Wanhua Chemical unveiled its comprehensive Environmental, Social, and Governance (ESG) report this week. 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.

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.