Recently, Proya has again received an AA from Wind EGS Rating, and recently reclaimedthe top spot in the personal care industry (In 2023, Proya received an “AA” in Wind ESG rating, topping the industry rankings or the first time). It's reported that among the 29 listed companies participating in the personal care industry rating, Proya led the industry with an overall ESG score of 8.36, a management score of 5.46, and an environmental score of 8.41. In 2024, the Company also received an “AA” rating from Sino-Securities ESG Ratings, ranking first among the consumer staples sector under Sino-Securities’ tier 1 sector classification and first among personal care products under GICS’s tier 3 industry classification (Proya received an "AA" rating from Sino-Securities ESG ratings and was on many lists).

The Latest 2024 Wind ESG Rating (Source: Wind Website)

2024 Sino-Securities ESG Ratings (Source: Sino-Securities Website)

It is worth mentioning that the “Product Life Cycle” sustainable management case submitted by Proya Cosmetics Co., Ltd. (“Proya”) was also selected as the “2024 Sustainable Development (ESG) Practice Case of China’s Fragrance Flavor and Cosmetic Industry”.

Proya's Award Certification

Driven by the global sustainability trend, the Company deeply recognizes the social value and strategic importance in advancing sustainable product management. For four consecutive years, we have properly disclosed all the principles that we adhere to and the performance we’ve made in sustainability and ESG governance. We have worked to establish a sustainable product evaluation system as a response to national carbon and emission reduction policies, consumers’ increasing awareness of environmental protection and their demands for green, safe and low-carbon products. In addition, we have implemented a full-course sustainable development strategy covering from source innovation to end products.

Product Full-lifecycle Model

In 2023, the Company established a Sustainable Product Evaluation Working Group. Through cross-departmental communication and collaboration, Proya further improved and refined the sustainable product evaluation system, developed standardized work procedures, and launched trial product evaluation. This year, enhancing the sustainability attributes of product packaging, utilizing sustainable palm oil, and building low-carbon factories have become our three key priorities in improving product sustainability.

In terms of product packaging, the Company collaborated with some packaging experts to create the Proya Sustainable Packaging Management Manual and conducted training for relevant departments, providing a foundation for improving packaging sustainability. In 2023, Proya introduced refillable option solutions for its popular product series such as Double Effect Brightening Essence 3.0 and Advanced Firming Nourishing Light Cream 3.0, replacing traditional small promotional samples with refill packs. This solution significantly reduced unnecessary packaging material consumption.

Proya Advanced Firming Nourishing Light Cream 3.0 Refill

Regarding sustainable palm oil practices, the Company officially joined the Roundtable on Sustainable Palm Oil (RSPO) in 2023. Additionally, we continued to review the existing palm oil derivative raw materials, and initiated the replacement of RSPO-certified palm oil. In 2024, Proya Cosmetics Co., Ltd.’s Huzhou branch (known as the PROYA Skincare Factory) secured the Roundtable on Sustainable Palm Oil (RSPO) Supply Chain Certification under the Mass Balance (MB) model (Proya secured RSPO supply chain certification).This achievement represents a keymilestone in Proya’s ongoing sustainable development.

RSPO and Proya——An Interview with Chairman Hou Juncheng

In our efforts to build low-carbon factories, Proya actively advanced the digital and intelligent transformation of the factories, leveraging full life cycle digital management to drive upgrades in product quality and green manufacturing. In 2023, Proya was selected on the “Green Supply Chain Management Company 2023” list by the General Office of the Ministry of Industry and Information Technology of P.R.C. Additionally, Proya Huzhou branch was rated as the “Intelligent Factory of Zhejiang 2023” and the “Green and Low-Carbon Factory of Zhejiang 2023” by Economy and Information Technology Department of Zhejiang.

All the time, Proya has fully recognized our missions and responsibilities. We have proactively responded to global sustainability demands. As one of the first companies in China’s cosmetics industry to propose the Sustainable Development Strategic Plan (2022-2025), Proya showcases our vision and commitment. Looking ahead, we will continue to enhance our ESG management system, and advance our sustainable business practices, thereby contributing to the achievement of global sustainability goal.