orderly 
manner.
S
1.1  LEAN GOVERNANCE
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    1.1 LEAN GOVERNANCE
Audit Committee
Corporate Governance and 
Nominating Committee
Compensation Committee
The General Meeting 
of Shareholders
Board of 
Directors
Executive 
Management
16

Board Diversity  
Daqo believes that diversity is essential to good 
corporate governance. When nominating and ap-
pointing Board members, the Company considers 
their industry experience and professional back-
ground to ensure that they have the necessary 
skills and experience to perform their functions in 
committees. The Board of Directors of the Company  
has accumulated many years of collective PV indus-
try experience and acquired extensive specialized 
expertise. The Board also includes several qualified 
experts in financial investment and risk management 
in order to ensure Daqo’s stable development in 
these areas. The present composition of the Board 
of Directors is set out as follows:
For biographical details of the Board of Directors, please refer to Daqo’s 2022 Annual Report. 
The three committees of the board of directors have their respective duties:
Audit Committee: Oversees the accounting and financial reporting processes and the audits of the financial statements of 
the Company.
Compensation Committee: Reviews and approves the compensation structure of the Company’s directors and 
executive officers.
Corporate Governance and Nominating Committee: Identifies individuals qualified to become directors and determines 
the composition of the board and its committees; monitors compliance with the code of business conduct and ethics.
Position
Name
Age
Year Since 
Joining
Committee
Industry 
Expert
Financial 
Expert
Chairman
Xu Guangfu
81
November 2007

Director & 
CEO
Longgen 
Zhang
59
January 2018


Director
Xiang Xu
52
November 2007
Corporate Governance 
and Nominating 
Committee

Director
Dafeng Shi
51
February 2013
Compensation 
Committee

Director
Fei Ge
59
June 2022
Director
Fumin Zhuo
71
November 2009
Independent 
Director
Rongling Chen
81
October 2010
Audit Committee, 
Corporate Governance 
and Nominating 
Committee

Independent 
Director
Arthur Wong
63
December 2012
Audit Committee

Independent 
Director
Minsong Liang
54
October 2011
Audit Committee
Independent 
Director
Shuming Zhao
70
October 2011
Compensation 
Committee,  
Corporate Governance 
and Nominating 
Committee
17

1.1.1. Risk Management
Daqo attaches great importance to both 
internal and external risk response and con-
trol measures. The Company has establis-
hed the Comprehensive Risk Management 
Measures, a full-spectrum risk management 
system organized around the principles of 
Centralized Management, Professionals in 
Charge, Process Delegation, and Full Invol-
vement. This system enables the company 
to respond to risks with unified and profes-
sional management at every stage of the risk 
control process.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    1.1 LEAN GOVERNANCE
Daqo's Risk Management Principles
Centralized
Management
• Unified leadership 
of the General 
Manager's Office
• Supervised by 
the Board of 
Directors and Audit 
Committee
Professionals in 
Charge
• The Internal 
Control and 
Supervision 
Department 
performs specific 
risk management 
work as a risk 
management 
functional 
department
Process Delegation
• All functional 
departments 
and disciplines 
strengthen risk 
control within 
their scope of 
responsibility and 
implement control 
details
Full Involvement
• Achieve full 
participation 
through cross 
department 
cooperation and 
risk management 
training 
and cultural 
construction
18

To achieve sound risk management, Daqo 
identifies, classifies and responds to risks 
through internally developed risk manage-
ment tools such as the Risk Identification 
Form and the Risk Management Response 
Form. To ensure that risk identification, 
response, and rectification practices are 
carried out properly, the Internal Control 
and Supervision Department conducts 
both regular and ad-hoc audits to monitor, 
control, and evaluate the risk management 
process and recommend any necessary rec-
tification measures. Progress against these 
recommendations is tracked on a monthly 
and quarterly basis to confirm the closure of 
risk items and the completion of risk identi-
fication reports, achieving closed-loop risk 
management.
Throughout the risk management process, 
Daqo determines the overall risk level of 
identified risks based on probability of  
occurrence and potential impact, classifying 
risks into four categories, with A being high 
risk, B being medium risk, and C and D 
being low risks. During the Reporting Period, 
the Company launched a comprehensive 
risk assessment and took appropriate mea-
sures to manage level A risks, control all 
risks to levels C and D, and achieve 100% 
rectification efficiency.
Daqo’s Closed-Loop Risk Management System
Risk 
ldentification
Risk Analysis and 
Classification
Choosing the 
Approach to 
Dealing with Risks
Working 
Out Specific 
Rectification
Assessing the 
Rectification Effect
19

1.1.2 Business Ethics and Anti-Corruption
Daqo believes that upholding the highest 
standards for business ethics and anti-cor-
ruption is critical to the positive develop-
ment of the company and the industry. The 
company strictly complies with the Law of 
the People‘s Republic of China Against Unfair 
Competition, the Law of the People‘s Repu-
blic of China Against Monopoly, the Foreign 
Corrupt Practices Act (FCPA), and other rele-
vant laws and regulations in the jurisdictions 
where we operate. We continuously update 
our internal integrity systems, particularly the 
Anti-Corruption Management System, based 
on the latest laws and regulations, doing our 
part to maintain an honest and trustworthy 
business environment.
Daqo has established a Code of Professional 
Ethics and Business Conduct, which clearly 
outlines the Company’s rules and regulati-
ons regarding business ethics and provides 
operational guidelines for safeguarding the 
company‘s integrity. The Code enshrines the 
company’s commitment to upholding the 
highest standards of business ethics. The 
Company explicitly prohibits all employees 
from directly or indirectly committing, orde-
ring, authorizing, colluding in, or inducing 
corruption in any internal or external busi-
ness dealing. The Company closely monitors 
risk points with high exposure to business 
ethics issues and conducts unannounced 
audits to ensure compliance with internal 
policies such as the Code of Professional 
Ethics and Business Conduct.
Key Elements of Integrity Management
• Identify and avoid conflicts of interest
• Prohibit government bribery and illegal 
donations
• Prohibit embezzlement and 
misappropriation of company assets
• Prohibit disclosure of company 
secrets and maintain information 
confidentiality
• Ensure accuracy and authenticity of 
information disclosure and external 
communication
During the Reporting Period, Daqo continu-
ed to carry out regular trainings on business 
ethics and anti-corruption, used surveys to 
gauge employees’ understanding of these 
principles, and held targeted in-depth trai-
ning sessions to ensure employees are fully 
aware of anti-corruption practices.
Regular business ethics and  
anti-corruption training
During the Reporting Period, Daqo 
conducted business ethics training 
for all employees (including part-time 
employees and contractors), enhancing 
awareness of topics including integrity 
and ethical culture, anti-corruption, 
anti-briber y, and internal control 
mechanisms.
Anti-fraud and Whistleblower 
Protection
Daqo’s anti-fraud reporting and complaint 
channels (anti-fraud email: jd.solar@daqo.
com; anti-fraud hotline: +86 0993 270 6043) 
are open to the public, thereby encouraging 
all stakeholders, both internal and external, 
to report fraudulent and corrupt practices. 
Upon receipt of a report, the Company will 
immediately set up an anti-fraud investiga-
tion team, which will collect evidence and 
carry out an investigation with the autho-
rization of the Company’s senior manage-
ment. The Internal Control and Supervision  
Department and the relevant departments 
will cooperate during the investigation. If the 
report is verified to be true, the Company 
will take disciplinary actions according to 
the seriousness of the misconduct. We will 
transfer the report to the relevant judicial 
authorities if it involves a violation of the law.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    1.1 LEAN GOVERNANCE
20

Fraud Reporting Process
CODE 
OF 
CONDUCT
Report to direct superiors or company 
management
Report to the the Internal Control and 
Supervision Department
Report via anti-fraude mail or hotline
Report to the the Internal Control and 
Supervision Department
Report via anti-fraud email or hotline
Detect fraud
Not involving direct 
superiors or company 
management
Involving direct 
superiors or company 
management
21

Daqo is committed to protecting the pri-
vacy and safety of every whistleblower and 
strictly prohibits discrimination, harassment, 
and improper treatment of whistleblowers 
and employees who aid investigations. The 
Company has formulated a comprehensive 
whistleblower protection mechanism to 
keep whistleblowers’ personal information 
and the content of all reports strictly confi-
dential throughout the investigation process. 
To protect anonymous whistleblowers from 
retaliation, we will not attempt to identify 
them. At the same time, whistleblowers who 
perform a great service to the Company, 
either by enhancing its reputation, or by 
averting major losses or damages, will be 
given cash rewards based on the Company’s 
assessments.
Supplier Integrity
The supply chain plays an important role in 
Daqo’s integrity management and business 
ethics initiatives. Daqo practices transparent 
procurement, ensures all procurement and 
sales contracts contain anti-fraud clauses, 
and provides regular integrity training to 
procurement employees. The Company 
prominently publicizes anti-fraud complaint 
channels and conducts rigorous investi-
gations to root out instances of collusive 
bidding, bid-rigging, and falsification of 
suppliers’ qualifications or financial docu-
ments. During the Reporting Period, the 
Company strengthened supplier integrity by 
deepening digital management and enhan-
cing integrity promotion, as laid out in the 
following figure:
Key Elements of Supplier Integrity Management
Integrity Promotion
> Improve business ethics requirements for suppliers
> Continuous promotion and commitment to building a 
healthy and clean industry business environment with 
partners
Digital Management
> Improve digital construction, optimize the procurement 
system, improve management granularity, transparency, 
and traceability, and ensure that all material purchases 
are traceable
> Material quotations are conducted online to avoid 
artificial interference in price negotiations and prevent 
price fraud
All information related to fraud 
matters, investigation materials, 
results, and relevant personnel 
information is strictly confidential.
For real-name reports, the anti-fraud 
team and the management establish 
authorization requirements to protect 
the whistleblower information.
All confidentialit y requirement s 
and agreements remain valid after 
the investigation is completed. All 
information shared in training will be 
desensitized.
For anonymous reports, the use of 
handwriting analysis or any other 
means of identifying the whistleblower 
is prohibited
Whistleblower 
Protection 
Mechanism
22

Guided by its corporate mission of “Creating 
Value for Customers, Generating Returns 
for Shareholders, Bringing Development 
O p p o r t u n i t i e s  t o  E m p l o y e e s ,  a n d 
Delivering Benefits to Society”, Daqo has 
embraced the ESG development concept 
of “Dedication to Clean Energy and Green 
Development”, incorporating ESG elements 
into its corporate governance and strategic 
planning processes to deepen its corporate 
sustainability in all aspects.
1.2.1. ESG Governance Structure 
Daqo has established a three-tier ESG 
governance structure with the Board 
of Directors, the Chief Financial Officer 
(hereinafter “CFO”), and the ESG Working 
Group at its core, in order to ensure that 
ESG concepts are integrated into the 
Company’s governance and strategic 
planning processes at every level. The 
Company continues to promote the in-
depth involvement of the Board of Directors 
and senior management in the ESG risk 
assessment and management process, 
encourage cross-department cooperation 
and full participation of all departments, and 
continuously improve ESG governance.
1.2  ESG GOVERNANCE
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    1.2 ESG GOVERNANCE
ESG Governance Framework
Board of 
Directors
CFO
ESG Working Group
Investor Relations Department-lead department
ESG-related Department
•  Evaluate ESG risks and establish an effective ESG 
risk management and internal control system
•  Approve ESG related policies and ESG reports
•  Coordinate ESG management and internal control
•  Directs the work of the ESG Working Group
•  Approve the ESG report and confirm that the disclo-
sure is true, accurate, and complete
•  Investor Relations Department co-
ordinates the ESG work as the lead 
department
•  Assigns a dedicated person to 
oversee the collection of ESG  
related data and preparation of the 
ESG report
•  Report regularly to the CFO
23

1.2.2. Stakeholder Engagement
Daqo is committed to establishing open, transparent, and convenient two-way communication channels 
with its stakeholders. Discussing topics of common concern with stakeholders, paying attention to their 
suggestions, and addressing their expectations on ESG risk issues enables the Company to identify various 
ESG-related risks and opportunities and continuously optimize its sustainability management practices.
Stakeholders
Topics of Interest 
Communication and 
Feedback Channels
Frequency of 
Communication
Government 
departments/
regulators
•  Business Performance
•  Environmental Compliance
•  Product Safety
•  Product Quality
•  Innovative Product 
Development
•  Energy Use
•  Greenhouse Gas (GHG) 
Emissions
•  Water Resources 
Management
•  Performance Report 
•  Meeting
•  Regular
•  Regular/Ad-hoc
Investors
•  Business Performance
•  R&D in Environmental 
Protection Technology
•  Anti-Corruption Initiatives
•  Corporate Governance
•  Addressing Climate Change
•  Employee Rights Protection
•  General Meeting of 
Shareholders
•  Brokerage Investment 
Conferences 
•  Earnings Report Conference 
Calls
•  Roadshows
•  Day-to-day Communications
•  Polysilicon Industry 
Conferences
•  PV Industry Conferences
•  Regular
•  Quarterly
•  Quarterly 
•  Regular/Ad-hoc
•  Ad-hoc
•  Ad-hoc
•  Ad-hoc 
•  Ad-hoc
Employees
•  Occupational Health and 
Safety
•  Employee Training and 
Development
•  Employee Rights Protection
•  Employee Anti-
Discrimination
•  Employee Hiring
•  Employee Training 
•  Employee Communications 
Activities 
•  Internal Publications 
(WeChat Social Media 
Platform, etc.)
•  Regular/Ad-hoc
•  Monthly 
•  Ad-hoc
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    1.2 ESG GOVERNANCE
24

Stakeholders
Topics of Interest 
Communication and 
Feedback Channels
Frequency of 
Communication
Suppliers
•  Product Quality
•  Product Safety
•  Innovative Product 
Development
•  On-site Assessment 
•  Quality Assessment
•  Supplier Training and 
Support
•  Ad-hoc
•  Ad-hoc
•  Ad-hoc
Customers
•  Product Quality
•  Product Safety
•  Addressing Climate Change
•  Innovative Product 
Development
•  Complaint Handling 
Mechanism 
•  Market Research
•  Customer Satisfaction 
Surveys 
•  Customer Complaint 
Handling
•  Ad-hoc
•  Regular 
•  Ad-hoc 
25

1.2.3. ESG Material Issues
After communicating extensively with 
stakeholders and conducting a thorough 
analysis of industry policies and trends, 
media reports, peer practices, and our 
current situation, Daqo has identified the 
following ESG material issues, and ranked 
the materiality of each issue according to its 
impacts on the Company and stakeholders. 
Among the issues on this ESG materiality 
list, 12 are considered to be highly material: 
corporate governance, anti-corruption, 
GHG emissions, energy use, addressing  
climate change, development and utilization 
of renewable energy, water resource 
management, employee development, labor 
rights, product safety, product quality, and 
product innovation and R&D. This report 
covers material ESG issues, especially those 
deemed highly material, and outlines Daqo's 
management initiatives and achievements in 
these areas.
26

Economic 
Issues
1  Business P erformance
Labor Issues
19  Employee Health
2  Tax Planning
20  Employee Development
3  Government Support
21  Legal Employment
4  Environment Impact  
of Trade
22  Labor Rights
Governance 
Issues
5. Corporate Governance
23  Employee  
Anti-Discrimination
6  ESG Governance 
Framework
Community 
Issues
24  Community Contribution
7  Anti-Corruption
25  Community Impact
Environmental 
Issues
8  GHG Emissions
26  Integration with 
Surrounding Community
9  Energy Use
27  Compliance with Laws and 
Regulations
10  Addressing Climate 
Change
Product 
and Service 
Liability Issues
28  Product Safety
11  Environmental 
Compliance
29  Product Quality
12  Waste Management
30  Product Innovation and 
R&D
13  Sewage Treatment
31  Complaint Mechanism  
and Handling
14  Development and 
Utilization of Renewable 
Energy 
32  Product Compliance
15  Environmental Research 
and Development
33  Supplier Environmental 
Performance
16  Investment in 
Environmental 
Protection
34  Supplier Social 
Performance
17  Biodiversity
35  Supplier Labor Code 
Performance
18  Water Resource 
Management
36  Supplier Employee Rights 
Performance 
ESG Material Issues
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    1.2 ESG GOVERNANCE
27

At Daqo, we believe that if you never forget why 
you started, any mission can be accomplished. 
Mindful of our own original aspirations, 
we remain committed to creating value for 
customers, providing a development platform for 
employees, giving back to society, and working 
hand in hand with our partners to create a 
sustainable industry ecosystem.
2 SOCIAL
28

he PV industry has ushered in 
new opportunities for rapid 
development amidst the global 
shift to green and low-carbon 
energy. Daqo is putting its full weight behind 
the development of green technology in 
the PV industry by pursuing technological 
innovation, improving product quality, and 
delivering excellent products and services. 
Through these efforts, we aim to maintain 
stable long-term customer relationships and 
establish a sustainable supply chain.
2.1.1. Technological Innovation
Innovation is Daqo’s core competency 
and the main driver of its development. 
We pursue forward-looking research and 
development that advances the frontiers of 
technology and the industry. Technology 
is in Daqo’s DNA. We are focused on 
investing in research and development and 
integrating the most advanced technologies 
into our innovation platform. During the 
Reporting Period, the Company maintained 
its high levels of R&D investment, allocating 
a total of RMB 1,103.13 million to this critical 
area. The Company has gained recognition 
from both national authorities and industry 
peers for its outstanding R&D outcomes.
National Technology Innovation 
Model Enterprise” by the Ministry of 
Industry and Information Technology
“National and Local Joint Engineering 
Laboratory for Photovoltaic Silicon 
T
2.1  COMMITMENT TO INNOVATION AND QUALITY
Technology Committee
Responsible for setting the Company’s diversified 
technology development and R&D strategy and 
managing and supervising technology issues
Technology Department
Responsible for providing technical support 
and implementing projects at the R&D 
stage and coordinating R&D-related work 
among functional departments
Functional Departments
Responsible for cooperating with 
the technology department to 
support R&D-related work
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
Material Development Technology” by the National 
Development and Reform Commission
“Smart PV Pilot Model Enterprise” by the Ministry 
of Industry and Information Technology and other 
departments
“Inaugural List of Approved Green Manufacturing 
Models”
R&D Management
Daqo places a significant emphasis on R&D management, 
and we are dedicated to [continuously] enhancing our 
capacities in this area through organizational structure 
improvement, policy enablement, process optimization, 
and R&D team building. The Company has set up a 
three-tier R&D management structure composed of a 
Technology Committee, a technology department, and 
functional departments to ensure that R&D projects receive 
maximum support at every level. We have established 
policies and procedures such as the Management System 
for R&D Projects, the Patent Management System, the 
Implementation Measures for Rewarding Scientific and 
Technological Achievements, and the Management System 
for Publishing Papers and Publications, to facilitate R&D 
breakthroughs and enhance our PV materials production 
capacity.
R&D Management Structure
29

Daqo recognizes the impor tance of 
adapting to diverse R&D scenarios and has 
implemented a range of organizational 
approaches to R&D project management. 
From project establishment to mid-term 
management and application, our approach 
integrates life cycle management, team 
management, and technical-production 
cooperation management. These measures 
enable us to ensure the smooth progress of 
R&D projects by providing resource support 
and maintaining precise control over costs, 
organization, risks, and outcomes.
R&D Team Building
Daqo is committed to building a stable 
and effective R&D team by harnessing 
the organizational synergy of cross-
departmental groups, cultivating core R&D 
talents, and providing attractive incentives 
and targeted development support for 
research talents. We have instituted 
performance incentives and cash rewards 
for technical personnel who publish patents 
under the Patent Management System, 
and we have also established incentive 
systems as part of the job assessment 
and promotion processes, fueling R&D 
talents’ enthusiasm for contributing to 
the Company’s technological progress.  
During the Reporting Period, the Company 
updated the project incentive mechanism in 
the Management System for R&D Projects 
to overcome practical problems under 
the previous mechanism. Assessment 
requirements for one-off rewards have been 
added to further stimulate the vitality of 
R&D innovation within the Company.
In addition, the company introduced the 
PatSnap patent database, which provides 
insights on the cutting-edge patents in our 
industry area and helps R&D staff work more 
efficiently, greatly improving our success 
rate in patent conversion.
We establish a 
diversified R&D 
project team from 
among the R&D team, 
production team and 
other teams to ensure 
sufficient resource 
support and project 
viability management, 
comprehensively 
enhancing R&D 
performance.
Approval Stage
We adopt an R&D 
life cycle work 
mode, carrying out 
precise and timely 
management and 
supervision of people, 
materials, and risk 
during the entire 
project. We also 
conduct dynamic 
assessments and 
monitor the input-to-
output ratio of the 
project.
Management Stage
We carry out 
comprehensive 
project management 
by sending technicians 
to production lines, 
supporting the 
commercialization 
and promotion of R&D 
results, and striving to 
realize benefits for the 
business.
Application Stage
R&D Project Process Control
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
30

R&D Outcomes
Daqo has implemented a complete 
scientific management system, conducting 
continuous data collection and project 
analysis to enhance its R&D capability. 
To accelerate the R&D process, we break 
down our overall research goals into sub-
projects, which are carried out by the 
relevant departments and production lines. 
At the same time, the Company identifies 
potentially patentable inventions from R&D 
projects and improvements to technology, 
creating a pipeline of patent applications 
enabling the Company to legally protect its 
inventions. As of December 31, 2022, the 
Company had a total of 38 technology R&D 
sub-projects, including 18 new projects, 
17 annual maintenance projects, and 21 
operational projects.
In 2022, Daqo focused on the following 
R&D priorities:
Improving energy recovery and utilization 
in polysilicon devices
•  W e  c o m p l e t e d  t h e  e n e r g y 
consumption analysis of key devices, 
and started the  verification and 
optimization process. Compared 
w i t h t o  2021,  t h e  t o t a l  e n e r g y 
consumption of polysilicon production 
decreased by more than 5%, while 
steam consumption decreased by 
more than 15%.
Reducing metal content and non-metal 
impurities in polysilicon
•  We completed development of 
an impuri t y detec tion method 
and finished evaluating impurity 
influencing factors, acheiving a 59% 
reduction in metal in the polysilicon 
surface
Daqo continued to enhance its R&D 
capability during the reporting period and 
obtained a total of 259 patents.
Number of patent  
applications in 2022
67
Invention patents
12
Utility model patents
55
Number of patents granted  
in 2022
83
Invention patents
2
Utility model patents
81
Cumulative number of patent 
applications before December 
31, 2022
325
Cumulative number of patents 
granted before December  
31, 2022
259
Intellectual Property Protection
Daqo at taches great impor tance to 
the protection of intellectual property 
rights, continuously improving its internal 
intellectual property management system in 
strict compliance with the Patent Law of the 
People's Republic of China, the Anti-Unfair 
Competition Law of the People's Republic 
of China, the Trademark Law of the People's 
Republic of China, the Copyright Law of the 
People's Republic of China, the Corporate 
Intellectual Property Management Code 
and other relevant laws and regulations. 
During the Reporting Period, the Company 
established a long-term intellectual property 
protection mechanism to promote the 
transformation of innovation achievements 
into intellectual proper ty rights. The 
mechanism includes both internal reviews 
and external verification by institutional 
experts and legal counsel.
31

Collaboration and Innovation 
We take our responsibility to lead industry 
development seriously. We are committed 
to collaborating actively with external 
stakeholders and industry partners through 
participating in industry conferences and 
helping to establish and improve industry 
standards. To achieve this, we leverage 
our extensive research bases and platform 
resources to drive innovation and tackle 
the industry’s most pressing technical 
difficulties, with the ultimate aim of making 
the PV industry more sustainable.
Based on its extensive industry experience 
and deep technology expertise, Daqo 
has participated in the formulation of six 
standards, including two national standards, 
three association standards, and one SEMI
1 
standard in the PV industry.
6 Photovoltalc Industry standard including
Digital Empowerment
The digital transformation of industry 
is accelerating against the backdrop of 
China’s national sustainable development 
strategy. Daqo leverages digital innovation 
by developing industrial digital systems 
that integrate both internal and external 
technologies to enable digital production. 
In terms of policy, the Company updated 
the Rules and Regulations on Information 
Management in 2022 to refine digital 
management responsibilities, improve the 
organizational structure for information 
management, add cross-company business 
processing functions, and ensure safe and 
stable digital management. In terms of 
human resource support, the Company 
established a training model supported 
by IT consultants, technical consultants, 
and information engineers from internal 
departments, and created a systematic, 
sophisticated, and multi-disciplinary system 
to meet the Company's digital development 
needs.
Our digital manufacturing system currently 
operates seamlessly across all processes. 
Utilizing data to drive our targets and 
tasks, we proactively facilitate closed-loop 
management of production plans and 
processes, effectively accelerating Daqo’s 
transformation into a "smart factory".
China Silicon Industry Conference 2022 
The 2022 China Silicon Industry Conference, jointly 
hosted by the China Nonferrous Metals Industry 
Association and the city of Baotou, was held from 
28-30 December 2022 in Baotou, Inner Mongolia 
Autonomous Region, with the theme of New Era, New 
Momentum, New Change, New Pattern. More than 
360 experts from government, industry associations, 
silicon industry enterprises, research institutes, and 
investment institutions gathered in Baotou to discuss 
the development of the silicon industry.
2
National 
standard
3
Association
standard
1
SEMI 
standard
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
32

ERP
1 SEMI refers to Semiconductor Equipment and Materials 
International, a global industry association dedicated to 
promoting the overall development of the microelectronics, 
flat panel display, and solar photovoltaic industry supply 
chain.
2 BI refers to Business Intelligence, meaning the use of 
modern data warehousing technology, online analytical 
processing technology, data mining, and data presentation 
technology to realize business value through data analysis.
"Smart Factory" Digital Application Scenarios
Real-time monitoring of core process 
indicators, timely feedback of process 
warnings, timely response to production 
anomalies, and closed-loop control of 
the entire production process, including 
warnings and shutdowns, risk detection and 
classification, etc.
Managing repair, maintenance, accident 
handling, and equipment life c ycle 
management
Monitoring and managing product quality 
throughout the entire production process 
by combining online data and real-time 
production operations warning data
Implementing whole process control on-
site, including operations procedures, 
equipment inspec tions, and special 
operations 
Based on the smooth operations of its 
own digital manufacturing processes, 
Daqo is committed to expanding its digital 
manufacturing system into a replicable, 
reusable, and collaborative platform to 
create further business development and 
innovation opportunities. We continue to 
promote the extensive application of data to 
operations and management processes. In 
2022, we further optimized and iterated on 
our digitalization project systems, including 
74 MES/ALM/WMS systems and 177 ERP 
systems. During the Reporting Period, 
the Company launched a data warehouse 
project in line with our data management 
needs, achieving full coverage of our 
operations.
Data Warehouse Projects
The Digital Warehouse project was 
built based on on-site reports utilized 
by business departments and key data 
generated during business operations. 
The data warehouse system combines 
online data and real-time warning data 
from warehouse operations to enable 
the real-time monitoring of core process 
indicators. This allows multi-scenario 
application and whole-process control 
of the digital warehouse. The project 
was officially launched on 25 March 
2022, meeting the BI
2 analysis needs of 
the Company’s business operations.
33

Cybersecurity and Customer Privacy 
As we strive to promote digital applications, 
we recognize the critical impor tance 
of cybersecurity. During the Reporting 
Period, Daqo introduced Information 
System Security Management Regulations, 
Information Security Incident Prevention 
and Disposal Regulations, and other 
guiding documents. These documents 
define responsibilities for handling 
information security incidents, as well as 
their classification, division, and the process 
for handling them, all of which contribute to 
comprehensively safeguarding information 
security and cybersecurity. In 2022, the 
Company carried out several network 
security projects and invested about RBM 
3.5 million in cybersecurity.
Daqo strictly abides by laws, regulations, 
and management policies such as the 
Cybersecurity Law of the People’s Republic 
of China and the Baseline for Classified 
Protection of Cybersecurity. Combining 
these with the standard for best practice  
g l o b a ll y,  t h e  I n f o r m a t i o n  S e c u r i t y 
Management Systems (IEC/ISO 27001-
2013), we formulated the Information 
Management Rules and Regulations, 
Information System Security Management 
Regulations, Confidentiality Management 
System, and other sales management and 
information security policies, to establish 
a comprehensive customer information 
security management system.
Employees are strictly required to keep 
customer information confidential, and 
we attach great importance to protecting 
customer privacy and information security. 
We also protect information security 
through our code of conduct for sales and 
by ensuring that all employees understand 
their obligations and responsibilities 
regarding customer information privacy. In 
2022, there were no complaints regarding 
the Company’s handling of customer 
privacy-related issues.
INFORMATION  
SECURITY
SECURITY 
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
34

2.1.2 Quality Management
Daqo adheres to a quality-oriented business 
philosophy based on principles including 
Scientific Management, Technological 
Advancement, Full Involvement, Self-
Improvement, Cost Effectiveness, and 
Building a Global Quality Brand. We 
are constantly enhancing our quality 
management system and optimizing the 
customer service process to achieve the 
best possible product and service quality.
Quality Control
Out s t anding produc t qualit y is the 
foundation for all value creation. To further 
improve our product quality and our quality 
management system, we standardized 
control over the full product development 
life cycle, from product development to 
delivery and after-sales service. During the 
Reporting Period, we underwent a QES re-
certification audit by the China Quality Mark 
Certification Group and obtained the quality 
management system certification verifying 
that the Company’s polysilicon production 
and related management practices meet 
the requirements of the ISO 9001/GB/T 
19001:2016 standard.
In building its quality management system, 
Daqo formulated internal systems and 
policies covering raw and auxiliary materials 
management, production standards, and 
finished product quality to ensure unified 
and standardized quality management. 
During the Reporting Period, the Company 
did not have any product violations or 
recalls caused by quality problems.
Daqo also strengthened its standardization 
compliance by optimizing quality red line 
indicators and the alarm settings in its DCS
3 
parameters to ensure the smooth operation 
of production facilities and improve product 
quality.
Procurement of 
cybersecurity 
equipment
Cybersecurity Projects
Incorporated two online 
cybersecurity courses 
into the Company’s 
training system, which 
are now included 
in performance 
assessments
Security system 
upgrade
One internal 
cybersecurity audit 
and two external 
cybersecurity audits
ISO 19001 Quality Management  
System Certification
3 DCS refers to Distributed Control System, also known as a 
centralized control system in the automation control industry,
35

Quality Control Initiatives
Quality Red Line Indicators
The Company has formulated and 
optimized a set of quality red line 
indicators, which strictly control key 
parameters such as the load lifting 
rate of the distillation system, the 
absorption and resolution temperature 
of the tail gas recovery system, and the 
circulation volume. We also maintain 
strict compliance with the quality red 
line requirements for material storage 
control. Through regular sampling and 
monitoring of quality indicators for both 
work in progress and finished products, 
we can receive early warning of any 
deviation from our quality standards and 
remedy any issues that arise.
DCS Parameter Alarms
To further ensure stable production, 
we set up parameter alarms in our 
DCS to generate aler ts when any 
materials or finished products deviate 
from production parameters, allowing 
us to address quality issues while 
optimizing operating procedures. 
We have prepared the indicator card, 
operation card, emergency treatment 
card, and other production cards to 
instruct employees on how to deal 
with produc tion abnormalities in 
a timely manner. These efforts will 
ensure the smooth operation of our 
produc tion sys tem, improve our 
quality standardization management, 
and comprehensively strengthen our 
product quality.
Daqo understands that its quality control 
efforts depend on building a strong quality 
culture at all levels of the Company. We 
carry out extensive quality-related training 
to enhance employees' quality awareness 
and fully implement the Company’s quality-
oriented philosophy.
36

Quality Training Activities — Everyone Talks About Work 
In order to improve the professional knowledge and skills of our front-line production 
employees and ensure product quality at the source, we conducted a training 
program called Everyone Talks about Work, which included a training module for 
front-line production employees called Everyone Does the Work. This program 
addressed a wide range of topics, including application of theoretical knowledge, 
inspection standards, operation cards, safety/equipment/process/quality indicators 
and operation rules, clean management, inspection rules, quality control, and 
various company rules and regulations, covering all stages of the production process 
and effectively improving the quality awareness of every production employee.
As of the end of the Reporting Period, the training module Everyone Does the Work 
had been completed by all front-line personnel in all production departments, 
strengthening employees’ knowledge of quality issues, helping them apply 
theoretical knowledge to the production process, and ensuring superb product 
quality at every stage of the production process.
Customer Service 
Daqo is highly customer-oriented and 
is dedicated to providing high-quality 
customer service. The Company has built 
a digital sales management system that 
protects the privacy rights of customers 
and closely monitors customer service 
satisfaction to ensure that we meet the 
expectations of each customer.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
37

Digital Sales Management Priorities
Provide real-
time insights 
into inventory 
and order data 
to optimize 
coordination 
of sales and 
production
Incorporate core 
order and delivery 
data into the data 
warehouse to 
create a powerful 
sales module 
within the data 
warehouse project
Create a direct 
channel for 
customers to 
make complaints 
through the 
platform
Use digital tools 
to regularly 
summarize and 
analyze business 
data and make 
timely adjustments 
to sales strategy
DIGITIZATION
Digital Sales Management 
To optimize the entire sales process and empower sales management, Daqo established a 
digital sales management system based on the four priorities outlined below.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
38

Customer Complaint Management
Daqo has established a comprehensive 
customer complaint management system 
and added a new customer complaint 
platform that enables customers to provide 
direct feedback on product quality and 
service problems. This new platform is in 
addition to our existing telephone and email 
complaint channels. The Company has 
also formulated the Customer Complaint 
and Return Management System to ensure 
that customers receive timely and effective 
feedback on their after-sales service needs, 
and has made targeted improvements to 
the system based on customer feedback.
Response mechanism
•  Inform relevant departments upon 
receiving complaints, immediately 
initiate 8D report, and reply within 1 to 
2 working days
Rectification mechanism
•  Upon receiving the 8D repor t , 
the responsible department shall 
immediately investigate the cause 
and determine responsibility, confirm 
rectification measures, and complete a 
quality improvement report
Rectification mechanism
•  Provide timely feedback to customers 
with clear communication. Relevant 
depar tments are responsible for 
implementing corrective measures 
and cooperating to track and verify the 
solution
Customer Complaint Mechanism
39

Enhancing Customer Satisfaction
We  a r e  c o m m i t t e d  t o  p r o a c t i v e l y 
unders tanding cus tomer needs and 
continuously improving the Customer 
Satisfaction Measurement Procedure. 
Through a combination of internal self-
inspec tion and external sur veys, the 
Company has gained a comprehensive and 
in-depth understanding of customer needs 
and their suggestions for improvement. 
In our 2022 customer satisfaction survey, 
customer evaluations of our produc t 
quality, cost-effectiveness, and delivery 
time all improved compared to the previous 
year. We received a total of four customer 
complaints, and both the number of 
customer complaints and the number of 
complaint categories are on a gradually 
declining trend. To fur ther improve 
customer satisfac tion, the Company 
conduc ted a detailed analysis of the 
results of the customer satisfaction survey. 
For problems raised in customer survey 
comments, such as abnormal information, 
mixed materials, impurities and rain, and 
fine silicon powder, we have implemented 
improvement measures accordingly.
Abnormal information, mixing
•  The correction of  system logic 
problems has eliminated such 
risks, and the reasons for mixing 
and polysilicon powder have been 
preliminarily verified and confirmed by 
customers
Silicon material foreign body and rain
•  Strengthen the management and 
control of logistics, and find the defects 
of equipment and tools timely through 
frequent inspection and replacement
Delivery / arrival rate on time
•  Increase production capacity, improve 
logistics management and build digital 
projects
In addition, the Company has carried out 
several special trainings to enhance the 
professional skills of sales employees, 
ensuring that customers have an excellent 
product service experience.
Sales Employee Training
In 2022, the sales employee training 
p ro g ra m  m a i n l y  c o v e re d  p o l i c y 
interpretation and business service 
concepts including safety management, 
professional quality, occupational health, 
and information security. Trainings 
included The Four Habits to Cultivate 
Professionalism, Information Security 
Training, Regulations on Internet 
Replying and Commenting Services, and 
Network Safety Training for the Second 
Half of 2022. A total of 23 online training 
sessions totaling 28.4 credit hours were 
held.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
40

2.1.3. Supply Assurance
D a q o  i s  c o m m i t t e d  t o  i n t e g r a t i n g 
sustainability concepts into our supply chain 
management, actively promoting supply 
chain stability and green transformation. To 
achieve this, we are continuously improving 
our supply chain management system, 
beginning with the standardization of 
raw material use and supplier selection. 
We prioritize communication with our 
partners to achieve synergy, promote the 
standardization of social responsibility in the 
industry, and steadily improve supply chain 
security.
Supplier Management
Daqo has established a series of supplier 
management s ys tems and program 
standards, including the Supplier Access 
and Management System, Qualified Supplier 
Management Policy, Supplier Rating 
Policy, and Procurement Management 
System. We are committed to providing a 
comprehensive set of standardized supplier 
management guidelines to ensure the 
safety, stability, and sustainability of the 
supply chain.
Supplier Access Criteria
Daqo regards supplier selection as the 
foundation of supply chain stability. The 
Company requires all newly qualified 
suppliers to fill in the Basic Information 
Questionnaire for New Suppliers and the 
Pre-tender Approval Form. We adopt a 
multi-dimensional and batch assessment 
approach to select suppliers, as set out in 
the following figure:
Daqo’s Supplier Assessment Process
Multi-dimensional assessment
Set requirements for new suppliers in terms of quality, capacity, delivery time, 
cost, and other aspects
Evaluate suppliers’ CSR performance in areas including employee rights and 
interests, environmental protections, and safety management to ensure suppliers’ 
sustainability.
Batch trial
Conduct mass trials of products provided by suppliers
Following batch trials, all departments of the Company will conduct a 
comprehensive evaluation and formulate the annual list of qualified suppliers
41

In addition, the Company has gradually 
raised its ESG performance requirements for 
suppliers, requiring all suppliers to sign the 
Supplier Social Responsibility Questionnaire 
and the Declaration on Protecting the Legal 
Rights and Interests of Employees and 
Refusing Forced Labor. Daqo also includes 
information about suppliers’ performance 
in environmental protection, labor rights, 
employee health and safety, business ethics, 
and intellectual property protection in its 
assessments and audits.
Responsibility Requirements for Suppliers
Laws and 
regulations
Avoid impact on 
the environment 
and circulating 
water body
Minimize 
environmental 
impact
Prevent pollution
Environmental 
management-
related 
certifications
Environmental responsibilities
CSR-related 
certifications or 
commitments
Prohibition of 
child labor and 
forced labor
Anti-
discrimination
Employee 
compensation 
and statutory 
benefits
Employee health 
and safety
Social responsibilities
Confidentiality 
agreements
Intellectual 
property 
protection
Anti-corruption 
requirements
Anti-fraud 
requirements
Business ethics responsibilities
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
42

At the same time, Daqo is committed to its 
supplier localization strategy, prioritizing 
local suppliers when they meet the 
assessment requirements to reduce supply 
chain risks. At the end of the Reporting 
Period, we had 537 suppliers, 45% of which 
were local suppliers. The breakdown of the 
Company's suppliers is as follows:
Total number of suppliers
537
By region
Other areas in Mainland China
325
Hong Kong, Macau, and Taiwan
0
Overseas
0
Local
212
By type
Contractors
47
Dealers
96
Manufacturers
394
By contract status
Contract
537
Non-contract
0
Number of suppliers with an annual purchase amount of 
RMB 200,000 or more
401
43

Grade
Measures
A
1. Strengthen cooperation; 
2. Increase purchasing volume
B
1. Maintain and consolidate a balanced supply relationship;  
2. Normal procurement
C
1. Purchasing continued only after the improvement measures report is 
submitted and approved by relevant departments.
2. Daqo will suspend purchases and cancel the supplier's qualification 
if the supplier's submission is overdue or the improvement measures 
report fails to pass the review.
D
1. Cancel the qualification of qualified suppliers.
2. Suppliers that receive major penalties related to quality defects, 
safety issues, environmental pollution incidents, dishonesty, or related 
issues in the process of cooperation will be blacklisted and frozen 
in the system. Other suppliers will be required not to cooperate 
with blacklisted suppliers in bidding, procurement, sales, and other 
activities.
Supplier Evaluation 
Daqo has established a supplier evaluation 
system based on the Supplier Management 
System to maintain long-term supply chain 
stability and ensure the quality and safety 
of products. Through monthly and annual 
evaluations, we assess each supplier’s 
capabilities in a multi-dimensional manner to 
provide a solid basis for future procurement 
decisions.
Based on the results of the supplier 
assessment, Daqo assigns grades to 
suppliers and deals with them according 
to the guidelines set out in the Qualified 
Supplier Annual Assessment Form. The 
grading scale is as follows:
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.1 COMMITMENT TO INNOVATION AND QUALITY
44

Supplier Empowerment
Daqo strives to maintain close relationships 
with suppliers and to help them make 
progress through technical exchanges 
and in-depth communication. We believe 
that sincere cooperation and collaborative 
development between the Company and its 
suppliers can create win-win scenarios both 
upstream and downstream in the supply 
chain.
Supplier Communications
In 2022, Daqo proac tively shared 
product quality data and standards 
with suppliers to facilitate testing and 
verification.
If the quality of the goods delivered 
by a supplier is abnormal, we share 
the quality testing data, analyze the 
potential causes of the abnormality, and 
identify the differences from standard 
goods. We also formulate short-term 
and long-term solutions to help the 
supplier improve the quality of their raw 
materials. This level of communication 
reflects our willingness to pursue 
collaborative development with our 
suppliers. Our detailed indicators of 
product quality supported by our in-
depth technical expertise serves to 
further improve the stability and security 
of the supply chain.
45

TALENT DEVELOPMENT
2.2
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.2 TALENT DEVELOPMENT
46

Daqo regards talent as the Company’s most 
precious asset. The Company empowers 
employee development by adopting a 
diverse set of progressive employment 
policies, competitive remuneration and 
benefits, and a comprehensive training 
system. We also provide employees with 
a clear development path and a healthy 
working environment. We are committed 
to protecting employees’ legitimate rights 
and interests, and to creating a happy and 
harmonious working environment.
2.2.1. Employee Profile 
We recognize that outstanding talents are 
essential to our growth and success. From 
the very beginning, Daqo has adhered to 
the concept of “Talent from Everywhere” and 
introduced outstanding talents from diverse 
backgrounds to continuously facilitate the 
Company's globalization strategy and create 
synergy between Daqo and its employees.
Recruiting Diverse Talent
Daqo strictly abides by the Labor Law of 
the People's Republic of China, the Labor 
Contract Law of the People's Republic of 
China, the Employment Promotion Law of 
the People's Republic of China, and other 
national laws and regulations, and firmly 
prohibits the employment of child labor 
or forced labor in any form. The Company 
has established strict review mechanisms 
in recruitment and requires all candidates 
to verify their identity when they fill in 
the Candidate Information Survey. The 
Company verifies each candidate’s identity 
and monitors recruitment procedures 
to ensure compliance. If the Company 
discovers any false information has been 
provided or identifies any non-compliant 
recruitment practice, it will immediately 
terminate the corresponding employment 
contract. During the Reporting Period, the 
Company did not identify any issues relating 
to child labor or forced labor.
As part of its commitment to fair and 
transparent recruitment, Daqo upholds the 
hiring principles of equal opportunity, fair 
competition, and merit-based recruitment. 
To ensure procedur al f air nes s and 
increase diversity, we have established a 
comprehensive Recruitment Management 
System. During the Reporting Period, the 
Company actively encouraged internal 
recommendation and competition, recruited 
through diverse channels including campus 
recruitment and social recruitment, and 
absorbed talents with a wide range of 
relevant professional knowledge, skills, and 
experience to provide a solid foundation for 
company development.
On 28 February 2022, we attended a career talk for the 
graduating class of 2022 at Tianshui Normal University. 
We established connections with the University’s 
College of Chemical Engineering, which will facilitate 
the future recruitment of well-qualified graduates.
Career Talk to Fresh Graduates
47

As of December 31, 2022, we had a total of 
4,091 employees, all of whom were regular 
employees, including 147 from ethnic 
minorities.
  31-49 years old  2,502
  30 years old or below  1,525
  50 years old or above  64
Number of employees by age
Number of employees by gender
  Male 3,601     
  female  490
 Hui 20  
 Miao 5  
 Tibetan 4 
 Mongol 82  
 Tujia 5  
 Tu 2  
 Zhuang 2  
 Kazak 1
 Man 25  
 Ewenki 1
Number of employees by ethnic  
minority background
  College  1,911
  Professional School or below  1,350
  Bachelor  795
  Master or above  35
Number of employees by education
The demographic breakdown of our workforce is shown as follows:
48

Daqo highly values the ef for t s and 
contributions of all its employees. To meet 
employees’ needs, the Company has 
upgraded and optimized its systems in 
multiple areas including welfare, promotion, 
and external training. We proactively 
communicate with departing employees to 
better understand their reasons for leaving, 
address their feedback, and ultimately 
improve our talent retention. During the 
Reporting Period, the Company's staffing 
levels remained stable, with the turnover 
rate as follows:
Protecting Employee Rights
Daqo strictly complies with applicable 
laws and regulations such as the Law of the 
People's Republic of China on the Protection 
Specification on Collective Contracts. 
We have formulated employee management 
sys tems such as the Adminis trative 
Comprehensive Management System, 
the Performance Appraisal Management 
System, and the Compensation and Benefits 
Management System in line with the core 
conventions of the International Labor 
Organization. During the Reporting Period, 
we further improved the Labor Contract 
Management Measures to comprehensively 
protect employees’ rights and interests in 
recruitment, remuneration and welfare, and 
promotion. The Company is committed 
to treating every employee equally and  
has zero tolerance for discrimination, 
harassment, stigmatization, or intimidation 
due to an employee’s race, gender, ethnicity, 
nationality, religion, age, marital status, 
sexual orientation, and other personal 
characteristics.
To provide further rights and protections 
to its valued female employees, Daqo has 
formulated the Special Provisions on Labor 
Protection for Female Employees and 
signed the Special Collective Contract on 
Protection of Rights and Interests of Female 
Employees. We are committed to meeting 
female employees’ needs through initiatives 
such as the provision of pregnancy benefits, 
maternity leave, and regular health check-
ups.
0
2
4
6
8
8.89
4.69
10
Employee turnover rate by gender (%)
Male
Female
0
2
4
6
6.25
8
10
12
14
30 year old  
or below
31-49 years old
50 years old 
or above
Employee turnover rate by age (%)
13.25
5.48
Cancer Screening for Female Employees
On 3 August 2022, the Company organized a visit to 
the First Affiliated Hospital of Shihezi University for 50 
female employees to participate in both breast cancer 
and cervical cancer screening programs
2.2 TALENT DEVELOPMENT
49

In addition, per the Provisions of the 
Collective Contract, Daqo fully respects 
employees’ rights to participate in trade 
unions and operates a robust employee 
congress system, holding an annual session 
to conduct democratic collective bargaining 
in the interests of employees.
Compensation and Benefits
Daqo strictly complies with the Social 
Insurance Law of the People's Republic 
of China and the Law of the People's 
Republic of China on Trade Unions. To 
build a stable and sustainable salary system 
appropriate to the Company’s situation, 
we have optimized internal regulations 
such as the Compensation and Benefits 
Management System and the Salary Scale 
to clarify the salary standards for different 
jobs and ranks. The Company provides 
competitive remuneration packages to 
employees through a dynamic salary 
adjustment mechanism, which effectively 
rewards employees’ efforts. During the 
Reporting Period, the average annual salary 
of employees was RMB 142,597.
We insist on equal pay for males and 
females at the same level of responsibilities 
and in the same position. At the end of the 
Reporting Period, we had a company-wide 
pay ratio of 135.4% for male and female 
employees.
Daqo Employee Congress 
To maintain harmonious and stable labor relations 
within the Company, safeguard the legitimate rights and 
interests of employees, and facilitate the Company’s 
healthy development, Daqo Trade Union held the 7th 
Session of the 3rd Employee Congress on May 7, 2022, 
negotiating and signing the new Collective Wage 
Contract on an equal basis with the Company. During 
the session, the representatives from the Company 
and the trade union negotiated over the provisions for 
overtime wages in the contract, making improvements 
to reflect opinions shared during consultation. After 
reaching an agreement, representatives of both sides 
formally signed the revised contract.
Monitoring market salaries: We conduct regular external 
salary surveys and analysis and recommend salary 
adjustments within the Company when necessary
Rewarding core employees: Salaries for core employees 
are adjusted with reference to promotion evaluation 
results
Performance-oriented: Compensation is linked to 
performance. Employees with poor performance receive 
no adjustment or a partial reduction in compensation
Salary adjusts along with position
Salary Adjustment Mechanism
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.2 TALENT DEVELOPMENT
50

Daqo strives to meet each employee’s individual needs. We provide a 
flexible and diverse range of welfare benefits in order to provide care for our 
employees in all respects.
Employee 
leave
Paid annual leave, marriage leave, funeral leave, nursing 
leave, family leave (travel expenses reimbursement),  
Xinjiang ethnic festivals (Lesser Bairam, Corban Festival)
Employee 
apartment
We provide standard rooms in employee apartments 
equipped with all daily essentials. We have also opened 
a counseling room within the apartment complex to 
support employee’s mental health.
Employee 
leave
Employees have access to a 500 square meter gym 
equipped with treadmills, exercise bikes, elliptical 
machines, free weights, billiards tables and table tennis.
Free 
commuter 
bus
We provide a free commuter bus for employees with 
service to all main areas of the city
Other  
benefits
Seniority pay, annual physical examination, festival 
bonuses/gifts, union activities, transportation and 
communication allowances, wedding gifts, serious illness 
and death condolences, etc.
Employee Benefits
51

2.2.2. Talent Cultivation 
We are committed to building a diversified 
talent development system that promotes 
shared progress between the Company 
and its employees. Our robust employee 
assessment and promotion management 
system enables us to deliver targeted 
training programs and provide a sound 
development platform that empowers all 
employees to achieve their full potential.
Employee Development
Daqo firmly believes that our growth 
and success depend on the full support 
of every employee. We strive to provide 
each employee with a platform for growth 
by es tablishing a fair and objec tive 
performance assessment process linked to a 
clearly defined career development path.
During the Repor ting Period, Daqo 
conducted a comprehensive audit of 
the Company’s internal per formance 
management system. We formulated and  
optimized goal-oriented internal rules 
and regulations such as the Company 
Per formance Appraisal Management 
System and the Employee Annual Appraisal 
Management System, using monthly and 
annual appraisals to objectively and fairly 
evaluate employees’ contributions to the 
development of the Company. 
Daqo has established a range of employee 
promotion channels in various categories 
and with dif ferent focuses. We help 
employees choose an optimal career 
progression path by matching their 
individual strengths to suitable roles. The 
Company has formulated Management 
M e a s u r e s  f o r  E m p l o y e e  C a r e e r 
Development Channels to create a fair and 
standardized promotion system, clarify the 
process for internal promotions, and ensure 
reasonable and fair promotion decisions. 
These measures will ensure that employees’ 
personal career progression is well-aligned 
with the Company's development.
We have open promotion paths across four 
employment categories: management, 
technical, skilled, and auxiliary. We are 
continuously raising the upper limit for 
non-management career paths in order to 
attract and retain professional and technical 
talent. We also facilitate internal rotations 
among our diversified career paths to help 
employees decide on their future trajectory 
and achieve their career goals.
Daqo’s Performance 
Appraisal Mechanism
Encouraging 
employees to 
innovate with 
rewards as 
the primary 
mechanism  
and disciplinary 
measures only 
when necessary 
Focused on 
improving employee 
performance
Adhering  
to the 
principles 
of fairness, 
impartiality 
and openness
Fair, impartial, 
and open 
process
Multiple 
assessments 
from different 
perspectives
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.2 TALENT DEVELOPMENT
52

Employee Training 
Daqo is committed to helping employees 
enhance their skills and professionalism. 
The Company has adopted internal training 
policies such as the Management Measures 
for Platform Operation and Maintenance, 
the Management Measures for Internal 
Trainers, and the Management Measures 
for Employee Training and Cultivation to 
standardize training processes and clarify 
course contents and assessment standards. 
We provide custom training programs for 
employees of different ranks based on the 
job duties in each business line. During the 
Reporting Period, the Company launched 
the Daqo Cloud Class System, which has 
boosted the efficiency and quality of the 
company’s training modules by enabling 
daily training and tests.
Defined promotion channels
Employees choose promotion channels 
according to job categories
Performance-oriented
Employee advancement is based on 
the results of annual performance 
assessment
Capability-oriented
All promoted employees must meet the 
competencies listed in the target job 
description
Dynamic adjustment
Employees are promoted or demoted 
based on the results of performance and 
ability evaluations
Daqo’s Promotion Principles
“Everyone Talks About Work”
To promote the new training model and create a strong 
atmosphere of Learning through Lecturing, Facilitating 
Training through Learning, and Retaining Talent through 
Training, Daqo organized a series of training activities 
entitled “Everyone Talks About Work” for production 
staff. A total of 158 employees from 15 departments 
participated in the program, representing full coverage 
of the participating departments. The content mainly 
focused on production processes and operations 
requirements.
At present, Everyone Talks About Work has become 
each workshop’s daily training module, representing a 
significant upgrade to the Company’s training and self-
learning programs and enabling employees to rapidly 
develop their skills at work and broaden their horizon.
New Employee Induction 
Daqo has developed special programs for the 
onboarding and training of new employees. Through 
a comprehensive training and assessment system, the 
Company ensures that all new employees meet key 
objectives and possess the core competencies required 
for their new positions.
53

0
10
20
30
40
50
60
70
80
90
80
30
  Male
  Female
Average training hours per employee  
by gender
Average training hours per employee  
by rank
0
10
20
30
40
50
60
70
80
70
  Primary-level 
employee
  Middle-level 
employee
  Senior-level 
employee
15
25
During the Reporting Period, a total of 4,091 
employees attended trainings, representing 
a 100% training coverage rate. The average 
employee underwent 110 hours of training. 
Going forward, the Company will focus on 
further increasing training hours to better 
facilitate employees’ self-improvement. 
The breakdown of training activities across 
different employee categories is as follows:
2.2.3. Employee Care 
We are commit ted to caring for our 
employees. Through open communication 
and a diverse range of activities, Daqo 
helps employees feel more at home in the 
workplace.
Employee Communication
Daqo listens to employees and deeply 
understands their needs, working hard to 
solve any problems that arise. The Company 
has established a sound communication and 
feedback mechanism consisting of multiple 
open communication channels. We actively 
listen to employee concerns and implement 
solutions to continuously enhance the 
work experience and cultivate a sense of 
belonging within our team.
Employee Communication Channels
Intra-departmental communication
•  Regular communication among 
employees in each department
•  Improvements to working 
environment and workflow based on 
the Company’s business objectives
HR communication
•  HR employee relations specialists 
interview employees each month to 
learn more about their work, life, and 
career plans
•  Recruitment and employee relations 
specialists interview outgoing 
employees to understand their 
reasons for leaving, improve company 
practices, and reduce turnover
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.2 TALENT DEVELOPMENT
54

Communication with the general manager
•  General manager email
•  Face to face communication
Satisfaction surveys
•  Survey of new employees to 
understand their initial impressions 
and level of satisfaction with the 
Company
•  Quarterly canteen satisfaction 
survey to improve service levels and 
employee satisfaction
Employee Activities
During the Reporting Period, Daqo carried 
out a wide range of team-building activities 
to promote work-life balance and cultivate a 
positive corporate culture. We held activities 
such as employee cooking competitions 
and Women's Day activities to relieve stress, 
promote communication among colleagues, 
and enhance corporate cohesion.
“I'm Cooking Today” Employee  
Cooking Competition
In November 2022, the Company organized the I'm 
Cooking Today competition among 16 departments 
and workshops. Employees from each department 
divided the work and cooperated in preparing delicious 
meals. This activity further enhanced team cohesion 
and improved communication among employees.
Women's Day Activities
The Company held a variety of Women's Day activities 
to show its appreciation to female employees.
In addition, the Company also held a group birthday 
party for female employees born in March, creating a 
memorable and fun celebration.
55

2.2.4. Health and Safety 
At Daqo, we prioritize the health and 
safety of our employees in all aspects of 
our production and operation process. 
We make continuous improvements to our 
occupational health and safety management 
system and implement rigorous safety 
enhancement measures to create a healthy 
and safe work environment for every 
employee. During the Reporting Period, the 
Company invested RMB 7,296,200 in labor 
protection.
Safety Production
Daqo strictly complies with the Work 
Safety Law of the People's Republic of 
China, the Measures for the Administration 
of Contingency Plans for Work Safety 
Accidents, and other safety-related laws 
and regulations. During the Reporting 
Period, the Company revised its internal 
Management System for Special Operations 
according to the Safety Specifications 
of Special Work in Hazardous Chemicals 
Enterprises. In addition, the Company 
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.2 TALENT DEVELOPMENT
56

updated its contingency plan for major 
hazards in line with the latest results of its 
risk identification and assessment reports. 
We also consolidated the On-site Disposal 
Plan for Leakage of Carrier Gas in the Quality 
Department and the On-site Disposal Plan 
for Leakage of Argon in Product Finishing 
into the On-site Disposal Plan for Leakage of 
Inert Gases (Nitrogen, Argon, etc.), a unified 
plan with a wider scope of application 
across several similar accident categories.
In addition, to clarify the production 
safety responsibilities of each production 
workshop and functional department, Daqo 
revised and improved the Compilation 
of Safety Rules and Regulations, Safety 
Production Responsibility System for All 
Employees, Safety Point Management, 
and the Safety Production Responsibility 
Assessment System. We carried out a 
comprehensive quantitative assessment and 
adjusted safety points to help the Company 
achieve its annual production safety targets 
and further enhance product safety control 
capabilities. During the Reporting Period, 
the Company had no work-related deaths, 
and the number of lost days due to work-
related injury was 150.
Safety Risk Management 
Daqo places great emphasis on safety 
risk management in our production and 
operation processes. We have established a 
comprehensive risk control mechanism, with 
the production and operation departments 
responsible for the overall management 
of potential risks through monthly safety 
risk reviews. Major risks are reported to the  
Company's management for annual review 
and considered as key risks in the following 
year. In 2022, we conducted a job hazard 
analysis of safety risks and formulated 
detailed risk prevention, control, and 
response measures based on the results 
to ensure the safety of our production 
processes. 
Progress towards Production Safety Targets in FY2022
emergency drills held
of new employees 
participated in three-level 
training and education
50 checks for  
potential hazards
69
 100 %
 50
57

Daqo is dedicated to providing safety training 
for all employees in accordance with national 
regulations to continuously enhance occupational 
safety. During the Reporting Period, we devoted 
a total of 67,389 employee hours to safety training 
and achieved a 100% safety training coverage 
rate.
Measures to Ensure Production Safety
New employees must complete both induction 
training and on-site production training before 
beginning their job duties
T h e p ro du c t io n d e p ar t m e n t an d t h e 
a d m i n i s t r a t i o n  a n d  h u m a n  r e s o u r c e 
department carry out monthly spot checks to 
assess employees’ mastery of operational skills
The production department holds a workshop 
to prepare emergency operation and process 
operation cards, which are incorporated 
into the operational process to ensure that 
employees follow standard procedures in 
emergency situations
All plant equipment is maintained through 
regular repairs, anti-corrosion treatment, and 
insulation work in line with safety inspection 
requirements
High-risk equipment is subject to regular 
maintenance requirements
To ensure production safety in real-time, 
the Company can detect combustible gases 
according to the (0-100)% LEL combustible gas 
alarm measurement standard assessment
Training in Safe Operations 
On July 14, 2022, Daqo’s machine repair 
workshop conducted a special training 
session on maintenance safety to enhance 
workers’ ability to safely operate high-risk 
equipment and promote a safe culture within 
the Company. The training covered relevant 
laws and regulations, safety production 
standards for machine repair, safet y 
production rules and regulations in the 
workshop, and safety operation standards 
for machine repair.
In addition, the Company hired nine experts 
from the China Chemical Safety Association 
to review our materials and practices 
and provide guidance on the process, 
equipment, electric power instruments, 
safety, and other areas in accordance with 
the first level of safety standardization 
assessment requirements.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.2 TALENT DEVELOPMENT
58

59

Occupational Health
We strictly abide by the Law of the People’s 
Republic of China on Prevention and Control 
of Occupational Diseases, the Measures for 
the Administration of Occupational Health 
Examination, the Regulations on Work-
Related Injury Insurance, and other relevant 
national and local occupational health laws 
and regulations, and have formulated the 
Occupational Disease Hazard Prevention 
and Control Responsibility System, the 
Occupational Disease Hazard Warning 
and Notification System, the Occupational 
H a z a r d  D e c l a r a t i o n  S y s t e m ,  t h e 
Occupational Health Education and Training 
System, the Occupational Disease Hazard 
Protective Equipment Management System,  
and the Occupational Disease Hazard 
Emergency Rescue and Management 
S y s t e m  t o  b u i l d  a  c o m p r e h e n s i v e 
occupational health management system. 
Currently, the Company is certified under 
the ISO 45001 Occupational Health and 
Safety Management System standard.
During the Repor ting Period, Daqo 
implemented various measures to protect 
the overall occupational health of its 
employees, including regular occupational 
hazard monitoring, occupational health 
education, regular physical examinations, 
workplace environment monitoring, and 
provision of protective equipment.
Occupational Health Initiatives
Conduct monthly monitoring 
of occupational hazard factors
Provide annual physical 
examinations for employees 
and establish employee 
occupational health records
Hire external occupational 
health and technical service 
institutions to assess and 
report on occupational hazards 
within the Company
Strictly adhere to national 
standards and industry 
norms; distribute appropriate 
protective equipment to 
employees based on their  
job duties
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.2 TALENT DEVELOPMENT
60

On 29 April 2022, the Company organized a publicity campaign on the Prevention and Control of 
Occupational Diseases, aiming to further enhance employees' awareness and knowledge of occupational 
health issues.
Occupational Health Initiatives
61

GIVING BACK TO SOCIETY
2.3
Daqo has long been deeply committed to public welfare. 
Giving back to society is a central part of our corporate 
culture, and we encourage all of our stakeholders to 
participate in our frequent volunteer activities and public 
charity initiatives.
62

2.3.1. Volunteer Activities 
Daqo believes strongly in the importance of 
giving back to our community. As part of this 
commitment, we encourage our employees 
and partners to participate in our diverse 
range of service programs, embodying 
the spirit of volunteerism. We organize 
a number of environmental protection 
activities such as neighborhood clean-ups, 
and gather volunteers to feed and care 
for animals. By integrating the concepts of 
environmental and animal protection into 
our social responsibility culture, we aim to 
make a positive impact on our community. 
In 2022, our total annual employee volunteer 
service time reached 23,000 hours.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.3 GIVING BACK TO SOCIETY
63

2.3.2. Public Charity 
Daqo understands the importance of giving back to society and creating a positive impact beyond the 
scope of business development. We are committed to promoting corporate social responsibility and making 
meaningful contributions to the communities in which we operate. In the past year, we have donated RMB 
3,684,700 to support communities and individuals in need, reflecting our dedication to creating welfare and 
hope for society. We also work with local farmers to promote high-quality agricultural products and accelerate 
rural economic development, further demonstrating our commitment to serving local communities.
On April 22, 2022, 17 company employees acted as volunteers and distributed supplies of 300 kilograms 
of grain, 50 kilograms of vegetables, and two boxes of medicine to the Li Han Stray Dogs Home in Nanwan 
Village. Volunteers cleaned the kennels, fed the stray dogs, and brought them to nearby shelters, helping 
these vulnerable animals feel the warmth of human companionship.
Caring for Stray Animals
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    2.3 GIVING BACK TO SOCIETY
64

During the Reporting Period, the Company organized a natural adventure for more than 40 children 
of employees to help them understand the need of protecting our environment. The children learned 
about waste classification and the Empty Plate Campaign, and took part in fun, interactive games and a 
fingerpainting activity.
Greening the Global Village
In 2022, Daqo actively contributed to the welfare of rural and local farms by supporting development work in 
local and rural farm communities. We actively participated in an industry association initiative and procured 
32 tons of "Daolang Melon" planted by local and rural farmers to support local farming communities.
Support for Local & Rural Farm Produce Campaign
65

As a company at the forefront of renewable energy transi-
tion, Daqo is fully committed to low-carbon development and 
green operations. To meet its responsibilities in these areas, 
Daqo actively builds its resilience to address climate change 
risks and strengthens its energy management, environmental 
management, and resource management efforts. We strive 
to implement resource-saving and environmentally-friendly 
operations and development practices in every aspect of our 
business.
3
ENVIRONMENTAL
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    3 ENVIRONMENTAL
66

3.1 RESPONDING TO 
CLIMATE CHANGE
aqo recognizes the material risks 
associated with climate change, 
and as a responsible player in 
the PV industry, we believe we 
have a responsibility to address these risks 
and do our part to mitigate the impact of 
climate change.
3.1.1. Risks and Opportunities
Opportunities Presented by Climate Change
In 2022, global energy sc arcit y was 
exacerbated by geopolitical tensions, and 
although some regions slowed down their 
efforts to meet carbon neutrality targets 
as a result of these uncertainties, we still 
see increasing investment in new energy 
sources such as PV power generation. 
Hence, diversifying the energy mix is still 
fundamental to coping with the unstable 
supply of fossil fuels, and PV power 
generation will continue to play a pivotal 
role in the green energy transition. In China, 
carbon neutrality is a major strategic decision 
and national priority for all sectors, and PV 
power generation is an important component 
to peak carbon dioxide emissions and 
achieve carbon neutrality.
To encourage the development of the 
PV industry and establish sound industry 
norms, the Chinese government has issued 
a series of policy documents, such as On 
the Issuance of the‘14
th Five-Year Plan’ 
National Urban Infrastructure Construction 
Plan, On the Promotion of New Energy in 
the New Era of High-Quality Development 
of the Implementation Plan and To Expand 
Domestic Demand Strategic Planning Outline 
(2022-2035), creating a favorable policy 
environment in which the PV industry can 
achieve strong growth and development.
D
3.1 RESPONDING TO CLIMATE CHANGE
67

The huge market demand for PV products 
has incentivized companies to enter the 
market and consequently, expansion 
in produc tion capacity has led to an 
oversupply of high-purity polysilicon, the 
basic essential raw material for PV power 
modules, since 2023. As an upstream 
company in the PV industry chain, Daqo 
plays an important role in the PV supply 
chain and we are committed to meeting 
this market demand to help address climate 
change and promote the green energy 
transition.
To this end, Daqo is dedicated to increasing 
produc tion capacit y and optimizing 
product quality through research and 
innovation. Based on the industry average 
production level of approximately 2.7 grams 
of polysilicon per watt of PV module, the 
133,812.21 tons of polysilicon produced by 
Daqo for PV module manufacturing in 2022 
is cap able of producing approximately 
49.56GW of PV modules and generating 
74.34 billion kWh of clean electricity per 
year, equivalent to a 42.4 million ton
4 
reduction in CO2 equivalent GHG emissions.
Climate Change Risk Response
Against the backdrop of global concerns 
over climate change, Daqo has incorporated 
c lima te c hange is sue s in to i t s r is k 
management framework. In line with the 
recommendations of the Task Force on 
Climate-related Financial Disclosures 
( TCFD), the Company has assessed 
the relevance and impact of a range of 
climate change risks and responded with 
initiatives to reduce climate risk and explore 
opportunities for a low carbon transition.
4 The GHG emission reduction in tons of CO2 equivalent 
is calculated using the latest national grid average 
carbon emission factor of 0.5703 t CO2/MWh issued 
by the Ministry of Ecology and Environment of China 
for consultation on the Methodology and Reporting 
Guidelines for Corporate Greenhouse Gas Emission 
Accounting for Power Generation Facilities (Revised 
Version 2022). The specific calculation is reduced GHG 
emissions in tons of CO2 equivalent = (national grid 
average carbon emission factor - 0) * power generation (0 
for PV power generation carbon emissions).
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    3.1 RESPONDING TO CLIMATE CHANGE
68

Given the above climate change risks, Daqo is committed to reducing carbon emissions by implementing 
energy saving measures and reducing energy consumption across its entire production process.
Risk Type
Risk Impact
Response Initiatives
Physical Risk
Acute Risk
Risks in production, transport, and 
employee health and safet y are 
exacerbated by extreme weather 
conditions such as drought, heat, 
typhoons, and flooding
Closely monitor severe weather forecasts and 
ensure timely warnings.
Develop emergency plans to deal with the 
impact of unexpected severe weather events on 
production, transport, and the health and safety 
of employees.
Utilize predictive analysis of chronic climate 
risks to optimize our future site selection and 
operational footprint.
Chronic Risk
Changes in temperature, rainfall 
patterns, and other climactic conditions 
could impact the company's operations 
and the production management
Transition Risk
Policy and 
Law
Under stricter emission compliance 
and disclosure requirements, non-
compliant companie s may f ace 
negative consequences such as fines, 
restrictions on financing, restrictions on 
operations, and closure of operations
Closely track energy conservation and emissions 
reduction policies at all work sites; forecast 
policy trends and strictly comply with all relevant 
laws and regulations.
Conduct carbon inventory and product carbon 
footprint verification to confirm the scope 
of emissions and provide clarity as to the 
calculation methodology, emission sources, etc.
Technology
Risk of failure to meet market demand 
due to low-carbon technology transition
Continue to conduct innovative research and 
development work, strengthen our exploration 
in the field of clean technology, achieve 
greater levels of digitalization, automation, 
and intelligence, enhance product quality, 
reduce product costs, and improve the cost 
performance of our products, while leveraging 
the experience and skills of our team to develop 
new products that meet market demand quickly 
at a low cost.
Focus on our core polysilicon business without 
overextending ourselves, reduce financial 
costs and risks through healthy balance sheet 
management, and achieve efficiency through 
scale and effective management.
Risk of increased financial burden due 
to surge in low carbon technology 
transition costs
Market
Impact of consumer preference for 
green and low-carbon products on 
the company's market planning and 
technology direction
Conduct market research, pay close attention to 
market trends and emerging technologies and 
products, identify changes in end-consumer 
demand for polysilicon products, and promptly 
adjust market planning and technology direction 
accordingly.
Consolidate raw material supply through 
procurement front-loading and supplier 
management to reduce the risk of price 
fluctuations and cost increases.
Higher procurement costs due to 
higher raw material prices
Reputation
Increasing stakeholder concern about 
corporate performance on low carbon 
development; potential for poor 
performance to overshadow company's 
brand reputation
Closely monitor sustainability and climate 
change-related disclosure requirements to 
optimize the completeness, truthfulness, and 
timeliness of information disclosure.
Open communication channels, strengthen 
communication with stakeholders, and cultivate 
Daqo’s green and low-carbon brand image.
69

3.1.2. Energy Management
Reducing energy consumption is not only 
essential to improving production efficiency, 
but also a critical component of efforts 
to mitigate climate change and practice 
sustainable development. Daqo strictly 
abides by the Law of the People’s Republic 
of China on Energy Conservation and other 
relevant laws and regulations and devotes 
significant effort to projects such as energy-
saving designs, equipment upgrades, and 
technological transformation to continuously 
improve our energy efficiency.
Through implementing a series of energy-
saving and consumption -reduc tion 
initiatives and technical improvement 
projects, Daqo saved an estimated 182.73 
million kWh of purchased elec tricit y 
consumption and 180,324 tons of steam 
consumption, equivalent to a 157,633.45 ton 
reduction in CO2 emissions.
Recovering Waste Heat from Cold 
Hydrogenation Reactions
During the Reporting Period, Daqo 
continued to optimize processes and 
procedures related to heat exchanger 
operations in its cold hydrogenation plant 
to increase the recycling rate of waste 
heat, achieving a 0.06 kWh reduction per 
kilogram of electricity consumption for 
the entire production line.
During the Reporting Period, Daqo used a flashing 
process to convert low-quality heat sources into high-
quality steam for use in various installations, achieving 
significant energy savings and reducing energy 
consumption.
Systematic Waste Heat Recycling Project
Steam Compressor Units
Energy Consumption 
Target
Steam: 16 kg/kgSi
Electricity: 56.5 kg/kgSi
Steam: 15.8 kg/kgSi
Electricity: 56.8kg/kgSi
Steam:21% 
Electricity:6%
Actual Energy  
Consumption
Y-O-Y Reduction
Daqo also set annual energy consumption targets during the 
Reporting Period. The Company beat its steam consumption 
targets and largely achieved its electricity targets through 
the above-mentioned energy efficiency projects, recording 
notable year-over-year reductions in both types of energy 
consumption. Over the past five years, Daqo's overall 
energy consumption and GHG emission intensity have both 
declined continuously, demonstrating the effectiveness 
of Daqo's efforts to address climate change and manage 
energy usage.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    3.1 RESPONDING TO CLIMATE CHANGE
70

During the Reporting Period, the Company's energy consumption and GHG emissions data were as follows:
Indicator
Unit
2021
2022
Diesel
Tons
47.48
66.98
Purchased electricity
kWh
5,195,724,430.00
7,553,270,489.00
Steam
Tons
1,707,807.4
2,117,690.60
Direct energy 
consumption
Tons of standard coal
69.18
97.60
Indirect energy 
consumption
Tons of standard coal
807,546.29
1,137,847.66
Comprehensive energy 
consumption
Tons of standard coal
807,615.47
1,137,945.26
Comprehensive energy 
consumption density
Tons of standard coal / ton 
of polysilicon output
9.33
8.50
Direct (Scope 1)
GHG emissions
Tons of CO2 equivalent
149.33
210.67
Indirect (Scope 2)
GHG emissions
Tons of CO2 equivalent
3,972,020.40
4,935,014.21
Total GHG emissions
Tons of CO2 equivalent
3,972,169.73
4,935,224.88
Greenhouse gas emission 
density
Tons of CO2 equivalent /
ton polysilicon production
45.88
36.88
0
10
20
30
40
50
60
70
80
2018
2019
2020
2021
2022
Integrated energy intensity (tonnes of standard coal / tonne of production)
Greenhouse gas emission intensity (tonnes of CO2 equivalent / tonne of production)
Daqo's Comprehensive Energy Consumption Intensity and GHG Emission Intensity, 2018-2022
15.03
12.65
10.03
9.33
8.5
71

Daqo continues to revise and improve its 
internal Environmental Management System 
in strict compliance with national laws and 
policies such as the Law of the People’s  
Republic of China on Environmental 
Protection, the Law of the People’s Republic 
of China on Environmental Impact Assess-
ment, the Law of the People’s Republic of 
China on the Prevention and Control of 
Environmental Pollution Induced by Solid 
Waste, and the Law of the People‘s Republic 
of China on Water Pollution Prevention and 
Control. The Company has also prepared 
Special Plans for Natural Disaster Emergen-
cies (Earthquakes, Extreme Weather) and 
other regulations to provide standardized 
reference guidelines for comprehensive 
emergency response. During the Reporting 
Period, Daqo conducted internal audits on 
its facilities and was audited by third-party 
certification bodies with national registration 
qualifications. The Company‘s polysilicon 
production and related management activities 
have been certified under the ISO 14001  
Environmental Management Systems standard. 
In terms of contributing to environmental 
protection, Daqo invested a total of RMB 
31,593,800 during the Reporting Period 
and identified no violations of environmental 
laws or regulations.
Daqo has set clear pollution reduction  
targets covering wastewater emissions and 
other metrics to measure the progress of its 
environmental protection strategy. These 
metrics related to environmental protection 
and clean production are integrated into 
the Company’s long-term strategy and  
performance assessment system. In accor-
dance with emission permit management 
requirements, Daqo regularly commissions 
qualified third-party experts to conduct 
pollutant emission monitoring covering  
wastewater, air emissions, and waste to  
ensure that emissions requirements are met 
and negative environmental impacts are 
minimized during production operations. 
During the reporting period, the Company’s 
environmental management focused on  
water and soil conservation, as detailed in 
the figure below:
3.2  ENVIRONMENTAL MANAGEMENT
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    3.2 ENVIRONMENTAL MANAGEMENT
72

Water and Soil Conservation
• We have contracted a third-party 
company to design and implement 
water and soil conservation measures 
around our construction sites. In 
addition, a professional landscape 
maintenance team is responsible for 
cultivating, trimming, and ensuring 
the healthy growth of the greenery 
around our plant areas.
In addition, to further enhance staff awaren-
ess of environmental protection, Daqo has 
strengthened its corporate environmental 
protection culture by conducting regular en-
vironmental emergency drills and training.
73

3.2.1. Wastewater Management
Daqo observes strict compliance with laws and regulations including the Law of the People's 
Republic of China on Water Pollution Prevention and Control and the General Standards for 
Wastewater Discharge (GB8978-1996). Daqo collects and classifies all wastewater discharge 
generated during production operations and separates wastewater from sewage to enhance 
the efficient use of water resources and reduce wastewater generation and discharge.
During the Reporting Period, Daqo carried out a series of equipment upgrades and technical 
modifications to reduce the production, discharge, and environmental impact of wastewater. 
These measures achieved the expected results and contributed to the steady advancement of 
the Company’s environmental management capabilities.
Sewage discharged 
from the water 
circulation system 
enters the reclaimed 
water reuse device 
for treatment, and 
qualified water is 
reused in the water 
circulation system. 
The concentrated 
water produced by 
reverse osmosis is 
discharged to the 
industrial park’s 
sewage treatment 
plant.
Domestic sewage is 
treated in a septic 
tank and then 
discharged into the 
industrial park's 
sewage treatment 
plant after passing 
the inspection of 
the main discharge 
outlet.
The remaining 
sewage from 
daily production 
is recycled in the 
circulating water 
system through 
the sewage 
classification 
recycling device.
Salt-containing 
wastewater gets 
repeatedly recycled 
in the Three Wastes 
Treatment Center, 
and then, after 
passing inspection, 
is transported to 
the industrial park’s 
sewage treatment 
plant by tank truck.
Fluorine-containing 
wastewater is 
collected and 
treated for the 
recycling system if 
it meets the system 
requirements. The 
concentrated water 
produced by reverse 
osmosis is sent to the 
fluorine-containing 
wastewater 
treatment device and 
discharged through 
the main outlet after 
passing inspection.
Wastewater Disposal Process
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    3.2 ENVIRONMENTAL MANAGEMENT
74

Optimizing the Product Pickling 
Process to Reduce Wastewater 
Discharge
During the Reporting Period, Daqo 
achieved a significant reduction in 
wastewater discharge by optimizing the 
product pickling process to reduce the 
amount of acid used.
Recycling of Concentrated Water
During the Reporting Period, Daqo 
r e c y c l e d  12 5  t o n s  p e r  h o u r  o f 
concentrated water.
Due to the Company’s continued wastewater 
reduction efforts, Daqo's wastewater 
intensity declined for the fourth consecutive 
year, and has decreased by 47.9% since 
2019.
2019-2022 Wastewater Intensity
0
2019
2020
2020
2021
5
10
15
20
16.98
Indicator
Unit
2021
2022
Total wastewater 
discharge
10,000 tons
79.59
118.38
75

3.2.2. Waste Gas Management
Daqo strictly complies with the requirements 
of the Law of the People's Republic of China 
on Air Pollution Prevention and Control and 
other laws and regulations, implements 
the requirements of the General Emission 
Standards of Air Pollutants (GB16297-1996) 
and other standards, and has installed air 
emissions treatment devices such as dust 
collectors and drenching towers to ensure 
that air emissions are treated according 
to pollutant prevention standards before  
being emitted. During the Reporting Period, 
Daqo standardized key process parameters 
related to exhaust recovery while revising 
the Daqo Quality Control and Monitoring 
Management Regulations to strengthen 
control and monitoring of air emissions.
In addition, the Company is focused on 
controlling dust pollution and implements 
dust management measures throughout the 
entire lifecycle of every construction project.
Indicator
Unit
2021
2022
Nitrogen oxides
Tons
4.23
1.63
Dust
Tons
6.67
11.50
Data on the Company's waste gas emissions during the Reporting Period is shown below:
Dust Pollution Management Measures
Preparatory Stage
Roads near the construction site are paved. Vehicle washing 
devices, drainage ditches, and dust detection devices are 
installed in construction areas.
Later Stages
The construction site and surrounding areas are regularly 
cleaned by a third-party contractor.
During Construction
Exposed earthworks in the construction site are covered with 
dense mesh nets, and lawns are planted in some areas. Sand 
blasting is prohibited for steel rust removal, and closed shot 
blasting machines are used instead.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    3.2 ENVIRONMENTAL MANAGEMENT
76

3.2.3. Waste Management
Daqo carries out waste management in 
an orderly fashion and strictly complies 
with the Law of the People's Republic of 
China on Solid Waste Pollution Prevention 
and Control. The Company transports 
general solid was tes to landfills for 
disposal according to local government 
requirements; for hazardous wastes, the 
Company sets up temporar y storage 
facilities and contracts qualified professional 
suppliers and third-party institutions to carry 
out subsequent treatment. In addition, the 
Company has leveraged technical research 
and development to improve its solid waste 
recycling and reuse capacity.
Waste Salt Recycling Technology 
Project
In response to the challenge of dealing 
with was te salt generated in the 
production process, Daqo launched 
an experimental study to develop 
the technology to remove impurities 
from recycled salt so that it can be 
used as raw material for the chloralkali 
plant. This project achieved significant 
milestones during the Reporting Period, 
enabling the successful recycling 
of 10 tons of recycled salt per day. 
This new method of utilizing a waste 
product which previously could not be 
reused demonstrates the importance 
of technological innovation to the 
Company’s environmental protection 
efforts.
Data on the Company's solid waste during the Reporting Period is shown below:
Indicator
Unit
2021
2022
Hazardous waste
Tons
213.75
445.38
General waste
Tons
25,740.50
39,269.90
> Integrated use
Tons
772.65
1,239.25
> Landfill
Tons
24,967.85
38,030.65
Total solid waste volume
Tons
25,954.25
39,715.28
77

3.3  RESOURCE MANAGEMENT
Daqo recognizes that practicing resource 
conservation and sustainable resource ma-
nagement is not only essential for reducing 
costs and boosting corporate efficiency, 
but also a fundamental part of our social 
and environmental responsibilities. We have 
implemented a multi-pronged approach to 
optimizing our water and material manage-
ment performance, focusing on equipment 
and plants, process technology, and target 
management. We are pleased to report that 
these efforts have yielded positive results.
3.3.1. Water Resources Management
Daqo attaches great importance to sus-
tainable water use and conservation, and 
the Company is committed to improving 
the efficiency of water consumption in our 
production processes. During the Reporting 
Period, we consumed water from municipal 
sources while also promoting the recycling 
of wastewater, grey water, and salt-con-
centration wastewater to achieve our water 
consumption target of 50 kg/kg of silicon, 
effectively enhancing our water utilization 
efficiency and reducing overall consump-
tion. We outperformed our annual water 
consumption target, reducing consumption 
by 26% compared to the previous year.
During the Reporting Period, Daqo employed technical 
means to achieve greater recycling of wastewater 
through the waste salt recycling process project. The 
project’s operational efficiency has reached 90 cubic 
meters of recycled water per hour, making a substantial 
contribution to our water conservation efforts.
Reducing Water Consumption 
through Recycling
MVR device
Water Consumption  
Target
50 kg/kgSi
42.96 kg/kgSi
26 % 
Actual Water
Consumption
Y-O-Y Reduction
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    3.3 RESOURCE MANAGEMENT
78

Indicator
Unit
2021
2022
Total water consumption (all 
coming from municipal water)
1,000 tons
5,622.3
6,250.8
Water consumption intensity
1,000 tons/ton of 
polysilicon output
0.06
0.05
Total recycled water
10,000 tons
66,782.9
105,186.69
Data on the Company's water consumption during the Reporting Period is as follows:
3.3.2. Management of Materials
D a q o  c o n s i d e r s  t h e  c o n t r o l  a n d 
management of materials to be crucial 
components of environmental protection, 
and incorporates sustainability factors into 
its material selection process. During the 
Reporting Period, the Company revised 
the Daqo Management System for the 
Quality Control of Finished Products, the 
Quality Control Management System 
for Raw and Auxiliary Materials, and the 
Quality Standard Management System 
to clarify the assessment criteria for raw 
and auxiliary materials. We have reduced 
silicon consumption, resource waste, and 
environmental impact in the production 
process through material recycling, with no 
negative impact on production capacity
Indicator
Unit
2021
2022
Silicon powder
Tons
95,883.20
144,591.65
Hydrogen
10,000 m
3
2,178.19
3,070.51
Hydrochloric acid
Tons
7,986.0
9,100.8
Data on the Company's material consumption during the Reporting Period is as follows:
Silicon Powder
Consumption Target
1.09 kg/kgSi
1.09 kg/kgSi
1.13 % 
Actual Silicon Powder
Consumption
Y-O-Y Reduction
79

GRI 
Standards
Disclosure items
Location
Pages
GRI 2: General 
Disclosure 
2021
2-1 Organizational details
About Daqo New Energy - 
Company Profile
P11
2-6 Activities, value chain, and other 
business relationships
About Daqo New Energy - 
Business Overview
P14
2-7 Employees
Talent Development -  
Employee Profile
P47
2-9 Governance structure and 
composition
Lean Governance -  
Risk Management
P18
2-10 Nomination and selection of the 
highest governance body
Lean Governance -  
Risk Management
P18
2-11 Chair of the highest governance 
body
Lean Governance
P16
2-12 Role of the highest governance 
body in overseeing the 
management of impacts
Lean Governance -  
Risk Management
P18
2-13 Delegation of responsibility for 
managing impacts
Lean Governance
P18
2-14 Role of the highest governance 
body in sustainability reporting
ESG Governance -  
ESG Governance
P23
Instructions  
for use
The information referenced in this GRI Content Index is reported by Daqo New Energy 
Corp. from January 1, 2022, to December 31, 2022, about the GRI standard.
GRI 1 used 
GRI 1: Foundation 2021
APPENDIX
4.1 GRI STANDARDS CONTENT INDEX
4
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    4 APPENDIX
80

2-16 Communication of critical 
concerns
ESG Governance -  
Stakeholder Engagement
P24
2-17 Collective knowledge of the 
highest governance body
Lean Governance
P18
2-19 Remuneration policies 
Talent Development -  
Employee Profile
P47
2-20 Process to determine the 
remuneration
Talent Development -  
Employee Profile
P47
2-22 Statement on sustainable 
development strategy
ESG Governance -  
ESG Governance
P23
2-25 Processes to remediate negative 
impacts
Lean Governance -  
Risk Management
P18
2-26 Mechanisms for seeking advice 
and raising concerns
Lean Governance - Business 
Ethics and Anti-Corruption
P20
2-27 Compliance with laws and 
regulations
Lean Governance -  
Risk Management
Lean Governance - Business 
Ethics and Anti-Corruption
P18-20
2-28 Membership associations
Lean Governance
P16
2-29 Approach to stakeholder 
engagement
ESG Governance -  
Stakeholder Engagement
P24
2-30 Collective bargaining agreements
Talent Development -  
Employee Profile
P47
GRI 3: 
Substantive 
topics 2021
3-1 Process to determine material 
topics
ESG Governance -  
ESG Materiality Issues
P26
3-2 List of material topics
ESG Governance -  
ESG Materiality Issues
P26
3-3 Management of material topics
ESG Governance -  
ESG Materiality Issues
P26
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    4.1 GRI STANDARDS CONTENT INDEX
81

GRI 201: 
Economic 
Performance 
2016
201-2 Financial implications and other 
risks and opportunities due to 
climate change
Responding to Climate Change - 
Risks and Opportunities
P67
GRI 202: 
Market 
Performance 
2016
202-1 Ratios of standard entry-level 
wage by gender compared to 
local minimum wage
Talent Development -  
Employee Profile
P47
202-2 Proportion of senior 
management hired from the local 
community
Talent Development -  
Employee Profile
P47
GRI 203: 
Indirect 
Economic 
Impacts 2016
203-1 Infrastructure investments and 
services supported
Commitment to Innovation 
and Quality - Technological 
Innovation
P29
203-2 Significant indirect economic 
impacts
Commitment to Innovation 
and Quality - Technological 
Innovation
P29
GRI 204: 
Procurement 
Practices 
2016
204-1 Proportion of spending on local 
suppliers
Commitment to Innovation and 
Quality – Supply Assurance
P41
GRI 205: Anti-
Corruption 
2016
205-1 Operations assessed for risks 
related to corruption
Lean Governance -  
Business Ethics and Anti-
Corruption
P20
205-2 Communication and training 
about anti-corruption policies 
and procedures
Lean Governance -  
Business Ethics and Anti-
Corruption
P20
205-3 Confirmed incidents of 
corruption and actions taken
Lean Governance -  
Business Ethics and Anti-
Corruption
P20
GRI 206: Anti-
competitive 
Behavior 2016
206-1 Legal actions for anti-competitive 
behavior, anti-trust, and 
monopoly practices
Lean Governance -  
Business Ethics and Anti-
Corruption
P20
GRI 301: 
Materials 
2016
301-1 Materials used by weight  
or volume
Resource Management - 
Materials Management
P79
301-2 Recycled input materials used
Resource Management -  
Material Management
P79
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    4.1 GRI STANDARDS CONTENT INDEX
82

301-3 Reclaimed products and their 
packaging materials
Resource Management -  
Material Management
P79
GRI 302: 
Energy 2016
302-1 Energy consumption within the 
organization
Responding to Climate Change - 
Energy Management
P70
302-2 Energy consumption outside of 
the organization
Responding to Climate Change - 
Energy Management
P70
302-3 Energy intensity
Responding to Climate Change - 
Energy Management
P70
302-4 Reduction of energy 
consumption
Responding to Climate Change - 
Energy Management
P70
302-5 Reductions in energy 
requirements of products  
and services
Responding to Climate Change - 
Energy Management
P70
GRI 303: 
Water and 
Effluents 2018
303-1 Interactions with water as a 
shared resource
Environmental Management - 
Wastewater Management
Resource Management -  
Water Resources Management
P74 
P78
303-2 Management of water discharge-
related impacts
Environmental Management - 
Waste Water Management
Resource Management -  
Water Resources Management
P74 
P78
303-3 Water withdrawal
Resource Management -  
Water Resources Management
P78
303-4 Water discharge
Environmental Management - 
Wastewater Management
P74
303-5 Water consumption
Resource Management -  
Water Resources Management
P78
GRI 304: 
Biodiversity 
2016
304-3 Habitats protected or restored
Environmental Management
P72
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    4.1 GRI STANDARDS CONTENT INDEX
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GRI 305: 
Emissions 
2016
305-1 Direct (Scope 1) GHG emissions
Responding to Climate Change - 
Energy Management
P70
305-2 Energy indirect (Scope 2)  
GHG emissions
Responding to Climate Change - 
Energy Management
P70
305-3 Other indirect (Scope 3)  
GHG emissions
Responding to Climate Change - 
Energy Management
P70
305-4 GHG emissions intensity
Responding to Climate Change - 
Energy Management
P70
305-5 Reduction of GHG emissions
Responding to Climate Change - 
Energy Management
P70
305-7 Nitrogen oxides (NOx), sulfur 
oxides (SOx), and other 
significant air emissions
Environmental Management - 
Waste Gas Management
P76
GRI 306: 
Waste 2020
306-1 Waste generation and significant 
waste-related impacts
Environmental Management - 
Waste Management
P77
306-3 Waste generated
Environmental Management - 
Waste Management
P77
306-4 Waste diverted from disposal
Environmental Management - 
Waste Management
P77
GRI 308: 
Supplier 
Environmental 
Assessment 
2016
308-1 New suppliers that were screened 
using environmental criteria
Commitment to Innovation and 
Quality - Supply Assurance
P41
308-2 Negative environmental impacts 
in the supply chain and actions 
taken
Commitment to Innovation and 
Quality - Supply Assurance
P41
GRI 401: 
Employment 
2016
401-1 New employee hires and 
employee turnover
Talent Development -  
Employee Profile
P47
401-2 Benefits provided to full-time 
employees that are not provided to 
temporary or part-time employees
Talent Development -  
Employee Profile, Employee Care
P47 
P54
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    4.1 GRI STANDARDS CONTENT INDEX
84

401-3 Parental leave
Talent Development -  
Employee Profile
P47
GRI 403: 
Occupational 
Health and 
Safety 2018
403-1 Occupational health and safety 
management system
Talent Development -  
Health and Safety
P56
403-2 Hazard identification, risk 
assessment, and incident 
investigation
Talent Development -  
Health and Safety
P56
403-5 Worker training on occupational 
health and safety
Talent Development -  
Health and Safety
P56
403-7 Prevention and mitigation of 
occupational health and safety 
impacts directly linked by 
business relationships
Talent Development -  
Health and Safety
P56
403-8 Workers covered by an 
occupational health and safety 
management system
Talent Development -  
Health and Safety
P56
403-9 Work-related injuries
Talent Development -  
Health and Safety
P56
403-10 Work-related ill health
Talent Development -  
Health and Safety
P56
GRI 404: 
Training and 
Education 
2016
404-1 Average hours of training per 
year per employee
Talent Development -  
Talent Cultivation
P52
404-2 Programs for upgrading 
employee skills and transition 
assistance programs
Talent Development -  
Talent Cultivation
P52
404-3 Percentage of employees 
receiving regular performance 
and career development reviews
Talent Development -  
Talent Cultivation
P52
GRI 405: 
Diversity 
and Equal 
Opportunity 
2016
405-1 Diversity of governance bodies 
and employees
Talent Development -  
Employee Profile
P47
405-2 Ratio of basic salary and 
remuneration of women to men
Talent Development -  
Employee Profile
P47
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    4.1 GRI STANDARDS CONTENT INDEX
85

GRI 406: Non-
discrimination 
2016
406-1 Incidents of discrimination and 
corrective actions taken
Talent Development -  
Employee Profile
P47
GRI 407: 
Freedom of 
Association 
and Collective 
Bargaining 
2016
407-1 Operations and suppliers in 
which the right to freedom 
of association and collective 
bargaining may be at risk
Talent Development -  
Employee Profile
P47
GRI 408: Child 
Labor 2016 
408-1 Operations and suppliers at 
significant risk for incidents of 
child labor
Talent Development -  
Employee Profile
P47
GRI 409: 
Forced or 
Compulsory 
labor 2016
409-1 Operations and suppliers at 
significant risk for incidents of 
forced or compulsory labor
Talent Development -  
Employee Profile
P47
GRI 410: 
Security 
Practices 2016
410-1 Security personnel trained 
in human rights policies or 
procedures
Talent Development -  
Employee Profile
P47
GRI 413: Local 
Communities 
2016
413-1 Operations with local 
community engagement, impact 
assessments, and development 
programs
Giving back to Society -  
Voluntary Activities, Public Charity
P63
413-2 Operations with significant actual 
and potential negative impacts 
on local communities
Environmental Management - 
Waste Management
P77
GRI 414: 
Supplier Social 
Assessment 
2016
414-1 New suppliers that were 
screened using social criteria
Commitment to Innovation and 
Quality – Supply Assurance
P41
414-2 Negative social impacts in the 
supply chain and actions taken
Commitment to Innovation and 
Quality – Supply Assurance
P41
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    4.1 GRI STANDARDS CONTENT INDEX
86

GRI 416: 
Customer 
Health and 
Safety 2016
416-1 Assessment of the health and 
safety impacts of product and 
service categories
Commitment to Innovation and 
Quality – Quality Management
P35
416-2 Incidents of non-compliance 
concerning the health and safety 
impacts of products and services
Commitment to Innovation and 
Quality – Quality Management
P35
GRI 417: 
Marketing and 
Labeling 2016
417-1 Requirements for product and 
service information and labeling
Commitment to Innovation and 
Quality – Quality Management
P35
GRI 418: 
Customer 
Privacy 2016
418-1 Substantiated complaints 
concerning breaches of customer 
privacy and losses of customer 
data
Commitment to Innovation 
and Quality – Technological 
Innovation
P29
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT   l    4.1 GRI STANDARDS CONTENT INDEX
87

DAQO NEW ENERGY CORP.