Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Employee Well-being
• Supply Chain Sustainability
• Environmental Protection
• Product Safety

Environmental Achievements

• Updated and published product safety standards QLNB8001-2014
• Increased suppliers’ environmental protection awareness
• Implemented “Li Ning Company Supplier Social Responsibility Code of Conduct”
• Conducted CSR on-site audits on 15 representative suppliers
• Achieved nearly 70% rectification rate in CSR follow-up audits
• Developed and used eco-friendly materials (coffee charcoal, organic cotton, ECO-CIRCLE, fluorine-free waterproof fabrics)
• Actively participated in ZDHC program

Social Achievements

• Provided supplementary commercial medical insurance to all employees and their family members
• Arranged free medical check-ups for staff annually
• Created a comfortable working environment with green plants and environment-friendly facilities
• Set up nursery rooms for lactating mothers
• Streamlined the welfare system to personalize staff benefits
• Organized various activities for employees and their families (parent-child gatherings, annual meet-ups, health talks)
• Donated RMB5 million worth of clothing to Ludian earthquake victims
• Launched charity projects like “Healthy Mother Express”, “Postal Parcel for Mothers”, “Water Cellar for Mothers”, and “Childhood Guardian”, benefiting 27.34 million people

Governance Achievements

• Established a corporate social responsibility manager position
• Improved supplier audit assessment tool
• Strengthened requirements on supplier corrective actions
• Modified new supplier approval requirements
• Conducted audits on 14 potential suppliers

Climate Goals & Targets

Environmental Challenges

• Ensuring supplier compliance with social and environmental standards
• Managing risks in the supply chain
• Maintaining high standards of product safety

Mitigation Strategies

• Implemented a supplier evaluation system with quarterly CSR performance assessments
• Developed a scoring mechanism to guide suppliers
• Commissioned third-party CSR audits
• Strengthened requirements for corrective actions
• Conducted environmental audits on key material suppliers
• Provided training on chemical management and hazard prevention
• Developed and implemented a Restricted Substances List (MRSL)
• Collaborated with industry organizations, suppliers, NGOs, and external experts

Supply Chain Management

Supplier Audits: 15 on-site audits + 60% follow-up audits

Responsible Procurement

• Li Ning Company Supplier Social Responsibility Code of Conduct
• MRSL Compliance Statement
• Supplier evaluation system
• Environmental audits
• Chemical management training

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Shoes made from coffee charcoal and fluorine-free waterproof technology

Awards & Recognition

• 2014 ROI Festival Gold Award
• 2014 8th Colour China Award
• 2014 Germany iF Design Award
• Favourite Outdoor Sports Apparel Brand for University Students in 2014
• “Best Business Model Innovation Award in 21st Century China”
• Runners World “Best Breakthrough Award for Fall 2014”
• Welfare Products Enterprise with the Best Working Environment in 2014
• Top Ten Apparel Brand in Beijing with the Best Cultural Creativity 2014
• Chinese Women Charity Awards-Contribution Award (Mr. Li Ning and Li Ning Company)

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Employment Management
• Supply Chain Management
• Product Liability Management
• Anti-Corruption Management
• Community Investment Management

Environmental Achievements

• Achieved energy saving goal set at the beginning of the year; significantly reduced energy consumption compared to the previous year.
• Li-Ning Centre Photovoltaic Power Generation Project: installed over 5,700 photovoltaic panels, generating 1,400,000W annually, saving over RMB400,000 yearly in power charges and reducing emissions.
• LED Light Energy Saving Renovation Project: converted 7,982 fluorescent lamps to LED lamps, saving 379,304kWh of electricity annually and reducing emissions.

Social Achievements

• Maintained lawful employment practices, protecting employee rights and interests.
• Provided various employee benefits including sale bonuses, commissions, share options, and social insurance.
• Implemented an Employee Attendance and Leave Management System to ensure paid leave entitlements.
• Organized annual medical check-ups and health talks for employees.
• Conducted 26 safety drills at Li-Ning Centre.
• Implemented talent training programs focusing on mutual development between employees and the company.
• Launched the "Postal Parcel for Mothers" philanthropy project, donating over RMB46,500,000 since 2012.
• Organized the "Charity Trip with Science and Technology" for migrant worker children.

Governance Achievements

• Formulated and published a "Code of Conduct on the Social Responsibility of Li Ning Company’s Suppliers" and implemented a new supplier approval system.
• Implemented a quarterly assessment and review system for suppliers' social responsibility.
• Conducted CSR on-site audits on 19 suppliers and environmental performance audits on 12 key suppliers.
• Participated in the ZDHC program, contributing to environmental protection in the textile industry.
• Established an efficient customer feedback channel and management system, achieving 97.90% overall customer satisfaction in 2016.
• Established a sound information security management mechanism to protect customer data.
• Formulated regulations for defective product recall management.
• Formulated and published systems for intellectual property protection.
• Implemented anti-corruption measures including engagement letters with suppliers and distributors.

Climate Goals & Targets

Environmental Challenges

• Maintaining energy efficiency and reducing emissions.
• Ensuring social responsibility throughout the supply chain.
• Managing customer complaints and product quality issues.
• Protecting intellectual property rights.
• Preventing corruption.

Mitigation Strategies

• Implemented energy-saving measures and projects.
• Developed and implemented supplier assessment and review tools.
• Conducted regular audits and inspections of suppliers.
• Established efficient customer feedback and complaint management systems.
• Formulated and implemented intellectual property protection systems.
• Implemented anti-corruption measures and encouraged reporting.

Supply Chain Management

Supplier Audits: 19 CSR on-site audits; 12 environmental performance audits

Responsible Procurement

• Code of Conduct on the Social Responsibility of Li Ning Company’s Suppliers
• Quarterly Self-assessment and Review Tool on the Social Responsibility of Li Ning’s Suppliers
• On-site Review and Assessment Tool on the Social Responsibility of Li Ning’s Suppliers
• Li Ning’s Restricted Substances List on Manufacturing
• Li Ning’s Supplier Quarterly Assessment Tool on Suppliers’ Working Environment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Guidelines for Environmental, Social and Governance Reporting published by The Stock Exchange of Hong Kong Limited

Awards & Recognition

• Best Road Race Tournament in China (Li-Ning 10K Running League)

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Employment Management
• Supply Chain Management
• Product Liability Management
• Anti-Corruption Management
• Community Investment

Environmental Achievements

• Reduced CO2 emission by 1,400 tons and SO2 emission by 42.5 tons through Li-Ning Centre Photovoltaic Power Generation Project.
• Reduced CO2 and SO2 emissions by 295.8 tons and 3.4 tons per year respectively through LED Light Energy Saving Renovation of Office Area.
• Reduced paper consumption through paperless office initiatives.

Social Achievements

• Maintained various types of commercial insurance for staff, including supplementary medical insurance, personal injury insurance and critical illness insurance.
• Provided contingency funding support and organized body checks for staff.
• Achieved 100% coverage of all-round training for front-end staff.
• Organized various recreational activities to enrich employees’ lives.
• Actively participated in public charity, including the “Champions Public Welfare Poverty Alleviation” and “Give Children a Dream of Championship” projects.

Governance Achievements

• Formulated the “Anti-Corruption and Anti-Bribery System” to strengthen internal governance and mitigate operating risks.
• Entered into the “Letter of Undertaking on Anti-Corruption and Anti-Bribery” with business partners.
• Established a reporting means for anti-corruption and anti-bribery.

Climate Goals & Targets

Environmental Challenges

• Managing energy consumption across various office locations.
• Ensuring supplier compliance with social and environmental responsibility standards.
• Maintaining product quality and addressing customer complaints effectively.

Mitigation Strategies

• Implemented refined energy management, including installation of sub-meters and regular review of energy consumption.
• Conducted quarterly CSR on-site audits on suppliers and implemented a qualification system for new suppliers.
• Established a complete customer experience assurance system and various complaint handling mechanisms.

Supply Chain Management

Supplier Audits: 11 representative suppliers audited quarterly by a third-party consulting organization; 20 potential suppliers audited, 14 became official suppliers (70% passing rate).

Responsible Procurement

• Code of Conduct on the Social Responsibility of Li Ning Company’s Suppliers
• Quarterly Self-assessment and Review Tool on the Social Responsibility of Li Ning’s Suppliers
• On-site Review and Assessment Tool on the Social Responsibility of Li Ning’s Suppliers
• Group’s Manufacturing Restricted Substances List (MRSL) Compliance Statement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide published by The Stock Exchange of Hong Kong Limited

Certifications: ISO9001 Quality Management System

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Social Caring Pledge at the “Belt and Road Leadership Series: Social Caring Pledge Scheme Award Presentation Ceremony cum Sustainable Development Summit”
• Chinese Women and Children’s Charity Awards

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Supply Chain Management
• Care for Employees
• Community Investment

Environmental Achievements

• Installed solar panels at headquarters, providing over 30% of office park electricity needs.
• Reduced greenhouse gas emissions (Scope 1 and 2) from 7,287.59 tons in 2018 to 6,712.61 tons in 2019.
• Used environmentally-friendly recycled materials (compliant with Global Recycled Standard) for apparels and life vests.
• Participated in the “24 hours Clean Water Scheme” and “Restyling Contest”.

Social Achievements

• Established a “Home for Employees” providing free childcare services.
• Organized various trainings for employees, totaling over 20,000 training hours.
• Maintained accident insurance and supplementary medical insurance for employees.
• Achieved 99.07% customer satisfaction.

Governance Achievements

• Established an ESG management committee under the Board.
• Formulated and revised anti-corruption and anti-bribery system.
• Implemented stringent systems and standards for supplier introduction, assessment, and termination.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of supply chain.
• Ensuring supplier compliance with social and environmental standards.
• Maintaining employee well-being and satisfaction.

Mitigation Strategies

• Formulated “Manual for Corporate Social Responsibility Management of Suppliers”,
• Conducted regular supplier audits (including third-party audits).
• Provided training and support to suppliers to improve their environmental and social performance.
• Implemented various employee well-being initiatives (e.g., childcare services, fitness facilities).

Supply Chain Management

Supplier Audits: 12 first-tier and 10 second-tier suppliers audited on-site by a third-party organization; 49 factories obtained WCA 3 certification.

Responsible Procurement

• “Manual for Corporate Social Responsibility Management of Suppliers of Li Ning Company Limited”
• “Code of Conduct Regarding Social Responsibilities of Suppliers of Li Ning”
• “Li Ning’s Restricted Substances List Policy on Manufacturing”
• “Quarterly Assessment Tool on the Environmental Audit for Li Ning’s Suppliers”
• “Li Ning Company Manufacturing Restricted Substances List (MRSL) Compliance Statement”

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Reporting Guide

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Initiatives aligned with various UN SDGs, as detailed in the report.

Sustainable Products & Innovation

• Apparel and life vests made from recycled materials.

Awards & Recognition

• ZDHC Roadmap 2020 Awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Care for employees
• Supply chain management
• Product responsibility
• Anti-corruption
• Community investment

Environmental Achievements

• Installed solar panels at the Beijing headquarters, reducing non-clean energy use by approximately 30%
• Implemented energy-saving measures in the machine room, reducing electricity consumption by approximately 90,000 kilowatt-hours per year
• Processed waste coffee grounds into recyclable "Coffee Carbon Fiber" for use in T-shirts
• Used waste plastic bottles to create recycled materials for socks

Social Achievements

• Established Li Ning & OCEG (Koala Educare) Kindergarten for employees' children
• Provided relief fund to employees facing hardship
• Implemented a four-in-one staff health management system
• Achieved 100% participation rate in internal training for frontline employees

Governance Achievements

• Revised the "Anti-Corruption and Anti-Bribery System of Li Ning Group", and provided training to approximately 9,600 employees
• Established corruption and bribery reporting channels

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied, not explicitly stated)
• Maintaining ESG performance across the supply chain

Mitigation Strategies

• Strengthened supplier assessment requirements
• Improved supplier ESG management system
• Implemented on-site audits of suppliers
• Provided training and support to suppliers

Supply Chain Management

Supplier Audits: 16 finished product suppliers; 18 core material suppliers

Responsible Procurement

• Formulated "Manual for Corporate Social Responsibility Management of Suppliers"
• Implemented supplier assessment process
• Code of conduct for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Reporting Guide

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 16
• SDG 17

Actions taken by the Group in 2020 to contribute to the UN Sustainable Development Goals

Sustainable Products & Innovation

• Coffee Carbon Fiber T-shirts
• Recycled material socks

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Care for Employees
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment
• Climate Change

Environmental Achievements

• 80% of lighting equipment in buildings and venues of the office park of the headquarters was replaced with LED lights
• 1.45 MW of solar power installed, generating an average of 4,500 KWh/day and reducing CO2 emissions by 2,700 kg per day.
• Used 50,000 bags made of 100% RPET material, planning to expand to over 1 million by 2022.
• Pilot project replacing chemical dyes with plant dyes covering 47,151 pieces of high-end products.

Social Achievements

• Won many awards for excellent human resource management.
• Established Li Ning Sports School and sports winter camps.
• Operated “Home of Employees” and Li Ning & OCEG Kindergarten.
• Provided various social insurances, housing provident fund, and additional benefits to employees.
• Implemented a four-in-one staff health management system.

Governance Achievements

• Established ESG Management Committee and execution team.
• Board reviewed and approved sustainable development vision, strategy, and goals.
• Won the “Clean and Compliance Innovation Award” and “Enterprise with Social Value of 2021” awards.

Climate Goals & Targets

Environmental Challenges

• Climate change risks: policy changes, consumer concept changes, brand reputation impact, raw material supply, operational continuity.
• Supply chain risks: environmental and social risks from suppliers.

Mitigation Strategies

• Regularly monitor policy changes and communicate with suppliers.
• Integrate green concepts into product design and manufacturing.
• Collect and disseminate climate change-related information.
• Monitor raw material supply and develop alternative sourcing strategies.
• Build regional central warehouses to enhance resilience.
• Conduct social responsibility audits and on-site assessments of suppliers.
• Implement carbon inventory inspections and chemical management assessments of suppliers.

Supply Chain Management

Supplier Audits: 40 social responsibility audits, 13 environmental audits, 14 carbon inventory inspections, 10 chemical on-site assessments in 2021

Responsible Procurement

• Supplier Management System
• Code of Conduct Regarding Social Responsibilities of Suppliers
• Manufacturing Restricted Substances List and Policy
• Manual for Social Responsibility Management of Suppliers
• Social Responsibility Implementation Guideline

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting operations, supply chain, and logistics.

Transition Risks

• Changes in policies, laws, and regulations related to energy saving and carbon reduction.
• Changes in consumer demand towards green and low-carbon products.

Opportunities

• Application and promotion of green technologies related to textiles.

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 16
• SDG 17

The report details actions taken by Li Ning to contribute to each of these SDGs through various initiatives.

Sustainable Products & Innovation

• Products using environmentally friendly recyclable paper and adhesive outer boxes.
• Products using plant dyes instead of chemical dyes.

Awards & Recognition

• “Top 50 Leading Enterprises in Human Resource Management in China 2020-2021”,
• “2021 Top Human Resources Management Awards”,
• “Golden Jubilee Award 2021 for Excellent Employer Enterprise”,
• “Best Employer Award in China 2021”,
• “King’s Ark · Award for Employer Most Cherishing Talents”,
• “Clean and Compliance Innovation Award”,
• “Enterprise with Social Value of 2021”

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee care
• Supply chain management
• Product liability
• Anti-corruption
• Community investment

Environmental Achievements

• Garbage classification fully promoted throughout the Company; 100% of waste in Li Ning Central Park treated by qualified third parties.
• Venue lighting renovation in Li Ning Central Park completed, all lamps replaced with LED energy-saving lamps.
• Average annual power consumption per square meter of floor area in Li Ning Center Park was 57.99 KWH/m².
• Average annual daily water consumption per square meter of floor area in Li Ning Center Park was 0.42 ton/m².

Social Achievements

• Won numerous employer brand awards (Liepin Network, Zhilianzhaopin, China Enterprise Confederation, Shixiseng, Qianchengwuyou, 58Tongcheng, LockinChina).
• Established Li Ning Oriental Cambridge Kindergarten and an “Employee Home Care Center”.
• Organized health knowledge lectures and physical rehabilitation experience activity.
• Held various cultural and sports activities and built sports venues in Beijing Headquarters Office Park.
• Provided supplementary commercial insurance for employees.

Governance Achievements

• Improved and revised reporting channels in the “Anti-corruption and Anti-bribery System of Li Ning Group”.
• Promulgated the “Complaint Reporting Procedure”, clarifying reporting channels and whistleblower protection measures.
• Conducted anti-corruption training for 20,139 employees (179 hours).

Climate Goals & Targets

Environmental Challenges

• Changes in national and foreign laws and regulations related to energy conservation, emission reduction, and climate risk information disclosure.
• Challenges in achieving carbon peak and neutrality goals.
• Potential impacts of extreme climate events on water consumption, energy consumption, and operating costs.
• Difficulty in supply of raw materials due to extreme climate and climate change.
• Changes in energy costs and the need for renewable energy transition.

Mitigation Strategies

• Initiate climate risk assessment, formulate carbon neutrality strategies, and establish responsibility management mechanisms.
• Build an electronic data collection platform for energy and environmental data.
• Regularly track changes in environmental protection policies and regulations.
• Embed supply chain energy consumption and carbon emission management assessment mechanisms.
• Actively promote the use of renewable energy, introduce low-carbon operating standards, and promote electrification and residual heat recovery.

Supply Chain Management

Supplier Audits: 95 finished product and semi-finished product factories audited (90% of orders) + 60 semi-finished products factories, process factories and material factories audited quarterly (desktop and on-site).

Responsible Procurement

• Supplier Management System
• Code of Conduct for Suppliers’ Social Responsibility
• List of Restricted Substances in Production
• Management Manual for Suppliers’ Social Responsibility
• Implementation Guide for Suppliers’ Social Responsibility
• Management Commitment on Anti-forced Labor
• Internal Risk Management Procedure for Anti-forced Labor

Climate-Related Risks & Opportunities

Physical Risks

• More extreme climate events (increased water consumption, peak electricity consumption, high temperature subsidies)
• Difficulty in supply of raw materials

Transition Risks

• Changes in national and foreign laws and regulations
• Changes in energy costs

Opportunities

• Increased market demand for sporting goods with low-carbon and environmental protection concepts.

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Certifications: ISO 14001 (Li Ning (China) Sporting Goods Co., Ltd. and Guangxi Supply Base)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 16
• SDG 17

The Group’s actions are aligned with the 17 SDGs, as detailed in the report.

Sustainable Products & Innovation

• Wukong Environmental Protection Sneaker
• Plant dyed products
• Products using Boom Fiber

Awards & Recognition

• Numerous employer brand awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee care
• Supply chain management
• Product liability
• Anti-corruption
• Community investment
• Climate change
• Sustainable development

Environmental Achievements

• Implemented energy-saving and consumption reduction measures, enhancing resource and energy efficiency and promoting low-carbon operations.
• Constructed a 1.16 MW photovoltaic power plant at Beijing Headquarters Park.
• Received a certificate for 5 million kWh of green electricity.
• Expanded the application of BOOM FIBER uppers in shoe manufacturing.
• Used GCR and GCU for soles to ensure product performance and fulfill sustainable development concepts.
• Used recycled yarns in apparel production, effectively reducing carbon emissions.
• Proportion of FSC-certified shoeboxes reached 30% and environmentally friendly packaging bags made of 100% recycled polyethylene material reached 90%.

Social Achievements

• Improved employee salary, benefits, and attendance management, enhancing humanistic care and improving the employment environment.
• Optimized the talent training mechanism and launched diversified training activities.
• Actively launched employee health care programs.
• Conducted all-round supervision on the acceptance, management, and disqualification of suppliers.
• Strengthened suppliers’ capacity building.
• Improved the anti-corruption monitoring mechanism.
• Improved corruption whistle-blowing channels.
• Organized anti-corruption training activities.
• Actively undertook corporate social responsibility and carried out public welfare activities.

Governance Achievements

• Established an ESG Management Committee and Executive Team.
• Improved the anti-corruption monitoring mechanism and implemented the requirements of the anti-corruption system.
• Improved corruption whistle-blowing channels and strengthened corporate integrity building.
• Reviewed and approved the sustainability vision and strategy update, sustainability objectives update, review of the Group’s environmental objectives, results of the identification and assessment of climate change risks and opportunities, and response strategies.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition risks, physical risks, changes in operating costs, supply of raw materials, changes in consumption concept and demand, competitive changes in brands)
• Supply chain disruptions due to climate events
• Regulatory changes and market shifts

Mitigation Strategies

• Established an electronic data collection platform for energy and environmental information from suppliers.
• Established product lifecycle indicators and product examples from design to disposal.
• Owned factories and facilities take the lead in promoting renewable energy.
• Regularly track changes in environmental protection, energy conservation, and low-carbon policies.
• Promote the implementation of low-carbon standards by suppliers and self-operated factories.
• Include the proportion of Li Ning’s products that are low-carbon compliant in the indicator.
• Actively seek cooperation or investment with developers of large-scale carbon reduction projects.
• Actively seek cooperation with academic institutions and suppliers to promote the widespread use of innovative raw materials and production and energy technologies.
• Pay attention to the climatic conditions in the places of origin of raw materials and price fluctuations in the raw materials market.
• Reduce the use of materials by design, promote material recycling, and safeguard the supply of raw materials.
• Apply statistics and big data to enhance the material and order system’s estimation of market demand.
• Pay attention to the changing trends of consumer demand and the potential business opportunities of new products.
• Integrate the green concept into the design, manufacturing, packaging, and transportation process of products.
• Introduce new materials or textile technology, integrate them into the design, manufacturing, packaging, and transportation process of products.
• Actively consider joining the SBTi.
• Key suppliers are required to increase the proportion of renewable energy inputs.
• Formulate and improve procurement policies and strategies to achieve low-carbon design, low-carbon raw materials, and low-carbon production.
• Focusing on trends in consumer demand, consumption habits and behavior, and the development of indoor and home sports activities, we will actively meet the consumer demands for indoor and home sports activities in the end consumer market.
• Continue to encourage our own facilities and suppliers to optimize the management of electricity consumption in their plants, and to promote water conservation and water recycling projects as an adaptation measure.
• Continuously promote the optimization of factory ventilation and cooling by our own facilities and suppliers to improve the working environment.
• Pay attention to the application dynamics of automation technology, and to promote and implement mature and feasible automation technology.
• Enhance the drainage capacity of upgraded buildings while ensuring that warehouse machinery and racking are designed to avoid flooding.

Supply Chain Management

Supplier Audits: 126 factories audited (83% of finished and semi-finished product suppliers)

Responsible Procurement

• Supplier Management Policy
• Guidelines on Socially Responsible Behavior of Suppliers
• Specifications on the List of Restricted Substances in the Production Process
• Supplier Social Responsibility Management Manual
• Guidelines on the Execution of Social Responsibility by Suppliers
• Management Commitment on Anti-forced Labor
• Internal Risk Management Procedure for Anti-forced Labor in Supply Chain of Li Ning Company Limited
• Productive Supplier Management System of Li Ning Company Limited

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Harsh working environment
• Increased damage to self-owned facilities due to extreme weather events

Transition Risks

• Changes in national policies, laws and regulations
• Changes in operating costs
• Supply of raw materials
• Changes in consumption concept and demand in the end consumer market
• Competitive changes in brands

Opportunities

• Development of energy-efficient products
• Demand for sporting goods that can provide high degree of comfort in hot weather

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (ESG Reporting Guide) which is set out in Appendix C2 to the Listing Rules of The Stock Exchange of Hong Kong Limited

Certifications: LEED Platinum Certification (Hong Kong Headquarters), WELL Building Standard Gold Level Pre-certification (Hong Kong Headquarters), BEAM Plus (New Buildings) Platinum Rating (Hong Kong Headquarters), Hong Kong Green Shop Alliance Award 2023 - Collaborative Project of the Year (Circular Economy) (Hong Kong Headquarters), ISO 14067 (Speed 10th and Super Light 21st shoes), Global Recycling Standard (GRS) (recycled yarns), ZDHC’s “Supplier to Zero” Fundamental Level certificate (major leather suppliers), Leather Working Group (LWG) gold medal certification (major leather suppliers)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16
• SDG 17

The report details actions taken by Li Ning to contribute to each of the 17 UN Sustainable Development Goals.

Sustainable Products & Innovation

• GCR (lightweight non-slip rubber technology)
• GCU (ground control system outsole technology)
• Boom sole materials
• Boom Fiber
• Recycled yarns

Awards & Recognition

• 2023 “Perseverance to Goodness” Responsible Brand Award
• King’s Boat – Favorite Talent Employer
• BOSS Zhipin Top 50 Employers of the Year in Beijing
• Zhilianzhaopin The Favorite Employer of the Year
• Shixiseng Outstanding Award in Human Resource Management
• Qianchengwuyou Top 50 Employers for University Students
• 58Tongcheng Outstanding Practice Award for Campus Recruitment
• AICPA & CIMA Certified Partner Employer