TCL's Commitment to ESG: Driving Positive Change in Global Value Chain Operations

TCL, a leader in consumer electronics, has been taking significant steps to integrate Environmental, Social, and Governance (ESG) principles into its operations. Recently, Li Dongsheng, the founder and chairman of TCL, engaged in a meaningful dialogue with the United Nations Global Compact (UNGC) during its series "ESG+20 Sustainability Leaders." This conversation focused on how TCL is not only advancing its own sustainable practices but also promoting a green transformation and carbon neutrality throughout its extensive global supply chain.

During this insightful session, Li highlighted the importance of energy efficiency in the manufacturing sector. Recognizing that manufacturing is a significant energy consumer, he stressed that companies must innovate in technology, processes, and workflows to reduce energy usage. An example of this commitment is TCL's subsidiary, CSOT, which implemented energy-saving measures that resulted in a notable reduction of 220,000 MWh in electricity consumption in 2024. Furthermore, in October 2025, TCL announced an OLED production line that aims to drastically lower energy consumption compared to traditional vacuum evaporation processes, cutting carbon emissions right at the source.

TCL has also made strides with eco-friendly products. Its FreshIN energy-saving air conditioner won the "AI Energy-Saving Technology Gold Award" at IFA 2025 in Berlin, showcasing its design innovations aimed at decreasing the carbon footprint. On a larger scale, TCL Zhonghuan is supporting the global clean energy movement through its foundational products, contributing to the energy infrastructure transformation worldwide.

As a pioneer in its industry, TCL doesn’t just focus on improving its own practices; it encourages all upstream and downstream partners to adopt ESG tenets. The company has enforced stringent requirements on its suppliers concerning labor rights and operational compliance to foster responsible practices across its entire value chain.

Li emphasized that as TCL expands globally, it adheres to "the highest standards" amid varying regulatory landscapes. Since acquiring Thomson's color television operations and Alcatel's mobile phone division in 2004, the company transitioned from merely exporting products to co-developing local industrial capabilities. By embedding sustainability within its global operations, TCL is not only creating value for local economies and communities but also for its employees.

He added, "For advanced manufacturing, technological innovation is the most critical core capability." TCL invests approximately 12 billion RMB (around 1.74 billion USD) annually in research and development, amassing 124,000 patents, nearly 20,000 of which are PCT patents. In recent years, TCL has incorporated advanced AI models into its intelligent manufacturing systems, enhancing efficiency and quality while shortening research and development cycles. In 2024, these initiatives generated a staggering 530 million RMB (approximately 76.8 million USD) in economic returns for TCL CSOT.

Furthermore, Li pointed out that a brand's reputation is rooted in social responsibility and consumer trust. TCL fully integrates ESG into business strategies and annual plans across all its operating units, publishing annual ESG reports to display transparency and accountability. In 2025, TCL became a global partner of the Olympic and Paralympic Games, which notably boosted its visibility in the global market. As a result, in that year, its European sales climbed by 30%, highlighting the mutually reinforcing relationship between business performance and social value.

Since its official membership in UNGC in July 2024, TCL has committed to supporting the organization's ten principles regarding human rights, labor, environmental protections, and anti-corruption efforts. The company actively advances the UN's Sustainable Development Goals through its initiatives—reducing energy consumption and emissions, fostering supply chain collaboration, adhering to global standards, and pushing for green development through technological innovations and responsible branding. Embracing a "doer" mindset, TCL has completely embedded ESG into its corporate strategy, reinforcing its role as a responsible leader in the global electronics industry.