Huabao officially joined the UN Global Compact for jointly promoting global sustainable development

In the wave of globalization, corporate social responsibility and sustainable development have become common pursuits of the international community.  Huabao Flavours & Fragrances Co., Ltd. (hereinafter referred to as “Huabao”), a leading enterprise in China’s flavor and fragrance industry, has taken a significant step towards sustainable development in 2024 by officially joining the UN Global Compact ((hereinafter referred to as the “UNGC”). The Company will actively support and adhere to the Ten Principles of the UNGC in the areas of Human Rights, Labor, Environment, and Anti-corruption, and regularly disclose its progress in implementation. This strategic initiative marks a solid step for Huabao in the field of global sustainable development.

Established in 2000 and affiliated with the UN Secretariat, the UNGC is the world’s largest international organization promoting corporate sustainable development. The concept of Environmental, Social, and Governance (ESG) was first introduced by the UNGC. The organization strives to call on global businesses and stakeholders to integrate the Ten Principles of the UNGC covering Human Rights, Labor, Environment, and Anti-Corruption into their strategies and operations. Through cooperation and partnerships, it aims to jointly advance the broader realization of the United Nations Sustainable Development Goals (SDGs).

Huabao has always been committed to deeply integrating ESG concepts into its strategic planning and daily operations, and demonstrating its social responsibility as a corporate citizen through practical actions. In recent years, the Company’s practices in rural revitalization and social responsibility have been widely recognized by society. Its rural revitalization case was successfully selected as “Excellent Practice Cases of Rural Revitalization of Public Companies” by China Association for Public Companies (CAPCO), and its ESG case was successfully selected and included in the “2024 Sustainable Development (ESG) Practice Cases in China’s Fragrance, Flavor and Cosmetics Industries”, demonstrating the Company’s practices and achievements in the field of sustainable development. In 2024, Huabao served as a lead author in the formulation of the “Sustainable Development (Environment, Social, Governance) Guideline for Companies in Flavor and Fragrance, and Cosmetics Industries”, demonstrating its active role in promoting the sustainable development of the industries.

The Company places great emphasis on employees’ labor rights protection and employee care, striving to create a fair, healthy, safe, and happy work environment. It has internalized the labor standards principles of the UNGC and put them into practice. To effectively safeguard the rights and interests of female employees, Huabao has established the Huabao Mommy’s House. To promote a healthy work-life balance, the Company has built or leased sports facilities for employees, providing them with access to fitness areas. Additionally, various cultural and sports activities have been organized to enrich employees' leisure time, putting the concept of well-being into practice. In advancing its internationalization process, PT Warlbor Flavour and Ingredients Indonesia, a subsidiary of Huabao, strictly complies with local regulations and respects, and integrates into the local religious culture. In 2024, the newly opened office building features prayer rooms for Muslim employees, demonstrating respect for the religious and cultural diversity of international staff, contributing to the protection of global cultural diversity, and promoting understanding and respect among nations.

While pursuing economic benefits, Huabao remains committed to the path of green development, fostering harmonious coexistence between the enterprise and the environment, and contributing to the achievement of global sustainable development goals. In daily operations, the Company actively adopts efficient and environment-friendly equipment, continuously optimizes resource use and energy consumption, and improves resource utilization efficiency. It strictly adheres to national environmental protection regulations, establishes a comprehensive environmental management system, and continuously improves environmental protection facilities to ensure scientific and standardized environmental management. Furthermore, in response to China's “carbon peaking and carbon neutrality" goals, Huabao has established an ESG Climate Project Working Group in 2024 and initiated an ESG Climate Risk Project, actively increasing its responsibility for environmental protection. Huabao’s path of green development is not only the way forward for high-quality corporate development, but also a concrete commitment to implementing the UNGC’s environmental principles.

Huabao’s joining the UNGC enables its Wind ESG rating to upgrade to A in 2024, making it the only company in China's flavor and fragrance industry to receive a Level A rating, which is another major step forward for Huabao. This achievement not only demonstrates Huabao’s leading position in the ESG field, but also represents a significant step in its commitment to long-term and sustainable development strategies. In the future, Huabao expects to collaborate with a wide range of global stakeholders to jointly advance the achievement of the UN SDGs and work hand-in-hand with global enterprises to build a more sustainable world.