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TCL Zhonghuan's ESG Rating Upgrade by MSCI

On December 16, 2024, Morgan Stanley Capital International (MSCI), a leading global financial services firm, officially upgraded the Environmental, Social, and Governance (ESG) rating of TCL Zhonghuan from 'BB' to 'BBB'. This elevation signifies a recognition of the company’s enhanced commitment to social responsibility and sustainable business practices.

The Importance of MSCI ESG Ratings

The MSCI ESG ratings have become crucial benchmarks in investment decision-making, guiding major asset management firms by assessing corporate risk management and exposure across three pivotal areas: Environmental, Social, and Governance. MSCI’s authoritative rating methodology evaluates key industry issues, including opportunities in green technology.

The improvement of TLC Zhonghuan’s rating highlights a significant increase in scores across all assessed criteria compared to the previous year, placing the company in a competitive position within the global industry. Notably, the firm excelled in clean technology initiatives and supply chain management, demonstrating its proactive approaches in these critical areas.

Sustained Innovation in Clean Energy

TCL Zhonghuan's commitment to sustainability extends into its innovation in photovoltaic technologies, adhering to the principles of Industry 4.0 and Quality 4.0. With a keen focus on water resource management, the company has implemented targeted measures to mitigate risks associated with water use, achieving a remarkable milestone of recycling 22.77 million cubic meters of water during the year. This feat resulted in a water recycling rate of 43.68%, supplemented by alternative water sources which constituted 54.51% of total water consumption.

Exemplary Supply Chain Management

Additionally, TCL Zhonghuan has made strides in fostering a sustainable supply chain. The introduction of the 'ESG Code of Conduct for Partners' sets forth rigorous guidelines for suppliers, emphasizing environmental safeguarding and ethical business practices. This initiative strives to establish a collaborative framework for a sustainable photovoltaic industry.

Commitment to Corporate Governance

In terms of corporate governance, TCL Zhonghuan is dedicated to enhancing board independence and diversity, maintaining a systematic approach to ESG risk management, and upholding its Code of Business Conduct. The company also focuses on talent development, creating a workplace that champions diversity, equity, and inclusion.

Continuing Excellence in ESG Practices

TCL Zhonghuan continues to be a prominent advocate of ESG initiatives within its sector. Since being included in the MSCI index, the company has consistently seen upgrades in its ESG rating. Recognized multiple times for its strategic approach to sustainability, TCL Zhonghuan has features in prestigious listings including the 'SP Global Sustainability Yearbook 2024 (China Edition)' and ranked as the top player in the photovoltaic industry in the 'Pioneer 100 of China's ESG Listed Companies.'

Looking Ahead

The company's founding mission remains deeply rooted in sustainable development, and it strives to collaborate with all stakeholders to drive forward sustainable strategies. As TCL Zhonghuan continues to progress, it aims to significantly contribute to the global transition toward clean energy, championing the industry’s advancement in high-quality growth and sustainability.

About TCL Zhonghuan

TCL Zhonghuan Renewable Energy Technology Co., Ltd. has dedicated decades to advancing the photovoltaic manufacturing sector. Embracing a philosophy of differentiated competitiveness, the company prioritizes technological and product innovation while optimizing production processes through Industry 4.0 principles, aligning its processes with a commitment to high-quality development.