Climate Change Data

Luxshare Precision Industry Company Limited

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,636,424.83 tCO2e (Location-based); 675,053.85 tCO2e (Market-based)
Scope 1 Emissions:64,910.59 tCO2e
Scope 2 Emissions:1,571,514.24 tCO2e (Location-based); 610,143.26 tCO2e (Market-based)
Scope 3 Emissions:5,902,511.90 tCO2e
Renewable Energy Share:63%
Total Energy Consumption:2,821,369.72 MWh
Water Consumption:24,574.18 ML
Waste Generated:153,009.79 tons
Carbon Intensity:7.06 tCO2e/RMB 1 million (Location-based); 2.91 tCO2e/RMB 1 million (Market-based)

ESG Focus Areas

  • Climate change
  • Employee rights and interests
  • Responsible supply chain management
  • Business ethics

Environmental Achievements

  • Absolute Scope 1&2 GHG emissions reduced year on year by 54% from 2022
  • Scope 3 GHG emissions per CNY of value added decreased by 13% from 2022
  • Energy saved reached 143,893 MWh
  • Overall installed capacity of rooftop solar PV power generation reached 85 MW
  • Utilization rate of clean energy reached 63%
  • Average waste transformation rate reached 86.06%

Social Achievements

  • Signing rates of the Employee's Letter of Integrity Commitment and Employee's Letter of Commitment on Code of Conduct reached 100%
  • Work-related injuries decreased by 46% compared to the previous year
  • Total investment in public welfare and charity undertakings was RMB 12.63 million
  • 100% handling rate of business ethics-related complaints

Governance Achievements

  • Number of information leakage incidents was 0
  • Number of internal audit tasks completed was 56
  • Employee anti-corruption training coverage was 100%

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality no later than 2050
Medium-term Goals:
  • Clean energy utilization rate increase to 40% by 2024
Short-term Goals:
  • Reduce absolute Scope 1 and 2 emissions 50.4% by 2032 from a 2022 base year
  • Reduce Scope 3 emissions 58.1% per CNY of value added by 2032 from a 2022 base year
  • Save 250 million kWh energy cumulatively from 2023 to 2025
  • Clean energy utilization rate increase to 50% by 2025
  • Achieve a waste transformation rate of 90% by 2025

Environmental Challenges

  • Slow recovery of the global economy and fierce competition in the industry
  • Climate change risks
  • Labor relations risks
  • Business ethics risks
  • Intellectual property management and protection risks
  • Information security risks
Mitigation Strategies
  • Improved corporate governance framework and risk management mechanisms
  • Science-based carbon reduction targets (SBTi certified)
  • Improved labor management system
  • Established Business Ethics Governance Structure
  • Established intellectual property management system
  • Robust information security management system (ISO 27001 certified)

Supply Chain Management

Supplier Audits: 1,624 suppliers audited; 527 on-site audits; 100% CSR audit rate for new suppliers

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier Management Operating Procedure
  • Letter of Guarantee on Responsible Business Alliance Code of Conduct (100% signing rate for new suppliers)
  • RMAP certification for 100% of SORs involving 3TG

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Investments in clean technology (over RMB 300 million in 2023)

Reporting Standards

Frameworks Used: GRI Standards, Shenzhen Stock Exchange Social Responsibility Instructions, MSCI ESG rating, UN Sustainable Development Goals (SDGs), TCFD

Certifications: ISO 14001, ISO 27001, ISO 22301, ISO 45001, ISO 9001, UL 2799 Zero Waste to Landfill, AWS International Sustainable Water Management Standard Gold Level

Third-party Assurance: TÜV Rheinland (Shanghai) Co., Ltd.

Sustainable Products & Innovation

  • Liquid-Cooled High-Power Charging Cable
  • Electric Motor Controller
  • Electric Vehicle Powertrain
  • 140W 2C1A PD Fast Charger
  • 1A1C Fast Charger
  • ‘Light Active’ Series
  • 4U Liquid Coolant Distribution Unit
  • Wall Charger Series
  • Vehicle Harnesses
  • Fuel Cell Stack

Awards & Recognition

  • EcoVadis Silver Medal
  • Morgan Stanley Capital International（MSCI）Index Excellent Case of ESG Responsibility
  • Xinhua Credit Jinlan Cup China Economic Information Service 2023 ESG Best Practice Case of Chinese Listed Companies
  • China Association for Public Companies 2023 ESG Best Practice Case of Chinese Listed Companies
  • People.cn 2023 People's Corporate Social Responsibility Award Green Development Award
  • China Sustainability Tribune 2023 “Golden Key · Honor Award”
  • Caijing Magazine 2023 “Evergreen Award” Green Award for Sustainability
  • Times Media Group 2023 Award for ESG Model Enterprise among Listed Companies
  • CLS.CN Women's Enterprise Certificate
  • MSD China 2023 Green Sustainable Development Contribution Award
  • Sina Finance Best Environmental (E) Responsibility Award
  • Many other awards listed in the report