Foxconn Releases Its First SDGs Strategy White Paper

Consumer Staples Author: Muriel Meng Editor: Mingmin Zhang Nov 29, 2023 08:00 PM (GMT+8)

Chinese enterprises have actively responded to the UN's Agenda 2030 and comprehensively promoted sustainable development.

Foxconn

On November 23, Foxconn Industrial Internet (601138: SH) officially released the first "Industrial Fortune SDGs Strategy White Paper", announcing that it responded to the United Nations' Agenda 2030 for Sustainable Development, incorporated SDGs into the company's development strategy, and explicitly proposed SDG "3C Response Strategies" with Industrial Fortune's characteristics as well as 16 action objectives, drawing up a blueprint for the comprehensive advancement of sustainable development work.

Zheng Hongmeng, Chairman of the Board of Directors and Chairman of the Sustainable Development Committee of Foxconn Industrial Internet, expressed that, "Foxconn Industrial Internet attaches great importance to sustainable development, and while adhering to the 'EPS+ESG' sustainable management formula, the company will further focus on SDGs in the future, as an important part of the strategy of 'deeply cultivating in China, laying out the global', and maximize the response to the Agenda 2030."

In 2015, all United Nations Member States unanimously adopted the 2030 Agenda for Sustainable Development, which contains 17 goals and 169 specific actions to address climate change, reduce inequality, eradicate poverty, etc., and covers various aspects of the economy, society, and the environment, i.e. the United Nations Sustainable Development Goals (SDGs). In 2023, at the midpoint of the implementation of the 2030 Agenda, Foxconn Industrial Internet officially launched the SDG Response Initiative, aiming to utilize its corporate strengths to focus on and solve social development issues, while creating new business value. In the white paper, Foxconn Industrial Internet disclosed for the first time its SDG "3C Response Strategy". Specifically, it is supposed to creat corporate competitiveness, assist industrial transformation and upgrading, and promote social prosperity and win-win situation, fully taking into account the company's development strategic plan. This strategy takes into full consideration the company's strategic development plan, core competitiveness and the sustainable development needs of the locations where it operates. In order to effectively implement the SDG "3C Response Strategy", the company has further put forward "9 visions, 16 action goals and 30 specific indicators" to carry out SDG actions in a targeted manner, focusing limited resources on the SDG goals most relevant to the company's operational activities and value chain. SDG targets, and maximize its contribution to global sustainable development while realizing its own growth.

As a leading enterprise in intelligent manufacturing, the operation and development concepts of Foxconn Industrial Internet in dual-carbon practice, scientific and technological innovation, employment promotion, employee care, safe production, and social activities are highly compatible with the United Nations's SDGs, and Foxconn Industrial Internet has been encouraging all units to actively carry out sustainable development practices.

In terms of green and low carbon, Foxconn Industrial Internet actively responds to the national "dual-carbon" strategy and clearly puts forward carbon neutral action targets and specific plans, committing to reduce operational carbon emissions by 80% by 2030 compared with the base year of 2020, achieve operational carbon neutrality by 2035, and realize net-zero emissions in the value chain by 2050; by 2022, Foxconn Industrial Internet will achieve an annual carbon reduction of 15 percent; and by 2020, Foxconn Industrial Internet will achieve an annual carbon reduction of 15 percent. IFE has achieved an annual carbon reduction of 153,000tCO2e, a gramatic 300% year-on-year increase in emission reduction; at present, IFE has built 12 green factories across the country, of which 7 are national and 5 provincial and municipal, and the number will increase to 16 by 2025, and plans to achieve green factory certification for 100% of its key carbon-emitting units by 2030.

From the perspective of digital transformation and sustainable industry, Foxconn Industrial Internet is deeply committed to the digital economy industry, providing more green transformation solutions for the society through technological innovation, and helping to build an inclusive and sustainable industry. For five consecutive years, it has been selected as a national "double span" platform, and has empowered the creation of six world-class lighthouse factories and more than 30 smart factories, serving more than 1,500 digitally transformed enterprises, continuing to polish the new competitive advantage for the high-quality development of China's manufacturing industry, and helping the industry's digital transformation.

In terms of employee care, with nearly 200,000 employees globally, Foxconn Industrial Internet adheres to the principle of people-oriented and insists on advocating a workplace culture of diversity, equality, and integration; creates a healthy workplace through the establishment of a sound employee health management system, with the Employee Mental Health Program covering 100% of the domestic and overseas factories by 2030; and continues to provide a major disease relief program and assistance in medical treatment for diseases, with 100% coverage for both domestic and overseas.

As of press time, Foxconn Industrial Internet closed at CNY 14.95 apiece, with a market capitalization of CNY 297 billion.