In today’s ESG more and more attention, profitability is no longer the only indicator to measure the success of an enterprise, ESG is becoming an important yardstick to define a good company. For Industrial Fulian, ESG governance is a comprehensive, top-down unified standards and requirements, and constantly evolving process, in which “green development” is a main line throughout the company’s operations. According to the semi-annual report, around the “double carbon” goal, in 2023, the industrial rich Union is firmly on the road of green development and continues to make efforts.

The first is green manufacturing. During the reporting period, Industrial Fulian has obtained 12 green factory licenses, covering 2/3 of the key parks, 28 subsidiaries have passed ISO14001 environmental management system certification, 100% of the units with emission permits have obtained ISO50001 energy system certification, and 12 subsidiaries have obtained ISO50001 energy system certification. Key energy consumption units (annual comprehensive energy consumption of more than 3,000 tons of standard coal) accounted for 67%. Especially in the link of reducing operational emissions, Industrial Fuunicom has improved the energy use efficiency in the production process by replacing high-energy-consuming and low-efficiency equipment, improving processes and processes, and upgrading energy systems. During the reporting period, the company added 346 energy-saving and emission reduction projects, invested 315 million yuan in energy conservation, and reduced emissions by 58,600 tCO2e, planning to reduce emissions by 145,000 tCO2e for the whole year.

In terms of green energy, Industrial Fulian has built its own distributed photovoltaic power stations in many parks, which has built 53 megawatts, with an annual generating capacity of about 53 million KWH, and is under construction for 21 megawatts, which is expected to increase annual generating capacity by 21 million KWH. At the same time, the company also actively participates in green electricity green certificate transactions, and is expected to purchase 2.6 billion KWH of green electricity throughout the year, accounting for nearly 70% of the total electricity.

In terms of green products, the increasing contradiction between supply and demand of computing power in the era of computing power makes data center energy conservation and efficiency become a top priority. Industrial Fulian advanced layout of data center liquid cooling and immersive cooling products, the current fourth-generation AI server uses two cooling technologies, water cooling and air cooling, to provide energy-efficient data center solutions. According to the report, IFU’s immersive data center solution can achieve a significant reduction in data center PUE to 1.05, which can save energy by 40% compared to traditional air-cooled data centers.

Continue to improve the ESG governance system to build a more resilient future

As early as the beginning of the listing, Industrial Fulian has raised ESG as an important part of the sustainable development strategy to the top management of the company. In recent years, the company’s ESG construction has entered a fast lane. In May 2023, Industrial Fulian released the corporate Social responsibility (CSR) report for the fifth consecutive year to continuously optimize the company’s ESG governance structure, improve management effectiveness and reduce operational risks.

In early July, the company completed the election of a new board of directors, and the current board of directors of the company increased from the original six to seven people. Among them, the number of independent directors increased from 2 to 3, and the proportion increased from 33% to 42%. Two out of three independent directors are women, and the proportion of female directors has risen from 17% to 28%. The members of the new Board of Directors are diverse in terms of gender, educational background and professional skills, which further enhances the diversity and risk resistance of the company’s board of directors, especially the introduction of independent directors in the field of environment and dual carbon, which also shows the company’s determination to continue to strengthen ESG work.

With its continuous efforts in the field of ESG, Industrial Fulian has been highly recognized by domestic and foreign rating agencies. In the 2022 international rating, MSCI upgraded the company’s ESG rating to BBB, three levels in two years; Morningstar’s ESG risk rating was lowered to 18 points, placing it at low risk. S&p CSA rating performance is better than 92% of global peers; CDP obtained a Grade B in its first carbon disclosure assessment.

In terms of domestic rating, the company’s Hang Seng ESG rating has maintained A level for four consecutive years, ranking in the top 10% of the industry; China Securities ESG rating was rated A, ranking the top 12% in the same industry; Runling Global ESG rating was rated A, ranking top 1.7% among A-share listed companies.

Thanks to the emphasis on ESG work and excellent performance, in the first half of 2023, Industrial Fulian won a number of ESG honors, including being selected for the first time in Fortune China ESG Influence List and CDP Supplier Cooperation Rating Leader List; Won four public welfare awards such as “2022 Top 500 Chinese Enterprise Philanthropy”, ESG Practice Excellence Model Award of China’s listed companies, and “Xincai”