NEW YORK, June 23, 2026 /PRNewswire/ -- Luxshare Precision Industry Co., Ltd., has recently released its 2025 Sustainability Report, detailing progress across environmental, social and governance (ESG) priorities and reinforcing its commitment to responsible operations worldwide. The report highlights measurable advances in ESG governance, climate strategy, supply chain oversight, human rights protection and sustainable innovation, alongside enhanced transparency in a more complex global landscape.
Aligned with internationally recognized frameworks, including the Global Reporting Initiative (GRI) Standards and the Task Force on Climate-related Financial Disclosures (TCFD), the report reflects continued efforts to embed sustainability into long-term business strategy and governance structures.
Strengthening Governance and Long-Term Strategy
Luxshare Precision continues to position sustainability at the core of decision-making through a comprehensive ESG governance framework led by its Board of Directors. Supported by a three-tier ESG governance structure spanning decision-making, planning, and execution, the board provides overall oversight of ESG strategy, performance, and key issues, while its 37.5% independent and female representation supports balanced, transparent decision-making.
Building on this governance foundation, the company has strengthened the link between strategic objectives and measurable targets. Following the achievement of its 2025 sustainability targets, Luxshare Precision has introduced new 2030 targets spanning governance, operations, products, partnerships and workplace practices. These targets focus on emissions reduction, energy efficiency, responsible sourcing, innovation, and employee well-being, providing a forward-looking roadmap for sustainable development across the value chain.
Advancing Climate Action with Measurable Progress
Climate action remains central to Luxshare Precision's sustainability agenda. Guided by TCFD recommendations, the company systematically assesses climate-related risks and opportunities and integrates them into operational planning. Its science-based target, aligned with the 1.5°C pathway, has been validated by the Science Based Targets initiative (SBTi), supported by a roadmap to achieve carbon neutrality by 2050.
The report highlights tangible progress. Clean energy accounted for 64% of total consumption, while absolute Scope 1 and 2 emissions decreased by 25% compared with 2022 levels. Scope 3 emissions per CNY of value added were reduced by 19%, reflecting ongoing efforts to decarbonize across the value chain. Supplier engagement plays a critical role in expanding these efforts. Through training, on-site engagement, and broader capacity-building initiatives, the company has enhanced suppliers' environmental management capabilities. These efforts helped suppliers achieve 56,560 MWh in energy savings in 2025 and further extend emissions reductions beyond Luxshare Precision's direct operations.
In recognition of its performance, Luxshare Precision received an A rating in the CDP Climate Change questionnaire for the second consecutive year.
Building Responsible and Resilient Supply Chains
The report also underscores the company's strong focus on transparency, traceability, and risk management across the supply chain, supported by a multidimensional risk framework spanning labor management, occupational health and safety management, environmental management, business ethics, and management systems.
All suppliers are required to comply with the Supplier Code of Conduct. CSR audits are conducted primarily through on-site assessments and supplemented by online evaluations. In total, 1,815 suppliers were covered, including 100% of new raw material suppliers. A total of 2,345 risk-related issues were identified and addressed, demonstrating a closed-loop system from risk identification to remediation.
Additionally, Luxshare Precision is committed to adhering to international guidelines such as the OECD Due Diligence Guidance and extending responsible sourcing requirements across the entire supply chain. All 3TG minerals involved in products were sourced from RMAP-conformant smelters and refiners, and were traceable to the country of origin, ensuring full traceability.
Driving Inclusive Workforce Practices and Engagement
Moreover, Luxshare Precision continues to advance a people-centered approach. As a member of the Responsible Business Alliance (RBA), the company has established a comprehensive labor risk management mechanism covering the entire process of "Identify-Prevent-Monitor-Mitigate and Remedy." This framework enables the timely detection and resolution of potential risks and labor rights issues.
These mechanisms are reinforced through continuous employee engagement initiatives and ongoing workplace improvements. A network of 60 labor unions, along with regular satisfaction surveys, helps maintain open and constructive dialogue. Diversity and inclusion initiatives have increased the representation of women in leadership roles, while employees with disabilities now account for 0.8% of the workforce. Meanwhile, strengthened environmental, health, and safety management contributed to an 11% year-on-year reduction in injury rates per million working hours.
Integrating Sustainability Across Product Lifecycles
Sustainability considerations are increasingly embedded in product development, with a stronger emphasis on scaling clean technology applications. The company has broadened its clean technology portfolio to include energy system optimization solutions, advanced power management modules, industrial automation solutions, electric vehicle components, recycling-focused materials, and photovoltaic and energy storage systems. These products are designed to improve energy efficiency, reduce electrical losses, and support low-carbon applications across sectors.
At the same time, lifecycle management of hazardous substances is strengthened, ensuring compliance with global environmental standards while enhancing product competitiveness in international markets.
Grace Wang, Chairman and Chief Executive Officer of Luxshare Precision, noted that long-term value creation remains a guiding principle. Going forward, Luxshare Precision will continue working with partners across its ecosystem to build a more resilient, responsible, and sustainable value chain.
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