Actively practicing the concept of sustainable development, LI NING's MSCI ESG rating rose to BBB by 2024

Recently, the international authoritative index institution Morgan Stanley Capital International (MSCI) announced the latest Environmental, Social, and Governance (ESG) rating for 2024, with LI NING's ESG rating upgraded to BBB.

MSCI ESG ratings assess the performance of enterprises in environmental protection, social responsibility, and corporate governance, and is one of the ESG evaluation systems widely recognized by global investment institutions. The upgrade in this MSCI ESG rating 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; in 2014, it proactively released its first ESG report and has been releasing ESG reports for 10 consecutive years; in 2021, LI NING established an ESG management committee and defined a vision and strategy for sustainable development. Over the years, LI NING Group has been practicing the vision of "constantly surpassing oneself to achieve the sustainability of products and operations, promoting the harmonious development of employees, enterprises, society, and nature, and building a healthier and better world together." In terms of exploring environmentally friendly products, implementing green operations, taking social responsibility, and corporate governance, LI NING has taken active actions and achieved many results, moving forward with every step.

Continuous Innovation and Exploration of Diverse Green Environmental Products Solutions

As one of the leading enterprises in the domestic sports goods and textile apparel industry, LI NING Company promotes the professional performance improvement of LI NING products through material and technological innovation, supports better sports performance, and explores diverse environmental product solutions to provide consumers with more green choices, supporting and encouraging sustainable lifestyles.

LI NING Super Light 21 Running Shoes Further Reduce Carbon Footprint Compared to Previous Generation

LI NING focuses on the innovation and application of green materials, promoting industry sustainability through technological research and development. In May 2024, LI NING first showcased fully degradable shoes to the public. Samples tested by authoritative institutions showed that the degradation rate of the entire shoe exceeded 80%, making LI NING the earliest Chinese sports brand to achieve full degradation in professional sports shoes.

LI NING Company already possesses green low-carbon materials including Recycled Polyester Technology, Recycled Sole Material, GCR, and GCU. Compared to traditional rubber sole materials, LI NING reduced carbon emissions by approximately 1500 tons, 438 tons, and 1176 tons in 2023 through the use of GCR, GCU, and Recycled Sole Material.

Li-Ning achieves full degradation in professional sports shoes

In terms of clothing products, Li-Ning Company has achieved a breakthrough in fully degrading professional sports shoes. Through the reuse of waste materials, plastic bottles have completed the transformation from discarded garbage to environmentally friendly yarn and then to clothing. In 2023, Li-Ning Company used approximately 2839 tons of recycled environmentally friendly yarn, reducing carbon emissions by 2731 tons. In the 2023-2024 season of the Chinese Basketball Association (CBA), Li-Ning produced about 6400 sets of sportswear using recycled plastic bottles to promote environmental recycling while actively promoting environmental protection concepts through professional sports arenas.

Relying on intelligent and efficient upgrades, continuing to deepen green operations

In addition to continuously practicing new green initiatives on the product side, Li-Ning also achieves more comprehensive green development through the use of digital intelligent technology and clean energy.

In the company's parks and logistics bases, Li-Ning has implemented an intelligent office system to reduce electricity and water consumption by adjusting lighting, air conditioning ventilation systems, and promoting water-saving facilities. In the Li-Ning East China Smart Logistics Center in Jiading, Shanghai, Li-Ning actively constructed a "dark factory" that operates without lighting to explore effective ways to reduce warehouse energy consumption.

Li-Ning is also actively exploring low-carbon operations in its stores. The flagship store of Li-Ning Center in Shanghai deeply integrates environmental protection concepts in its design and operation—using straw-based straw boards, high-recycling acrylic and other environmentally friendly building materials and recycled materials, adjusting lighting schemes, reducing the number of lights by 18% compared to traditional schemes, and setting up real-time energy consumption monitoring and intelligent control systems. The store's electrical equipment can intelligently switch, reducing carbon dioxide emissions by an estimated 13.5 tons per year.

Carbon Data Dashboard of Shanghai Li-Ning Center Flagship Store

Green initiatives require concerted efforts from all employees to advance together. Li-Ning actively collaborates with supply chain partners to continuously optimize the green supply chain. Since 2020, Li-Ning has conducted carbon audits on major suppliers. By 2023, approximately 40 suppliers have completed carbon audits. In addition, Li-Ning continues to provide energy and carbon emission management training to suppliers, jointly discussing energy-saving 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 on the use of chemicals 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) corporate standards, requiring all suppliers to sign compliance declarations and monitor them throughout, guiding the value chain to use safer chemicals, driving upstream and downstream partners to strive for green co-creation and value sharing

Employees, Enterprises, Society, and Nature Integrated to Shape a Sustainable Future

In terms of corporate social responsibility, LI NING has always upheld the corporate values of "harmonious development of employees, enterprises, society, and nature," realizing a win-win situation among employees, enterprises, society, and various parties with a sustainable concept.

LI NING strictly safeguards the legal rights and interests of employees in recruitment, promotion, diversity, and anti-discrimination aspects; optimizes the salary and benefits system, strengthens talent training and development efforts, and provides strong talent support for high-quality business development. In addition, LI NING continues to build a healthy and sustainable welfare system, organizes diverse employee care activities, and enhances employee happiness and satisfaction.

Since its establishment, LI NING has actively undertaken social responsibilities and demonstrated corporate responsibilities through practical actions. As a sports enterprise, LI NING has accumulated a wealth of sports resources over the years. Upholding the concept of "serving sportspeople," LI NING invests its own advantageous resources in youth sports, achieving full coverage of sports education popularization and sports talent development. With public welfare as its original intention and sports as its carrier, LI NING continuously inspires and supports young people to find their passion in sports.

LI NING has long supported youth sports

In terms of social assistance, LI NING actively responds in social emergencies by donating money and goods, standing with the people in disaster areas to overcome difficulties together.

In June of this year, the global brand data and analysis company Kantar Group released the complete list of the 2024 Kantar BrandZ Top 50 Sustainable Development Brands. LI NING ranked 15th on the list, leading the industry with continuous investment and significant achievements in the sustainable 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 will continue to firmly adhere to the direction of sustainable development, maintain a pragmatic attitude, and gradually implement the sustainable vision with orderly and effective actions, continuously improve in environmental protection, social responsibility, and corporate governance, and achieve "moving forward with every step"!