YANTAI, China, July 20, 2023 /PRNewswire/ — Wanhua Chemical (“Wanhua” or “the Company”; 600309.SS), unveiled its comprehensive Environmental, Social, and Governance (“ESG”) report on July 19, 2023. Wanhua Chemical promises to achieve peak carbon emissions before 2030 and strive to achieve carbon neutrality by 2048 in line with the Greenhouse Gas Protocol’s Scope 1 and Scope 2, which refer to direct emissions that are owned or controlled by a company, and indirect emissions that are a consequence of the activities of the company but occur from sources not owned or controlled by it, respectively.
“Guided by our mission ‘Advancing Chemistry, Transforming Lives’, Wanhua Chemical is dedicated to utilizing the power of chemistry to drive our own evolution and offer solutions to the collective challenges humanity faces, ultimately contributing to a sustainable future. Our ESG actions have solidified the foundation for our sustainable development and propelled us forward on this path towards a greener future,” stated Liao Zengtai, Chairman of Wanhua.
Wanhua’s sustainable strategy places the United Nations Sustainable Development Goals (SDGs) as the cornerstones of its efforts and is responsible for related strategic initiatives in eight major areas, including climate neutrality, environmental protection, industrial innovation, safety and health, talent development, social responsibility, corporate governance, and business ethics. The implementation and tracking of the project will promote sustainable development together with all relevant parties.
Environmental Initiatives Are at the Core of Wanhua’s Sustainable Strategy
Climate Neutrality focuses on carbon emission management and optimizing the energy structure through green energy utilization. Environmental Protection emphasizes water resource management, waste treatment and reuse, biodiversity, soil preservation, and noise pollution mitigation. Industrial Innovation revolves around optimizing plant operations, technological advancements, carbon capture and utilization storage (CCUS), and promoting a circular economy.
Wanhua has already achieved remarkable milestones in its ESG initiatives. In 2022, the Company’s greenhouse gas emissions per tonnage of products reached a 14% drop from the end of 2021 and will drop by at least 20% by 2030. It is estimated that by 2030, all of Wanhua’s joint clean energy projects will enable them to obtain 14.9 billion kilowatt-hours of clean electricity every year and reduce carbon emissions by 8.65 million tons.
In water resource management, the Company has implemented stringent measures to regulate wastewater generation, collection, treatment, reuse, and discharge, aiming for zero wastewater discharge. Compared with 2021, Wanhua’s freshwater consumption per unit product decreased by 29%. Waste management, taken as a key aspect of Wanhua’s environmental-related measure, has been included in the commitment to achieving a ≥10% decrease in exhaust gas emissions intensity and solid waste emissions intensity compared to the baseline year.
Wanhua Chemical, leveraging the industrial chain linkage, promotes the development of a circular economy in recycling. Through technology research and joint upstream and downstream industrial chains, the recycling business involves projects such as wood substitution, shared packaging, and material recycling. In 2022, the company implemented the milestone of polyurethane recycling and reuse, opening up new channels for processing waste polyurethane foam and further promoting the development of the circular economy. In June last year, the green brand Waneco® was launched, covering post-consumer recycling, biodegradable, and bio-based materials.
Continuing to Create Social Value by Putting People First
In the social sphere, Wanhua places significant importance on health and safety, ensuring chemical safety, and promoting the well-being of its employees. Talent development focuses on enhancing employee growth management, fostering diversity, equality, and inclusion (DEI), and implementing rigorous anti-discrimination policies. Social responsibility encompasses community development, supplier management, and information security. By 2022, the employee recordable injury accident rate had dropped to 0.082 times per 200,000 working hours, and the employee work-related injury turnover rate was down to 0.042 times per 200,000 working hours. The number of new employees is over 5,000 in 2022, and the turnover rate is 3%, revealing a stable talent status for long-term development.
Wanhua actively fulfills its social responsibilities by supporting community development and engaging in cultural education and social welfare activities in the areas where it operates. The Company contributed more than 12 million yuan to external donations and public welfare projects, focusing on poverty alleviation, rural revitalization, education, environmental protection, and charitable donations through charity federations. Wanhua also organized various community events, including Enterprise Open Day, Wonder Lab, and the scholarship teaching award, to enhance public awareness.
Remarkable Ethical Achievements Illustrate Unyielding Dedication to Ethical Conduct
Governance improvements have been a priority for Wanhua Chemical, with a focus on enhancing governance structure, improving management mechanisms, and upholding business ethics. Compliance operations and anti-corruption prevention are emphasized to maintain ethical standards. In the year 2022, the Company adjusted and restructured with a flattening of management levels and a reduction in government personnel outside of R&D, production, and sales roles. Over 95% of internal business transfers have been streamlined in 1-3 steps, significantly enhancing management efficiency. The Company has also strengthened business ethics, compliance operations, and anti-corruption prevention through enhanced training programs for its employees. By 2022, Wanhua Chemical has 100% coverage of internal business ethics training and 100% coverage of anti-corruption training.
Looking ahead, Wanhua remains committed to its green, low-carbon, and sustainable development path. The Company will accelerate the transition to new energy sources such as wind power, photovoltaics, and green hydrogen, reducing reliance on traditional energy. Through technological innovation, Wanhua will continue to advance chemical production technology, achieving low energy consumption and zero emissions. The Company will invest in energy management technologies, enhance comprehensive energy utilization efficiency, and establish low-carbon and zero-carbon industrial parks. With a focus on R&D and innovation, Wanhua will take long-term actions toward sustainability, fully integrating sustainable development into its business operations, and collaborating with all stakeholders to create a sustainable future.
For more information, please visit: https://en.whchem.com.
About Wanhua Chemical
Wanhua Chemical (600309.SS) is among the leading global suppliers of innovative chemical products. Relying on continuous innovation, commercialized facilities, and efficient operation, the company provides customers with competitive products and solutions.
SOURCE Wanhua Chemical