On October 16, 2024, the ESG Global Leaders Conference was held in Shanghai, with top experts, scholars, and business representatives from 40 countries worldwide communicating and discussing cutting-edge ESG topics. Chairman of Hisense Group, Jia Shaoqian, attended and delivered a keynote speech, publicly disclosing for the first time the group's dual carbon goals - to achieve carbon peak operations no later than 2026, and achieve carbon neutrality in operations by no later than 2050. Jia also pointed out that Hisense will advance ESG implementation around the three directions of low-carbon operations, low-carbon industry chain, and low-carbon products and services.

Under the trend of globalization, ESG, as the world standard for measuring a company's sustainable development capabilities, is becoming the world language for evaluating corporate image and reputation, while also being a key element in promoting high-quality global economic development. The promotion of ESG governance by companies is timely and will become increasingly important in the future.

According to Jia Shaoqian, in recent years, Hisense has implemented ESG as a "comprehensive layout" and "global action" across the entire group. Earlier this year, Hisense established an ESG committee under the group's board of directors to lead and implement various ESG initiatives. After the new term of the Hisense Group's board of directors took office this year, the board reached a consensus and explicitly demanded that Hisense build a world-class enterprise and become a world-class brand.

"Looking at the world, first-class companies will inevitably have top-notch ESG performance and first-class corporate governance," Jia Shaoqian stated.

"Achieve carbon peak operations by 2026, achieve carbon neutrality in operations by 2050."

Last year, Hisense Group's revenue exceeded 200 billion yuan for the first time and employs over 100,000 employees globally (25,000 of which are foreign employees). It has 36 industrial parks and manufacturing bases worldwide. In addition to the Hisense brand, it also owns multiple brand portfolios including Toshiba TV, Rongsheng, Kelon, Gorenje, Vida, Hitachi, Xiamen Changelight, Shijiazhuang Kelin Electric, and more. For a manufacturing company like Hisense that produces millions of home appliances annually and has a significant impact on consumer life, adhering to the ESG development concept is particularly important.

At the conference, Jia Shaoqian announced Hisense Group's dual carbon commitment for the first time - to achieve carbon peak operation no later than 2026, and achieve carbon neutrality operation no later than 2050. At the same time, Hisense also released its first 'Carbon Neutrality White Paper', proposing the 'Hi GREEN' carbon neutrality action plan, focusing on the implementation of low-carbon operations, low-carbon industry chains, and low-carbon products and services.

In the aspect of low-carbon operations, Hisense focuses on the 'green' and 'smart' themes, and will achieve its own decarbonization through the stepped path of 'ultimate energy efficiency enhancement - clean energy transformation - carbon-negative technology exploration'. It was introduced that Hisense has already built one global 'Lighthouse Factory', three zero-carbon factories, and 14 national green factories. Since 2020, the comprehensive energy consumption of Hisense unit output value has cumulatively decreased by 17.3%; based on 2023, by 2030, Hisense Group's carbon emission intensity will decrease by 40%.

This month, Hisense Hitachi Qingdao factory has successfully been selected as a global 'Lighthouse Factory', making it the world's first multi-split central air conditioning 'Lighthouse Factory'. It has introduced Industry 4.0 technology and concepts, breakthrough over 20 automation difficulties in the industry through machine vision guidance, AI algorithms, and device interconnection, achieved digital carbon management and precise energy consumption control, automated, intelligent, and flexible production processes, speeding up product development by 37%, increasing labor productivity by 49%, reducing production costs by 35%, and lowering energy consumption by 13% per unit. This factory will achieve its own carbon neutrality operation ahead of schedule in 2038.

In terms of low-carbon industry chain, Hisense drives upstream and downstream partners to collaborate on carbon reduction. By 2025, it will bring more than 2400 - about 50% of suppliers - into carbon emission control and drive 40% of suppliers to set carbon reduction targets.

In terms of low-carbon products and services, Hisense will focus on 'material upgrades, structural optimization, and energy consumption reduction' to continuously promote the iteration and optimization of green products. It was mentioned that currently, Hisense's white goods energy efficiency rating has exceeded 70%, and Hisense laser TV energy consumption is only one-third of the same size LCD TV. By 2030, Hisense refrigerators will achieve or exceed 100% of the new national standard for first-class energy efficiency, over 90% of Hisense washing machines will reach the national first-class energy efficiency standard, the carbon emission intensity during the use of each commercial air conditioner unit will be reduced by over 30%, and the energy consumption of laser TVs will decrease by over 10% annually from the base year of 2023.

In addition, to better implement the ESG development concept, Hisense will promote new power grids and new energy as major long-term strategies. Hisense's subsidiary in the energy sector is committed to providing a full-chain digital energy storage solution including 'products, systems, solutions, platforms', covering various energy storage scenarios. At the end of August this year, Hisense successfully acquired and took over Hebei Xiamen Changelight, a publicly listed company in Shijiazhuang, Hebei. This company covers three major business sectors of intelligent electrical, new energy, and internet plus. In the future, Hisense Energy Network will form the energy segment of Hisense together with Xiamen Changelight, achieving a unique competitive advantage and development space in the global new energy market in clean energy, smart grids, intelligent transportation, and smart city fields.

Green globalization, top-notch companies will inevitably have top-notch ESG performance.

In the past two years, with the slowdown in the domestic home appliance industry's growth, going global has become an increasingly common choice for many home appliance companies. Some enterprises engaged in import and export-related business even put forward the argument 'go global or perish'. During the conference, Wang Huiyao, Chairman of the Globalization Think Tank (CCG) and former counselor of the State Council, pointed out in an interview with Sina Finance, 'The emergence of this clustering effect is driven by both the sluggish domestic consumption and the necessity to establish factories, reduce costs locally due to external trade barriers, and tariff policies.'

"One is propulsion, the other is traction, this dual effect sandwiched 'out of the sea, out of the game' situation. After all, if some companies go out and develop well, they strengthen their investment in research and development, operations, and other aspects, then the companies that have not gone out will gradually be eliminated." Wang Huiyao said. In his view, with the going out of Chinese companies, future green globalisation will become an important development trend, and this is also ESG globalisation.

According to the 2023 financial report of Hisense Group, in 2023, the revenue of Hisense Group reached 200 billion yuan, with overseas income reaching 85.8 billion yuan, accounting for 42.6% of the total, and the globalization process is accelerating. With the continuous expansion of overseas business, Hisense is also continuously winning the unanimous approval of global governments, enterprises, communities, social organizations, and consumers.

According to Jia Shaoqian, Hisense's industrial park in South Africa has created more than 1,000 direct job opportunities and more than 5,000 indirect job opportunities for the local area. Hisense has actively engaged in local public welfare and charity causes. Hisense's arrival has transformed the previous situation of high crime rates and high unemployment in the Atlantis Industrial Zone. Many residents have found jobs in the industrial park and supporting industrial areas, with stable incomes and improved living standards.

In Europe, consumers are very concerned about environmental protection and energy efficiency, especially after the sharp rise in energy prices. Hisense employs 0.01 million employees in Europe alone, with 5 manufacturing bases established. High-end, highly energy-efficient, and high-quality home appliances have won the trust of discerning Europeans. Hisense's highly energy-efficient refrigerators are 10% to 20% more energy-efficient than Europe's A-level energy efficiency standards. In September this year at the IFA exhibition in Germany, Hisense launched a highly energy-efficient washing machine product that is 50% more energy-efficient than A-level energy efficiency standards.

"Looking at the world, Hisense has formed the layout of integrated research, production, and sales centers in the '5+1' global regions: Europe, Americas, ASEAN, Middle East and Africa, Asia-Pacific, and China. This has not only driven employment, contributed to tax revenues, and served local development but also reduced logistics costs and decreased energy consumption." Jia Shaoqian stated. In his view, top-tier companies will inevitably have top-tier ESG performance and top-tier corporate governance levels.

According to Jia Shaoqian, after the new Board of Directors of Hisense Group took office this year, they have reached a consensus and clearly stated a requirement: in order for Hisense to become a world-class enterprise and brand, it must benchmark and learn from the governance experience of world-leading companies, use ESG construction as a leverage and opportunity, continuously promote the diversification of the board of directors, continuously optimize and improve corporate governance levels, establish a more scientifically sound modern corporate system, and accelerate towards the goal of becoming a world-class enterprise!