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Stock Name:

PROYA

Stock Code:603605

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Proya Cosmetics Co Ltd 2023 CDP Climate Change Questionnaire (excerpts)

Proya attaches great importance to the management of climate change, including climate change into the company's ESG management of high substantive issues, by the board of directors to conduct supervision and management of the company's ESG issues, including climate change issues, relevant functional departments and business departments will include climate change management in the daily focus of work. Every year, the company will collect and disclose greenhouse gas emissions data to evaluate the performance of the company's climate change management.
In 2023, Proya completed the CDP for the first time, and actively responded to the concerns of investors, ESG rating agencies and other stakeholders on the company's management of climate change through CDP climate questionnaire.
C4.3
(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or implementation phases.

C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.
         Initiative category & Initiative type
              Waste reduction and material circularity
              Product/component/material reuse
         Estimated annual CO2e savings (metric tonnes CO2e)
              1,670

         Scope(s) or Scope 3 category(ies) where emissions savings occur
              Scope 3 category 1: Purchased goods & services
         Voluntary/Mandatory
              Voluntary
         Comment
              The Company implemented green packaging projects to reduce carbon emissions from packaging disposal through packaging design upgrade, packaging usage reduction, packaging recycling, and other methods. During the reporting period, we reduced carbon dioxide emissions by 1,670 tons through the utilization of zipper cartons and packaging recycling

         Initiative category & Initiative type
              Low-carbon energy consumption
              Solar PV
        Estimated annual CO2e savings (metric tonnes CO2e)
              1,162.84
        Scope(s) or Scope 3 category(ies) where emissions savings occur
              Scope 2 (location-based)
        Voluntary/Mandatory
              Voluntary
        Comment
              The skincare factory’s self-owned photovoltaic facilities generated 2,038.994 MWh of electricity, reducing carbon emissions by 1,162.84 (=2,038.994*0.5703) tons and reducing purchased electricity by 2,038.994 MWh
In 2022, the carbon emissions reduction was calculated using the national grid average emissions factor of 0.5703tCO2/MWh from the Notice on the Reporting and Management of Greenhouse Gas Emissions by Enterprises in the Power Generation Industry for 2023-2025

        Initiative category & Initiative type
              Low-carbon energy consumption
              Other, please specify
                        Green power
        Estimated annual CO2e savings (metric tonnes CO2e)
              1,026.54
        Scope(s) or Scope 3 category(ies) where emissions savings occur
              Scope 2 (location-based)
        Voluntary/Mandatory
              Voluntary
        Comment
              1. The skincare factory purchased 1,800 MWh of green power, reducing carbon emissions by 1,026.54 (=1,800*0.5703) tons
In 2022, the carbon emissions reduction was calculated using the national grid average emissions factor of 0.5703tCO2/MWh from the Notice on the Reporting and Management of Greenhouse Gas Emissions by Enterprises in the Power Generation Industry for 2023-2025

        Initiative category & Initiative type
              Other, please specify
              Other, please specify
                         We purchased electric forklifts to replace diesel forklifts
        Estimated annual CO2e savings (metric tonnes CO2e)
              71.85
        Scope(s) or Scope 3 category(ies) where emissions savings occur
              Scope 1
        Voluntary/Mandatory
              Voluntary
              1-3 years
        Comment
              The Company used electric forklifts to reduce fossil energy consumption and carbon emissions. During the reporting period, three electric forklifts were used as outdoor operation forklifts in the Company warehouse, saving 27,300 liters of fuel

        Initiative category & Initiative type
              Energy efficiency in production processes
              Machine/equipment replacement
        Estimated annual CO2e savings (metric tonnes CO2e)
              322.73
        Scope(s) or Scope 3 category(ies) where emissions savings occur
              Scope 2 (location-based)
        Voluntary/Mandatory
              Voluntary
        Comment
              In 2022, the Company updated its equipment to reduce unnecessary energy consumption. For example, the Company purchased two permanent magnet frequency conversion oil-free screw air compressors to increase waste heat recovery from air compressors, phased out inefficient water chillers, adopted air compressors with first-level energy efficiency, and phased out or renovated old equipment. In doing so, the Company saved an average of 565.9 MWh of electricity annually, reduced carbon emissions of 322.73 (=565.9*0.5703) tons, and reduced electricity costs

              In 2022, the carbon emissions reduction was calculated using the national grid average emission factor of 0.5703tCO2/MWh from the Notice on the Reporting and Management of Greenhouse Gas Emissions by Enterprises in the Power Generation Industry for 2023-2025

        Initiative category & Initiative type

              Transportation

              Company fleet vehicle efficiency

        Estimated annual CO2e savings (metric tonnes CO2e)

              1.5

        Scope(s) or Scope 3 category(ies) where emissions savings occur

              Scope 2 (location-based)

        Voluntary/Mandatory

              Voluntary

        Comment

              The Company optimized the warehousing and logistics system to reduce energy consumption in the process of warehousing and logistics by rationally arranging warehouses and planning transportation routes During the reporting period, we reduced carbon dioxide emissions by about 1.5 tons by optimizing transport routes

        C6. Emissions data

        C6.1

        (C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?

        Reporting year

        Gross global Scope 1 emissions (metric tons CO2e)

              1,015.54

        Start date

              January 1, 2022

        End date

              December 31, 2022

        Comment

              Scope 1 calculates the carbon emissions of gasoline, diesel and natural gas. In 2022, Proya consumed 52,620.00 liters of gasoline, 39,903.00 liters of diesel and 368,936.00 cubic meters of natural gas.

        Past year 1

        Gross global Scope 1 emissions (metric tons CO2e)

              1,360.77

        Start date

              January 1, 2021

        End date

              December 31, 2021

        Comment

              Scope 1 calculates the carbon emissions of gasoline, diesel and natural gas. In 2021, Proya consumed 291,954.00 liters of gasoline, 42,614.00 liters of diesel and 295,436.00 cubic meters of natural gas.

        Past year 2

        Gross global Scope 1 emissions (metric tons CO2e)

              1,364.73

        Start date

              January 1, 2020

        End date

              December 31, 2020

        Comment

              Scope 1 calculates the carbon emissions of gasoline, diesel and natural gas. In 2020, Proya consumed 269,292.04 liters of gasoline, 52,932.00 liters of diesel and 306,164.00 cubic meters of natural gas.

        C6.3

        (C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?

        Reporting year

        Scope 2, location-based

              6,918.35

        Start date

              January 1, 2022

        End date

              December 31, 2022

        Comment

              Scope 2 calculates the carbon emissions of electricity supplied by power grids, while the electricity generated by photovoltaic and the green electricity purchased by the Company do not calculate the carbon emissions. In 2022, Proya consumed 15,970.07 MWh of electricity, including 3,838.99 MWh of clean electricity.

        Past year 1

        Scope 2, location-based

              7,066.1

        Start date

              January 1, 2021

        End date

              December 31, 2021

        Comment

              Scope 2 calculates the carbon emissions of electricity supplied by power grids. In 2021, Proya consumed 12,161.96 MWh of electricity.

        Past year 2

        Scope 2, location-based

              6,851.52

        Start date

              January 1, 2020

        End date

              December 31, 2020

        Comment

              Scope 2 calculates the carbon emissions of electricity supplied by power grids. In 2020, Proya consumed 11,230.16 MWh of electricity.

        C6.5

        C6.5

        (C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing and explaining any exclusions.

        Purchased goods and services

        Evaluation status

              Relevant, calculated

        Emissions in reporting year (metric tons CO2e)

              268,521.551

        Emissions calculation methodology

              Average spend-based method

        Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

        Please explain

              Calculated based on the amount spent by the Company on purchasing goods and services

        Capital goods

        Evaluation status

              Relevant, calculated

        Emissions in reporting year (metric tons CO2e)

              11,224.85

        Emissions calculation methodology

              Average spend-based method

        Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

        Please explain

              Calculated based on the amount of fixed assets purchased by the Company

        Fuel-and-energy-related activities (not included in Scope 1 or 2)

        Evaluation status

              Relevant, calculated

        Emissions in reporting year (metric tons CO2e)

              0

        Emissions calculation methodology

              Average spend-based method

        Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

        Please explain

              Calculated based on the amount spent on fuel and energy-related activities of the Company

        Upstream transportation and distribution

        Evaluation status

              Relevant, not yet calculated

        Please explain

              The emissions generated by the upstream transportation and distribution of the Company need to be collected from the upstream end. As the collection is not complete at present, it is impossible to carry out calculation.

        Waste generated in operations

        Evaluation status

              Relevant, calculated

        Emissions in reporting year (metric tons CO2e)

              262.3

        Emissions calculation methodology

              Average spend-based method

       Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

       Please explain

              Calculated based on the Company’s waste disposal expenses

       Business travel

       Evaluation status

              Relevant, calculated

       Emissions in reporting year (metric tons CO2e)

              1,544.89

       Emissions calculation methodology

              Average spend-based method

       Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

       Please explain

              Calculated based on the Company’s business travel expenses

       Employee commuting

       Evaluation status

              Relevant, calculated

       Emissions in reporting year (metric tons CO2e)

              6,290

       Emissions calculation methodology

              Average data method

       Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

       Please explain

              Calculated based on the number of employees of the Company

       Upstream leased assets

       Evaluation status

              Not relevant, explanation provided

       Please explain

              The Company does not have any other upstream leased assets emissions of scope 3

       Downstream transportation and distribution

       Evaluation status

              Relevant, calculated

       Emissions in reporting year (metric tons CO2e)

              20,237.93

       Emissions calculation methodology

              Average spend-based method

       Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

       Please explain

              Calculated based on downstream transportation and distribution costs

       Processing of sold products

       Evaluation status

              Not relevant, explanation provided

       Please explain

              The Company produces end products that are sold directly to consumers, without any intermediate processing links for the sold products.

       Use of sold products

       Evaluation status

              Relevant, not yet calculated

       Please explain

              The Company sells cosmetic products which involve few links related to greenhouse gas emissions during the use process. The specific data are still being collected and have not yet been calculated.

       End of life treatment of sold products

       Evaluation status

              Relevant, calculated

       Emissions in reporting year (metric tons CO2e)

              288

       Emissions calculation methodology

              Average spend-based method

       Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

       Please explain

              Calculated based on disposal costs for scrapped sold products

       Downstream leased assets

       Evaluation status

              Not relevant, calculated

       Emissions in reporting year (metric tons CO2e)

              0

       Emissions calculation methodology

              Average spend-based method

       Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

       Please explain

              The Company does not have any downstream emissions of leased assets

       Franchises

       Evaluation status

              Relevant, calculated

       Emissions in reporting year (metric tons CO2e)

              2,690.82

       Emissions calculation methodology

              Average spend-based method

       Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

       Please explain

              The calculation caliber of franchise data is the business area that the Company authorizes other entities (such as distributors) to sell or distribute the Company’s products

       Investments

       Evaluation status

              Relevant, calculated

       Emissions in reporting year (metric tons CO2e)

              20,230.68

       Emissions calculation methodology

              Average spend-based method

       Percentage of emissions calculated using data obtained from suppliers or value chain partners

              0

       Please explain

              Calculated based on the Company’s investment amount

       Other (upstream)

       Evaluation status

              Not relevant, explanation provided

       Please explain

              The Company does not have any other upstream emissions of scope 3

       Other (downstream)

       Evaluation status

              Not relevant, explanation provided

       Please explain

              The Company does not have any other downstream emissions of scope 3

Product ingredient disclosure
The time of product ingredient disclosure lags behind the requirement. If an inconsistency exists, please refer to the registration information at the National Medical Products Administration. Here's the links to see the detailed product registration information:
China Specialty Cosmetics Registration Information
China General Cosmetics Recordation Information
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