Climate Change Data

RLX Technology Inc.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1507.03 tCO2e
Scope 1 Emissions:51.45 tCO2e
Scope 2 Emissions:1007.63 tCO2e
Scope 3 Emissions:447.95 tCO2e
Total Energy Consumption:1806.56 MWh
Water Consumption:7008.12 tonnes
Waste Generated:87.81 tonnes (non-hazardous), 20.13 tonnes (hazardous)

ESG Focus Areas

  • Corporate Governance
  • Business Ethics
  • Product Innovation and Harm Reduction
  • Sustainable Supply Chain
  • Addressing Climate Change
  • Minor Protection
  • Product Quality and Safety
  • Human Rights
  • Talent Development
  • Community Support
  • Environmental Protection

Environmental Achievements

  • Completed two carbon footprint assessments for e-vapor products, validated by a third party.
  • Established the first "net-zero" e-vapor retail shop powered by a certified wind energy project.
  • Recycled over 6.5 tons of used rechargeable pods through the Pods Reborn Program.
  • Reduced paper packaging by a significant amount (from 1061.9 tonnes to 165.4 tonnes).

Social Achievements

  • Launched the RELX Care Community Service Program, investing RMB 44.3 million in corporate philanthropic programs.
  • Maintained a customer satisfaction rate of 97.6% while serving over 260,000 users.
  • Conducted responsible marketing training sessions for over 400 participants.
  • Implemented comprehensive ESG requirements into supplier selection, performance evaluation, and elimination processes.
  • No incidents of harassment or discrimination occurred within the company.
  • Provided 5,825 total training hours for employees, averaging 10.5 hours per employee.

Governance Achievements

  • Established an ESG Committee to oversee ESG strategies and initiatives.
  • Developed and implemented several policies to regulate employee and business partner conduct (e.g., anti-corruption, anti-bribery, anti-insider trading).
  • Conducted 19 business ethics training sessions for employees.
  • Established integrity and compliance reporting channels, including a reward mechanism for whistleblowers.
  • No major lawsuits related to corruption were involved in 2023.

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality across the value chain (scope 1 + scope 2 + scope 3) by 2050
Medium-term Goals:
  • Carbon neutrality for its own operation (scope 1 + scope 2) by 2033

Environmental Challenges

  • Extreme weather events causing operational interruptions and damage to facilities.
  • Transition risks from policy and legal changes, technology advancements, market shifts, and reputational concerns.
  • Supply chain disruptions.
  • Maintaining compliance with increasingly stringent regulations on energy consumption and GHG emissions.
Mitigation Strategies
  • Developed disaster emergency plans and conducted drills.
  • Strengthened communication with government and regulatory authorities.
  • Invested in low-carbon technology and product R&D.
  • Improved energy efficiency of operating assets and considered investing in renewable energy.
  • Proactively communicated with stakeholders about climate action and GHG emission reduction efforts.
  • Implemented the RELX Environmental Policy to guide green supply chain development and green manufacturing.

Supply Chain Management

Supplier Audits: More than 15 significant suppliers underwent internal ESG assessments; external audits conducted on nine suppliers.

Responsible Procurement
  • RELX Code of Conduct for Business Partners
  • ESG metrics incorporated into supplier assessments (labor standards, occupational health and safety, energy management, GHG emissions reduction, water management, EHS compliance, and business ethics).

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons, floods, droughts, cold waves, and heat waves
Transition Risks
  • Policy and legal risks
  • Technology risks
  • Market risks
  • Reputation risks

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations, UN Sustainable Development Goals

Certifications: ISO 9001, GMP, ISO 45001, CNAS Accreditation

Third-party Assurance: TÜV Rheinland (limited assurance)

UN Sustainable Development Goals

  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Zero-carbon products are a stated goal of the "Aim for Zero" initiative.

Awards & Recognition

  • Shenzhen Baoan District Credit Compliance Demonstration Enterprise 2023
  • Rated “A” in MSCI ESG Ratings
  • Scored 51 in S&P Global Corporate Sustainability Assessment (Top 1% in China)
  • Rated “Medium Risk” in Sustainalytics ESG rating
  • Top 100 Quality Enterprises in Shenzhen