Sustainability

Sustainability · ESG 2025

Materials for a Better Planet

“Materials for a better planet” is not a slogan on the wall — it is a standard built into every product. As “dual-carbon” goals advance, we are no longer chasing scale alone, but pursuing growth that lives in harmony with the environment, weaving sustainability into every stage of production through digital efficiency upgrades and full-lifecycle decarbonization.

Environment (E) · Curbing Pollution, Cutting Carbon

We are advancing our low-carbon transition through digital energy-efficiency upgrades and full-lifecycle decarbonization: Huaqi Chemical has formally submitted its science-based emissions-reduction commitment to SBTi; we co-hosted a tire-rubber sustainability “carbon” forum with BASF; participated in the 12th Global Tire Technology Forum to discuss bio-based materials; and exhibited our green “manufacturing power” at the 25th China International Industry Fair.

On-site solar 2,952.05 MWhPurchased green power 31,534.44 MWhTotal clean-energy use 2,131,470.94 MWh

Waste Management & Circular Economy

Social (S) · Connecting With Society Through Care and Resolve

We safeguard individual employee dignity, invest in long-term talent development, and quietly support community welfare. As of year-end 2025 we had 1,297 full-time employees (+6.49% YoY), with 48.5 hours of training per employee (+20.95%).

Employee Care & Benefits

100% supplier ESG assessment coverage0 data-security/privacy incidentsRed Avenue Foundation“Red Avenue Young Researchers Fund” low-carbon chemistry roundtable

Governance (G) · Integrity & Compliance

Anti-bribery, anti-corruption and fair-competition training all achieve 100% coverage, with zero confirmed bribery or corruption incidents. We are building a trustworthy, sustainable supply chain that embeds labor rights, health & safety, environmental compliance and carbon performance across the value chain, aligned with GRI 205 (Anti-corruption) and GRI 206 (Anti-competitive Behavior).

Intellectual Property (2025)

Honors

Top 100 Chinese Fine Chemical EnterprisesPudong New Area Innovation & Entrepreneurship AwardPudong New Area First Batch of “Going Global” Pioneer EnterprisesEcoVadis Platinum Rating (first in the industry in Asia-Pacific)

Reporting Standards

This report is prepared with reference to the GRI Standards 2021, the ISSB’s IFRS S2 Climate-related Disclosures, the Shanghai Stock Exchange’s Guidelines No. 14 for Self-Regulation of Listed Companies — Sustainability Reports, and the UN Sustainable Development Goals (SDGs).

Data summarized from the “Red Avenue New Materials 2025 Sustainability Report.”