SUSTAINABILITY

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Environmental Overview

Environmental Overview

Capchem fully integrates the concept of environmental sustainability into all aspects of production and operations. The Company actively participates in global climate action, seizes opportunities, and embraces the "Four Green" concept to vigorously promote energy conservation and emission reduction, continuously optimize the management of "three wastes" (wastewater, waste gas, solid waste) and resources, and practice green and low-carbon operations, earnestly fulfilling its environmental protection responsibilities.

Capchem has remained steadfast in promoting a green and low-carbon transformation of its operations. The Company continuously enhances its capacity to address climate-related risks, and actively seizes climate related opportunities, committed to being a dedicated practitioner of clean and low-carbon energy transition.

Capchem is committed to promoting green and low-carbon development through the use of cleaner energy and more efficient energy utilization.

Capchem strictly complies with national and local laws, regulations, and policies on environmental protection, and remains committed to selecting more environmentally friendly raw materials, adopting cleaner production processes, and deploying more energy-efficient equipment. By leveraging technologies to enable green development, Capchem effectively manages resource and energy consumption and continuously optimizes waste management practices.

Capchem strictly complies with national and local pollutant discharge standards and waste management requirements, establishing compliant and efficient procedures for managing pollutants and waste generated during construction and production. The Company is committed to minimizing environmental impacts of pollutants and waste.

Capchem continuously optimizes the water use structure in production processes to reduce dependence on water resources and minimize the risk of soil and groundwater contamination. Meanwhile, the Company remains attentive to biodiversity conservation, considering ecological impacts from site selection to production and operations to ensure that its business development aligns with biodiversity conservation.

Environmental Overview

CDP Climate Change rating: B.
Established an action plan, reducing greenhouse gas emissions by 6.72% year on-year within the same operational boundary, compared with the baseline year.
Supported 10 suppliers in obtaining a total of 18 carbon footprint certificates.
A total of 12 in-house products completed ISO 14067 product carbon footprint certification.

Implemented 40 carbon reduction projects throughout the year, achieving total emission reductions of 11,949 tons.
Constructed distributed photovoltaic systems with a total installed capacity of approximately 2.3 MW.
Suzhou Novolyte achieved 100% green electricity usage，and the Group’s overall green electricity ratio has risen to 7.2%.

100% of operating production bases obtained ISO 14001 Environmental Management System certification.
Environmental protection investment reached RMB 43.26 million.

Targets for hazardous waste and wastewater reduction were achieved.
Total general waste recycled and reused reached 253.37 tons.