China Media Group (CMG) has recently released the Yangtze River Delta ESG Action Report. Due to its outstanding performance in environmental, social, and governance (ESG) areas, Proya (603605.SH) has been included in the list of the 50 ESG Pioneers Among Listed Chinese Companies in the Yangtze River Delta for 2024.

Proya was awarded the certificate as one of the 50 ESG Pioneers Among Listed Chinese Companies in the Yangtze River Delta

As one of the key reports for the "2024 China ESG Release" event, the Yangtze River Delta ESG Action Report highlights the proactive initiatives taken by companies in the Yangtze River Delta region to drive innovation and collaboration in ESG areas. For this report, 972 listed companies were initially selected as candidates, from which 279 companies based in the Yangtze River Delta region were chosen for detailed research and evaluation. Following a systematic assessment, 50 companies were recognized for their exemplary ESG performance, forming the list of the 50 ESG Pioneers Among Listed Chinese Companies in the Yangtze River Delta for 2024.

The list of the 50 ESG Pioneers Among Listed Chinese Companies in the Yangtze River Delta (Source: Dialogue on CCTV)

As of today, Proya has fully disclosed its principles and performance in sustainability and ESG governance for four consecutive years in accordance with relevant standards. The company's commitment to sustainability and ESG management has consistently earned recognition from both the public and the capital markets. In 2024, Proya became the first Chinese cosmetics brand to achieve independent third-party carbon data verification and report assurance. In 2023, the company completed the CDP Climate Change Questionnaire for the first time and earned a B rating, surpassing the average C rating for companies in Asia and worldwide. In December 2023, Proya's Wind ESG Rating was upgraded to AA, securing its first top position in the personal care products industry. In 2024, the company received an AA rating from Sino-Securities Index ESG Ratings, ranking first in both the major consumer goods sector within the Sino-Securities' Tier 1 Industry Classification and the personal care products sector within the GICS Tier 3 Industry Classification.

On the environmental front, Proya adhered to its management policy of "energy conservation, consumption reduction, emission minimization, and efficiency enhancement" in 2023, identifying climate change as a material issue within its ESG management framework. In 2023, the company reduced its GHG emissions per RMB 10,000 of revenue (Scope 1 and Scope 2) by 32.93% year-on-year. Moreover, by implementing GHG reduction measures, such as upgrading energy-saving technologies, using clean energy, reducing packaging materials, and opting for refillable packaging, Proya cut its total CO2equivalent emissions by 5,571.93 tons.

Regarding social responsibility, Proya focuses on four key social issues: gender equality, mental health, youth and growth, and love and caring. By leveraging its brand influence, the company actively advocates for and takes action on these important issues. In 2023, Proya invested RMB 8,661,200 in public welfare initiatives to foster social equality and diversity and established the Zhejiang Proya Public Welfare Foundation.

In terms of corporate governance, Proya has incorporated sustainability performance into its variable compensation system. This approach aligns the salaries of executives and directors with the company's sustainability achievements to promote the realization of sustainability objectives. In 2023, the company held four General Meetings of Shareholders, eight Meetings of the Board of Directors, and six Meetings of the Supervisory Board. It also released four regular reports and 92 interim announcements. Additionally, Proya conducted three anti-corruption and business ethics training sessions and so on.

Proya's inclusion on the list underscores the company's success in integrated value creation and sustainable development through the effective implementation of ESG principles. Over the years, Proya has accurately identified and actively responded to global sustainability demands while steadfastly advancing its sustainability strategy to drive product innovation and service improvement.

Looking ahead, we will continue to strengthen our ESG management system, enhance our performance in all aspects of environmental, social, and corporate governance, and fully support the achievement of our sustainable development goals.