Practicing the ESG Concept and Promoting Sustainable Development - Huabao’s Construction of Reassuring Scenarios for Employees

At the beginning of this year, Mr. XIA Liqun, Chairman of Huabao, pointed out at the annual work meeting that we should promote sustainable development of Huabao with the ESG (environmental, social, and governance) concept, and require all employees to fully recognize the importance of ESG and further organize and promote ESG work; seriously study and implement the ESG management concept, integrate ESG work into daily operations, and form the long-term management mechanism; establish the risk identification and prevention mechanism through ESG, further standardize the overall risk management process and internal control system of Huabao, improve its risk management capabilities, and promote sustainable development of Huabao.

The ESG concept of corporate social responsibility covers the impact on employees, customers, suppliers, communities, and other stakeholders. Each enterprise should comply with laws and regulations, respect human rights, labor rights, and consumer rights, and actively participate in community and charitable activities. Since the beginning of this year, Ms. YUAN Xiaoqin, Director and President of Huabao, has emphasized several times at the President's Office Meeting that Huabao's internationalization not only puts forward higher requirements for talents, but also proposes new requirements for the Company's standardized and humanized management. While strengthening talent introduction and training, we must implement employee care and interest protection, so that talents are willing to join the Company, stay long her, work hard, and better serve the Company. Each department should take effective measures and carry out implementation work.

To effectively implement ESG related work, practice corporate social responsibility, care for employees, improve the safety awareness and emergency response ability of employees, and ensure the health and safety of employees, under the care and guidance of the leaderships of Huabao, the construction of reassuring scenarios for employees, led by the Shanghai Industrial Park United Trade Union of Huabao Flavours & Fragrances Co., Ltd. ("Huabao Trade Union" or the "Trade Union"), was successively carried out in the Huabao Shanghai Park and the Huabao Yingtan Production Base on October 18 and 19, 2023, which mainly included training on CPR AED, First Aid, and rental and installation of AED equipment. Upon the Company’s invitation, professionals provided training and AED equipment services for employees. Six AED devices were installed in Huabao Shanghai Park, Huabao R&D Building, Yingtan Huabao, and Jiangxi H&K respectively. This event fully leveraged the role of Huabao Trade Union as a bridge and link in the new era of "holding the enterprise with one hand and the employees with the other", and organically combined the implementation of employee care with enterprise ESG work, enabling employees to learn first aid knowledge, master first aid skills, and be proficient in using first aid equipment, making more people aware of the basic emergency procedures, internal emergency resource allocation, ways to avoid risks and ask for help; enabling more people to have the ability to participate in on-site rescue operations as soon as possible; establishing an orderly and efficient emergency response mechanism; demonstrating corporate social responsibility. A total of 60 employees from Huabao, Shanghai H&K, Yingtan Huabao, and Jiangxi H&K participated in the training and practical exercises.

On the first day of the training, Ms. CHEN Jing, Chairman of Huabao Trade Union and the Human Resources and Administration Department of Huabao, attended the training mobilization. She pointed out that the smooth progress and implementation of this work cannot be separated from the strong support and concern of the Company's leaderships, as well as previous thorough research and argumentation. This event was another important measure of the Company in employee care work, and also another effective implementation of the Company's ESG work. She hoped that the trainees could study diligently, learn knowledge, and master skills. After a full day of training, with compact and relaxed courses, emphasis on practical operation, all the trainees expressed that it was fruitful and worthwhile.

In terms of employee care work, the Company has been closely interacting and cooperating with the Trade Union, and taking various effective measures based on actual conditions. To effectively protect the rights and interests of female employees, the Huabao Loving Mommy Home has been created. To promote a healthy work and lifestyle combining work and rest, the employee sports venue has been established and rented, offering sports and fitness venue services for employees. In addition, the Company has organized various cultural and sports activities to enrich employees’ leisure life.

In addition to fulfilling its social responsibility of caring for employees, Huabao is also concerned with national affairs, charitable causes, community responsibilities, etc. From assisting in poverty alleviation to consolidating the achievements of poverty alleviation, and to investment in rural revitalization, Huabao has helped farmers get rid of poverty and become well-off. From the snowy plateau, the Northwest Desert to the holy land of Yan'an, and to the mountainous areas of Guizhou, the loving schoolbags and school uniforms donated by Huabao have brought a beam of light and warmth to children. From the "cognition practice" in higher education to the science popularization education in low years of school, Huabao has made school-enterprise cooperation more practical and effective, leading students to search for flavours and explore the fragrances.

Adhering to the principle of "No act of kindness, no matter how small, is ever wasted.", Huabao has been practicing its corporate social responsibility and implementing ESG work, and has received positive social feedback. The rural revitalization practice case of Huabao was successfully selected into the Outstanding Practice Case of Rural Revitalization of Listed Companies by the China Association of Public Companies. Huabao has also received project feedback and a letter of appreciation from local herdsmen for the donation project of Tibet Naqu Yak Breeding Base. The construction of reassuring scenarios for employees has strengthened their safety awareness and improved their emergency response capabilities. Huabao provides AED emergency equipment to the public, which demonstrates the Company's good social citizen image. Huabao will continue to implement the ESG work in a small and fast-paced manner, shape its corporate brand image, enhance its competitiveness, promote its transformation and upgrading, and promote its sustainable development.

Tips:

The ESG evaluation system focuses on three aspects: environmental, social, and governance. The ESG concept emphasizes that enterprises should pay attention to ecological environment protection, fulfill social responsibilities, and improve governance levels. In 2004, the United Nations Global Compact released the Who Cares Wins, officially proposing the concept of "ESG", advocating that enterprises should not only focus on a single profit indicator, but also pursue long-term sustainable development from multiple aspects such as environment, social impact, and corporate governance.

Practicing the ESG concept is beneficial for enterprises to connect with the international market, promote industrial upgrading, and promote sustainable development.