Automaker supports mangrove restoration in China BOX 6 Leizhou Bay in Zhanjiang, Guangdong Province, is the most important wintering habitat in China for the spoon-billed sandpiper, one of the world’s most endangered species. Based on the Ramsar Sites Criteria, Leizhou Bay is a wetland of international importance, as it regularly supports 1% of spoon-billed sandpipers. Surveys and daily monitoring results also show that an average of nearly 70 species and about 95,000 birds roost and winter in this wetland every year.118 In 2023, GAC Honda and the Society of Entrepreneurs and Ecology (SEE) Foundation officially launched the Mangrove Ecological Conservation Project, the first phase of which extends over five years (from 2023 to 2027). The project advances the synergized aims of driving both ecological value and social and economic value through actions such as mangrove restoration, blue carbon project development, community protection and species protection in Wenchang, Hainan and Zhanjiang, Guangdong Province.119 Among them, Zhanjiang Mangrove Forest is the nature reserve with the largest area and the most concentrated distribution of mangrove forests in China, and Wenchang Mangrove Forest in Hainan is the area with the most mangrove species in China. A variety of international standards were considered in the design stage, such as the Sustainable Blue Economy Finance Principles (for developing the blue carbon sink project), and the IUCN Global Standard for Nature-based Solutions (for implementing nature- based solutions and engaging local communities). By October 2024, the project planted 10 hectares (ha) – or 150 mu – of restored mangroves and cleared about 17 ha (250 mu) of invasive alien species. It’s estimated that the project will help to prevent 15,400 tonnes of CO2 from being emitted in 40 years (on average, 385 tonnes per year) and support blue carbon sink projects that can be traded in carbon markets to generate funds to continue these efforts.120 Invest in innovative biodiversity financing mechanisms In addition to taking action to protect and restore natural ecosystems, automakers can proactively explore potential ecological compensation mechanisms in partnership with financial institutions, e.g. green or blue bonds, voluntary biodiversity certificates or credit markets and nature restoration funds. This would allow them to identify appropriate financial solutions for projects involving circularity and decarbonization technologies, among others. Geely Auto released its Sustainable Financial Framework. In 2022, the eligibility assessment categories included Sustainable Water and Wastewater Management, Waste Management and Circular Economy, and Pollution Prevention and Control.121 Protection- and restoration-related practices, however, are still widely seen by sector players as corporate responsibilities. Automakers can collaborate across the broader sector to proactively support vehicle infrastructure construction, data standardization, policy implementation and other actions. In particular, Chinese automakers should promote alignment with global standards and metrics on nature. In order to support the decarbonization of the automotive sector in China, companies can assist in the expansion of low-carbon, grid-connected infrastructure, including via the improvement of smart charging networks and the promotion of vehicle-to-grid (V2G) technology. It’s crucial that companies continuously improve the construction of charging infrastructure to enable electrification, expand the scale of grid-connected infrastructure and introduce technologies (e.g. V2G) to improve grid efficiency and reliability.In recent years, automakers such as NIO122 have introduced bi-directional V2G charging piles, which allow the car battery to enter the grid and improving the efficiency and reliability of the grid. Chinese automakers can engage with the Chinese government to develop supportive policies, e.g. to enable data sharing or more effective end-of-life management of vehicles, promote full-chain data standards and transparency in the automotive industry. They can additionally incentivize road testing of new technologies to advance new business models (potentially helping reduce production and save natural resources), further define the rights and responsibilities for recycling of end-of-life vehicles/components and support the establishment of an improved carbon/green certificate trading system and platform. Chinese automakers should promote alignment with global standards and metrics on nature. 3.5 Drive cross-sector collaboration on standards, transparency, infrastructure and policyPriority action 5 Nature Positive: Role of the Automotive Sector – China Deep-dive 32

Nature Positive Role of the Automotive Sector China Deep dive