Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product Responsibility
• Environmental Responsibility
• Social Influence
• Employee Responsibility

Environmental Achievements

• Joined the Roundtable on Sustainable Palm Oil (RSPO)
• Completed carbon footprint verification of Perfect Diary Slim Heel Lipstick products
• Eve Lom products using 100% biodegradable packaging
• Abby's Choice using 95% environmentally friendly paper (FSC certified)
• Galénic products printed with eco-friendly paper and soy ink (FSC certified)

Social Achievements

• Launched "Create a Beautiful Life" program providing free job training to disadvantaged women
• Perfect Diary provided free makeover services to 231,600 people
• Participated in SEE Foundation's "Preserve China Beauty" campaign

Governance Achievements

• Established a sound corporate governance structure with clear responsibilities
• Half of the Board is made up of independent non-executive directors
• Developed a comprehensive risk management mechanism
• Provided business ethics training to 100% of employees
• No corruption or bribery incidents reported

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (physical risks like extreme weather and transition risks like regulatory changes and market shifts)
• Supply chain disruptions due to extreme weather

Mitigation Strategies

• Developing emergency plans for extreme weather
• Working with supply chain partners to lower carbon footprint
• Using energy-efficient equipment
• Conducting carbon footprint assessments on products
• Developing lower-carbon products and packaging

Supply Chain Management

Supplier Audits: 114 suppliers underwent onboarding and annual audits

Responsible Procurement

• Supplier Management Regulations
• Probity Cooperation Commitment
• Promoting RSPO-certified sustainable palm oil

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heat, cold, storms, floods, typhoons)

Transition Risks

• Regulatory changes
• Market shifts towards sustainable products

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Perfect Diary Pearl Loose Powder (SmartLOCKTM technology)
• Abby's Choice ceramides series products (nano-based active ingredient)
• DR.WU Mandelik Multiple Acid Renewal Mask (nano-targeting delivery system)
• Little Ondine long-wear foundation (patented anti-skin darkening technology)

Awards & Recognition

• Numerous awards for Perfect Diary, Galénic, Little Ondine, and Abby's Choice (listed in the report but not fully detailed)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Issued our first Environmental, Social and Governance (ESG) Report in May 2022.
• ESG rating upgraded to A by MSCI in December 2022.

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic negatively impacted consumer sentiment and demand, particularly affecting color cosmetics and offline stores.
• Competition in the beauty industry is intense.
• Supply chain disruptions due to the COVID-19 pandemic and related restrictions.
• Managing growth effectively and efficiently.
• Achieving and maintaining profitability.

Mitigation Strategies

• Launched a five-year strategic transformation plan focusing on balancing revenue mix, supporting Skincare Brands growth, and cost-cutting measures.
• Focused on building brand equity through investment in branding and R&D.
• Improved gross margin and net loss margin.
• Recorded positive cash flows from operating activities in 2022.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Beauty Industry Super New Brand by Tmall (Pink Bear)
• Loose Powder of the Year awarded by COSMO (Perfect Diary Translucent Blurring Loose Powder)
• Galénic’s N°1 Poudre Vitamine C Pure Eclaircissante won recognitions from Elle and Bazaar.