On April 18, 2025, Sifang Optoelectronics Co., Ltd. (hereinafter referred to as Sifang Optoelectronics, code: 688665. SH) officially released the "2024 Environmental, Social and Corporate Governance (ESG) Report" (hereinafter referred to as the "Report"). The reporting system presents the innovative practices and achievements of Sifang Optoelectronics in the fields of environmental protection, social responsibility, and corporate governance (ESG), and also demonstrates its responsibility as a science and technology innovation enterprise in promoting high-quality economic and social development and addressing global challenges.

Deepen ESG strategy and build sustainable development competitiveness with a global perspective

After more than 20 years of development, Sifang Optoelectronics has become an important representative enterprise in the intelligent gas sensor and gas science instrument industry at home and abroad. The brands "Sifang Optoelectronics" and "CUBIC" have gradually gained recognition in the global market.

Dr. Xiong Youhui, Chairman of Sifang Optoelectronics, pointed out that in the current era of deep restructuring of the global industrial chain, Sifang Optoelectronics deeply understandsESGIt is not only a "passport" to the international market, but also a strategic cornerstone for enterprises to build long-term core competitiveness. Unlike evaluation systems based solely on financial indicators,ESGFrom the three dimensions of environment, society, and corporate governance, more emphasis is placed on the social responsibility that enterprises undertake as social citizens in the process of business development. Enterprises need to form a more comprehensive framework and system for sustainable development management, forming a virtuous cycle system of bottom-up, self driven by each business unit, gradual improvement, and continuous iteration, and enhancing comprehensive competitiveness.

Based on a deep understanding of industry trends and stakeholder demands, the company innovatively proposes the ESG strategy "I-GROW Growth Pyramid", systematically sorting out five key substantive issues: R&D innovation driven, talent ecosystem construction, sustainable supply chain construction, green and low-carbon transformation, and customer value deepening. Through practical actions, the company demonstrates its determination to do a good job in ESG and injects new momentum into the sustainable development of the company.

Sifang Optoelectronics Innovation proposes ESG strategy "I-GROW Growth Pyramid"

Technology empowers low-carbon environmental protection and helps build a beautiful China

The commitment to sustainable development is not only a manifestation of corporate social responsibility, but also the cornerstone of ensuring the company's long-term competitiveness and steady development. Sifang Optoelectronics adheres to the concept of sustainable development, actively responds to the national "dual carbon" strategy, insists on promoting effective carbon reduction and control actions, and promotes environmental protection and social progress through technological innovation.

Relying on a diversified gas sensor technology platform, Sifang Optoelectronics has closely integrated technological innovation with policy guidance, deeply responding to the national ecological environment protection plan and carbon neutrality strategy needs. It has independently developed multiple innovative products for greenhouse gas monitoring, methane emission monitoring, outdoor dust monitoring, and fixed/mobile source pollution monitoring, fully demonstrating the breakthrough application of environmental gas monitoring technology in environmental governance and industrial emission reduction.

The "Four party Optoelectronics Environment and Climate Action Management Rules" formulated by the company comprehensively cover areas such as climate change, energy management, circular economy, water resources management, air quality, and noise management. Making addressing climate change and achieving sustainable development a strategic priority, actively supporting the global warming goals of the Paris Agreement. Committed to achieving low-carbon operational goals through the use of renewable energy or the purchase of green electricity. At present, the company's technology center and two green photovoltaic projects in Jiashan Park have been implemented, with an expected annual average power generation of 1.18 million kWh and a reduction of 804 tons of carbon dioxide emissions. The 1140kW photovoltaic project in the headquarters park is about to be implemented, and the self-sufficiency rate of green electricity is expected to increase to 20%, providing hardcore support for the "dual carbon" goal.

Photovoltaic power generation helps with energy conservation and emission reduction

In the tide of a century of changes and industrial transformation, Sifang Optoelectronics is using ESG as a strategic pivot to build a virtuous cycle of 'technological forefront - commercial success - social value'. With continuous technological innovation and responsibility, it interprets the logic of China's intelligent manufacturing climbing up the global value chain, making 'CUBIC' a globally trusted sustainable development enterprise.