Luxshare Precision’s 2024 Sustainability Report Showcases ESG Strides Aligned with Global Standards

Luxshare Precision Industry Co., Ltd. has released its 2024 Sustainability Report, highlighting significant environmental, social, and governance (ESG) achievements. The Chinese electronics manufacturing leader – recognized with a “BB” MSCI ESG rating and a Bronze EcoVadis medal – delivered data-driven progress on climate action, resource efficiency, and social responsibility. The report also underscores Luxshare’s alignment with international frameworks like the UN Sustainable Development Goals (SDGs) and the Task Force on Climate-related Financial Disclosures (TCFD), as well as China’s national “dual-carbon” (carbon peak and neutrality) targets. Investors and ESG professionals are taking note of Luxshare’s strengthened sustainability performance, which is positioning the company as an emerging ESG leader in the tech manufacturing sector.

Environmental Performance Highlights

Luxshare’s environmental initiatives in 2024 yielded substantial results, combining ambitious carbon reduction plans with effective resource management:

• GHG Emissions: The company cut its Scope 1 and 2 greenhouse gas emissions by 51% compared to 2022, already surpassing its science-based target of a 50.4% reduction by 2032. Luxshare has committed to achieve carbon neutrality by 2050, aligning with a 1.5 °C climate pathway.
• Clean Energy & Energy Efficiency: Clean energy (renewable and other low-carbon sources) comprised nearly 71% of Luxshare’s total power consumption in 2024 – far above the 50% by 2025 goal – reflecting major investments in green power. Concurrently, the company has saved approximately 350 million kWh of energy since 2023 through efficiency measures.
• Waste and Circular Economy: Luxshare achieved an 88.18% waste recycling and conversion rate, meeting its 2024 target (88%) on the way to 90% by 2025. The company is actively pursuing zero waste to landfill: as of 2024, 14 subsidiaries have earned UL 2799 Zero Waste to Landfill certification, ensuring that waste is minimized, recycled, or repurposed wherever possible.
• Water Stewardship: Emphasizing water conservation, Luxshare increased its reuse of withdrawn water by 15% versus a 2021 baseline, progressing toward a 20% improvement goal by 2025. All facilities undergo third-party wastewater testing at least annually – in 2024, 100% of sites were in full compliance with discharge standards. No major environmental violations or pollution penalties were recorded during the year.
• Green Certifications: Luxshare expanded its accredited environmental management systems. By the end of 2024, 62 company sites were certified to ISO 14001 standards. Government recognition of Luxshare’s green manufacturing also grew – 18 subsidiaries have been honored as National/Provincial “Green Factory” model sites for their sustainable operations.

Social Responsibility and Stakeholder Impact

Luxshare’s 2024 report also details strong performance in social responsibility, from workplace safety to community engagement:

• Workplace Safety: The company reported zero work-related fatalities in 2024 and a 24% year-on-year reduction in employee injuries, exceeding its target of a 10% annual injury reduction. Robust occupational health and safety programs – aiming for “zero harm” – contributed to this improved safety record.
• Employee Development: Investing in its people, Luxshare provided training to 100% of employees, with an average of nearly 21 hours of training per person in 2024. The company has enhanced career development through a dual-track promotion system and equity incentive plans. To gauge and improve employee satisfaction, Luxshare conducts annual engagement surveys and maintains accessible feedback channels – resulting in a 100% closure rate of all employee grievance cases last year. Notably, no incidents of discrimination were reported, reflecting a culture of diversity and equal opportunity.
• Diversity & Inclusion: Women now represent 43% of Luxshare’s Board of Directors, and independent directors also make up 43%, exceeding the one-third threshold the company set for board diversity and independence. This top-level gender balance underscores Luxshare’s emphasis on diversity and inclusion, echoing its commitment to fair labor practices across its global workforce.
• Community Investment: Luxshare deepened its community engagement, contributing RMB 10.35 million to rural revitalization projects in China and RMB 3.41 million to other public welfare initiatives. Throughout 2024, the company organized volunteer and charitable activities such as rural education support, disaster relief aid, old clothing recycling drives, and blood donation campaigns. These efforts aim to uplift local communities and vulnerable groups, aligning corporate social responsibility with national development priorities.
• Employer Recognition: Reflecting its positive workplace practices, Luxshare earned accolades as an employer of choice. In 2024 the company was named a “China Model Employer” by 51job and won the China Best Employer Award from Zhaopin, among other honors. Such awards recognize Luxshare’s progress in creating a safe, inclusive, and empowering environment for its 278,000+ employees worldwide.

Governance and Transparency

Strong corporate governance underpins Luxshare’s sustainability journey, ensuring that ESG principles are embedded into strategy and operations:

• Board Oversight & ESG Integration: ESG governance starts at the top – Luxshare’s board-level commitment is evidenced by its diverse composition (43% female and 43% independent directors) and active stakeholder oversight. In 2024, the company held 26 dedicated ESG communication sessions with investors, indicating a high level of transparency and responsiveness to shareholder concerns on sustainability issues.
• Ethics & Anti-Corruption: The company reported a 100% resolution rate for all business ethics and compliance complaints in 2024. To reinforce its zero-tolerance approach to corruption, 100% of employees underwent anti-corruption and ethical conduct training (accumulating 286,567 hours of training). Every Luxshare employee has signed an Integrity Commitment letter, affirming adherence to the company’s code of ethics. These measures have helped maintain a clean record in 2024 – no major information leaks, IT security breaches, or business interruptions occurred.
• Responsible Supply Chain: Luxshare extends its ESG values to its supply chain. All of the tin, tungsten, tantalum, and gold (3TG minerals) used in Luxshare products are 100% sourced from RMAP-conformant smelters and fully traceable to their country of origin, ensuring conflict-free sourcing. The company also launched green supply chain initiatives, assisting over 110 suppliers in correcting environmental regulatory issues in 2024. Through supplier engagement, Luxshare helped its partners cumulatively save 48.9 million kWh of energy since 2023 and encouraged them to adopt cleaner practices, contributing to a 22% reduction in the company’s Scope 3 emissions intensity (per value-added) from the 2022 baseline.
• Transparency & External Recognition: Luxshare’s governance and disclosure practices have earned broad external recognition. The company was listed in the 2024 Fortune China ESG Impact Top 100 and identified among the “Pioneer 100 ESG Listed Companies” in China. It achieved an “A” rating for climate change and “A–” for water security in the Carbon Disclosure Project (CDP) evaluations, placing it in the leadership band. Additionally, Luxshare’s environmental transparency efforts ranked 2nd in its industry on the Corporate Climate Action Transparency Index (CATI) and 5th on the Corporate Information Transparency Index (CITI) by the Institute of Public & Environmental Affairs. These accolades, alongside third-party assurance of the report’s data integrity, signal to investors that Luxshare meets high standards of accountability and risk management in ESG matters.

Global Alignment and Outlook

Crucially, Luxshare Precision’s 2024 sustainability strategy is tightly aligned with global sustainable development trends and investor expectations. The report explicitly maps the company’s initiatives to the UN Sustainable Development Goals, driving progress across its operations, products, and communities in support of the SDG agenda. On climate governance, Luxshare has adopted TCFD-aligned practices – assessing climate-related risks and opportunities across its value chain under the TCFD’s four pillars of governance, strategy, risk management, and metrics. By setting a carbon neutrality deadline of 2050 (beating China’s national 2060 target by a decade), Luxshare is proactively supporting China’s “dual-carbon” goals and the global transition to net-zero emissions.

From an investor’s perspective, Luxshare’s comprehensive ESG efforts enhance its long-term resilience and attractiveness. The company’s measurable reductions in carbon footprint, improvements in labor conditions, and fortified governance structure demonstrate a commitment to sustainable value creation. As regulatory pressures and investor scrutiny on ESG continue to rise worldwide, Luxshare Precision’s 2024 performance showcases how aligning business strategy with environmental and social imperatives can satisfy stakeholder expectations and drive competitive advantage. In positioning itself at the forefront of corporate sustainability, Luxshare is not only contributing to broader global goals but also setting a strong example for ESG excellence in the electronics manufacturing industry.