#USA #New York #ESG Practices #Sustainability Report #Luxshare Precision

Luxshare Precision's 2025 Sustainability Report: A Commitment to Responsible Management

Introduction

On June 24, 2026, Luxshare Precision Industry Co., Ltd. unveiled its 2025 Sustainability Report, outlining significant strides made in environmental, social, and governance (ESG) domains. The report not only highlights the tangible advancements the company has achieved but also reinforces its unwavering commitment to global responsible management. Luxshare's dedication to sustainable practices has been recognized as it continues to navigate an increasingly complex global landscape with transparency and accountability.

ESG Governance Framework

At the core of Luxshare's sustainability strategy is a comprehensive ESG governance framework steered by its board of directors. This three-tier structure ensures thorough oversight of ESG strategies, performance assessments, and crucial issues. Impressively, the representation of independent and female board members stands at 37.5%, promoting balanced and transparent decision-making processes.

With the successful attainment of the 2025 sustainable development goals, Luxshare has set its sights on new targets for 2030, encompassing governance, operations, products, partnerships, and workplace practices. These targets prioritize emissions reduction, energy efficiency, responsible sourcing, innovation, and employee wellbeing—laying down a roadmap for sustainable growth throughout the value chain.

Climate Action Commitment

Addressing climate change remains a focal point in Luxshare's sustainability agenda. Following the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, the company consistently evaluates climate-related risks and opportunities, integrating them into its operational planning. Aiming for carbon neutrality by 2050, Luxshare's climate goals have been validated by the Science Based Target initiative (SBTi), illustrating the company's commitment to science-based solutions.

The report showcases substantial progress, with renewable energy accounting for 64% of the total energy consumption. Additionally, absolute emissions for scopes 1 and 2 have dropped by 25% compared to 2022 levels, and scope 3 emissions per yuan of value added decreased by 19%. The role of suppliers is critical in these initiatives, where extensive training and capacity-building efforts have enabled them to reduce energy consumption.

Building Resilient Supply Chains

The report emphasizes the importance of transparency, traceability, and risk management across Luxshare's supply chain. The company utilizes a multidimensional risk management framework that encompasses human resources management, health and safety, environmental management, business ethics, and overall management systems.

All suppliers are required to comply with Luxshare's Supplier Code of Conduct, with a dedicated focus on Corporate Social Responsibility (CSR) through on-site inspections and online assessments. In total, 1,815 suppliers were audited, revealing a 100% review rate of new raw material suppliers. Through effective risk detection and resolution mechanisms, 2,345 issues linked to supply chain risks were identified and addressed.

Promoting Inclusive Workforce Management

Luxshare Precision is dedicated to human-centered management practices as a member of the Responsible Business Alliance (RBA). The company has established a comprehensive labor risk management mechanism that facilitates timely detection and resolution of labor-related issues. Regular employee engagement initiatives and continuous workplace improvements demonstrate Luxshare's commitment to fostering a robust organizational culture.

Diversity and inclusion initiatives have significantly enhanced the representation of women in leadership roles, and the proportion of team members with disabilities has reached 0.8%. Enhanced management of environment, health, and safety has also contributed to an 11% reduction in accident rates, reflecting a safe and supportive work environment.

Integrating Sustainability Across the Product Lifecycle

Luxshare's product development now increasingly incorporates sustainability considerations, focusing on widespread implementation of clean technologies. The company has expanded its portfolio to include clean technology solutions, energy system optimization modules, advanced energy management components for electric vehicles, recycling materials, and photovoltaic systems.

These initiatives aim to enhance energy efficiency, reduce electrical losses, and foster low-emission applications across various sectors. Furthermore, stringent lifecycle management of hazardous substances ensures compliance with global environmental standards while boosting product competitiveness in international markets.

Conclusion

Grace Wang, the CEO of Luxshare Precision, emphasized that delivering long-term value continues to be a guiding principle for the organization. Moving forward, Luxshare Precision will engage with partners within its ecosystem to build a more resilient, responsible, and sustainable value chain.