Sustainability Governance Structure
The company has established an ESG management Sustainability Governance Structure consisting of the board of directors, the social responsibility committee, and the ESG working group. The board of directors is the ultimate supervisory body for the company’s ESG and climate change matters, assessing and confirming the group’s ESG and climate change-related risks and opportunities, and bearing overall responsibility for the ESG management system and information disclosure; the social responsibility committee, whose members include senior management from operations, human resources, EHS, CSR, and administration departments, aims to elevate sustainable development to the highest level of company management; the ESG working group coordinates ESG across various business modules, oversees key issues, and promotes the company’s ESG practices.
Material Issue Management
We mainly refer to domestic and international sustainable development guidelines, S&P Global Corporate Sustainability Assessment (S&P Global CSA) and MSCI ESG Rating, peer ESG issues, and combine the company's industry, operational characteristics, and stakeholder communication sources to collect issues, summarizing 27 issues, including 4 governance issues, 9 environmental issues, and 14 social issues.
We simultaneously consider the requirements of the "Guiding Opinions No. 17 of the Shenzhen Stock Exchange on Self-Discipline Supervision of Listed Companies—Sustainability Report (Trial)", namely the principle of double materiality, i.e., impact materiality and financial materiality. Combining internal and external stakeholder surveys and external expert opinions, we have sorted and prioritized the material issues for 2024. The final ranking of material issues has been confirmed by the board of directors and senior management.
Our Commitment to the SDGs
Environmental
2024 Highlights Performance
Responding to the dual carbon goals, building Energy IoT platform, intelligent energy management platform Achieving precise management, reducing energy consumption and carbon emissions
34 production entities obtained ISO14001 environmental management system certification
The company is committed to improving the construction of the energy management system. In 2024, 5 production entities under LY Manufacturing successfully passed the ISO50001 energy management certification system.
Actively promoting the construction of green factories, implementing waste zero-filling, clean water projects and other environmental protection projects, strengthening pollution control, and striving to reduce the negative impact of its own operations on the environment.
Vigorously promoting green operations, using advanced technologies to improve energy utilization efficiency, and reducing energy consumption:
19 Subsidiaries participated in energy efficiency projects, carried out energy-saving transformation of 5 major systems, saving electricity 16,880,000+ kilowatt-hours Reducing carbon 7,000+ tons
17 Subsidiaries participated in the zero-landfill project for waste, improving the waste conversion rate through independent innovation technology, 14 The conversion rate of plants exceeded 90%, and the annual waste reduction reached 3,000+ tons. 4 Production entities passed customer certification, including 2 obtained UL2799 certification
Continuously optimizing the process, integrating the "3R" (Reduce, Reuse, Recycle) principles into every link of lean production and intelligent manufacturing.
Actively promoting energy transformation and continuously increasing investment in clean energy: Photovoltaic power generation in mainland China 46,516,112.92 kilowatt-hours, equivalent to a reduction of 22,136.42 tons of carbon dioxide emissions; purchasing domestic green certificates 604,908 megawatt-hours, equivalent to a reduction of 353,883 tons of carbon dioxide emissions
Social
2024 Highlights Performance
Dedicated to improving the product quality management system, continuously optimizing internal processes and quality standards, and obtaining certifications for product quality management systems such as ISO9001/QC080000
Adhering to a 'people-oriented' approach, prioritizing occupational health and safety management, 33 The main production entity has obtained ISO45001 Occupational Health and Safety Management System certification
Regarding safety production as the cornerstone of business development, safety production investment 97,325,100 yuan, with a cumulative investment of nearly three years 133 million yuan
A well-established talent development and training system, with a total training investment of 87,607,300 yuan, with an average of 48 hours of training per person, and a coverage rate of 98.32% Emphasis on talent reserves and incentives, establishing differentiated and diversified promotion channels to promote the orderly implementation of the company's talent strategy
Comprehensive welfare policies, including housing, communication, meals, professional titles, and various other subsidies, providing additional paid annual leave beyond legal requirements 1,318,000 hours of full-salary sick leave 991,000 hours
Long-term equity incentive programs and employee stock ownership plans. Since 2018, the company has implemented multiple employee incentive plans, sharing the returns of business growth with employees.
Committed to creating an inclusive and diverse work environment, Launching the "Rainbow Plan" for diversity and inclusion, establishing a diversity and inclusion committee Promoting diversity and inclusion within the organization. By the end of 2024, the "Rainbow Plan" has provided jobs for 477 disabled people
Governance
2024 Highlights Performance
The board of directors has established four committees: audit, strategy, compensation, and nomination. A four-dimensional governance framework covering strategic planning, risk prevention and control, talent management, and compliance supervision has been built. Ensuring governance is standardized and efficient.
Continuously optimizing the governance structure and effectively implementing Board diversity policies. The board of directors consists of 7 directors, with independent directors accounting for 43% (3 people), and female directors accounting for 29% (2 people).
Building a "layered + full-chain" risk control system Classifying risks by environment, society, and governance, achieving precise risk control, and improving risk resistance.
Strengthening the synergy and supervision of the three lines of defense Strictly adhering to the bottom line of anti-corruption, establishing "LY Integrity Day" to enhance employees' awareness of integrity.
Actively building transparent communication bridges with various stakeholders, receiving an A rating for information disclosure from the Shenzhen Stock Exchange for two consecutive years.
Formulating multiple requirements for supplier environmental protection and business ethics to build a sustainable supply chain.
With technology as its core competitiveness, a complete three-level R&D system has been built, providing solid system and platform support for technological innovation, selected as “National Association of Industry and Commerce·2024 List of 500 Private Enterprises with R&D Investment (NO.110)”
Applying artificial intelligence and robotics research and development to automated production, combined with independently developed CNC and automated equipment, to build a highly efficient modern smart factory.
