Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed PV power generation devices with a total capacity of 2.13 MW, reducing carbon dioxide emissions by about 1,920 tons annually.
• Established an air compressor heat recovery system, saving 155t standard coal or reducing 30t carbon dioxide emissions annually.
• Huzhou production base named "Huzhou Green Factory"
• Planted 5,823 saplings, absorbing 106.56 tons of carbon dioxide annually.
• Used recycling boxes instead of cartons, saving more than 20,000 transport cartons and reducing carbon dioxide emissions by 25.16 tons in 2021.
• Used zipper cartons, saving more than 500,000 rolls of tape and reducing carbon dioxide emissions by 81.2 tons in 2021.

Social Achievements

• Donated RMB 15,106,453 to hospitals and charity associations in the fight against COVID-19.
• Developed new anti-COVID-19 products.
• Provided free nucleic acid tests and quarantine accommodation to employees.
• Implemented a comprehensive and objective performance evaluation system, linking employee salary distribution with performance.
• Implemented the 2018 restricted stock incentive plan.
• Organized 4 trainings totaling 46 hours.
• 52 employees attended and completed Proya's top-up degree courses.
• Organized 7 professional skills improvement training activities, granting 148 employees advanced certificates and 53 employees intermediate certificates.

Governance Achievements

• Rated A by the Shanghai Stock Exchange for information disclosure.
• Issued 4 regular reports and 59 temporary announcements.
• Passed intellectual property management system certification.
• Added 28 new trademarks and 8 new copyrights.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Supply chain disruptions (implied)

Mitigation Strategies

• Comprehensive COVID-19 prevention and control measures.
• Actively supported the battle against COVID-19 by contributing money and medical supplies.
• Developed new anti-COVID-19 products.
• Adjusted 2020 target operating revenue growth based on actual operation conditions to ensure the Company's restricted stock incentive plan would be implemented successfully.

Supply Chain Management

Supplier Audits: 60% of cooperative suppliers passed SA 8000 in 2020

Responsible Procurement

• Giving priority to raw materials with less environmental and social impacts and renewable raw materials of sustainable or green sources.
• Preferentially selecting manufacturers under the Nagoya Protocol for certain raw materials.
• Preferentially selecting manufacturers that have signed a fair trade agreement for raw materials from Africa.
• Preferentially purchasing palm oil raw materials under RSPO standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GB/T 36001-2015, ISO 26000:2010, UN SDGs, GRI Standards, CASS-CSR 4.0, SSE Guidelines for the Preparation of Reports on the Performance of Social Responsibility by Companies, SSE Guidelines for Environmental Information Disclosure by Listed Companies

Certifications: ISO 9001, ISO 22716, US FDA-GMPC, FSC (for CORRECTORS brand packaging)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• P5W: Best New Media Operation Award
• Excellent IR Team
• Great Zhejiang Entrepreneur for COVID-19 Control
• Zhong Nanshan Medical Foundation of Guangdong Province: Charity Organization in the Fight Against COVID-19
• Wuhan Charity Federation: Outstanding Contribution Organization to COVID-19 Prevention and Control
• Cosmetic Newspaper: China Cosmetics Aesthetic Charity Award
• Outstanding Contribution Award for Drug Development and Innovation in 2020
• Zhejiang Standard Beauty Innovation Contribution Award in 2020
• Zhejiang Province Health and Beauty Industry Standard Innovation Contribution Award in 2020
• The first "Double Hundred Vanguard" Training Bases in Zhejiang Province
• Zhejiang Science Progress Award (3rd prize)
• Selected in [Luxe Sustainable Fashion Power List] Top Cases
• China Association of Fragrance Flavor and Cosmetic Industries: Excellent R&D Team, Advanced Enterprise in the Fight against COVID-19
• Hangzhou Live Broadcast E-commerce Key Cultivation Park (Base)
• VOGUE: Chinese Brand Awards in 2020
• Rayli Beauty Awards
• Sina Beauty Awards
• Cosmetic Newspaper: G20 Chinese Cosmetics Brands, Top 2 Hydrating Brands, Top 3 Sunscreen Brands
• Jumeili: Best Innovative Brand in 2020
• China Beauty Expo: CBE Good Brand in 2020
• Youzan: Top 10 Leaders in 2020
• Huzhou Gold Brand Featured Product Souvenir
• Top 10 Beauty Brands Made in Zhejiang

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced plastic consumption in product packaging by more than 52% for certain products, resulting in approximately 127.6 tons less plastic used.
• Replaced plastic sealing bags with eco-friendly shrink film in over 2 million product sets.
• Replaced foam boxes with reusable and biodegradable nano-tech insulated boxes (7,369 used, replacing 14,738 traditional boxes).
• Installed a 2 MVA photovoltaic power storage system, generating 1,796,000 kWh of electricity.
• Reduced electricity consumption by approximately 360,000 kWh by replacing electric fans with wind-powered fans.
• Increased recycled water volume by 15,000m³, an 8.7% year-on-year increase.
• Reduced tape usage by nearly 180,000 rolls by upgrading cartons and designing snap-on devices.

Social Achievements

• Launched the "Gender doesn’t divide us, prejudice does!" campaign, reaching over 25 million views.
• Launched the Echo Project focusing on youth mental health, distributing over 60,000 mental health care handbooks.
• Improved employee canteen service, resulting in a 17% increase in turnover and increased employee satisfaction.
• Organized various employee activities ("Star Presenter," "Star Singer") and celebrated holidays with employees.
• Implemented a campaign encouraging employees to use nicknames instead of job titles to foster a more equitable workplace.

Governance Achievements

• Established an ESG management structure led by the board of directors, including an ESG Management Committee and an ESG Implementation Team.
• Obtained ISO14001:2015 Environmental Management System certification.
• Established a climate change management system aligned with TCFD recommendations.
• Implemented a comprehensive compliance management system with multiple reporting channels.
• Successfully recalled 14,586 products and 400,000 products due to regulatory changes, demonstrating commitment to product safety.

Climate Goals & Targets

Environmental Challenges

• High cost and difficulty in sourcing eco-friendly materials.
• High energy consumption in glass bottle production.
• Need to reduce waste generation from packaging materials.
• Maintaining supply chain stability.
• Addressing youth mental health concerns.

Mitigation Strategies

• Developed alternative sourcing strategies and implemented green packaging initiatives.
• Implemented energy-saving measures in glass production (e.g., closing sandblasting plant, replacing combustion processes).
• Established a green packaging working group to explore eco-friendly materials and reduce packaging waste.
• Upgraded supply chain automation, digitization, and intelligence to improve market response and resilience.
• Launched the Echo Project to address youth mental health issues through education and support.

Supply Chain Management

Supplier Audits: 17.88% coverage

Responsible Procurement

• Preferential purchase of RSPO-certified palm oil
• Preference for suppliers with fair trade agreements
• Compliance with the Nagoya Protocol for certain ingredients
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Guidelines for the Self-Regulatory Supervision of Listed Companies on the Shanghai Stock Exchange No.1 - Standardized Operation (2022)

Certifications: ISO14001:2015, ISO45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 5 (gender equality)
• Goal 8 (decent work and economic growth)
• Goal 12 (responsible consumption and production)
• Goal 13 (climate action)

Proya's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Bowling Blue Bottle (natural oil-based, no irritants or traditional preservatives)

Awards & Recognition

• 2021 China Intelligent Production Outstanding Application Award
• Zhejiang Province Collaborative Supply Chain Innovation Complex Contractor
• Outstanding Industrial Product of Zhejiang Province in 2021
• Innovative Consumer Product (China Association of Fragrance, Flavoring, and Cosmetics Industries)

Environmental Metrics

ESG Focus Areas

• Product Quality and Safety
• Environmental Impact Management
• Climate Change
• Sustainable Packaging
• Supply Chain Sustainability
• Employee Welfare and Safety
• Compliance and Anti-Corruption
• Intellectual Property Protection

Environmental Achievements

• Collected energy consumption and carbon emission data from 156 raw material and packaging material manufacturers and OEM/ODM factories (over 90% of suppliers) in FY2022.
• Implemented measures to reduce packaging material use intensity by 15% and increase the use of sustainable packaging materials by 20% (target by 2025).

Social Achievements

• Established various employment management and employee welfare protection systems, including recruitment, compensation, and welfare management.
• Provided annual free health checkups for employees and implemented occupational health checks for workers exposed to hazards.
• Established employee communication channels, labor union, and employee representative council to foster open communication.

Governance Achievements

• Established an anti-bribery management system with a governance structure, training programs, and auditing mechanisms.
• Implemented an employee supervision and reporting management system with whistleblower protection measures.
• Incorporated sustainability performance into incentive remuneration policies for directors and executives.

Climate Goals & Targets

Environmental Challenges

• Collecting energy consumption and carbon emission data from all suppliers (currently only 90% covered).
• Improving the recycling rate and recovery rate of sold packages.

Mitigation Strategies

• Plans to improve the mechanism for collecting energy consumption and carbon emission data from all suppliers.
• Adding recycling labels on outer packages and guiding consumers to recycle product packages.

Supply Chain Management

Supplier Audits: Annual ESG performance included in supplier audits.

Responsible Procurement

• Preference for RSPO-certified suppliers and certified sustainable raw materials.
• Business Code Compliance Commitment signed by all suppliers.
• Requirements for suppliers to comply with UN Guiding Principles on Business and Human Rights, responsible forest management, and climate change mitigation.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, UN Universal Declaration of Human Rights, ISO 14001:2015, ISO 45001:2018

Certifications: ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Sustainable Business
• Sustainable Value Chain
• Sustainable Social Ecosystem

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 and 2) by 4,744.30 tonnes of CO2e.
• Increased the use of clean energy to 35.35%.
• Increased the proportion of sustainable packaging materials used to 25.47% (25.31% increase compared to 2021).
• Registered a new cosmetic ingredient, “3,3,5-TRIMETHYLCYCLOHEXYL SUCCINATE DIMETHYLAMIDE”.

Social Achievements

• Established the Zhejiang Proya Public Welfare Foundation.
• Launched several social welfare campaigns focusing on gender equality, mental health, youth and growth, and love and caring, directly benefiting 233,000 people and indirectly benefiting 247 million.
• Improved employee training coverage to 90.51%.

Governance Achievements

• Revised several regulatory documents to enhance corporate governance compliance.
• Linked executive compensation to sustainability performance.
• Received numerous awards for corporate governance and investor relations.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Meeting increasing consumer demand for green products.

Mitigation Strategies

• Strengthened environmental assessment standards across the supply chain.
• Explored low-carbon technologies and efficient energy utilization modes with partners.
• Established a sustainable product assessment system.
• Improved sustainable packaging, sustainable palm oil sourcing, and low-carbon factories.

Supply Chain Management

Supplier Audits: 264 suppliers evaluated for ESG performance (100% pass rate), ESG compliance assessments conducted for all key partners.

Responsible Procurement

• Prioritization of eco-friendly raw materials (sustainable forest certified paper, RSPO-certified palm oil, fair trade products).
• Requirement for suppliers to sign the Business Code Compliance Commitment.
• ESG training provided to suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards for Sustainability Reporting (Global Reporting Initiative), United Nations Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 9001:2015, ISO 22716, US FDA CFSAN Cosmetics - Good Manufacturing Practices (GMP), ISO 45001:2018 (Skincare factory)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

Initiatives contribute to these goals as detailed in the report.

Sustainable Products & Innovation

• Refillable options for select products
• Use of sustainable packaging materials

Awards & Recognition

• Numerous awards listed in ESG Performance Data Sheet