NIO Global Supply Chain Sustainability Policy User Guide

NIO INC.
GLOBAL SUPPLY CHAIN SUSTAINABILITY POLICY
(Adopted by the Board of Directors of NIO Inc. and effective on November 3, 2023)

Scope and Applicability of this Policy

1.1. NIO Inc. (together with its subsidiaries and consolidated affiliated entities, “NIO” or the “Company”) as an innovative next generation car company is fully committed to and set on sustainability in all its actions and business relations. NIO commits to conduct its business in compliance with social, ethical and environmental laws and regulations and strives to avoid causing any kind of harm to people or the environment. The Company seeks to do business only with shareholders, suppliers and contractors who share the same commitment.
1.2. This Global Supply Chain Sustainability Policy (the “Policy”) sets down NIO’s principles of action and minimum standards for sustainable business in accordance with all applicable laws and regulations. It applies to the Company as well as to all officers, directors, employees (whether full-time, part- time, labor dispatch employees or other) and other agents acting on behalf of the Company.
1.3. This Policy complements NIO’s Global Code of Business Conduct & Ethics. Each relevant individual is personally responsible for heeding and avoiding breaches of the principles and requirements hereof. The Policy has been drafted in accordance with applicable national and international norms, such as the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights (UNGPs), the ILO Declaration on Fundamental Principles and Rights at Work, the Dutch Child Labour Due Diligence Law, the Norway Transparency Act and others. This Policy is not intended to be exhaustive or to replace any laws, regulations or legal guidance, which are or will become applicable to NIO.

General Principles of Action

2.1. Compliance with the Law. NIO is committed to ensure full compliance of its operation, products and services with applicable international and national laws concerning human, social and labor rights and the environmental legislation. NIO recognizes the importance of respecting and promoting human rights and labor standards in its supply chain worldwide.
2.2. Sustainability Risk Management and Due Diligence. The Company is committed to meet its sustainability due diligence obligations, as required, in order to prevent, identify and remediate potentially adverse impacts on NIO’s minimum standards for sustainable business operation (as defined in Section 3 of this Policy) caused by its business along the supply chain. The Company’s due diligence process is made of the following steps:
(a) assessing actual and potential impacts on NIO’s minimum standards for sustainable business;
(b) integrating and acting upon the findings;
(c) accounting for how impacts are addressed; and
(d) providing for or cooperating in remediation.
2.3. Disclosure and Sustainability Reports. NIO provides clear and complete information on its due diligence results, as and when required. The Company ensures compliance with applicable regulatory requirements to submit or publish the Company’s sustainability related reports, statements or any other types of required documents.
2.4. Action along the Supply Chain. NIO requests suppliers to act in consistency with NIO’s minimum standards for sustainable business. Suppliers are required to respond to sustainability assessment programs or pursue sustainability related certifications when the Company deems necessary for its products or operations. NIO works with its direct suppliers to ensure that indirect suppliers act accordingly. NIO seeks ways to prevent or mitigate adverse impacts that are linked to its business operations, products or services by a business relationship. The Company refrains from entering into new as well as extending existing relations with partners not satisfying NIO’s minimum standards for sustainable business.

NIO’s Minimum Standards for Sustainable Business Operation

3.1. Environmental Impact. NIO continuously seek to minimize the environmental resource intensity of its activities (e.g. in designing manufacturing processes and products correspondingly, but also sourcing materials with a view to their lifecycle cost), thereby reducing in particular its consumption of energy and water, and its production of waste.
In its daily business, NIO:

• is dedicated to reducing the Company’s global carbon footprint;
• endeavors to use resources and energy economically and efficiently to mitigate the impact on the environment and avoid waste;
• designs its products and processes in a way to limit the consumption of natural resources;
• promotes the use of recycled materials in the manufacturing and the transition to a circular economy; and
• reports on its environmental commitment, policies, programs and results.

3.2. Employment. NIO is guided by the principle of equality of opportunity and treatment and has zero tolerance for any kind of discrimination.
In the daily business, NIO:

• provides equal opportunity in all phases of employment;
• assures that there is no discrimination in recruitment, compensation, access to training, promotion, termination or retirement;
• treats every employee fairly and with respect;
• promotes diverse teams, guaranteeing the same opportunities to all employees;
• guarantees the fulfillment of, at least, the national or, where applicable, local minimum wage legal requirements;
• guarantees freedom of association and free collective bargaining; and
• acts in bona fide in negotiations with workers’ representatives.

3.3. Diversity and Respect in the Workplace. NIO is committed to ensure inclusion, equality and respect in the workplace. NIO develops and maintains a professional and inclusive work environment, in which all employees are treated with dignity.
In its daily business, NIO:

• prohibits any direct or indirect discrimination against any employee, especially based on gender, gender expression, ethnic origin, caste, skin color, pregnancy, family status, national origin, religion, age, mental and physical disability, sex, marital status, sexual orientation, trade union membership or political affiliation, or any other circumstance; and
• prohibits any kind of workplace harassment, any physical or verbal abuse or other forms of intimidation.

3.4. Anti-Discrimination, Sexual Harassment and Bullying. NIO is committed to providing a safe environment for all its employees free from discrimination, sexual harassment and bullying. In its daily business, NIO:

• promotes and implements all necessary measures to protect the dignity of employees and encourage respect in the workplace.
  creates a work environment, free from discrimination, sexual harassment, bullying and disrespectful behavior through implementation of effective procedures to deal with any complaints of such conduct as may arise.

• does not discriminate against employees on the basis of gender, age, marital status, nationality, ethnicity, race, religious beliefs, disability (not related to the performance of the primary duties of the position), sexual orientation, pregnancy or any other legally protected factor.

• has zero tolerance to any form of sexual harassment, whether unwanted verbal, nonverbal or physical conduct of a sexual nature which in either case has the purpose or effect of violating a person’s dignity and creating an intimidating, hostile, degrading, humiliating or offensive environment for the person. Sexual harassment includes but not limited to:
  (a) giving work-related benefits in exchange for sexual favors;
  (b) retaliation or threat of retaliation for responding to a denial of a sexual request;
  (c) teasing, sexual gestures, presentation or transmission of sexually suggestive objects, pictures, cartoons or propaganda;
  (d) making or using derogatory comments, nicknames, epithets or jokes;
  (e) verbal abuse with sexual content, verbal comments about another person’s body using graphics, insults with sexual content, as well as letters, notes, invitations, texts, emails, social media suggesting sexual or obscene content;
  (f) contacting, assaulting, threatening, obstructing, or impeding movement for the purpose of sexual harassment.

• has zero tolerance to any form of workplace bullying, which is repeated inappropriate behavior, direct or indirect, whether verbal, physical or otherwise, conducted by one or more persons against another or others at the place of work or in the course of employment, and could reasonably be regarded as undermining the individual’s right to dignity at work.
  Bullying behavior includes, but is not limited to:
  (a) undermining an individual’s right to dignity at work;
  (b) humiliation or intimidation;
  (c) verbal abuse;
  (d) victimization;
  (e) exclusion and isolation;
  (f) implied threats.

Legitimate management responses to pressurized situations which require an immediate action are not considered to be bullying. Constructive and fair criticism of an employee’s conduct or work performance is not bullying.
3.5. Workplace Health and Safety. NIO does not compromise when it comes to safety.

In its daily business, NIO:

• ensures that all workplaces are in compliance with applicable laws and regulations;
• invests in, develops and continuously improves recognized safety management programs;
• ensures that all workplace policies and guidelines are fully acknowledged and applied and trainings are provided;
• ensures that all workplace incidents are duly reported (see reporting lines and information on possible anonymous reporting in the Company’s Ethics and Compliance Whistleblower Policy and Procedures), documented and investigated; and
• stops or refuses to perform a task if it cannot be performed safely.

3.6. Human Rights. NIO does not tolerate any kind of compromise when it comes to human rights. NIO is committed to fully respecting internationally recognized standards of human rights protection as well as to complying with all applicable laws and regulations in this regard. NIO does not tolerate human rights violation within its supply chain (see NIO Partner Code of Conduct).
3.6.1. In its daily business, NIO:

• prohibits the use of any type of forced or compulsory labor or any condition of slavery or trafficking by anyone acting for or on behalf of the Company;
• contributes to the effective abolition of child labor and prevents its products or services from being produced by using child labor.

3.6.2. With respect to responsible sourcing of raw materials, NIO makes sure not to use (i.e., mine, transport, trade, handle, process, or export) conflict-affected minerals in its production and is committed to meet the obligations set down in the applicable legislation (e.g. Regulation (EU) 2017/821 on conflict minerals), also vis-à-vis its suppliers, to ensure that the minerals are sourced with no violations of human rights and do not contribute to the direct or indirect support of armed conflicts. In particular, NIO requires its suppliers to provide information regarding the smelters and refineries used by their suppliers and sub-suppliers for minerals, including but not limited to 3TG and cobalt, to the Company upon request.
3.7. Diversity of Suppliers. NIO is committed to promote the diversity of suppliers.
In its daily business, NIO:
encourages diverse supplier integration; and encourages providing opportunities for certified or verified small and diverse businesses.

Final Provisions

4.1. No rights created. Nothing in this Policy is intended to or does create any kind of rights in favor of its employees (as defined in clause 1.2 above), customers, investors, competitors, governments, public authorities or any other persons or entities. This Policy is a compilation of ethical principles which shall guide daily conduct and activities within and by or on behalf of NIO.
4.2. Communication of this Policy. The Company’s Legal Department or compliance functions shall ensure that this Policy is adequately communicated to all its addressees including but not limited to via proper distribution and, where appropriate, training.
4.3. Obtaining Support. If any employee, including any director and officer, has questions or doubts as to whether a certain conduct is permissible under this Policy or whether a violation of this Policy has occurred, is occurring, or will occur, they should immediately contact the Company’s Legal Department or compliance functions in order to obtain support and clarification.
4.4. Reporting Violations. All employees, directors and officers, are encouraged and urged to report any actual or potential violations to this Policy promptly and in good faith. The report can be made to the employee’s manager, to the Company’s Legal Department or compliance functions, as well as to any of the whistleblower channels made available by the Company in accordance with the Company’s Ethics and Compliance Whistleblower Policies and Procedures and disclosed on the Company’s website.
4.4.1. Submitted reports are handled with appropriate care and sensitivity and treated confidentially to the extent possible in accordance with the Company’s Ethics and Compliance Whistleblower Policies and Procedures and applicable laws. They are only accessed on a need-to-know basis by the Company’s Compliance Committee, compliance functions or Legal Department, being shared with other employees or external advisors only to the extent necessary to evaluate and respond to the questions or reports received.
4.5. No Retaliation. The Company’s Ethics and Compliance Whistleblower Policies and Procedures strictly prohibits any form of retaliation against any employee or third party who reports a potential compliance issue in good faith. Therefore, anyone reporting concerns or violations must not fear negative consequences, even if the employee or third party is not absolutely certain about the facts, provided that the report is made based on reasonable belief. Intentionally misusing the Company’s reporting system for abusive practice (i.e., filing reports in bad faith) is prohibited and may result in disciplinary measures.

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