这是海尔电子集团有限公司(以下简称“海尔电子”、“集团”或“我们”)的第三份环境、社会和治理报告(以下简称“ESG报告”)，展示了该集团于2018年1月1日至12月31日所做的努力。本报告全面阐述了海.
2021-08-04
84页
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由于这些努力，2017年我们在客户、环境、协作、人和社区五大可持续发展价值方面取得了有意义的成就。在提升客户价值的同时，我们专注于提供在便捷性、安全性和质量方面都卓越的汽车。
2021-08-04
106页
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我们的战略是推动增长，提高执行力，提供客户满意度，加快我们的转型。颠覆性技术使我们能够利用基础优势来建立新的能力，丰富客户体验并加深忠诚度。福特 投资颠覆性技术使我们能够利用基础优势来建立新的能力，丰.
2021-08-04
40页
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虽然我们很高兴分享这份报告，概述了过去一年我们在全球公民身份方面取得的成就，但我们仍然意识到，企业在发挥其资源和声音的优势，提供领导力的同时，继续专注于核心业务，以实现短期、中期和长期的价值，扮演着越来越重要的角色。首先，我要谈谈正在重塑我们社会的两件事:美国对种族不平等的关注，以及全球COVID-19大流行。
2021-08-04
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客户评论、一键购物、个性化推荐、Prime服务、亚马逊实现、亚马逊网络服务(AWS)、Kindle直接出版、Kindle、职业选择、Fire平板电脑、Fire TV、亚马逊Echo、Alexa、Just Walk Out技术、亚马逊工作室和气候承诺是亚马逊的一些首创。我们在全球拥有超过160万名员工，业务遍及非洲、亚太、欧洲、印度、拉丁美洲、中东和北美。
2021-08-04
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作为人类能源公司，我们用我们的智慧来解决问题，克服障碍，提供解决方案。我们的文化允许创造力蓬勃发展，并创造了一种氛围，在这种氛围中，不同的声音、想法、经历和背景不仅受到尊重，而且得到庆祝。我们通过我们的环境、社会和治理(ESG)优先事项，将这些信念转化为行动和有意义的结果，这些优先事项基于三大支柱:保护环境、增强人民权能和以正确的方式取得成果。我们制定雄心勃勃的目标，努力采取行动，推动可衡量的进步。
2021-08-04
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与此同时，在某些方面，世界的变化还不够快，不足以克服我们所有人面临的生态和社会挑战。由于技术进步，我们今天能够为比历史上任何时候都多的人提供食物。世界上非常低收入人群的比例处于历史最低水平。仅在过去2.
2021-08-04
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能源与碳总结概述了埃克森美孚管理气候风险的方法，包括董事会监督、技术投资和减少温室气体排放的行动。它强调了该公司致力于推进可持续、有效的解决方案，以解决世界日益增长的能源需求和气候变化风险。在满足巴黎.
2021-07-29
55页
5星级
我们的报告中心为我们的环境、社会和治理工作提供详细的报告，使我们和我们的利益相关者有机会反思我们的进展，以便我们能够继续提高我们自己、我们服务的社区和地球的标准。我为我们迄今取得的成就感到自豪，但我知.
2021-07-02
24页
5星级
2020Environmental,Socialand Governance ReportContents ESG at Citi Sustainable Progress Equitable&Res.
2021-06-25
177页
5星级
Environmental,Social and Governance Report NetEase 20202020 ESG Performance HighlightsTCFD Climate-related Risk IdentificationRelevance of this Report to the UN Sustain-able Development Goals(SDGs)for 2030HKEX ESG Reporting Guide Content IndexSustainability Accounting Standards Board(SASB)Index0318717202About this ReportAbout NetEaseGovernanceEnvironmentResponsible Products and ServicesNetEase at a GlanceFinancial PerformanceStock Price PerformanceShareholder Return 03050607091218222528333945466265666869 51525659ESG GovernanceCorporate GovernanceAddressing Climate ChangeResources and Waste ManagementGreen ProductsCybersecurity and Data PrivacyProduct QualityProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementEmployee DevelopmentSocial EndeavorsPandemic ResponseOur ValuesTalent Attraction and RetentionHuman Capital DevelopmentEmployee WelfareSustainable Supply ChainIndustry EngagementCorporate Citizenship and PhilanthropyRapid Response to Ensure Employee SafetyCaring for Community and Society70Future ProspectsContents76 02NetEase 2020 ESG ReportGovernanceAboutNetEaseEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseAbout This Report 02NetEase 2020 ESG ReportAs a leading internet technology company based in China,NetEase(“We”or“the Company”)is committed to fostering collaboration and realizing peoples aspirations for a better life through technology and innovation.We strive to provide our users the best product experiences in education,entertainment and consumption,among others.Since our inception in 1997,we have worked continuously to fulfill our commitment to users,employees and society at large by incorporating environmental,social and governance(ESG)concepts into our decision-making and development.We have maintained regular communications with stakeholders,both at home and abroad,as part of our efforts for continued,sustainable and responsible actions across all of our ESG initiatives.Following the release of our first ESG report in 2020,we have continued to improve our ESG efforts in every aspect.This report provides a comprehensive description of our efforts and initiatives in 2020(the“reporting period”),as well as certain information pertaining to 2021 and activities prior to 2020,and focuses on matters of concern to stakeholders.It draws on the SASB Standards,the NASDAQ ESG Reporting Guide 2.0,and the Environmental,Social and Governance Reporting Guide issued by the Stock Exchange of Hong Kong Limited,as well as the areas of focus of leading global rating agencies:MSCI,DJSI(Dow Jones Sustainability Index)and Sustainalytics,among others.The report was prepared to summarize the Companys current status in meeting our ESG goals,taking into account the recommendations of investors and ESG professionals.We prepared this report in accordance with an established process,which includes identifying key ESG issues,determining reporting boundaries and gathering information.The information and examples contained herein are primarily from the Companys statistical reports and related documents.We care and value every opinion from stakeholders and readers of this report,and you can contact us via the information below.Your input will help us improve our reporting and our overall ESG performance.Contact us:Investor Relations and Global Communications DepartmentE-mail: Tel:( 86)571-8985-3378Twitter:NetEase_GlobalNetEase,Inc.03NetEase 2020 ESG ReportGovernanceAboutNetEaseEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponse2020 ESG Performance HighlightsResponsible Supply253.5tonsRMB100millionFunds for protective measures and initiatives against COVID-19 Supply chainmanagementRice purchased for charity initiativesQuality Assurance24/7950%Customer service hotline satisfaction rateEmployee cybersecurity training coverageCybersecurity riskmonitoringGreen DevelopmentFood waste reduction compared to 2019KWh of electricity saved from improved serversMinimum PUE2 achieved in our data centers 1.210%1.25 millionCorporate Governance5/6Independent directorsSet up ESGgovernance structureESG governanceIdentified seven material ESG issuesESG riskmanagementTalent ManagementStaff average age29Percentage of entry-level positions held by females in 202046%Two-time winner of“Excellence in Practice”award from ATD1 ATD1.Association for Talent Development2.Power Usage EffectivenessIdentifies keysuppliers regularlyNetEase at a GlanceFinancial PerformanceStock Price PerformanceShareholder Return 04GovernanceAboutNetEaseEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseNetEase 2020 ESG ReportNetEase at a GlanceAs a leading internet technology company based in China,NetEase,Inc.(NASDAQ:NTES;HKEX:9999)is dedicated to providing premium online services centered around innovative and diverse content,community,communication and commerce.NetEase develops and operates some of Chinas most popular mobile and PC-client games.In recent years,NetEase has expanded into international markets including Japan and North America.In addition to its self-developed game content,NetEase partners with other leading game developers,such as Blizzard Entertainment and Mojang AB(a Microsoft subsidiary),to operate globally renowned games in China.NetEases other innovative service offerings include the intelligent learning services of its majority-controlled subsidiary,Youdao(NYSE:DAO);music streaming through its leading NetEase Cloud Music business;and its private label e-commerce platform,Yanxuan.“NetEase is deeply committed to nurturing the industry and using the power of technology to enable users to better enjoy products and services that are closely related to key aspects of their lives,including education,entertainment,consumption and food safety.Since the establishment of NetEase in 1997,we have been committed to fulfilling essential obligations to our users,employees and society,which is an important reason why NetEase has maintained its long-term competitiveness in todays rapidly changing market.”William Ding,Founder and CEO of NetEase,Inc.23rd anniversary of NetEase news portal 20th anniversary of NetEase Games15th anniversary of Youdao8th anniversary of NetEase Cloud Music5th anniversary of NetEase Yanxuan2021Founded in Guangzhou1997Launched free web-based email services and website 1998Launched first online gameWestward Journey Online2001Initiated business partnership with Blizzard2008Launched Kaola,which was sold to Alibaba in 2019 2015The success of NetEase Games overseas,especially in Japan and other markets following the launch of Knives Out2018Launched NetEase Open Course2010Launched NetEase Cloud Music2013Launched Yanxuan2016Launched NetEase News app2011Launched Youdao2006Secondary listing in Hong Kong;Published first ESG report2020Listed on NASDAQ2000Youdao listed on New York Stock Exchange2019NetEase at a GlanceFinancial PerformanceStock Price PerformanceShareholder Return 05NetEase 2020 ESG ReportGovernanceAboutNetEaseEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseStrong and Sustainable Financial Growth across our BusinessesOperating Profit(RMB 100 Million)Cash1(RMB 100 Million)Net Revenue(RMB 100 Million)1.Including total cash and cash equivalents,current and non-current time deposits and short-term investments balance2020737201959220185121452020138201920181,001202074420194972018100NetEase at a GlanceFinancial PerformanceStock Price PerformanceShareholder Return 06NetEase 2020 ESG ReportGovernanceAboutNetEaseEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseAs of the end of the 2020 reporting period,NetEases share price had increased more than 120 times,with an annualized return of 26.5%.Share Price Performance Since IPO(2000.6.30-2020.12.31)20002001200220032004200520062007200820092010201120122013201420152016201720182019202010203040506070809010003.2x2.6x1.7xPrice performance123.6xNetEase ADSS&P 500NASDAQHang SengNetEase ADSS&P 500NASDAQHang SengAnnualized Return26.5%4.7%5.9%2.6%Overall Gain12,257.46.04.5h.6%Source:BloombergNote:Adjusted for ADS ratio changes from 1:100 to 1:25 and to 1:5 effective from March 2006 and October 2020,respectively.The share price returns counted here do not include dividends or dividend reinvestment.Share prices performance represents past performance and does not guarantee further results.The Companys share price may be affected by a number of factors,including those described in the Companys filings with the U.S.Securities and Exchange Commission and The Stock Exchange of Hong Kong.Significantly Outperforming the Market,with an Annualized Return of 26.5%NetEase at a GlanceFinancial PerformanceStock Price PerformanceShareholder Return 07NetEase 2020 ESG ReportGovernanceAboutNetEaseEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseWhile NetEase has enjoyed strong growth over the past 20 years with the support of our long-term shareholders,we think there is no better way to show our appreciation and grat-itude than to share these returns with our shareholders.We are one of the few growth companies in the world that regularly pays quarterly dividends to shareholders.NetEase has been paying dividends since 2013,with a cumulative buyback plus dividends of about RMB47 billion.Notes:1.In May 2014,the Companys board of directors approved a quarterly dividend policy under which the Company made quarterly cash dividend distributions at an amount equivalent to approximately 25%of its anticipated net income after tax in each fiscal quarter.In the second quarter of 2019,the Companys board of directors determined that quarterly dividends will be set at an amount equivalent to approximately 20%to 30%of the Companys anticipated net income after tax in each fiscal quarter.The Companys board of directors also approved an additional special div-idend of US$0.69 per ADS in the third quarter of 2019.2.Please note that determining the dividend distribution and the amount of such distribution in any particular quarter is made entirely at the discretion of our board of directors and is based upon our operations and earnings results,cash flow,financial condition and other relevant factors.Similarly,any future share repurchase is done at the discretion of the Companys board of directors.Repurchased Shares(RMB 100 Million)Dividends(RMB 100 Million)Repurchased nearly RMB22.4 billion worth of shares since 20132013120151201612201876202011320190.0120172120132014201520162017201820192020Approximately RMB24.6 billion in dividends have been paid since 2013Shareholder Return:Dividends&Share Buybacks of RMB47 BillionNetEase at a GlanceFinancial PerformanceStock Price PerformanceShareholder Return 825203314884315GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseAt NetEase,we believe that standardized and responsible corporate governance is essential to improving internal management and operating performance.With a sound governance structure in place,we have established strict risk control procedures to ensure compliance at all levels of our organization.We believe that our effective ESG governance policies enable us to set a strong example for other corporations amid our ongoing efforts to fulfill our responsibilities to our user community and society at large.ESG GovernanceCorporate Governance0912PerformanceHighlightsThis section covers UN SDGsGovernance 08NetEase 2020 ESG ReportSet up ESG governance structureConducted a comprehensive materiality analysis and identified 7 material ESG issues Aligned annual internal risk audits with ESG angleOur Ethics Committee continued to improve anti-cor-ruption and integrity systems and processes 09GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseClear ESG Governance StructureTargeting a comprehensive ESG governance structure,we established an ESG working group in 2020 and plan to launch an ESG committee in 2021.Our board of directors oversees the strategy and implementation of ESG initiatives to continuously improve overall transparency on ESG issues.Our ESG VisionWe integrate ESG standards into our daily business operations and are committed to our ESG vision with a focus on five major areas:corporate governance,environmental protection,quality assurance,talent manage-ment,and community service.ExcellenceingovernanceEnvironmentalprotectionQualityassuranceEmpoweringtalentCare for the communityESG VisionWe have a comprehensive ESG strategy and governance structureApproves ESG-related issues and provides recommendations for the Companys ESG-related decisions Implements ESG policies,initiatives and other issues under the guidance of the ESG CommitteeCoordinates ESG-related issues and provides recommenda-tions to the board over ESG-related decision makingSets ESG targets and roadmapBoard of Directors ESG CommitteeESG Working GroupESG GovernanceCorporate Governance 10GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseCorporateGovernanceAnti-addictionProduct QualityBusiness Ethics and Anti-CorruptionHuman Capital DevelopmentPrivacy and Data SecurityCorporate ESG ManagementEmploymentEmployee RightsResponsible MarketingCustomer Relationship ManagementHealth and SafetySupply Chain ManagementEnergy Management and Carbon EmissionsStakeholderEngagementIntellectual Property ProtectionResource UsageClimate ChangeExhaust&Waste ManagementBiodiversityEnvironment and Natural ResourcesMateriality AnalysisDuring the reporting period,we conducted a comprehensive review of ESG topics.This included a review of the ratings from MSCI and DJSI,the ESG guidance from the Stock Exchange of Hong Kong and NASDAQ,and best practices of our peers.We identified 21 ESG issues of significance to the Company,and we are working swiftly to improve in these areas.After receiving feedback from management and peer benchmarking analysis,we have identified 7 material issues to steer the future direction of our ESG strategy.IssuesNotesEnvironmental IssuesEnergy Management and Carbon Emissions Strategies,goals,initiatives,and results metClimate Change Climate change risk identification Resource Usage Management systems,policies and usage reduction initiatives for water consumption,packaging materials and other resourcesExhaust and Waste Management Implementation of waste and waste management systems,policies,emissions data and reduction measures BiodiversityTaking actions to ensure a positive impact of business activity on biodiversityEnvironment and Natural ResourcesActions to manage the significant impact of business activities on environment and natural resources Social IssuesPrivacy and Data Security Policies and measures related to data security protectionHuman Capital DevelopmentEmployee training and welfareAnti-addictionPolicies and measures to prevent online game addiction for minorsProduct Quality Product quality management and audits,incentives for product quality improvementResponsible Marketing Marketing methods meet social responsibility requirements and comply with advertising ethicsEmployee Treatment Policies and measures such as labor diversity,and prevention of child or forced labor Employee Rights Employee labor rightsHealth and Safety Policies and occupational health safety measures to protect employees from occupational hazards Intellectual Property ProtectionPolicies and measures for the protection of intellectual property rightsCustomer RelationshipManagement Customer satisfaction improvement initiatives Supply Chain Management Supply chain management systems,regulations and related initiatives Governance IssuesCorporate GovernanceCorporate governance structure and content Business Ethics andAnti-Corruption Compliance Company policies related to business ethics Stakeholder Engagement Stakeholder communication mechanisms Corporate ESG Management Company management and oversight of ESG mattersMaterial Issues for NetEaseWe ranked the importance of the 21 issues by two relevant criteria:importance to NetEases sustainable develop-ment and importance to stakeholders.We then classified them into low,medium and high importance,presented in the following materiality issue matrix.Importance to the Sustainable Development of NetEaseImportance to StakeholdersHighLowMateriality MatrixHighESG GovernanceCorporate Governance 11GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseInternational Awards and RecognitionNetEase continued to fulfill its environmental,social and corporate governance responsibilities with diverse initiatives for the benefit of society.The Company has won widespread international recognition in areas including gender equality and human capital development,in addition to awards for the company as a whole.Awards and RecognitionHosts/OrganizersNamed to The Forbes Global 2000 in 2021ForbesIncluded in the 2020 Bloomberg Gender-Equality Index(GEI)BloombergIncluded in World Benchmarking Alliances 2020 Digital Inclusion BenchmarkWorld Benchmarking Alliance Awarded ESG Care labelUNESCO HK Association Glocal Peace Centre,Rotary Action Group for Peace,SocietyNext FoundationNamed one of the Forbes 2020 Best CEOs in ChinaForbesAssociation for Talent Development(ATD)Excellence in Practice Award winner Association for Talent Development Included in The Worlds Best Employers 2020 ForbesIncluded in Forbes Digital 100 2019-2020ForbesNamed to the list of the Most Reputable Companies Worldwide in 2018ForbesIncluded in Forbes Asias Fab 50 Companies 2018ForbesIncluded in Fortune China 500 in 2020FortuneIncluded in Fortunes 100 Fastest Growing Companies in 2018FortuneESG GovernanceCorporate Governance 12GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseBoard DiversityNetEases board of directors attaches high importance to diversity in gender,professionalism and industry expertise.As of the publication date of this report,the NetEase board of directors comprised six directors,including five independent directors as defined under the rules of the NASDAQ Stock Market.Current directors include one female director and one director with a doctoral degree.All members have extensive in-dustry experience and expertise across a variety of fields,including communications technology,business administration,law and social sciences.This di-versity enhances corporate decision-making by providing a comprehensive and integrated perspective and outlook.Sound Governance StructureThe board of NetEase has three committees:the audit committee,the compensation committee and the nominating committee.Each committee is comprised entirely of independent directors.Supported by these committees,the board provides guidance and monitors the operational and financial performance of the Company.This ensures that the internal audit and risk-management systems are sound,prudent and support the implementation of the Companys major strategic decisions.The charters of the board committees are published on the Companys IR website1 and will be provided to shareholders upon request.We have a sound corporate governance structure with an emphasize on riskmanagement and business ethicsTypeNameGenderEducational BackgroundProfessional CapacityIndustry ExperienceRiskManagementFinancial ManagementFounder/Director/CEO William Ding（丁磊）MaleBachelor of Science degree inCommunication TechnologyIndependent DirectorAlice Cheng（郑玉芬）FemaleBachelor of Accounting,MBAIndependent DirectorDenny Lee（李廷斌）MaleBachelor of AccountingIndependent DirectorJoseph Tong（唐子期）MaleBachelor of Social Science with honors in Accounting and StatisticsIndependent DirectorLun Feng（冯仑）MaleBachelor of Arts in Economics;Masters of Law and Juris DoctorIndependent DirectorMichael Leung（梁民杰）MaleBachelor of Arts,Social Science5/61/6Independent DirectorsFemale Director1.The charters of the Companys board committees are publicly available at:http:/ on the CommitteesAudit CommitteeCompensation CommitteeNominating CommitteeIndependent DirectorMichael LeungIndependent DirectorAlice ChengIndependent DirectorJoseph TongESG GovernanceCorporate Governance 13GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseNetEase annual risk assessment workflow and outputExamples of NetEase 2020 ESG-related risk assessmentNetEase fully considers areas of each departments potential risk and carries out risk identification and evaluation in a targeted manner:Specific audit projects are conducted to evaluate risk monitoring and controlESG risks are incorporated into the Companys annual internal assessment,followed by the development of multiple improvements and other measuresWith targeted anti-money laundering and anti-terrorist financing risk audits for departments involved in financial transactions,non-compliance risks are assessed from multiple management dimensions,and corresponding measures are formulated to improve management capabilitiesNetEases internal audit department is responsible for annually assessing the risks associated with our busi-nesses.It also identifies and analyzes the internal and external risks of the Company and each business de-partment and optimizes risk control initiatives,as part of our efforts to strengthen our enterprise risk control capabilities.Each department conducts self-analy-sis and assessment of its business risks and control mea-suresThe internal audit department collects the risk assessment results from each department and identifies compre-hensive risks and control measures,among othersBased on the results of the risk assess-ment,the internal audit department confirms the SOX Section 404 compli-ance scope of work and the content of special auditsPreparation of the annual work plans and report for the Audit Committee and senior manage-mentRisk Assessment ProcessRisk Management SystemRisk Identification,Evaluation and ResponseFormulating Working Documents“Risk Register”“AnnualWork Plan”“SOX RCMs andAudit Scope”Internal Audit DepartmentTargetsESG-related RisksMeasures/Plans for ImprovementR&D departmentsTechnology and product in-novation riskMeasures and policies to improve technological capability and product innovation skillsDepartments involvedin production andmanufacturingProduct quality and safety riskEstablish sound standards for product quality and ensure the standards are in compliance with all relevant national and local requirementsAdministrationdepartmentEmployee health and safety riskEnsure the safety of employees food,lodging,transportation and travel and provide health protection for our employees Departments with high consumption of energy,such as ITEnergy consumption riskImplement green office measures to lower carbon emissions,for example,by reducing the use of paper,arranging employee shuttles,and managing the time and intensity of central air-conditioning use in the office areasHuman ResourcesdepartmentEmployee development riskLaunch training programs in accordance with the Companys talent-development goals and follow up on the implementation of staff-development plans Strong Risk Control MechanismsNetEases board of directors prioritize risk control,and the audit committees supervision and risk control responsibilities form key components of our overall risk-management protocol.At a day-to-day level,our management guides all rele-vant departments on how to implement risk management systems and responsibilities to ensure that our Companys business risks are fully understood and securely managed.ESG GovernanceCorporate Governance 14GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseAnti-corruption FrameworkBusiness Ethics Policies“1 X”Business Ethics System Five Control Lines for NetEases BusinessEthics and IntegrityMultiple Internal Systemsand WorkflowsProhibit trading power for profitsProhibit engaging in activities that pose conflicts of interests to the Company and its business Prohibit seeking improper personal gains with corporate property,information or positionProhibit leaking confidential data Prohibit engaging in illegal or disorderly behaviorNetEase Whistleblowing SystemPolicies on the Acceptance of Gifts by EmployeesCode of Practice on Conflicts of Interest for EmployeesPolicy of NetEase Ethics CommitteeWhistleblowers can choose to report anonymously so that their privacy is protectedAccess to whistleblower complaints is only granted to the assigned investigator and department headInvestigators must sign aconfidentiality agreement which explicitly prohibits the leakage of all relevant informationProtectionsforWhistleblowersIn performing their job duties,NetEase employees are required to always act lawfully,ethically,and in the best interests of NetEase.NetEase has an Ethics Committee that is authorized to investigate any and all matters brought to its attention in such manner as it deems appropriate and report its findings directly to the CEO.NetEase established a sound reporting mechanism,with the Ethics Committee office following up on whistleblowing and responding to complaints from em-ployees and business partners.NetEase provides a whistleblower protection mechanism for employees to report misconduct,including an anonymous com-plaint mechanism and multiple reporting channels,such as a whistleblower hotline,email,etc.CEOEthics CommitteeEthics Committee OfficeBusiness Ethics and Code of Conduct:Our Internal Policies and Management Structure Promoting fairness,ethics and integrity for all of our employees is at the forefront of our company governance.The audit committee of the Companys board oversees procedures for employee complaints and concerns and reports regularly to the full board of directors.We have a dedicated Ethics Committee to supervise and ensure appropriate behavior by all employees and the Company as a whole.ESG GovernanceCorporate Governance 15GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseIn 2020,NetEase adopted a company-wide,full lifecycle approach to business ethics-related training activities.We conducted both online and offline integrity training for new and current employees.We also organized case study sessions focusing on different types of misconduct,while emphasizing our commitment to preventing corruption,bribery and other illicit behavior.A total of 25,446 employees participated in anti-corruption related training in 2020,covering 97.7%of all employees.NetEase launched a month-long“Integrity Month”campaign in four locations1.To ensure that business ethics train-ing was engaging and attractive,NetEase used a variety of fun approaches to enhance employees integrity aware-ness.Integrity Training for all EmployeesTo strengthen employees awareness of integrity issues,the Ethics Committee Office conducted targeted training for NetEase management,as well as individuals in high-risk positions and other employees.The of-fice carried out scenario-based training on relevant regulations through online and offline methods.A total of 25,439 training sessions were organized in 2020,covering approximately 97.6%of our employees.Integrity Training for New HiresProvides integrity and ethics-related training for new employees,mainly in the form of on-site training.Employees who could not attend the on-site training were required to complete online training.A total of 1,649 new hires were trained on-site in 2020.Case Briefing and Reflection SessionsThis focused on departments which had experienced compliance issues.The format involved mainly of-fline meetings to inform all employees about cases and reiterate the key integrity requirements.Regular Integrity CommunicationsIntegrity MonthWe hosted an offline event for integrity awareness for a busi-ness unit and employ-ees were instructed about anti-corruption practices and signed an integrity pledge.We enhanced em-ployees awareness through multiple channels,including advertisements and billboards in our of-fice campuses.We produced a short play-“Integrity Mans Data Security Battle”to promote the con-cept of integrity.We interacted with employees through livestreamed trainings,such as by show-ing employees how to respond to con-flict-of-interest situa-tions.Live-streaming ActivitiesBusiness Ethics and Code of Conduct:Employee TrainingNetEase provides guidance and helps implement its code of ethics through internal communications as well as other channels.We conduct training and internally publicize the topics covered by the code of ethics to raise awareness and prevent violations across our business.ESG GovernanceCorporate GovernanceOnline ActivitiesOffline ActivitiesOn-site Publicity1.NetEases offices in Hangzhou,Beijing,Guangzhou and Shanghai.16GovernanceAbout NetEaseNetEase 2020 ESG ReportEnvironmentResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseBusiness Ethics and Code of Conduct:Working with Our PartnersNetEase abides by NASDAQs ESG Reporting Guide 2.0 with respect to its suppliers and other partners.We actively participate in anti-fraud and anti-corrup-tion alliances and related activities of external parties.We are committed to working with industry partners to create a wholesome business environment.As a council member of Chinas Trust and Integrity Enterprise Alliance and Binjiang Compliance Promotion Association,NetEase pro-actively collaborates with industry participants to advance anti-corruption concepts and practices.Trust and Integrity Enterprise AllianceNetEase actively participates in corporate exchanges and ac-ademic forums held by the Alliance to learn about and share anti-corruption approaches and experiences.For example,in August 2020,NetEase participated in the“Seminar on An-ti-Corruption and Compliance Risk Held for Internet Enter-prises”to learn about and exchange best practices on an-ti-corruption management.Binjiang Compliance Promotion AssociationAs a board member,NetEase participates in the Associations monthly communication meetings,exchanges best practices and participates in academic forums and other activities held by the Association.For example,in September 2020,NetEase participated in a seminar on“Fundamentals of Corporate Compliance Governance”to learn about corporate compli-ance management issues.In 2020,NetEase conducted integrity training for nearly 100 employees from 60 suppliers,with 92 hours spent on training.We also sent a letter to our suppliers which explained our commitment to corruption-free procurement to further strengthen suppliers aware-ness of integrity.ESG GovernanceCorporate GovernanceAboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseIn the process of moving toward a digital economy and society,NetEase is constantly fostering green initiatives and accelerating the development of green innovations.As such,we are committed to promoting environmental val-ues across industries.As part of our corporate strategy,all of our business units adhere to the concept of sustainable development,integrating environmental protection and pursuing green operations across a wide range of business models and scenarios.In doing so,NetEase both pro-motes sustainable business practices in the regions where we operate and contributes to Chinas 14th Five-Year Plan goals of green development,supporting the transition to a low-carbon lifestyle and pursuit of carbon neutrality.Addressing Climate ChangeResources and Waste ManagementGreen Products182225PerformanceHighlightsThis section covers the United Nations Sustainable Development Goals(UN SDGs)Environment 17NetEase 2020 ESG ReportConducted a climate change risk assessmentAchieved 37.4%renewable power usage in select data centersReduced campus electricity usage by up to 90%Reached 432MWh photovoltaic capacity at one of our office campuses 18AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseWe are working on climate change risk identification based on the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD).We have assessed our climate change risks and are progressively exploring strategies and actions for climate change mitigation,adaptation and resilience.In terms of risk identification,we assessed national and local policies,surveyed technological and market trends,and defined potential transition risks that could have a financial impact on our business.Transition RisksTypes of Climate Change RisksDescription of Climate Change RisksResponsesPolicy and LawStricter reporting obli-gationsContinue to promote the management of energy consumption by collecting data on energy consumption in our business and accu-rately calculating carbon emissions.TechnologyFailed investments in new technologiesExamine the suitability of new technology investment and their compatibility with our business.Evaluate the results and invest-ment risk in reducing greenhouse gas emissions for NetEase.Costs of the transition to low-emission tech-nologyExamine the feasibility of new technology and equipment.Carry out replacements at a reasonable pace.MarketChanges from custom-er behaviorTrack the market in real-time to ensure an appropriate share of green attributes in our products.Higher procurement costsUse energy efficiency as a threshold for data center suppliers,and encourage existing suppliers to use clean energy.Reputa-tionChanging consumer preferencesExplore existing suppliers green products,encourage suppliers to provide green products,and gradually increase the proportion of our green products year-by-year.Increased concern among stakeholders about the associated im-pact on their reputationDisclose the efforts made,results achieved and the Companys future path,as well as plans to build confidence among stake-holders.For both extreme and chronic physical risks,we assessed the risks to the Companys business from both near-and long-term perspectives(current to 2100)based on the greenhouse gas representative concentration pathway(RCP)8.5 adopted by the UN Intergovernmental Panel on Climate Change(IPCC).Physical RisksClimate Change Risk Identification under TCFD FrameworkWe proactively identify climate-related risks and take actions to address themTransition RisksTypes of Climate Change RisksPotential Impact on NetEaseAcute RisksTyphoonsTyphoons may damage internet infrastructure,and affect the sup-ply and sales of our products.FloodsFlooding may damage internet infrastructure.DroughtDroughts can cause water supply shortages,but the impact on NetEase is limited.Extreme cold and heatExtreme cold or heat will increase demand for cooling and heat-ing,and may also affect water supply,but the impact on NetEase is limited.Chronic RisksExtreme fluctua-tions in rainfall and weather patternsExtreme precipitation may damage office and operational infra-structure,resulting in increased operating costs.Increase in average temperatureRising temperatures may increase demand for cooling in summer.Sea level riseA rise in sea level will increase the threat of flooding and possibly damage offices and internet infrastructure.Physical RisksAddressing Climate ChangeResources and Waste ManagementGreen Products 19AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseThrough a series of initiatives,the average PUE of some NetEase data centers in 2020 was 1.3,with the lowest being 1.2.In the future,we will set lower PUE targets to reduce carbon emissions from our data centers by improving energy efficiency and reducing cooling consumption in or-der to create a green and efficient environment.Cooling System UpgradesNetEase also reduces energy consumption for cooling by optimizing ex-isting technologies and adopting advanced technology innovations.Technical Upgrades at Data CenterNew ProjectConstructionExisting ProjectOptimizationEnergy use efficiency target:PUE 1.4Philosophy:Modular designMethods:Free air-cooled air-conditioning technology high voltage DC power supply technologyResults:Improved cooling and power supply efficiencyWe are monitoring opportunities to utilize renewable energy while continually optimizing our data center energy structure and increasing the proportion of new energy sources.At present,some of our data centers use renewable energy,mainly wind power and photovoltaics.The average proportion of renewable energy power used in one of our data centers in 2020 was 37.4%,with the peak proportion reaching 45%,significantly improving the cleanliness of data center power use and reducing greenhouse gas emissions.NetEase has optimized the energy consumption per unit of computing power by adjusting internal resources,initiating the replacement of old servers and decommissioning high energy-consuming data centers.During the 2020 reporting period,NetEase replaced approximately 7,000 old servers,equivalent to the leasing elimination of 500 old high energy-consuming racks,which saved an average of 1.25 million kWh of electricity or 153 tons of standard coal per year.Refrigeration is the largest source of energy consumption following the IT load in data centers.NetEase requires all data centers we operate or rent renovate old air conditioning units,replace the original fixed-frequency air conditioners with new energy-saving models,and optimize humidity control equipment in server rooms to reduce energy consumption.We upgraded two server rooms that saved 190,000 kWh as of December 2020,and the rooms energy consumption was reduced by 10ter the renovation.Addressing Transition Risks:Pursuing Low-carbon Data Centers With smart solutions in office,renewable energy,low-carbon travel and other measures,NetEase targets a highly efficient approach for energy consumption that helps preemptively cut the technical risks arising from climate change.Part of the server rooms use air-cooled,air-conditioning water,a pre-cooling system to cool the server room,which has an energy-saving effect below 20,especially when the temperature is below 10.Some of our server rooms in Hangzhou use an inverter fluorine pump natural cooling technology for cooling.These units adopt the principle of a closed fluorine system fluorine pump instead of the existing large server room water system plate exchange for natural cooling.While achieving maximum use of natural cooling,this new technology also results in zero water consumption.The PUE is about 40%lower than that of conventional air-cooled air-conditioned rooms.Low EnergyConsumptionAddressing Climate ChangeResources and Waste ManagementGreen Products 20AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseIntelligent Lighting SystemDynamic Ventilation SystemUpgraded Air-Conditioning SystemUnder this system,lights are automatically turned on or off when detecting the entrance and exit of people.The system also supports customized projection scenarios.The system is applied in various locations such as garages(reduced power consumption by 90%),sports halls(60%)and office areas(50%).The system is capable of monitoring the energy consumption and length of time a room/place is used,providing data and information for our energy management decisions.With real-time data feedback,the frequency of the motor can be adjusted dynamically to save energy.The power saving rate can reach more than 60%.Through centralized controls,bulk temperature adjustments and switching functions can be realized,making the air conditioning control on large campuses faster and more effi-cient,which creates a comfortable office environment.NetEase used 1.4 million kWh of electricity for air conditioning during the May to Sep-tember 2020 cooling season,saving 0.3 million kWh compared with 2019.This system supports monitoring energy consumption in our offices in a real-time manner,as well as other environment indexes such as temperature,humid-ity and carbon dioxide concentration in office areas,server rooms and other spaces.With such data,the system can adjust the temperature of water used for air-conditioners and other facilities such as make-up air systems.The synergy of the smart system and office facilities can reduce the manpower required for floor inspections and provides data support for energy consumption decisions.“Space-Ease”Smart SystemPhotovoltaic Power Supply in OfficeNetEase is proactively exploring new energy technologies and making full use of clean energy.Our Hangzhou office campus has introduced photovoltaic power generation for lighting and other operational purposes.During the reporting period,photo-voltaic power-generation capacity reached 432MWh.Renewable Energy UseTo reduce the carbon emissions of employees traveling to and from work,we provide energy-efficient transportation such as electric buses.Low-Carbon TransportationAddressing Transition Risks:Creating a Low-carbon WorkspaceNetEase is committed to using energy as efficiently as possible and reducing carbon emissions by setting clear targets and establishing smart systems,among others.Addressing Climate ChangeResources and Waste ManagementGreen Products 21AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseTypes of EnergyUnitConsumption in 2020DieselLiter10,200.00PetrolLiter18,533.89Natural gasMillion standard cubic meters93.95ElectricityMegawatt hour94,722.46Direct energy consumptionTonnes of coal equivalent1,281.74Indirect energy consumptionTonnes of coal equivalent11,641.40Comprehensive energy consumptionTonnes of coal equivalent12,923.13Energy consumption intensityTonnes of coal equivalent/person 0.45Greenhouse Gas(GHG)Emissions 1UnitEmissions in 2020Scope I GHG emissions Tonnes of carbon dioxide equivalent2,072.17Scope II GHG emissions 2Tonnes of carbon dioxide equivalent18,365.96Scope III GHG emissions 3Tonnes of carbon dioxide equivalent50,224.90Total GHG emissionsTonnes of carbon dioxide equivalent70,633.03Addressing Transition Risk:Tracking our Energy Use and Greenhouse Gas EmissionsNetEase continues to promote the careful management of energy consumption to further improve energy conservation and carbon emission reductions.This lays a solid foundation for efficient management of carbon emissions and pre-emptively responds to policy changes and risks brought about by climate change.1.GHG emissions from mainly rented data centers and campuses in Hangzhou and Beijing2.GHG emissions from purchased electricity are calculated with reference to the International Energy Agency(IEA)2017 database,and GHG emissions from other sources are calculated with reference to the“Guidelines for Accounting Methods and Reporting of GHG Emissions from Enterprises in Other Industries(Trial)”issued by the National Development and Reform Commission of the Peoples Republic of China3.Statistics on Scope III GHG emissions from employee travel flights and mainly rented data centersAddressing Climate ChangeResources and Waste ManagementGreen Products 22AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseOur office campus in Beijing uses a rainwater recycling system with a basic recycling ratio of 5%to 10%.There are 500 cubic meters of storage capacity in our rainwater recycling system.Rainwater Recycling SystemWe mainly use drip irrigation for watering plants;large-area wa-tering is used only during certain seasons.Irrigation WaterWe have carried out water conservation activities together with local water conservation authorities.We tested and classified water supply equipment to allocate water resources to ensure their efficient use.Conservation InitiativesWe strictly control the amount of water used by suppliers of our cafeteria,setting a maximum limit for free usage.We also perform a monthly analysis and compile data to compare the amount of water used in different time periods.Third-Party Water UseBeijing Water Conservation Award1.Statistics for water use in the Hangzhou and Beijing office campuses.Water ManagementOur Beijing office implemented a number of water conservation measures and was awarded the“Beijing Water Conservation Unit”by the Beijing Water Authority.Water Saving ResultWater Saving InitiativesDuring the reporting period,the use of NetEases water resources1 was as follows:447,263tons600tonsOf municipal waterOf recycled waterTotal Water Consumption in 2020Water Resources UseFood Waste ManagementWe focus on fully utilizing all food resources within our offices,inculcat-ing in the hearts of all NetEase staff the concept of“no extravagance,no waste.”The per capita food waste in the Hangzhou office campus dropped from 165g/person to 148g/person,a reduction of about 10%.Small and Large PortionsAddition of Diverse Meal OptionsMenu AdjustmentFood Waste EngagementSome meals are available in small and large portions to help prevent food waste.We offer over ten different meal lines for employees to mix and match,meeting their independent dining choices while avoid-ing the waste generated from set meals.We observe employees meal preferences and reduce food waste through menu changes.We introduced a daily food waste display board and added food saving signs to call on employees to reduce waste.NetEase strictly enforces a water conservation system at its offices.We reduce water waste and improve water utilization through various water conservation initiatives.We improve resource utilization&waste management to pursue sustainable workspaces Our dedicated conservation system actively implements water conservation measures and promotes food conservation concepts to reduce resource waste and improve resource utilization.Addressing Climate ChangeResources and Waste ManagementGreen Products 23AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseHazardous waste disposalWe designate third parties to ensure proper disposal of haz-ardous waste such as toner cartridges,ink cartridges and light tubes.Waste Disposal and TreatmentWe believe that recycling is one of the best methods to support an environmentally friendly society,along with reducing waste.At NetEase,we enable sustainable operations through proper recycling and disposal initiatives.Waste Management InitiativesTotal Waste Generated in 202016,122tonsIn Total6,001tonsMunicipal Waste121tonsRecyclable Waste1.Statistics for the waste generated in the Hangzhou and Beijing office campuses.Addressing Climate ChangeResources and Waste ManagementGreen ProductsChoose suppliers with recycling qualifications.Hardware that has reached the end of its lifecycle and waste that can be recycledRetired electronic devices recycled are available to employees to purchase at lower prices,to reduce waste and improve resource utilization.Examples include laptops and monitors.For retired office electronics and facilities 24AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseNetEase Yanxuan Logistics ManagementOptimized Vehicle DispatchingGreen Logistics Enhanced Distribution Our vehicle dispatching system uses its own TMS information technology system to recommend efficient delivery solutions for each logistics order.We pre-plan the optimal path for each logistics order to maximize utilization of vehicles.We encourage logistics service providers to use vehicles that meet higher emission standards or new en-ergy vehicles,etc.,and actively practice scientific management of vehicle emission standards across the logistics and distribution chain.Yanxuans logistics(stock transfer and stock in)have a carpool rate of more than 50%,eliminating more than 1,000 trips throughout the year.We run an intelligent analysis of Yanxuan orders and develop new modes of direct delivery from the warehouse to the destination.During the 2020 reporting period,we developed direct delivery routes to Beijing,Tianjin,Guangzhou and Hangzhou to reduce distribution transits.NetEase Yanxuan Packaging Material ManagementWe simplified the entire packaging design process,taking into consideration transport requirements for large and medium-sized pieces and irregular-shaped goods during the development stage.With these measures,we reduced secondary packaging and as of the end of 2020,the proportion of goods shipped in original containers exceeded 20%.We promote light-weight materials by reducing the carton size for commodities and courier shipments,reducing courier bag thickness by more than 20%and also reducing sealing tape width from 60mm to 48mm,etc.We promote simple design and simple packaging materials,such as changing the paint-ing of logistics and master cartons from multi-color ink on all sides to single-color on one side,reducing the use of ink.We adopt green packaging programs and promote the use of carefully selected packag-ing materials that are recyclable or biodegradable.For example,we use recycled plastic boxes instead of cardboard boxes in our warehouses.We have also developed a mech-anism for recycling second-hand cardboard boxes,as well as conducted tests on tape-free cardboard boxes and biodegradable courier bags in warehouses.We carefully select suppliers and use courier packaging materials that meet the regulato-ry requirements for heavy metal and hazardous substances and encourage suppliers to pursue green initiatives.NetEase Yanxuan works with a number of domestic packaging manufacturers that have achieved carbon neutrality.IntelligentLightweightRecyclableGreen and Clean Logistics and DistributionWe are committed to introducing optimal green logistics solutions.With this in mind,NetEase actively practices the concept of environmental protection in the logistics and distribution of its products.Leveraging the power of technology and smart devices,we have developed an exciting low-consumption logistics system to continue providing quality services to our customers.We use recyclable(non-disposable)pallets to promote more environmentally friendly logistics equipment.We eliminate unnecessary packaging for logistics and master cartons,and encourage this practice with our logistics carriers as well.We support commodity suppliers to reduce printing and the use of box stickers.We reuse the retired car-tons in temporary storage areas.We develop online recommendation systems matching each order with the most suitable and environmentally-friendly boxes and pre-packaging.Based on simulations of histori-cal order data,we optimize the sequence of Yanxuan cartons to maximize the use of box space,and reduce the use of filling and packing consumables.After implementing these online systems,the utilization rate of packaging space in-creased by 16%,equivalent to saving more than 3,000 tons of raw paper and over 10 million inflatable pillows and cushioning materials.The warehouse management system(WMS)utilizes a“combined order”function,allowing us to combine orders with the same address to reduce packaging materials and deliveries.Addressing Climate ChangeResources and Waste ManagementGreen Products 25AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseNetEase Yanxuan:Creating Green Products across the Entire Value ChainSupplier ScreeningProduct ScreeningWe select products that meet environmental standards to ensure that all raw materials and services meet national,local and industry requirements for environmental,safety and health-related laws and regulations.We adhere to the following four principles:Under these principles,many products sold by NetEase Yanxuan use environmentally friendly technology to pro-mote a lifestyle with zero impact on the environment.We have strict control over our suppliers to guarantee environmentally friendly and high-quality products.Prefer environmental-ly-friendly goodsPrefer products that are produced with reduced energy consumptionPrefer goods with noise-reductiondesignsPrefer biodegradable products NetEase Yanxuan promotes green concepts.We have formulated design guidelines to introduce green product concepts in six areas:material selection and use,product design,manufacturing processes,packaging processes,use stage,recycling and final disposal.During the reporting period,NetEase Yanxuan obtained ISO 14001 environmental management system certification.We give preference to suppliers with ISO 14001 environmental management system and ISO 5001 energy management system certifications.Suppliers must sign NetEase Yanxuans Notice to Parties Concerned with Environmental Protec-tion and Occupational Health and Safety policy.We require suppliers to follow a code of conduct that ensures product safety and environmental protection in the design and development stages,selection of raw and auxiliary materials,produc-tion and packaging processes,and other aspects,while taking reference from international regula-tions and standards such as the requirements of the REACH regulations.We actively promote the Hazardous Chemicals Control Program and refer to the leading international regulations of the European Union,the United States,Germany and other international regulations.We also work closely with our suppliers to control hazardous chemicals in logistics and packaging throughout our production chain and require all suppliers to sign a Declaration of Conformity with Hazardous Chemicals.We integrate green concepts into our products and promote green awarenessGarbage bags that can degrade into car-bon dioxide and waterBiodegradable PU insolesBlue jeans made from gas bottles retrieved from the oceanCoated pots and pans that comply with EU standards,which strictly limit harm-ful chemicals potentially contained in the PTFE coating materialEU standards implemented for crawling mats commonly used by infants and tod-dlers,with strict controls on formaldehyde contentSafe,environmentally friendly and biode-gradable chopsticks made of polylactic acidAddressing Climate ChangeResources and Waste ManagementGreen Products 26AboutNetEaseEnvironmentNetEase 2020 ESG ReportGovernanceResponsible Products and ServicesEmployeeDevelopment Social EndeavorsPandemicResponseNetEase Games:Promoting and Cultivating Green ConceptsNetEase Games continues to promote green,low-carbon concepts as well as environmental protection measures through its established corporate brand,conveying environmental protection messages to more people via its various games.Onmyoji Marine PreservationThe ocean is vital to the future of hu-mankind,but it is becoming increas-ingly vulnerable because of climate change and pollution.In 2020,On-myoji,together with the One Planet Foundation(OPF)and World Wide Fund for Nature(WWF),launched the Sea of Azure ocean protection project to embark on a new journey to protect our ocean environment.Through cam-paigns like Sea of Azure and Ocean Cleanup Video Relay,we raised awareness about the importance of pro-tecting marine life and marine ecology.Fantasy Westward Journey Wildlife PreservationIn 2020,NetEase Games announced that its flagship title Fan-tasy Westward Journey would begin public welfare cooperation with WildAid,an international nature conservation organization.Under the collaboration,the companies agreed to work to-gether on wildlife conservation projects,leveraging the healthy and green living philosophy advocated by Fantasy Westward Journey.WildAids animal protection project covers pangolins,sharks,tigers,and other nationally protected animals,while its rich knowledge in animal protection will provide solid know-how for our cooperation.The Fantasy Westward Journey mo-bile game also launched a series of special activities,including Adventure Journey,Explorer Duel,Forest Guardian Illustration and other gaming experiences to help younger generations gain a greater understanding of the importance of protecting wild animals and preserving our ecological environment while enjoying the games.Addressing Climate ChangeResources and Waste ManagementGreen ProductsAboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseWe are committed to providing strong data security pro-tection for our Company and our users across our product portfolio.We tirelessly pursue a safe and orderly ecosystem that minimizes network and information risks.We endorse the concept of“users first”by practicing efficient product management,protection of users rights and interests,and continuous efforts to achieve product innovation.Cybersecurity and Data PrivacyProduct QualityProduct InnovationIntellectual Property ProtectionCustomer Relationship Management2833394546PerformanceHighlightsDeveloped a DDoS protection system for large traffic attacksFortified personal information protection protocolsEstablished NetEase Game Minors Protection Center,among the first gaming companies to do so in China Invested RMB10 billion in R&D in 2020Actively engaged in industry standards discussions and activitiesThis chapter covers United Nations Sustainable Development Goals(UN SDGs)Responsible Productsand Services 27NetEase 2020 ESG Report 28AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseCybersecurity and data protection is a priority at NetEase.We maintain robust cybersecurity systems for all of our operations,which are reviewed regularly to ensure our operations and technology are protected.Ensure information and data are protected ef-fectively and handled in compliance with applica-ble requirements,such as Chinas cybersecurity law and GDPR in EUEnsure network securityEnsure users privacy are fully protectedWe follow strict cybersecurity and data protection protocols to ensure data security for both our Company and our usersCybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 29AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseOur Cybersecurity FocusWe have formulated internal policies,including a Network and System Security Management System and Network Security Accountability System,to continuously regulate internal management in order to ensure cybersecurity protection in all aspects of our operations.We have also established double-layer protections,based on a network layer and an application layer,combined with its internally developed DDoS high-protection technology,as well as Web application firewall technology.This provides multiple protection measures to ensure stable business operations.NetEases DDoS high-protection technology received a patent for DDoS alarm automatic learning.Network Layer-based ProtectionEffectively defends against common DDoS attacks,such as SYN Flood,ACK Flood,ICMP Flood and UDP FloodApplication-based ProtectionWith browser fingerprint,CC tool identification,and other defense modules,we effectively defend against website at-tacks and are capable of defending against up to 100V QPS attacksAdvanced DDos Protection Embedded With Web Applica-tion FirewallEffective,automatic protection against web attacks,such as trojan horses,BQL injection,Oday lag,and crawlersCybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 30AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseData Security:Our Internal Policies and ControlsInternal ProceduresWe established internal policies such as Policy on Data Security and Access to Data and General Rules of NetEase Data Security Management to strengthen information security across our entire business.We have established the NetEase Information Security Incident Contingency Plan,which clarifies the norms and processes for efficient emergency response deployment in the event of unexpected security incidents.We established a sound data security management procedure to ensure data are properly handled through their entire lifecycle.We continuously improve our security assessment mechanisms through daily monitoring and supervision,pilot testing at key nodes,and security penetration and vulnerability checks by professional engineers to prevent data risks.Data GenerationData StorageData ProcessingData UsageData TransmissionData SharingData DestructionExternal InitiativesWe carefully select third-party suppliers and partners and require them to receive data security training in addition to signing our Confidentiality Agreement and Security Responsibility letter.We also have several other initiatives currently in place to ensure data security.Security Management:NetEase Data Security LifecyclePhysical Isolation of Server RoomsPersonnel and materials need to be pre-approved,registered,confirmed on-site,and recorded before they are allowed to enter a server room.Computer room access control is managed by a combination of swipe card and fingerprint identity technology,and authorized by strict reporting and approval protocols.No photos may be taken in the server rooms,which are protected by panoramic video monitoring.Internal and External Network IsolationThe on-site network of external parties and intranet in the server room is isolated,and OpenID authentication login for key information equipment is used in the server room.Restricting AccessibilityThe vendors network inspection and other activities can only be performed on a specific computer through a restricted account we provide.The computer can be connected only to the intranet network that enables data localization and analysis,in order to strictly prevent data leakage.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 31AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseInformation Security Awareness WeekData Classification Promotion CampaignEmployee Information Security Awareness AssessmentNetEase Data Security Training and Publicity WorkWe updated our Employee Information Security Code in 2020 and require employees to sign our Data Protection Agreement.We also established the“Four Control Lines of Data Security”to strengthen employees awareness of information protection.Employee TrainingInformation Security CertificationUnauthorized use of external platforms to transmit data is prohibited.Unauthorized sharing or disclosure of Company information is prohibited.Unauthorized storage of Company information on personal devices is prohibited.Taking Company information upon resignation is prohibited.NetEase DataSecurityControl LinesNetEase regularly conducts information security-related training,internal publicity activities and tests for employ-ees to improve their information security awareness and knowledge.As of the end of the 2020 reporting period,several business divisions and products,including NetEase Mail,NetEase News,NetEase Yanxuan,NetEase Payments,NetEase Cloud Classroom,Youdao Dictionary,Youdao Logic English and Youdao Cloud Notes,had completed the Graded Protection of Information Security Certification1.NetEases digital technology and cloud service division obtained ISO 27001 Information Security Management Sys-tem Certification2 and obtained Trusted Cloud Certification3.And NetEase Payment obtained PCI DSS Certification4.NetEase digital division:ISO27001 CertificationNetEase digital division:Information Security Level Protection CertificationNetEase cloud hosting and other Services:Trusted Cloud CertificationNetEase epay:PCI DSS Certifi-cationNetEase Mail:Information Security Level Pro-tection CertificationNetEase epay e-wallet:Information Security Level Pro-tection Certification1.Cybersecurity and Data Privacy level protection(DJCP),a practice to protect information and information carriers according to the level of importance,exists in China,the U.S.and many other countries in the field of information security.2.In information security management,the British standard ISO27000:2005 has become the worlds most widely used and typical information security management standard,developed under the guidance of the BSI/DISCs BDD/2 Information Security Management Committee.3.TRUCS is jointly organized by the Data Center Alliance(the Alliance)and the Cloud Computing Development and Policy Forum(the Forum),the only authoritative certification system for the trustworthiness of cloud services in China.4.The Payment Card Industry Data Security Standard(PCI DSS)is a data security standard for the third-party payment industry,created by the PCI Security Standards Council(PCI SSC),which was formed by the founding members of the PCI SSC(American Express,Discover Financial Services,JCB,MasterCard Worldwide,and Visa International).Data Security:Employee Training and External CertificationCybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 32AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseOur Privacy Security Focus We believe privacy is a fundamental human right and it underpins human dignity and other key values.At NetEase,we deeply respect users privacy and take methodical approaches to ensure the utmost security of their personal data.1.The link to the official website of the NetEase Group Privacy Policy:http:/ Policy and SystemDedicated Team for Personal Information ProtectionNetEase regards the protection of user privacy as a key re-sponsibility and has formulated“Management Measures for the Security Protection of NetEase Users”and other policies.Our privacy policies are posted on our websites1.NetEase has established a dedicated team for personal infor-mation protection to receive complaints and reports about pri-vacy and security issues.Users can submit complaints about privacy protection by email or telephone,and the Company pledges to respond within 15 working days after verifying the users identity.NetEase Yanxuan has strict measures to protect customer privacy,including standardiz-ing the process of acquiring sensitive data and strengthening the management of system accessibility,strictly enforcing the segregation of permissions,and standardizing the man-agement of permissions of various information systems.In the customer operation center,the department that engages most frequently with us-ers,NetEase Yanxuan launched a system that can precisely allocate information access according to the position of the staff requesting access to our data,avoiding the risk of access abuse resulting from any turnover of customer service personnel.Youdao understands the importance of safeguarding user privacy.It strictly limits access to servers that handle or store user information and internal data and sets up firewalls around user information to prevent potential hacking attacks.Youdao also employs a data encryption system designed to ensure the secure storage and transmission of user information to prevent accessing or using company or user infor-mation in an unauthorized manner.Our InitiativesWe have adopted policies and procedures related to privacy and data protection information in several business divisions,requiring user permission before information can be used.The following are some of the initiatives carried out by NetEase Yanxuan and Youdao.Our Efforts OverseasAs NetEase Games has a variety of products released globally,we focus on personal data pro-tection in these international markets and keep a close eye on developments in data protection laws in different countries and regions.At an early stage of product design,following the principles of personal data processing stip-ulated by the European Union s General Data Protection Regulation(GDPR)which is one of the strictest and most detailed data protection laws currently in effect,we make sure the game products process user data lawfully,fairly and in a transparent manner and only collect user data to the extent necessary and for limited purposes.In our key overseas markets such as Japan,US and EU,we have engaged significant internal and external resources to support our efforts to comply with the local data protection laws.We have a special customer service team to respond to users data requests(such as right of erasure under GDPR).The privacy policy of our game products is also updated from time to time based on our product designs and the local law requirements to help users understand our handling of their data.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 33AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseCreate a healthy,responsible and fair gaming environmentProvide quality educational contentEnrich the lifestyle of the new middle classGuaranteeing the reliability and quality of our products is a key responsibility we owe to our users and represents one of NetEases long-held philosophies.As part of our commitment to protecting the rights of our users and consumers,we strictly abide by all relevant laws and regulations and manage both the content of the NetEase platform and the quality of third-party products.The following pages introduce the product assurance initiatives of NetEase Games,Youdao and NetEase Yanxuan in detail.We remain committed to assuring product excellence and reliabilityCybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 34AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseWe proactively collect and analyze players feedback and take measures to stop cheating and unethical behavior that conflict with the rules of our games and can damage the game ecosystem,including game plug-ins,match-fixing,malicious refund and account hacking and fraud.NetEase Games:Offering a Responsible and Fair Gaming EnvironmentGame Plug-insMalicious RefundAccount Hacking and FraudContinuously update monitoring methods to quickly stop and punish behavior that jeopardizes the fairness of the game to protect users gaming experience.With the support of NetEase Games superior risk control system,malicious refunds are well-controlled to protect user property.A comprehensive process ranging from fraud alerts to loss recovery was designed and implemented to fully protect player accounts and properties,which effectively improved the resolution rate of account hacks in 2020.Match FixingUpgraded the credit system for players and the detection mechanism of match-fixing in games.With our MOBA game,for example,the reporting rate of match-fixing dropped by 7ter an upgrade in October.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 35AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseNetEase Games:Pioneering Anti-addiction Measures for Minors,Setting Industry BenchmarksTo ensure the healthy growth of young minds and prevent minors from becoming addicted to online games,NetEase Games upgraded its anti-addiction system for all of its online games under operation in China and joined hands with stake-holders to help protect our younger generation.Upgraded the NetEase parent care platform to provide more convenient services for parents and minors,such as managing playtime and spending.2020.09Established the NetEase Game Minors Protection Center,the first independent department in the industry in China dedicated to the protection of minors.2021.05Among the first Chinese game companies to include all PC games in the anti-addiction system.2007.10Launched NetEase care platform for parents of minors,enabling parents to monitor the usage and impose time limits on gameplay.2019.05Announced that all of our online games were upgraded to implement new anti-addiction rules.2020.05Took initiative to upgrade our protection system for minors.2019.012005Long before the introduction of national anti-addiction policies,NetEase implemented an anti-addiction system in two of its games in 2005,taking the initiative for the responsible protection of minorsInternal Anti-addiction EffortsNetEase established an anti-addiction system in our games to actively respond to regulatory development in China and upgraded the system accordingly.The upgraded products have implemented the real-name system for online game accounts and effectively managed the gaming behavior of underage users,including time and spending limits for underage users.Industry EngagementDuring the reporting period,NetEase Games actively participated in the development of game industry group standards,such as the Parental Guardianship Platform Guidelines,Game Enterprise ContentSelf-Auditing Process Guidelines,Game Age-Appropriate Tips Guidelines and Online Game Terminology.We made use of our rich experience in the field of protecting minors online safety to help the Chinese game industry build a more standardized and mature online ecology for minors.2019.10China promulgated the Notice on Preventing Minors from Indulging in Online Games,according to which the length of minors use of online games should be strictly controlled.2005.10Launched the anti-addiction system in the first batch of implementing companies.Chinas regulator developed a real-name verification system to prevent online gaming addiction.NetEase participated in the system test as a pilot and has successfully implemented it.2020.11Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 36AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseNetEase Yanxuan:Supplying High-quality ProductsAs a lifestyle brand focused on the middle-class,product quality assurance is a top priority for NetEase Yanxuan.Our robust product management programs cover product screening,quality checks and traceability procedures,with support from big data applications,AI algorithms and other technologies.We also introduced publicity activities inside the company to strengthen the platforms reliability and integrity,and elevate NetEase Yanxuans reputation.Product Control and ProceduresQuality Control ExamplesProduct ScreeningManagementProduct Quality ManagementProduct Traceability ManagementProduct Quality Management Reverse Management ProgramWe collect complaints and opinions from our customers and the general public in real-time with a Diting-ECR system.We categorize the feedback through AI and send it to quality en-gineers and suppliers to immediately investigate,analyze and address those issues.Rectifications are then developed,im-plemented,tracked and verified to secure solutions.From the process launch in 2018 to 2020,NetEase Yanxuans rate for products with quality problems was reduced by 43.1%.Product Expiration Date ManagementNetease Yanxuan introduced the SOP YX-WP-747 Commod-ity Expiry Control Standard to identify the expiration date for each type of item and use it for compulsory shelving,physical transfer operations,and the scrapping of expired goods in the warehouse product system,which improved our overall quality assurance.Product Traceability Management SolutionNetEase traces and tracks data throughout the full process.With the help of a third-party information management plat-form,we provide customers with information on product sourc-ing and raw material and third-party testing reports,reinforcing NetEase Yanxuans brand as reliable,honest,safe and respon-sible.Product planning stage:Utilize external database and review industry trends when screening a potential product.Product development stage:Every product is tested by users before it is introduced to our platforms to ensure that all of our products meet users core needs.We collect feedback to guide the appearance and function of our products.Product turnover stage:Empower our decisions on new orders with an analysis of sales performance,user feedback,return rates,inventory and feedback from supply chain and sales channels.Forward:In the product development stage,NetEase Yanxuan investigates customer needs and studies standards for the industry and internally to appropriately consider users needs and risks while setting quality standards.We also con-duct multiple quality inspections to ensure the final products meet our expectations.Reverse:Real-time data tracking and analysis of user complaints help us identify issues with product quality.Through our Error Cause Removal(ECR)system,which includes recording,follow-up,improvement and verification processes to guide product improvement,abnormalities can be found immediately and improved in as soon as nine days.We also improved our risk assessment for new products by identifying and avoiding quality risks of similar products sold by third parties.Traceability:We are building a robust product traceability system covering all categories in NetEase Yanxuans ware-houses,laying a solid foundation for its supply chain traceability capabilities.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 37AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseNetEase Yanxuans product quality management solution won the“2020 China Quality Association Quality Technology Award for Outstanding Service Project”and the“2020 China Quality Technology and Innovation Achievements Publication Competition”awards for its technological innovation and quality control efforts,awarded by the China Association for Quality.NetEase Yanxuans Product Quality Management Solution AwardsIndustry RecognitionTo raise the quality of our products and quality awareness among employees,NetEase Yanxuan adopted a combination of training and cultural publicity.Most notably,we established a“Quality Academy,”where we introduced the“zero-defect”quality management concept.This is now deeply integrated into our business systems and processes with supporting structures that reinforce this core principle such as“Quality Month”activities,which ensure quality assurance actions are implemented at every step of our employees operations.In 2018,NetEase Yanxuan opened the“Quality Academy.”During the 2020 reporting period,the Academy organized 85 training sessions with 1,611 courses takenNetEase Yanxuan“Quality Academy”Quality management concepts,quality laws,regulations and standards,cutting-edge technology in various industries,quality management-related skills,quality tools and methods,quality management systems,and other related topics.In addition to on-site lectures,we organized activities for employ-ees to experience the quality inspection process,allowing for a more intuitive experience with respect to the importance of prod-uct quality management.Training TopicsTraining MethodsFor the third consecutive year,NetEase organized“Yanxuan Quality Month”activities.During the reporting period,we organized four events,includ-ing live broadcasts and online and offline classes.“Yanxuan Quality Month”ActivitiesCommunicated customer-oriented work values to employees and optimizing work goals that enhance the customer experience.Showcased to employees specific examples of our efforts to improve product quality,such as success in developing a new product in the first attempt.Conveyed the concept of quality craftsmanship to customers.NetEase Yanxuan plans to set up a WeChat account to further in-troduce its quality management practices and values to the public.Internal PublicityBest Practice DisplayExternal CommunicationOngoing EffortsTraining and Activities NetEase Yanxuan:Employee Training on Quality Control Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 38AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseFaculty UpgradesTo provide high-quality courses,Youdao incubates highly skilled educators to ensure best-in-class teaching teams.We employ outstanding teachers who have graduated from some of the most prestigious universities around the world,including Peking University and Tsinghua University.At the end of our reporting period,Youdao had 3,786 well-trained tutors,ensuring high-quality teaching and educa-tion services.Course Content OptimizationRecognitionIn 2020,Youdao Premium Courses continued to develop and diversify its content library,refining its strategy with a focus on middle and high school education.The high school business of Youdao Premium Cours-es meets the diverse needs of students by building a multi-tiered teaching system and continuously improv-ing the teachers training system.Youdao has endeavored to include localized content in the courses we offer.Take junior high school Chinese as an example.Youdao launched 31 versions of junior high school Chinese,meeting the needs of students in 31 different provinces.Localized content for other sub-jects are also in progress.With its high-quality content and services,Youdao Premi-um Courses was awarded the 5A“Online Education Ser-vice Certification”by the China Quality Certification Center in 2020,becoming one of the first four online education institutions to receive this certificate.Youdaos online courses and advanced AI learning technology brings users access to quality resources at a lower cost.We continue to improve our product quality and are committed to delivering remote learning experiences to curious minds in China.Youdao:Offering AI-powered,Customized Learning Resources for Curious MindsCybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 39AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseFor players:Enjoy new gamingexperiencesFor customers:Better quality for an enriched lifestyleFor listeners:Lose yourself in rich sound adventureFor learners:Let technology expand your learningApprox.50%RMB10billionR&D staff as a percentage of total staffR&D Investment in 2020In 2020NetEase R&D staff accounted for approximately 50%of its workforce.With more than RMB10 billion invested in R&D in 2020,NetEase was ranked one of the top three companies in China for R&D input by the China Enterprise Confederation and the China Enterprise Directors Association on the“2020 China Top 500 Enterprises List.”We adhere to application-oriented R&D.Innovation is the foundation of the Company and is deeply rooted in each business units.Our innovation has helped millions to play more joyfully,learn more efficiently and connect more easily.We prioritize innovation to build well-crafted,user-centric productsCybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct QualityOur Objectives for Innovation 40AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseNetEase Games:Leading the Market through Constant InnovationInnovation is the driving force behind our game portfolios.As part of our pursuit to continuously improve the player experience and leverage our understanding of user needs and market trends,we have brought many innovative products to game lovers.Numerous iconic NetEase Games products have become the benchmarks for new categories.Invincible Created the new SLG Vertical“Invinci-ble-like”Onmyoji Iconic ACG-themed Card RPG Mas-terpieceIdentity V Pioneer of the Asymmetric Battle Are-na GamesLifeAfterPioneer of Doomsday Survival GamesThe 2015 launch of Invincible created the“Invincible-Like”SLG subcategory with its unique seasonal geographical strategy gameplay,which is thought-provoking and highly interactive.Players can turn their ideas into action and even create their gameplay.Onmyoji is a turn-based Japanese-style fantasy card Role Playing Game(RPG).A players epic adventure starts in the Heian period of Japanese history,a time when humans and demons co-existed.Our launch of Onmyoji in 2016 was one of the major factors in turning ACG into a main-stream game genre in China.As the mar-kets very first ACG-themed blockbuster,Onmyoji has accumulated over 400 million loyal followers globally.Identity V pioneered the asymmetric battle arena games category in China.Launch in 2018,Identity V features dystopian goth-ic graphics,thought-provoking storylines,and exciting 1V4 confrontation gameplay.We have built a multi-level e-sports tour-nament system across various regions,such as Identity V Championship Japan Summer 2020.Launched in 2018,LifeAfter has been the pioneer of doomsday survival games in China.Its unique doomsday setting at-tracted millions of young players and opened up a new category.We have grad-ually improved the culture and style aes-thetic of the game through episodic ver-sion updates.The human returning to the city,the great migration,the volcanic erup-tion.these exciting stories,which are cre-ated and played by millions of survivors,constitute the ever-changing apocalyptic world of LifeAfter.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 41AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseNetEase Games:Inspire Players with the Charm of Culture,Science and TechnologyDuring the 2020 reporting period,NetEase Games reinforced its commitment to offering players games that bring them joy while fully experiencing the charm of different cultures and technology.Fantasy Westward JourneyOur flagship title Fantasy West-ward Journey links Chinese us-ers with traditional cultural her-itage,such as ice carvings and oil-painted paper umbrellas.It also promotes national musical instrument-making skills and integrates Dunhuang culture,allowing players to explore the charm and value of passing on traditional culture from genera-tion to generation.All About JianghuJusticeKnives OutWestward JourneyThe costumes in All About Jiang-hu are branded with the legacy of the Liangzhu culture,integrating elements such as body tones,human and animal face patterns,and jade accessories.These as-pects improved the gaming expe-rience and promoted outstanding Chinese traditions and culture.Using the latest technology to showcase the classics and tra-ditional Chinese opera,Justice incorporates the most prestigious traditional opera artists,promot-ing tradition in a way that can now be appreciated by young generations.Working with China Science Daily,which is attached to the Chinese Academy of Sciences,Knives Out has planned popular science activities such as“Chi-nas Aerospace Achievement Tour”and“Wilderness Space-Liftoff Plan”,integrating science and technology in the game and offering players enjoyable learn-ing experience.Xu Ying,a scien-tist with the BeiDou Navigation Satellite System,was invited as an advisor.Adding to the classic and popular fashions in the Westward Jour-ney series,the first high-quali-ty hanfu“Gilt Like Dream”was launched in the game,combining the craftsmanship of three mas-ters Zhou Shuangxi,a national master of Nanjing Cloud Bro-cade,Yang Xue,a master of Su embroidery,and Li Zhengyun,a master silversmith thus promot-ing high-quality hanfu through classic games.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 42AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseIconic PlaylistsPersonalized RecommendationPhenomenal Comment SectionAmong the first online music plat-forms in China to promote playlists,with one of the largest user-generated playlist librariesLeverage advanced AI and machine learning technology to inspire music discovery and develop music trendsOne of the first online music platforms to extensively and successfully devel-op,utilize and popularize comments section in ChinaContinuously introducing new experiences that en-rich sharing and connectionListen Together Users can invite their friends or strangers to listen to the same song together,tran-scending physical distance.Cloud VillageUsers can review,create and share various forms of music and music-inspired content(e.g.Mlogs),and interact with other users.Music Moments of the YearA personalized“year in review”report for each user based on their past music lis-tening footprintSince its inception,Cloud Music has introduced innovative features and experiences for music lovers.In the past year,it pioneered several indus-try-leading features in content creation,community sharing and entertain-ment formats,such as AI composition,listening together and Mlog.NetEase Cloud Music:A Superior Experience for Music LoversNetEase Cloud Music pioneered a number of trendsetting features and services that have led industry innovations for the exploration and creation of music content and social interactions in China.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 43AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseYoudao:Leveraging Technology to Make Online Learning More EfficientYoudao continues to develop and innovate technology to bring users a more convenient and efficient learning experience.Content InnovationProduct InnovationNew Offline Function:no need to access Wi-Fi to achieve word search,making it suitable for school environment without a network.New“Interactive Reading”Function:expands the age of users in the dictionary pen category down to 3 years old.Enriched Learning Scenarios:this function allows users to read after real-person pronunciations sentence-by-sentence,with AI-scoring available.For some picture books,interactive Q&A settings are available to encourage users to think about the content after reading,leaving a deeper impres-sion and a more effective learning experience.Explore AI Functions:incorporates our independently-developed,world-first super-sensing optical system,which is compatible with the automatic judgment and recognition of two AI technologies,OCR(Optical Character Recognition)and OID(Optical Identification Code).It can also simultane-ously recognize infrared light and visible light.Improved Accuracy:The product carries an offline neural network that operates 20ster than the original pen,making recognition even faster.The recognition accuracy has also improved significantly,with an average recognition accuracy rate of 98.3%.Youdao Dictionary Pen 3 Innovative FeaturesYoudao innovatively launched the Star Instructors Interactive Large ClassesInteractive Sessions Assisted by Smart Products In the classroom,the teacher sets the pace of the lesson according to the attention span of the students and pro-vides a finer insight into the students mastery of the con-tent through interactive assessment questions.More Efficient Teaching MethodsCompared with the method of“teachers being merely lec-turers and students listeners,”Youdaos class advocates a teaching method in which the teachers role is to encour-age,inspire and guide students to think and explore with their own initiatives,which enhances the students learning experience and effectiveness.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 44AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseNetEase Yanxuan:Innovative Products for a Better LifestyleNetEase Yanxuan values product innovation through user-centric design and branding strategies.Our talented team from the Yanxuan innovation design center,along with our partners,continuously explores product innovation to achieve design excellence for customers.Awards for New ProductsDuring the 2020 reporting period,NetEase Yanxuan invested in and produced more than 500 new products.We won sev-eral award for creative designs,including the“Taiwan Golden Pin Design Award”and the“China Red Star Design Award.”Calabash Brothers Cosmetics SeriesMid-autumn Series:“Persimmon with Delight”Christmas Series:Aurora Snow Mon-sterIn March 2020,NetEase Yanxuan collaborated with the Shanghai Fine Arts Film Studio to launch cosmetics collections based on the classic Chinese cartoon of Calabash Brothers.The collaboration not only presented the commercial and cultural value of this well-known tale in China,but also displayed Yanxuans ability to utilize traditional Chinese themes with new vitality and innovative design.In October 2020,we launched the“Persimmon with Delight”mid-autumn series tea set,digging into historical stories from Chinas traditional culture.The name of the series in Chinese is pronounced the same as“everything goes as you wish,”and we expect to bring the good wish to customers,especially during the difficult time of COVID-19.For Christmas 2020,NetEase Yanxuan followed a new trend in millennial culture by embracing youthful designs for its new snow monster series of products,successfully showcasing how to integrate an attractive lifestyle with trending culture and fashion.Cybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 45AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseWe conducted 35 IPR-specific training sessions during the reporting period.For employees who have made a substantial contribution to the Companys IP,NetEase launched various initiatives,such as incentives,to encourage IP innovation.Fostering IP Innovation among EmployeesPatents We vigorously defend our patent rights,while respecting the rights of others.TrademarksTo protect its brand image,NetEase continuously monitors multiple plat-forms to identify unauthorized use of its trademarks or the use of trademarks by third parties which may confuse the market.CopyrightsNetEase has built up a deep portfolio of copyrighted content and attaches great importance to copyright protec-tion,and has been successful in pro-tecting these rights.NetEase systematically registers its key patents,trademarks and copyrights in the jurisdictions where it operates to proactively prevent infringement and protect its IP and brand value.Proactive Registration of IP RightsNetEase has established detailed policies on the management,use and protection of IP rights,such as patents,trademarks and copyrights.The Company is formulating the NetEase Brand Use Rules and the NetEase Brand Use Permission Rules to provide clear guidelines and furthermore standardize the use of brands.Protecting our intellectual property is a critical component of our innovation,and we take proactive measures to prevent infringement risksCybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 46AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseHigh-quality Customer CommunicationNetEase listens and responds to users feedback quickly as part of our efforts to ensure the highest possible user satisfaction.In 2020,we continued to increase our investment in cus-tomer relationship management,providing users with a more convenient and effective service experience.Through technological innovation,system optimization and service upgrades,we have improved our customer satisfaction and problem resolution rates in 2020.During the reporting period,we adopted smart custom-er service solutions to further streamline and optimize our workflow.Our customer relationship management starts from not only when a request is raised by our us-ers,but also when we notice room for improvement.We also launched smart systems to keep up-to-date on user needs,improve service response efficiency and enhance customer satisfaction on multiple dimensions.We have achieved an overall improvement in user payment,reten-tion and activeness.Focus on Technological Innovation to Im-prove Customer RelationshipsProvide Diversified Solutions to Enhance User ExperienceWe insist on high-quality communication and responsible marketing as basis for positive user experiencesCybersecurity and Data PrivacyProduct InnovationIntellectual Property ProtectionCustomer Relationship ManagementProduct Quality 47AboutNetEaseResponsible Products and ServicesNetEase 2020 ESG ReportGovernanceEmployeeDevelopment Social EndeavorsEnvironmentPandemicResponseNetEase Games:Leveraging AI and Other Technologies,our Teams Offer Customized Services to Users Around the ClockNetEase Games provides 24/7 customized services with four major service departments and a multi-channel mode,offering users one-stop,professional and user-friendly assistance supported by our AI solutions.Take Initiative:We identify user behavior with support from CRM(Customer Relationship Management)and BI(Business Intelli-gence).We also provide instant support to users and carefully lis-ten to their feedback to ensure a premium user experience.Upgraded Service:We offer diverse forms of responses,such as picture,text and voice forms to users to meet their needs based on their culture,habits,characteristics and other factors.Smart Service:We solve users problems quickly via smart facil-ities and automated tools,with automated systems processing 91%of the inquiries and providing 55 million answers to users questions each year.Service from all Channels:With our monitoring tools,internal mod-els and data analysis,we aim to improve the user experience in all of our channels.Handles requests from online and call-in channels.Improves user experience by responding quickly through automated and intelligent tech-niques.Explores more deeply the needs,preferences and prior-ities of users by going beyond the issues they raised.Identifies issues of importance to users with our monitoring tools,internal models and data analysis to ensure the quality of our responses.Basic ServicesDepartmentIntelligentDepartmentExperience InnovationDepartmentQuality ControlDepartment94%2.92MCall satisfactionRequests handled b
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