Luxshare Precision Industry Co., Ltd. has issued its 2025 Sustainability Report, outlining advancements in environmental, social and governance priorities while strengthening its dedication to responsible worldwide operations. The report details concrete progress in ESG oversight, climate initiatives, supply chain monitoring, human rights safeguards and eco-friendly innovation, together with greater openness amid an increasingly intricate global setting.

The document follows globally accepted standards such as the Global Reporting Initiative (GRI) Standards and the Task Force on Climate-related Financial Disclosures (TCFD), demonstrating ongoing integration of sustainability into core business planning and governance processes.

Reinforcing Governance and Forward Planning

Luxshare Precision places sustainability at the heart of its choices via a robust ESG governance system directed by the Board of Directors. A three-level structure covering strategy, coordination and implementation allows the board to supervise ESG direction, results and material topics, with 37.5 percent independent and female members fostering balanced and open choices.

Building on this base, the firm has tightened connections between strategic goals and quantifiable objectives. After meeting its 2025 sustainability goals, Luxshare Precision set fresh 2030 targets covering governance, operations, products, collaborations and workplace standards. These targets emphasize emission cuts, energy savings, ethical sourcing, innovation and staff welfare, offering a clear path for sustainable growth throughout the value chain.

Progressing Climate Efforts with Clear Results

Climate measures stay central to the company's sustainability plan. Following TCFD guidance, Luxshare Precision evaluates climate risks and opportunities and incorporates them into daily operations. Its science-based target, consistent with the 1.5 degrees Celsius pathway, received validation from the Science Based Targets initiative (SBTi) and is backed by a plan to reach carbon neutrality by 2050.

The report shows real gains. Clean energy made up 64 percent of overall use, while absolute Scope 1 and 2 emissions fell 25 percent from 2022 levels. Scope 3 emissions per CNY of value added dropped 19 percent, indicating steady work to lower emissions across the supply chain. Supplier involvement supports wider impact through training, site visits and capacity programs that delivered 56,560 MWh in energy savings for suppliers in 2025.

For its results, Luxshare Precision earned an A rating in the CDP Climate Change questionnaire for the second year running.

Creating Responsible and Strong Supply Chains

The report stresses transparency, traceability and risk control throughout the supply chain via a multi-dimensional framework addressing labor practices, health and safety, environmental performance, business ethics and management systems.

Every supplier must follow the Supplier Code of Conduct. CSR audits rely mainly on on-site reviews supplemented by online checks. In total 1,815 suppliers were reviewed, covering 100 percent of new raw material suppliers. Some 2,345 risk issues were found and resolved, showing a complete process from detection to correction.

Luxshare Precision also follows OECD Due Diligence Guidance and applies responsible sourcing rules across the full chain. All 3TG minerals in products came from RMAP-conformant smelters and refiners and were traceable to their country of origin.

Advancing Inclusive Workforce Practices

Luxshare Precision maintains a people-focused approach. As a Responsible Business Alliance member, it operates a full labor risk system covering identification, prevention, monitoring, mitigation and remedy. This setup allows quick spotting and handling of potential issues.

These steps are supported by ongoing staff engagement and workplace upgrades. A network of 60 labor unions plus regular satisfaction surveys keeps communication open. Diversity programs raised female leadership representation, while employees with disabilities reached 0.8 percent of the workforce. Improved environmental, health and safety practices produced an 11 percent year-on-year drop in injury rates per million working hours.

Embedding Sustainability in Product Development

Sustainability factors now shape product design, with greater focus on clean technology uses. The portfolio expanded to cover energy optimization solutions, advanced power modules, industrial automation, electric vehicle parts, recycling materials and photovoltaic plus storage systems. These items boost efficiency, cut losses and support low-carbon uses in many sectors.

Hazardous substance management across the product lifecycle was also strengthened to meet global environmental rules and improve market position.

Grace Wang, Chairman and Chief Executive Officer, stated that lasting value creation guides the company. Luxshare Precision will keep partnering across its ecosystem to develop a more resilient, responsible and sustainable value chain.

SOURCE LUXSHARE-ICT