On January 30th, 2024, the greenhouse gas emissions (GHG) reductions target(s) of Luxshare Precision was officially approved by the Science Based Targets initiative (SBTi), marking that our climate change ambition and actions which have been recognized by international organizations. Luxshare Precision commits to reduce Scope 1&2 GHG emissions 50.4% by 2032 from a 2022 base year. Luxshare Precision also commits to reduce Scope 3 GHG emissions 58.1% per CNY of value added within the same timeframe.
In order to fully understand the current status of Luxshare Precision’s operational GHG emissions and scientifically plan our GHG emissions reduction strategy, Luxshare Precision collaborated with third-party organizations to build the ESG & GHG emissions management module, based on the ISO14064-1:2018 and GHG protocol standards. Luxshare Precision collected our subsidiaries GHG emissions data monthly and arranged specialists to review the relevant information to ensure the accuracy of the data. In addition, in order to know the detailed GHG emission reduction potential of the supply chain, in 2023, we built the GHG emission reduction module of the Green Supply Chain Compliance Management Module (GSCM) to collect and manage core suppliers’ GHG emission data and energy saving measures, which helps us to collect GHG emission data from subsidiaries and suppliers in time. Those data not only serves as the data basis for SBT target setting and supply chain target setting, but also indicates the direction of subsequent GHG reduction work. Up to now, Luxshare Precision has successfully acquired data of 69 subsidiaries and can support each other with GSCM data and set green energy target for suppliers, i.e., the proportion of clean energy usage will reach 30% in 2023, 40% in 2024 and 50% in 2025.
Diagram1 ESG Carbon emission Management module
Diagram2 GSCM System
Regarding our environmental management approach, in 2023, we will launch an electronic waste management information system based on the UL 2799 standard, covering information on waste types, weights, conversion methods, disposers, disposal processes and other relevant information. Through this system, each manufacturing plant can collect, count and analyze waste-related data, understand the situation of waste generation and disposal, and comprehensively improve the efficiency of waste management. We promote the advanced waste management concept of zero landfill for all plant and the reduction and internal reuse of materials such as plastics, metals, cartons, coils, pallets, etc. At the same time, we encourage waste treatment service providers to recycle and reuse materials, and adopt incineration with energy recovery for non-recyclable wastes, so as to promote the minimization, resourcing and harmlessness of wastes.
Diagram3 Excellent waste reduction cases
With respect to supply chain carbon management, in order to accelerate the process of realizing the company's scientific GHG goals and enhance green competitiveness, green supply chain construction has become an important part of Luxshare Precision 's green and low GHG planning. Through the collaboration with IPE, we convey the concept of green and low GHG development to suppliers, organize suppliers to participate in the measurement and disclosure of product GHG footprint data, complete the registration of pollutant emissions and transfer to build a standardized management system, and remove environmental supervision records on the IPE website. So far, 205 suppliers have completed the registration of pollutant emission and transfer, 192 have disclosed GHG data, and 821 have been removed from the environmental violation list, of which 93 have been removed in 2024.