Since 2018, responding to global brand sustainability visions, Chungjye has built a dynamic supply-chain environmental risk management and control system. It drives transparent environmental information disclosure and closed-loop risk rectification among suppliers, systematically collects Scope 3 carbon emissions data, empowers suppliers to conduct carbon accounting, and guides suppliers to submit data via carbon emission platforms. This work maps the supply-chain value chain and supports implementation of the Group's sustainable development action plan.
The Group has set medium- and long-term climate targets: taking 2024 as the base year, to reduce Scope 1 and Scope 2 carbon emissions by 42% by 2034 and achieve net-zero emissions by 2050. The strategy is cascaded down the supply chain to empower upstream partners to strengthen carbon management capacity and jointly build a low-carbon value chain.
As of 2026, the Group monitors 183 suppliers on the IPE platform, covering key segments including fabrics, base materials, molding accessories, and solid-waste disposal; 73 suppliers have completed factory-level PRTR disclosure, 68 have disclosed carbon data; in total, 70 suppliers with environmental regulatory records have completed rectification for record removal.
Figure: The number of monitored suppliers grew from 96 to 183. As of September 2026, 2 suppliers still had pending removal records: one affected by governmental regional planning, and one whose cooperation was terminated in the past two years.
The Group implements closed-loop management coordinated by CSR governance and procurement operations: the CSR team regularly identifies environmental risks and issues early warnings, while the business side communicates environmental compliance requirements to suppliers and urges manufacturers to rectify environmental violations and disclose relevant information. The Group also disseminates Scope 3carbon inventory and data submission requirements aligned with its 42% carbon-reduction target for 2034 and net-zero ambition for 2050. Suppliers are empowered with carbon-accounting methodologies to develop tailored improvement plans, conduct carbon inventory work, fill in carbon-emission data, and submit supporting evidence of environmental improvements to the IPE platform for audit and record closure.
Taking practical constraints for supply-chain transition into account, the Group avoids direct supplier elimination and grants rectification periods to manufacturers. The CSR team, together with procurement, first conducts risk diagnostics for non-compliant suppliers. Based on each enterprise's operational reality, they deliver customized improvement recommendations through either off-site document reviews or third-party on-site audits. Suppliers are guided to shift from passive compliance to proactive environmental and climate governance, align with the Group's medium- and long-term carbon-reduction and 2050 net-zero goals, and mitigate environmental and climate transition risks across the supply chain.
Internally, the Group has launched circular plastic-reduction pilots. Plastic consumption at production sites mainly stems from storage of production off-cuts and workstation turnover containers, with plastic storage buckets prone to wear and tear. Accordingly, priority was given to retrofitting waste-collection containers to cut plastic use. At the Shanggao production site, 120 waste-collection buckets made from recycled waste materials (80 cm high × 40 cm in diameter) replaced the original plastic containers for sorted storage of production off-cuts. The pilot has delivered sound results. It will be rolled out across the Group's subsidiaries and direct suppliers to reduce plastic consumption at source from production workstations. Going forward, the Group will also evaluate other plastic-consuming scenarios across plant sites to further expand plastic-reduction initiatives.
Figure: Recycled-material waste-collection buckets piloted at the Shanggao plant, used for sorted storage of production off-cuts.
Looking ahead, beyond continuing to deepen environmental compliance, carbon disclosure, and plastic-reduction actions, the Group will integrate labour-rights protection and chemical management into its supply-chain sustainability governance framework. Chungjye will further advance sustainable supply-chain management: empowering suppliers to build capacity for carbon accounting and information disclosure, improving the quality of Scope 3 carbon-emission data to underpin delivery of the 42% carbon-reduction target by 2034 and net-zero emissions by 2050. Proven circular plastic-reduction practices will be scaled to other on-site plastic scenarios and shared with upstream and downstream partners across the supply chain, as the Group collaborates with industry stakeholders to build a low-carbon green value chain.