2021 ESG report released by Shanghai Jahwa | Promote sustainable development with dedication and kindness

The 2021 ESG report was released by Shanghai Jahwa (600315. SH) on March 16th ,2021 and it is the second year in a row that the company has released a separate ESG report. In 2021, Shanghai Jahwa upgraded its brand-new corporate culture system. Based on the brand-new corporate vision and mission, it introduced the international leading ESG responsibility management concept as a strategy to drive the medium-and long-term development of enterprises, and issued the Outline of ESG Medium-and Long-Term Strategic Planning, which disclosed the medium-and long-term goals in environment, society and corporate governance. In order to continuously promote sustainable development, the Company took various measures in environmental, social and corporate governance during the reporting period.

Environmental responsibility: to create green and low-carbon ecological environment

In the “Outline of ESG Medium-and Long-Term Strategic Planning” released in 2021, the company clearly stated that it will achieve the goal of "double carbon" earlier than the country, that is, to achieve carbon peak in 2025 and to achieve carbon neutrality in the whole value chain in 2050.

In order to achieve this goal, the company incorporates the environmental impact assessment of the whole life cycle of products into the whole development process of products, hoping to create green and low-carbon products through green design and green manufacturing. ,Meanwhile, it actively practices green procurement, green packaging and green logistics, so that the green and sustainable development of the supply chain can be achieved. The company works closely with BASF, the world's leading chemical company, to develop green raw materials. In terms of the development and design of new products, the company will apply more raw materials with high natural index and good biodegradability in the future to make the formula of the company's products more organic, natural and environmentally friendly. Moreover, the company takes some measures to promote the green and low carbonization of upstream and downstream supply chains. For example, to formulate a cooperation evaluation basis for partners and to conduct a comprehensive assessment for important suppliers every three years. In addition, the company has formulated the “Measures for Sustainable Packaging Management”, aiming to achieve 80% of packaging materials that are recyclable, reusable or degradable by 2035. The company plans to finally realize that the packaging of its products is refillable, reusable, recyclable or compostable in 2050; In terms of logistics and transportation, the “Measures for the Administration of Greenhouse Gas Emissions from Logistics, Transportation and Storage” is issued by the company, which covers the greenhouse gas emission reduction targets and action plans of self-owned warehousing logistics and leased warehousing logistics. Besides, relevant policies have been formulated from three aspects: logistics and transportation management, warehousing management and supplier upgrading plan, striving to achieve the goal of reducing the total greenhouse gas emissions in logistics, transportation and warehousing year by year after 2030 and reducing the carbon emissions of all operating facilities including factories, warehouses and offices by 50% in 2035.

Social responsibility: join hands with relevant stakeholders to achieve shared growth and win-win cooperation

From social aspect, the company is committed to creating shared and win-win value with all relevant stakeholders.

The company has always adhered to the principle of focusing on consumer demand, and tried its best to create industry-leading products and services, so as to better fulfill product and customer responsibilities. In 2021, the company invested 173 million yuan in R&D, accounting for 2.27% of the operating income. In the mean time, the company has also formulated different types of requirements and standards in order to ensure the safety and excellent efficacy of products in all directions. In addition, the company attaches great importance to the protection of customers' rights and interests and after-sales service of products, actively collects feedback information on adverse reactions from consumers, and sets up a special product hotline team to formulate a perfect complaint handling process to ensure that all its clients’ complaints can be properly handled.

The company regards every employee as a family member, grows with them on the premise of ensuring their safety, and strives to create a better workplace environment for employees with ingenuity. The company also regularly holds birthday parties and internal communication meetings to enhance employees' sense of belonging, and ensures employees' life safety by establishing an EHS management system with clear responsibilities and division of labor. In addition, the company can also give employees a variety of vocational training and perfect selection and promotion mechanism, and strive to create a good career development platform for them. During the year of 2021, the engagement of the company's management increased by 17 percentage points, and the satisfaction of all employees increased by 3.9 percentage points.

The company also has a strong sense of social responsibility, never forgets to give back to the society, and actively participates in public welfare undertakings such as emergency rescue, rural revitalization, caring for women and vulnerable groups. In 2021, the total value of donated materials is close to 7 million yuan. In addition, the company also took the lead in assisting various communities to fight the COVID-19 pandemic, supporting the rainstorm disaster in Henan, giving nursing products to thousands of medical personnel, and donating charity sale fundraising to autistic children, thus demonstrating the role of leaders in the beauty and daily chemical industry with these actions.

Corporate Governance: Achieve company’s high-quality development via various optimization and enhancement

In the course of development, the company continuously optimizes the development route, continuously improves the governance structure, and strengthens the risk prevention ability to provide a strong guarantee for steady development. In 2021, the company successfully promoted the diversification of the board of directors, and specially added female independent director representatives in the latest general election of the board of directors, thus increasing the proportion of female director representatives.

During the reporting period, the Strategy Committee of the Board of Directors was renamed as the Strategy and Sustainable Development Committee of the Board of Directors, and the Audit Committee of the Board of Directors was renamed as the Audit and Risk Management Committee of the Board of Directors , so that the decision-making ability and governance level of the company can be further enhanced.

In 2021, the company also set up many communication channels, including investor hotline, investor email, SSE E interaction, investor relations WeChat applet, performance briefing, visiting research, roadshow,, so as to strengthen communication with investors. For three consecutive years, the company has been awarded Grade A in the information disclosure evaluation of Shanghai Stock Exchange. In addition, it has also won the "Best Investor Relations Award", "First China Listed Company Economic Award, Annual Outstanding Company Award for Investment Value", and the "Annual Report Performance Briefing" in 2021 has also been awarded the "Best Practice Case" of China Association of Listed Companies.

The company has always strictly fulfilled the cultural standards of being incorruptible. During the reporting period, the Company organizes, leads and strengthens anti-corruption study and education, establishes an anti-money laundering management system and encourages the reporting of corruption incidents, thus continuously improving the professional ethics system and business ethics culture.

As the first enterprise to implement ESG responsibility management mode in domestic beauty and daily chemical industry, the ESG work of the company has been widely recognized. During the reporting period, the company won the A-level evaluation of Wind ESG, a well-known financial data institution. In the rating of the leading ESG rating agency in China, its rating has been upgraded to B +. In addition, the company also ranks among the top three daily chemical industries in China's Corporate Social Responsibility Development Index, and ranks first among local enterprises.

In 2022, Shanghai Jahwa is still with a dream in heart and will never waste the precious times. The company continues to deeply integrate ESG management mode with operation, promote the sustainable development of enterprises with dedication and kindness, thus carrying forward Chinese beauty all over the world in the future."