LiuGong's Commitment to Global Sustainability: Key Milestones in 2024 and Beyond

As the world increasingly shifts its focus towards environmental responsibility, LiuGong (000528.SZ) has been at the forefront of global sustainability efforts. Marking its first anniversary of the Green Alliance, the company reaffirms its dedication to sustainable development through a series of strategic initiatives and collaborations.

Formation of the Green Alliance

In late 2023, LiuGong took a significant step in promoting sustainability by establishing the Green Alliance. This initiative includes partnerships with key clients, distributors, and various non-profit organizations to channel a portion of its revenue from electric product sales towards philanthropic projects in Africa. This strategy strengthens LiuGong’s resolve in corporate social responsibility, demonstrating a commitment that transcends borders.

In May 2024, the Green Alliance celebrated a pivotal milestone by launching its first charitable project focused on water access in South Africa. This program introduced the first electric construction machines to the African market while also implementing sustainable practices. By August, LiuGong completed the initial phase of this project by successfully drilling a 150-meter deep well equipped with a solar pump, providing clean water for over 25,000 households.

Advancements in Electric Equipment and Manufacturing

LiuGong's commitment to electrification and green manufacturing is evident in its extensive research and development efforts. The company has invested in building a specialized research institute that supports technological advancements in electric equipment. The product lineup now includes 11 categories of electric machinery powered by various energy sources, fostering a green industrial ecosystem. Since its inception, LiuGong has sold over 6,500 electric units globally, leading to a remarkable reduction in carbon emissions—approximately 330,000 tons—akin to planting more than 18 million trees. In 2023, electric products accounted for over 10% of LiuGong's monthly international sales, significantly decreasing its carbon footprint and paving the way for sustainable investments.

To bolster independent development, LiuGong has completed the first phase of its battery factory and introduced multiple energy supplementation facilities. Additionally, the deployment of autonomous loaders and rollers in mining and highway projects signifies a leap towards smart technology, achieving optimal planning, cost reduction, and enhanced operational efficiency.

Proactive Environmental Management Initiatives

LiuGong prioritizes zero pollution and maximum resource recycling in its environmental management protocols. In 2023, the company invested approximately 41.61 million yuan in product lifecycle management, focused on energy saving and emissions reduction. The company has maintained compliance with wastewater and exhaust emission standards, efficiently managing hazardous waste without reporting cases of pollution. Throughout the year, LiuGong undertook 27 projects targeting volatile organic compounds and welding fumes, resulting in reduced emissions and pollution levels. The company optimized energy consumption via photovoltaic initiatives, with a projected annual solar energy generation of 52 million kWh.

Furthermore, LiuGong promotes an environmental-conscious culture among its employees through specialized training and awareness campaigns.

Building a Green Supply Chain

The goal of LiuGong is to create an efficient system through a multifaceted approach to sustainable supply chain management. This includes green procurement practices that prioritize energy-efficient products and services, replacing traditional packaging with reusable alternatives, and performing robust supplier management through extensive audits encompassing financial, capacity, quality, and ESG factors.

By digitizing its supply chain through the SRM platform, LiuGong saves approximately 4.3 tons of paper annually. Their collaborative cloud platform promotes real-time interaction with more than 1,500 suppliers, enhancing the efficiency of the industrial supply chain and propelling the growth of LiuGong's supply chain initiatives.

The Future Ahead

Looking into 2024 and beyond, LiuGong is poised to maintain its unwavering commitment to integrating sustainability into its operations. As the Green Alliance advances its mission to implement substantive projects, including the upcoming drilling of a second well in The Gambia, LiuGong continues to stand as a beacon of global sustainability efforts. The company’s trajectory showcases an inspiring journey towards a greener and more sustainable future, ensuring that development does not come at the cost of our planet.

For more information about LiuGong, visit their official site or watch their video here.