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Yatsen Group's 2025 ESG Report: Pioneering Sustainable Beauty Innovation

On September 3, 2026, Yatsen Group (NYSE: YSG), a leader in beauty innovation, announced the release of its dedicated 2025 Environmental, Social, and Governance (ESG) report. This comprehensive document reveals the company's ongoing commitment to sustainable practices in the beauty industry, emphasizing the integration of innovation, environmental responsibility, and social impact.

Extensive Technological Innovation

At the core of Yatsen’s strategy is its unyielding focus on research and development. The 2025 report reveals a significant investment of RMB 137 million, which constitutes about 3.2% of the company's total revenue, poised to further reinforce its R&D capabilities. With a workforce of 153 specialized personnel, Yatsen made notable strides, accumulating a total of 269 patent applications, with 240 of those already authorized. Two major innovations—Perfect Diary's 3rd-generation Bio-film Biotec™ technology and DR.WU's Nanoxinfuse™ delivery technology—underscore the company's commitment to cutting-edge beauty solutions.

Commitment to Green Development

Yatsen acknowledges that sustainable growth is more than just beneficial; it's essential. Hence, the company has embarked on a transformative journey towards green practices, which include:

• - Sustainable Packaging: Yatsen has pioneered the “Sustainable Packaging Guidelines-Cosmetics,” where brands like Galénic and EVE LOM have led the charge. All product folding cartons now utilize FSC-certified paper and soy-based inks, while several products are already utilizing biodegradable materials in their packaging.
• - Low-Carbon Transformation: The company reports a 35.74% year-over-year reduction in greenhouse gas emissions from its direct operations. Yatsen Biotechnology, the group’s core manufacturing arm, has begun implementing renewable energy strategies, achieving a 41% renewable energy usage rate.

Strengthening Governance Amidst Innovation

Yatsen has enhanced its governance framework by integrating advanced technologies such as AI into its operations. This led to a comprehensive approach to security and compliance, with the organization undergoing 100% ethics training for employees, resulting in zero incidents of compliance violations. Furthermore, the company's systems earned a Level III Security Certification for Cybersecurity, reflecting its commitment to protecting sensitive data.

Talent Development and Empowerment

Recognizing the value of its workforce, Yatsen emphasizes a strong commitment to employee development and diversity. Women represent more than 77% of the total workforce, notably occupying 60.7% of senior management positions. In 2025, the company reported zero work-related fatalities and achieved a robust occupational safety track record. Additionally, 11.3% of employees are involved in its stock ownership plan, further empowering the workforce.

Philanthropic Efforts and Social Impact

Yatsen's vision extends beyond business metrics to address social needs actively. The “Creating a Beautiful Life Program” has trained 482 women through various initiatives across regions in China. Additionally, under the “Green Love Computer Room Program,” the company has donated nearly 450 sets of computers and projectors to underserved communities, creating learning opportunities and technological access.

Looking Ahead

Yatsen Group’s commitment to being a world-class pioneer in beauty innovation is not just a statement but a guiding principle embedded in everyday decisions. As the company moves forward, it will continue to engage with consumers, employees, and partners, striving toward a sustainable model of growth that benefits all stakeholders.

With a vision well-aligned with environmental stewardship and social responsibility, Yatsen is set to redefine standards in the beauty industry, paving the way for long-term value creation that both inspires and empowers.

Conclusion

The 2025 ESG Report illustrates Yatsen Group’s dedication to integrating sustainability into its core operations, showcasing how it plans to balance innovation, governance, and community engagement to facilitate a brighter, more sustainable future in beauty.