Recently, the international authoritative index institution Morgan Stanley Capital International (MSCI) announced the latest Environmental, Social, and Governance (ESG) ratings for 2024, with Li Ning's ESG rating rising to BBB level.

MSCI ESG ratings deeply evaluate the performance of companies in environmental protection, social responsibility, and corporate governance. It is one of the ESG evaluation systems widely recognized by global investment institutions. This MSCI ESG rating upgrade fully demonstrates Li Ning's relentless efforts and significant achievements in ESG management.

As early as 2006, Li Ning released its first corporate social responsibility report; actively released the first ESG report in 2014, and has been publishing ESG reports for 10 consecutive years; in 2021, Li Ning established the ESG Management Committee and established a vision and strategy for sustainable development. Over the years, Li Ning Group has been adhering to the sustainable development vision of "continuously surpassing oneself to achieve the sustainability of products and operations, promoting harmonious development among employees, enterprises, society, and nature, and building a healthier and more beautiful world," taking positive actions in environmental product exploration, green operation implementation, corporate responsibility, and governance, and has achieved many results, advancing with every step.

Continuously innovating and exploring diverse green and eco-friendly product solutions.

As one of the leading companies in the domestic sporting goods and textile and apparel industry, Li Ning Company enhances Li Ning's product professionalism and performance through material and technological innovation, supports better athletic performance, while exploring diverse eco-friendly product implementation plans, providing consumers with more green choices, and supporting and encouraging sustainable lifestyles.

Li Ning Super Light 21 running shoes further reduce carbon footprint compared to the previous generation.

Li Ning focuses on the innovation and application of green materials, promoting the industry's sustainable development through technological research and development. In May 2024, Li Ning publicly showcased fully degradable shoes for the first time. Samples tested by authoritative institutions showed that the degradation rate of the entire shoe exceeded 80%. Li Ning also became the first Chinese sports brand to achieve full degradation in professional sports shoes.

Li Ning has green and low-carbon materials including bio-silk technology, bio-based soles, GCR, and GCU. Compared to traditional rubber soles, Li Ning reduced carbon emissions by approximately 1500 tons, 438 tons, and 1176 tons in 2023 by using GCR, GCU, and bio-based soles.

Li Ning has achieved a breakthrough in full degradation on professional sports shoes.

In terms of clothing products, Li Ning uses recycled materials to transform plastic bottles from waste to eco-friendly yarn and then garments. In 2023, Li Ning used approximately 2839 tons of recycled eco-friendly yarn, reducing carbon emissions by 2731 tons. In the 2023-2024 Chinese Basketball Association (CBA) season, Li Ning produced about 6400 sets of sportswear using eco-friendly yarn made from recycled plastic bottles, recycling over 166,400 bottles. Promoting environmental protection recycling through practical actions, Li Ning conveys and drives the environmental protection concept through professional sports events.

Relying on intelligent and efficient upgrades, Li Ning continues to deepen green operations.

In addition to continuously implementing new green practices in its products, Li Ning achieves a more comprehensive green development for the enterprise through digital intelligence technology and the use of clean energy.

In the corporate campus and logistics base, Li Ning has implemented an intelligent office system to reduce electricity and water resource consumption by adjusting lighting, air conditioning ventilation systems, and promoting water-saving facilities. In the Li Ning East China Smart Logistics Center in Shanghai Jiading, Li Ning actively establishes a "dark factory" that operates without lighting, exploring effective ways to reduce warehouse energy consumption.

Li Ning actively explores the low-carbon operation of stores. The flagship store of Li Ning in Shanghai integrates environmental protection concepts deeply in design and operation - using straw-based straw boards, high-recycling-rate acrylic environmental building materials, and recycled materials. The lighting scheme has been adjusted, with a 18% reduction in the number of lights compared to traditional schemes. Real-time energy consumption monitoring and smart control systems have been set up, allowing intelligent switching of electrical equipment in the store, expected to reduce carbon dioxide emissions by 13.5 tons per year.

Shanghai Li Ning Center flagship store Carbon Data Dashboard

Green initiatives require the concerted efforts of all, Li Ning actively cooperates with supply chain partners to continuously optimize the green supply chain. Since 2020, Li Ning has conducted carbon investigations on major suppliers. By 2023, about 40 suppliers have completed carbon investigations. In addition, Li Ning continues to provide energy and carbon emission management training to suppliers, jointly discussing energy conservation and carbon reduction plans, laying the foundation for developing supplier and product carbon footprint reduction plans.

With a serious attitude towards social responsibility, Li Ning continuously improves the relevant regulations for the management of chemical usage by suppliers. As one of the founding brands of the Zero Discharge of Hazardous Chemicals (ZDHC) Foundation, Li Ning has established Restricted Substance List (RSL) enterprise standards, requiring all suppliers to sign compliance declarations and be fully monitored, guiding the value chain to use safer chemicals, driving upstream and downstream partners to strive for green co-creation and value sharing.

Employees, companies, society, and nature are integrated, practicing social responsibility to shape a sustainable future.

In terms of corporate social responsibility, Li Ning has always upheld the corporate values of 'harmonious development of employees, companies, society, and nature,' realizing win-win situations among employees, companies, and society with a sustainable concept.

Li Ning strictly safeguards employees' legitimate rights and interests in recruitment, promotion, diversity, and anti-discrimination. Optimizing the salary and welfare system, strengthening talent training and development efforts, providing strong talent support for high-quality business development. In addition, Li Ning continues to build a healthy, sustainable welfare system, organizes diverse employee care activities, and enhances employees' happiness and satisfaction.

Since its establishment, Li Ning Company has actively taken on social responsibilities, demonstrating corporate responsibilities with practical actions. As a sports enterprise, Li Ning has accumulated a large number of sports resources. Upholding the concept of "serving the sports community," Li Ning Company invests its own advantageous resources into youth sports, covering the entire process of sports education popularization and talent cultivation. With public welfare as its original intention and sports as a carrier, Li Ning continuously inspires and supports young people to find their passion in sports.

Li Ning has long been supporting youth sports.

In terms of social assistance, Li Ning Company actively responds in emergencies, donating money and goods during sudden social crises, standing in solidarity with the people in disaster areas to overcome difficulties together.

In June of this year, global brand data and analysis company Kantar Group released the complete list of the 2024 Kantar BrandZ Top 50 Sustainable Development Brands. Li Ning Company ranked 15th on the list, leading the industry with continuous investment and significant achievements in the sustainability field. This MSCI ESG rating upgrade is another affirmation of Li Ning's long-term efforts and achievements in sustainable development.

As a highly responsible corporate citizen, in the future, Li Ning Company will continue to firmly pursue sustainable development, adhere to a pragmatic attitude, and gradually realize the sustainable vision through orderly and vigorous actions. It will continuously improve in terms of environmental protection, social responsibility, and corporate governance, striving to achieve progress with every step forward!