Environment as an HCH policy It is one of the policies of HCH Bearing Group to protect the environment of our communities, our associates, our customers and the public. As a responsible corporate citizen, it is our goal to conduct our operations in an environmentally responsible manner. This is both our ethical commitment and good business practice. In pursuit of this goal, our efforts emphasize the following objectives:

● Complying with all applicable laws, regulations and company policies related to environmental protection. This is the baseline of performance for all HCH operations and associates.

● Preventing pollution at its source by minimizing emissions, effluents, and waste in the design, operation and maintenance of our facilities.

● Continually improving by reducing, and where feasible, eliminating negative environment impacts associated with our operations and products.

● Increasing the general awareness of environmental requirements among associates to facilitate an understanding of the environmental implications of their day-to-day responsibilities.

Environment and development
As a responsible corporate citizen, it is our goal to conduct our operations in an environmentally responsible manner. This is both our ethical commitment and good business practice. HCH has been always in attempt to pursue great progress both in environmental protection and company development. We are dedicated to the concept of sustainability for our products and processes. And we continually seek to minimize our impact on the environment while engaged in product development. These efforts include our focus on following aspects:

Clean Production	A sense of ecological responsibility not only shapes the products of the HCH Group, but also the structures and processes involved in their development. All production processes are de- signed so that they have as little impact on the environment as possible. This is central to the company’s Clean Production philosophy. At the heart of Clean Production lies the responsible use of raw materials and resources as well as the global reduction in emissions. The HCH Group wants to identify and implement possible measures for greater environmental protection in the early stages of investment projects.
Recycling	We recycle essentially 100% of our internal waste and significant post-industrial and even post- consumer products. We have integrated our material handling processes throughout our net- work of manufacturing locations, which enables us to reuse scrap materials to produce a family of cushioning products.
Chemical Management	Eliminating and minimizing hazardous substances in our products and production processes has long been a priority. We have made significant progress in the reduction of hazardous air emissions.
Energy Efficiency	HCH strives to contribute to higher quality, more comfortable lifestyles by providing truly valu- able products and services. At the same time, the company works to minimize the environmen- tal burden of its various activities and promote greater harmony. Thereby contributing to the preservation and improvement of a healthy environment. HCH has set itself the specific goal of reducing its energy consumption by 5% annually over the next few years and making improve- ment in company development.