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Luxshare Precision Releases 2025 Sustainability Report

Luxshare Precision Industry Co., Ltd. has unveiled its 2025 Sustainability Report, marking a significant milestone in its commitment to environmental, social, and governance (ESG) responsibilities. This comprehensive document outlines the company's notable advancements in various areas of ESG, reaffirming its dedication to responsible global operations.

Commitment to Sustainable Practices

The report highlights measurable progress in multiple ESG aspects, which include climate strategy, supply chain oversight, human rights protection, and sustainable innovation. Furthermore, the report emphasizes Luxshare's adherence to internationally recognized frameworks such as the Global Reporting Initiative (GRI) Standards and the Task Force on Climate-related Financial Disclosures (TCFD). This alignment reflects a proactive effort to embed sustainability into long-term business strategies and governance structures.

Strengthening Governance

At the core of Luxshare’s ESG governance is a robust, three-tier governance framework led by its Board of Directors. This structure allows for effective decision-making, planning, and implementation of sustainability goals. Notably, 37.5% of the board is represented by independent and female members, ensuring balanced and transparent decision-making processes. As a result of reaching its sustainability targets for 2025, Luxshare has unveiled new goals for 2030, focusing on governance, operations, products, partnerships, and labor practices. These targets prioritize emission reductions, energy efficiency, responsible sourcing, innovation, and employee welfare.

Climate Action Initiatives

Climate action remains a cornerstone of Luxshare's sustainability agenda. Guided by TCFD recommendations, the company systematically assesses climate-related risks and opportunities, integrating them into its operational planning. A science-based target, validated by the Science Based Targets initiative (SBTi), aligns with a 1.5°C trajectory and supports a roadmap for achieving carbon neutrality by 2050.

The report reveals significant achievements: clean energy accounted for 64% of total energy consumption, while absolute Scope 1 and 2 emissions decreased by 25% compared to 2022 levels. Furthermore, Scope 3 emissions per CNY of value added saw a 19% reduction, underscoring ongoing efforts to decarbonize the entire value chain. Suppliers are integral to this mission; through training and engagement initiatives, Luxshare enhanced their environmental management capabilities, leading to an impressive energy savings of 56,560 MWh in 2025.

Supply Chain Transparency

Luxshare's report underscores its commitment to transparency and risk management throughout its supply chain. The company operates a multidimensional risk framework encompassing labor management, health and safety, environmental management, business ethics, and compliance systems. All suppliers must adhere to a Supplier Code of Conduct, ensuring comprehensiveness in risk identification and mitigation. In total, 1,815 suppliers were assessed, addressing 2,345 identified risk-related issues.

Moreover, Luxshare aligns itself with international guidelines, such as the OECD Due Diligence Guidance, extending responsible sourcing requirements across its supply chain. All 3TG minerals utilized in products are sourced from RMAP-compliant smelters and refiners, ensuring complete traceability back to their country of origin.

Labor Practices and Workforce Engagement

Luxshare prioritizes a people-centered approach within its workforce. As a member of the Responsible Business Alliance (RBA), it implements a comprehensive labor risk management process, encompassing identification, prevention, monitoring, and remediation. This framework facilitates the timely detection and resolution of potential labor rights issues.

Ongoing employee engagement initiatives, including a network of 60 unions and periodic satisfaction surveys, promote open dialogue. Diversity and inclusion efforts have increased female representation in leadership roles, with employees with disabilities now making up 0.8% of the workforce. Enhanced environmental, health, and safety management has also contributed to an 11% year-over-year reduction in injury rates per million hours worked.

Integrating Sustainability Across Product Life Cycles

Sustainability is increasingly embedded in product development at Luxshare, with a strong focus on expanding clean technology applications. The company's portfolio now includes solutions for energy system optimization, advanced energy management modules, industrial automation solutions, electric vehicle components, recycled materials, and photovoltaic and energy storage systems. These innovations are designed to improve energy efficiency and support low-carbon applications across various sectors.

In parallel, enhanced management of hazardous substances ensures compliance with global environmental standards while boosting product competitiveness in international markets.

Grace Wang, Luxshare's Chairwoman and CEO, emphasized that long-term value creation remains a fundamental principle. Looking ahead, Luxshare is committed to collaborating with partners across its ecosystem to build a more resilient, responsible, and sustainable value chain.