Luxshare Precision actively responds to the Paris Agreement by taking the lead in setting carbon emission reduction targets for its corporate operations and core value chain. The Company has established a three-phase implementation pathway covering short, medium, and long-term actions, and is steadily fulfilling its climate commitments through six core carbon neutrality strategies backed by scientifically quantifiable emission reduction mechanisms. In 2024, Luxshare Precision achieved a 51% reduction in Scope 1 & 2 absolute emissions compared to the baseline year, alongside a 22% decrease in Scope 3 emissions per unit of value added, demonstrating significant progress in green and low-carbon transformation.

Fig.1 Carbon Neutrality Roadmap

We continuously drive energy efficiency improvements and energy structure transition. Focusing on equipment upgrades and process optimization, Luxshare Precision carried out 349 energy-saving renovation projects in 2024, covering areas such as compressed air systems, residential and office facilities, and production electricity consumption. These efforts resulted in an electricity savings rate of over 8%, achieving an annual greenhouse gas reduction of 130,929 tCO₂e and delivering both operational cost savings and environmental benefits. In terms of energy mix optimization, the Company increased its clean energy usage to nearly 71% in 2024 through multiple approaches including direct procurement of green electricity, acquisition of green certificates, deployment of distributed rooftop photovoltaic systems, and construction of energy storage facilities. This enabled Luxshare to exceed its “50% clean energy usage by 2025” target for the second consecutive year.

Furthermore, the Company is committed to serving as a model for green and low-carbon transformation within the supply chain. We share our experience and achievements in decarbonization to build a solid foundation for comprehensive green transition across the entire supply chain. At the end of 2024, Luxshare Precision formulated and released the Green and Low-Carbon Pledge, strengthening collaboration with key suppliers to continuously improve environmental performance throughout the supply chain. The Company plans to communicate the requirements of the Pledge through on-site guidance and audits, providing specialized technical support to help suppliers achieve their goals and overcome practical challenges in carbon reduction. For issues identified during audits, we assist suppliers in developing corrective plans, monitor their implementation within specified timelines, and offer continued guidance until improvements are completed and verified. Additionally, through one-on-one coaching, business review meetings, specialized training, thematic workshops, and supplier conferences, we engage with suppliers on key topics including carbon and energy management, sustainable water stewardship, waste management, CSR, and hazardous substance control. These efforts systematically enhance supplier capabilities and translate green supply chain initiatives into tangible outcomes. In 2024, we helped suppliers achieve energy savings totaling 33,013 MWh and conducted on-site assessments and guidance focused on green and low-carbon transition at 50 suppliers.

Simultaneously, we actively partner with third-party institutions to strengthen supply chain oversight. Luxshare Precision has collaborated for several years with the Institute of Public and Environmental Affairs (IPE) to co-launch the “Towards Zero Carbon Supply Chain Initiative”, promoting green and low-carbon development concepts among suppliers and working together to reduce pollution and carbon emissions. In 2024, the Company encouraged 229 suppliers to disclose carbon emission-related data on the IPE platform. We are also progressively expanding management efforts to include Tier-2 suppliers, using the platform to further deepen decarbonization progress across the supply chain.

Fig.2 Progress of Luxshare Precision's Green Supply Chain project

Fig.3  Energy-saving Cases of Suppliers

For more green, low-carbon and supply chain management practices, please refer to Luxshare Precision's 2024 Sustainability Report (official website: https://www.luxshare-ict.com/sustainability/reports-and-polices.html)