On July 17, Morgan Stanley (MSCI), an international authoritative investor index compiler, released the latest ESG rating result of CNGR, "In 2024, the MSCI ESG rating of CNGR has advanced from BB to BBB." This marks another steady improvement in CNGR's rating since it was awarded the MSCI ESG Rating for the first time in 2022. It now ranks at the upper and middle level of the industry, demonstrating CNGR's steady pace and outstanding achievements in sustainable development.
MSCI is one of the world's most authoritative ESG index rating agencies. Its ESG rating results are important for major investment institutions and many individual investors worldwide to refer to before making investment decisions. The MSCI ESG Rating aims to measure the resilience of listed companies to long-term and finance-related ESG risks. It focuses on various topics such as climate change, natural capital, pollution and waste, human capital, product responsibility, social opportunity, corporate governance, corporate behavior, etc. The rating results are generally objective and can fully reflect a company's operation status, governance standards, and ESG risk management ability and performance. The two consecutive advancements of CNGR's MSCI ESG Rating fully demonstrate the company's excellent management practices in sustainable development.
The steady improvement of CNGR's MSCI ESG rating in this second round can be attributed to its high conscientiousness and continuous investment in sustainable development.
In the environment,CNGR has actively responded to China's national dual carbon strategy, the Paris Agreement, and the Science Based Targets Initiative (SBTi) by setting the goal of "committing to 100% clean energy electricity by 2025 and achieving operational carbon neutrality by 2040". At the same time, in terms of reducing toxic emissions and wastes, all domestic production bases of CNGR have passed the ISO 14001 environmental management system certification and regularly conduct strict environmental audits on operating activities to continuously deepen their work practices in environmental protection.
Regarding the social field, by focusing on the needs of all parties and serving the rights and welfare of the value chain, CNGR works with internal employees and partners across upstream and downstream segments of the industry chain to create value and achieve the coordinated development of all parties in the value chain. Besides, CNGR focuses on the sustainable development of the supply chain and practices responsible procurement. In 2023, CNGR's Qinzhou industrial base in China and Dingxing project in Indonesia passed the due diligence assessment for the third-party supply chain, respectively, and were both rated A. In 2024, its Debonair smelter project in Indonesia became the first smelter in the country to have successfully passed the due diligence audit conducted by the Responsible Minerals Initiative (RMI). In addition, focusing on new materials as its primary business, CNGR proactively discloses information about relevant chemical substances to evaluate their possible adverse effects and deeply integrates environmental health and safety standards into product design to further strengthen the social responsibility awareness of all departments.
In governance, CNGR is known for its high standards and strict requirements. By strengthening the business ethics practice, improving the governance, and building a transparent and efficient management system, it has achieved integrity, transparency, and efficiency in enterprise management and created a reliable corporate image. In 2023, CNGR formally upgraded the Strategy Committee of the Board of Directors to the Strategy and ESG Committee as a dedicated agency responsible for the company's long-term development strategy, ESG performance, and major investment decisions. Meanwhile, it set up dedicated committees focusing on risk management, compliance management, and work safety. In setting the composition of its Board of Directors, CNGR fully considers the diversity of its members and builds an executive remuneration assessment system that combines "operation assessment with sustainability assessment", linking the management results related to sustainable development issues with executive performance compensation. MSCI believes that CNGR leads most of its global peers in business ethical practices.
In the future, CNGR will always adhere to the corporate mission of "Materials to Perfection", build a new energy material ecology featuring "resource-sharing, value co-creation, low carbon, and sustainable development", and help and lead the sustainable development of the industry.
