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XCMG Machinery Unveils Its 2024 ESG Report

XCMG Machinery, a prominent player in the global construction machinery industry, has recently released its 2024 Environmental, Social, and Governance (ESG) report. This report not only showcases the company's commitment to sustainability but also highlights significant advances in innovative technologies and practices in line with global climate objectives.

Commitment to Sustainable Practices

At the heart of XCMG's operational excellence is a steadfast dedication to enhancing the quality and profitability of its ventures through sustainable practices. The company has been proactive in developing new energy products and has solidified its presence in the international market, reinforcing its position as a leader in the construction machinery sector. According to Yang Dongsheng, the CEO and Chairman of XCMG, the company's mantra of achieving 'progress amidst stability' is crucial to its growth strategy, especially under the Belt and Road Initiative, wherein XCMG aims for 95% market coverage.

Environmental Goals and Achievements

XCMG is committed to transitioning towards environmentally friendly production processes. The report outlines the company's achievements in reducing carbon emissions and pollution, making significant strides to meet the dual carbon peak and carbon neutrality goals. In 2024, 13.63% of the energy consumed by XCMG came from clean energy sources, reducing Scope 1 greenhouse gas emissions by a remarkable 102,363 tons.

The launch of 21 new energy product lines in 2024—including electric excavators, hydrogen-powered mining trucks, and hybrid cranes—generated a revenue of 10.88 billion Yuan (approximately 1.5 billion USD). Furthermore, the company invested 46.34 million Yuan (6.42 million USD) into various environmental initiatives, underscoring its dedication to reducing resources, promoting recycling, and limiting waste.

Digital Transformation and Industry Benchmarking

XCMG has made significant investments in digital transformation, becoming a benchmark for intelligent manufacturing in the industry. The company attained a maturity level of 4 in intelligent manufacturing and level 3 in data management in 2024. Moreover, several of XCMG's facilities have been recognized in China’s 2024 5G factory directory, showcasing the adoption of next-generation technologies.

By developing a robust digital platform managing its carbon footprint, incorporating cloud computing, big data, and IoT technologies, XCMG is leading the charge towards a smart energy landscape. This setup promises comprehensive data capture regarding energy consumption, facilitating targeted strategies for energy saving and carbon reduction.

Social Impact and Community Engagement

Beyond environmental efforts, XCMG is focused on promoting social responsibility. The company has implemented ESG assessments for its suppliers, integrating international standards such as ISO 14001 and SA8000 into its procurement processes. Additionally, XCMG launched a carbon-neutral training initiative, empowering over 20 supplier training programs globally.

During 2024, XCMG increased its investments in community welfare programs, contributing in areas such as education, poverty alleviation, and disaster relief. The focus on staff welfare also saw the company invest 2.04 million Yuan (282,664 USD) in employee programs and training over 7,600 professionals, while advocating gender equality through the appointment of female board members.

Conclusion

XCMG’s 2024 ESG report reflects its unwavering commitment to sustainable practices and community engagement, setting a precedent within the construction machinery industry. As the world gravitates towards green solutions and digital innovations, XCMG stands poised to lead. For more insights into XCMG's initiatives and detailed reporting, the full ESG report can be accessed online.