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LiuGong's Commitment to Global Sustainability

LiuGong, a leader in the heavy machinery sector, has made remarkable strides in its sustainability initiatives as of 2024. From pioneering practices to significant collaborations, the company is dedicated to shaping a sustainable future. In January 2024, LiuGong celebrated the first anniversary of the Green Alliance, which underscores its ongoing sustainability efforts and community-oriented projects.

Forming the Green Alliance

At the end of 2023, LiuGong took a notable step towards a sustainable future by establishing the Green Alliance in partnership with key clients, distributors, and several non-profit organizations. This initiative aims to allocate a percentage of annual sales revenue from LiuGong's electric products to philanthropic projects across Africa, demonstrating its unwavering commitment to social responsibility.

The Green Alliance marked a significant milestone in May 2024 with the launch of a charitable water well project in South Africa. This initiative introduced Africa's first electric earthmoving machinery, facilitating the completion of the first phase in Mabeskraal, South Africa. A solar-equipped well, reaching a depth of 150 meters, now provides potable water to over 25,000 households, showcasing LiuGong's focus on community empowerment.

Advancing Eco-Friendly Manufacturing

LiuGong is at the forefront of eco-friendly manufacturing with its electrification initiative. The company is making substantial advancements in electric equipment technology and product electrification. A dedicated research institute supports these initiatives, promoting the industrialization of components and building a sustainable industrial ecosystem. Currently, LiuGong's electric product line features 11 categories, with diverse power options that contribute to an eco-friendly ecosystem. To date, the sale of over 6,500 units globally has resulted in a reduction of carbon emissions by approximately 330,000 tons, equivalent to planting over 18 million trees. Moreover, LiuGong has emphasized global electrification, with more than 10% of its monthly international sales coming from electric products.

In the pursuit of innovation, LiuGong has expedited the independent development of critical components, completing the first phase of a battery factory and launching multiple energy recovery facilities. Significant accomplishments in intelligent technology include deploying autonomous loaders and rollers in mines and on roads, leading to enhanced scheduling, precise management, reduced costs, and improved efficiency.

Proactive Environmental Management

LiuGong aims for zero pollution and maximum resource recycling. In 2023, the company invested 41.61 million yuan in product lifecycle management, focusing on energy conservation and emission reduction. The company achieved compliance with wastewater and emissions standards and effectively managed hazardous waste without incidents of pollution. Throughout the year, 27 projects addressed volatile organic compounds (VOCs) and welding fumes to lessen emissions. Effective energy use optimization strategies, paired with photovoltaic initiatives, is anticipated to generate 52 million kWh annually from local solar energy, further reducing overall emissions.

Employee training and the promotion of a green culture contribute to LiuGong developing a more environmentally-conscious operation.

Building an Eco-Friendly Supply Chain

Creating an efficient system through various initiatives remains a priority for LiuGong. Green procurement is a crucial component, integrating eco-friendly practices from demand analysis to product acceptance. This includes prioritizing energy-efficient products and services and replacing wooden and cardboard packaging with reusable tools. The company's supplier management involves robust audits and assessments across financial, capacity, quality, and ESG aspects, promoting long-term cooperation.

The implementation of digital tools via the Supplier Resource Management (SRM) platform saves 4.3 tons of paper annually. Additionally, a collaborative cloud-based platform facilitates real-time interaction with over 1,500 suppliers, enhancing industrial chain efficiency and advancing LiuGong's supply chain objectives.

Looking Ahead

In the coming year, LiuGong reaffirms its commitment to embedding sustainability into its business practices. The Green Alliance will continue its mission by constructing a second water well in Gambia, reflecting LiuGong's dedication to global sustainability efforts. Through innovation, strategic partnerships, and a clear focus on community-oriented projects, LiuGong is setting a standard for sustainability in the heavy machinery industry, ensuring that it leads the charge toward a greener future.