Luxshare Precision Achieves Major Upgrade in MSCI ESG Rating, Signifying Commitment to Sustainability

Luxshare Precision Achieves Notable MSCI ESG Rating Upgrade

Recently, MSCI (Morgan Stanley Capital International), a prominent global index provider, announced an impressive upgrade in Luxshare Precision's ESG rating, moving up two notches to an 'A'. This notable achievement positions Luxshare among the top performers in the industry, exceeding 78% of its global competitors. The upgrade not only highlights the company's continuous commitment to sustainable development but also underscores significant improvements in its ESG risk management, value creation, and recognition in the global capital market.

Luxshare Precision has made significant strides in integrating ESG principles within its corporate strategy and operations over the years. In various ESG categories, such as opportunities in clean technologies, chemical safety, workforce management, and controversial sourcing, the company has consistently outperformed its industry peers, reflecting its long-term commitment to responsible and sustainable growth.

Highlights of Key ESG Initiatives

1. Clean Tech Opportunities: Luxshare Precision continues to enhance its investments in clean energy initiatives and the commercialization of clean-tech products. The company is active in developing electric vehicle drivetrains, power solutions for data centers, heat management systems, wireless chargers, inverters, and energy storage systems, showcasing its dedication to sustainable energy solutions.

2. Workforce Management: The company has optimized its compensation and performance systems company-wide while developing robust talent management strategies. Comprehensive training programs have been implemented, with accolades such as recognition from Forbes as one of the World's Best Employers.

3. Controversial Sourcing: Rigorous oversight is exercised over all smelters and refineries (SORs) within its supply chain that handle 3TG materials (tantalum, tin, tungsten, and gold). Luxshare mandates that 100% of SORs must be certified under the Responsible Minerals Assurance Process (RMAP) and enforces comprehensive traceability of 3TG minerals back to their country of origin.

4. Chemical Safety: Proactively addressing potentially harmful substances, Luxshare keeps a close eye on regulatory developments concerning materials that are not yet formally restricted, ensuring compliance and safety.

5. Corporate Governance: The company has bolstered its governance structures, implementing advanced measures such as compensation clawbacks and Say-on-Pay mechanisms. Plans are in motion to appoint a senior independent non-executive director to further safeguard investor interests.

6. Business Ethics: Luxshare fosters a transparent corporate culture through company-wide training on anti-corruption and business ethics, promoting integrity and accountability.

Luxshare Precision's ESG progress from exploration to improvement and now breakthrough signifies its enduring dedication to sustainability and corporate responsibility. Moving forward, the company aims to further enhance its ESG management practices to ensure long-term, stable value creation for global stakeholders while pursuing sustainable growth.

Guided by its mission, "Committed to Advancing Cutting-Edge Technology, Fulfilling the Ambitions of Our Global Partners," Luxshare Precision intends to deepen collaborations across the entire value chain, fostering inclusive, harmonious, and sustainable development.