Zhende Medical’s 2024 ESG Report Showcases Sustainable Healthcare Innovation and Global Commitment
Shaoxing, China – Zhende Medical Co., Ltd., a leading Chinese medical manufacturer, has released its 2024 Sustainability and ESG Report highlighting the company’s robust strides in sustainable medical manufacturing and healthcare innovation. Marking three decades since its founding, Zhende is leveraging ESG principles to drive “high-quality development” in its operations. The report – prepared with reference to the U.N. Sustainable Development Goals (SDGs) and GRI Standards – underlines Zhende’s alignment with international sustainability frameworks and its determination to be a reliable partner in the global healthcare industry. Notably, Zhende earned a Silver rating (74 points) in its first EcoVadis assessment, placing in the top 6% of participating companies, and was recognized as a Top 3 ESG performer among China’s healthcare A-share listed companies in 2024.
Advancing Green Manufacturing and Climate Action
Zhende’s 2024 report details an ambitious environmental agenda focused on energy conservation, emissions reduction, and green manufacturing. The company has implemented a “dual-carbon” strategy aligned with the Paris Agreement, committing to the Science Based Targets initiative (SBTi) and publishing a 2030 carbon reduction roadmap. In 2024, new production bases in Anhui and Kenya began operation alongside expansions of solar power projects, with a goal of sourcing over 30% of electricity from renewables by 2028. Already, 20% of Zhende’s power consumption came from renewable sources in 2024. A comprehensive energy audit led to 33 efficiency projects, targeting a 15% cut in energy use through upgrades and process optimization. These efforts contributed to a steady decline in the company’s carbon footprint – total Scope 1 and 2 greenhouse gas emissions fell to ~90,458 tons CO₂e in 2024, down from over 104,000 tons two years prior.
The report highlights green factory initiatives as a cornerstone of Zhende’s sustainable manufacturing. The company’s Xuchang production site, for example, was again awarded the honorary title of “Green Factory” in Henan Province in 2024 – alongside a municipal-level “Waste-Free Factory” designation – reflecting leadership in clean production and waste management. All of Zhende’s manufacturing facilities have attained ISO 14001 environmental management and ISO 45001 health & safety certifications, underscoring the firm’s adherence to high EHS standards. In 2024 alone, Zhende invested RMB 11.78 million in environmental protection measures and reported zero violations of environmental laws or regulations.
Sustainable Packaging and Waste Reduction: As part of a green supply chain push, Zhende Medical increased the use of eco-friendly packaging and materials. The company reports that 68% of its product packaging materials are now recyclable, with 60% of packaging sourced carrying FSC sustainable forestry certification. In 2024, Zhende used over 14.69 million FSC-certified packaging components, cutting carbon emissions across product lifecycles. It also developed biodegradable plastic alternatives – for instance, a new degradable PE stretch film – to replace conventional packaging and reduce plastic waste. These steps are part of Zhende’s circular economy strategy, which saw its Xuchang site obtain ISCC PLUS certification for sustainable supply chains. By promoting recyclable materials, optimizing packaging design, and phasing out hazardous substances, the company is shrinking waste output and improving resource efficiency across operations.
Empowering Employees and Communities
Caring for employee growth is a core pillar of Zhende’s ESG strategy, and the 2024 report shows strong performance in social responsibility. The company’s workforce grew to 8,485 employees, spanning operations in China and abroad. Zhende prides itself on an inclusive, diverse workplace – women make up 66% of employees and one-third of the Board of Directors are female. The staff is increasingly international, with hires from the United States, Kenya, Brazil, Malaysia, the U.K. and other countries; non-Chinese nationals now account for about 16.9% of employees. To attract global talent, the company expanded recruitment channels (including campus programs and overseas hiring) and offers a wide range of roles from R&D to manufacturing and sales.
Training and Occupational Health: In 2024 Zhende provided comprehensive training to 100% of its employees, delivering a total of 560,858 hours of training – an average of 66 hours per person. This upskilling focus has yielded an Employee Net Promoter Score (eNPS) of 75.55, indicating high workforce engagement. The company also upholds rigorous occupational health and safety practices. With ISO 45001 certification in place, Zhende recorded an exceptionally low work-related injury rate of just 0.38 per thousand employees in 2024. Only 117 workdays were lost to injuries across the entire year, and no fatal workplace incidents were reported. Health and wellness programs – from safety trainings to on-site medical checks – support the well-being of employees and contributed to a 94% new-hire satisfaction rate.
Community Involvement: The ESG report underscores Zhende Medical’s commitment to social welfare and global health. In 2024 the company launched the “Butterfly Baby” Care Project in partnership with a Shanghai non-profit, providing financial aid and medical supplies to children suffering from Epidermolysis Bullosa (EB), a rare skin disease. The initiative not only delivers much-needed treatment materials but also raises public awareness of EB to support these “butterfly” children. Internationally, Zhende co-sponsored the Afya Kesho project in Kenya – an innovative adolescent health education program developed with Tsinghua University and local NGOs to improve youth health outcomes. Through such programs, along with employee volunteer campaigns totaling over 2,000 hours of service in 2024, Zhende is extending its care mission beyond business, strengthening community resilience and healthcare knowledge. The company donated RMB 2.30 million to charitable causes during the year, reflecting gratitude and responsibility toward society. “Public welfare activities serve as a bridge to convey love and a channel to plant seeds of hope,” notes Chairman Lu Jianguo in the report, reaffirming that community engagement is integral to Zhende’s corporate ethos.
Governance Excellence and Ethical Practices
Zhende Medical’s governance practices, as detailed in the report, illustrate a commitment to integrity, transparency, and robust risk management. At the board level, ESG oversight is woven into corporate strategy via a dedicated ESG Management Committee and Office that report to the Board of Directors. In 2024, 33.33% of Zhende’s board directors were female, exemplifying a push for diversity in leadership. The company held three investor exchange meetings during the year, alongside timely disclosures through stock exchange platforms and its website, to maintain open communication with shareholders and stakeholders. Internally, Zhende conducted 10 independent audits in 2024 to strengthen internal controls, ensuring compliance across its operations.
Anti-Corruption and Risk Control: Upholding business ethics is a priority for Zhende. The firm operates a comprehensive anti-corruption management system, led by the Board’s Audit Committee and an Internal Audit & Risk Control Department. In 2024, Zhende organized 23 anti-corruption training sessions covering departments from sales to procurement. All directors (100%) received anti-bribery training, and over 3,100 employees – roughly 37% of the workforce – participated in ethics training programs. Crucially, Zhende extends its ethical standards to partners: last year 762 suppliers took part in the company’s anti-corruption and compliance training initiatives. This supplier engagement aligns with a broader supply chain oversight effort. The company evaluated environmental and social risks for 762 suppliers in 2024, collaborating with them to improve sustainability performance. By encouraging responsible practices among vendors and auditing its supply chain, Zhende is building a foundation for a low-carbon, circular, and ethically managed supplier network.
Information Disclosure and IP Protection: As a publicly listed company (603301.SH), Zhende emphasizes transparency in reporting and strict compliance with regulations. The ESG report notes that Zhende had zero incidents of regulatory non-compliance in 2024 across areas like environmental rules and product quality, and it diligently discloses performance data in sustainability reports and annual reports. In addition, the company places strong emphasis on intellectual property protection to safeguard its innovations. Zhende has a certified IP management system and was honored in 2024 as a “National Intellectual Property Demonstration Enterprise” by Chinese authorities. During the year, it obtained 9 new Class II medical device product registrations and 28 new invention patents, expanding its portfolio of proprietary technologies. Robust IP compliance procedures – including training employees on IP rights and monitoring for trademark infringements – resulted in zero IP rights violations in 2024. By reinforcing IP rights and fighting counterfeit products, Zhende protects its R&D investment (RMB 135.49 million in 2024) and ensures the integrity of its medical innovations.
Aligning with Global Sustainability Goals
Throughout the 2024 report, Zhende Medical reiterates its alignment with global sustainability standards and the United Nations SDGs. The company’s ESG policy is built around the pillars of “Caring for Employee Growth, Promoting Green Development, and Being a Reliable Partner,” echoing international themes of people, planet, and partnership. Zhende’s products reach over 70 countries worldwide and carry international certifications like FDA, CE, MDSAP and ISO13485, demonstrating a commitment to quality and safety in global markets. This international footprint – from China to Kenya and beyond – positions Zhende to contribute to global health objectives while adhering to responsible business practices.
By integrating ESG considerations into its core strategy and setting quantifiable targets, Zhende Medical is contributing to broader sustainable development imperatives. The report details how every facet of the business, from eco-efficient factories and renewable energy use to employee well-being and ethical governance, is geared toward long-term value creation and resilience. As the world’s healthcare needs grow, Zhende’s sustainable approach aims to deliver “more advanced, high-quality medical and healthcare products and services to global customers” while reducing environmental impact. In doing so, the company exemplifies how manufacturing innovation and social responsibility can go hand in hand. Zhende Medical’s 2024 ESG highlights not only burnish its credentials with investors and ESG rating agencies, but also reinforce its role in the collective global push for a healthier, more sustainable future.
