SCSF(SH:600779) Tai Mei Ti A P P·2025-05-16 09:29Core Viewpoint - The article highlights the increasing importance of ESG (Environmental, Social, and Governance) practices in the Chinese liquor industry, particularly focusing on Shui Jing Fang's (水井坊) proactive approach to sustainability and carbon reduction initiatives as part of its long-term strategy [2][12]. ESG Practices and Initiatives - Shui Jing Fang has been at the forefront of ESG reporting, releasing four comprehensive ESG reports since 2022, with the 2024 report outlining a 10-year carbon reduction target and a commitment to a full value chain low-carbon transformation [3][5][11]. - The company aims to reduce at least 60,000 tons of CO2 equivalent emissions from Scope 1 (direct emissions) and Scope 2 (indirect emissions) from 2024 to 2030, while also promoting low-carbon transformation across its value chain [5][6]. Sustainable Practices Across Value Chain - Shui Jing Fang is implementing a full lifecycle low-carbon transformation plan, focusing on sustainable practices from raw material sourcing to consumer consumption [8]. - The company has committed to 100% original grain order planting, expanded green food certification, and reduced carbon footprints through regenerative agricultural practices [8]. - In packaging, Shui Jing Fang is optimizing designs to reduce material usage and promoting recyclable packaging, while also incorporating carbon management into supplier selection [8][9]. Energy Efficiency and Waste Reduction - The company is enhancing energy efficiency and optimizing energy structures in production, with initiatives like upgrading equipment to reduce energy consumption and utilizing biogas for clean energy [8][9]. - Shui Jing Fang has offset 11,773.54 tons of CO2 equivalent emissions through the purchase of international renewable energy certificates from July 2023 to June 2024 [9]. Social Responsibility and Community Engagement - Shui Jing Fang has engaged in various social responsibility initiatives, including rural revitalization, community support, and cultural heritage preservation, with a total donation of 1.88 million yuan in 2024 [10]. - The company has set a goal to improve water efficiency by 30% by 2030, with significant water recycling achievements in its production facilities [10]. Recognition and Industry Leadership - Shui Jing Fang has received recognition for its ESG efforts, being included in the S&P 2024 Sustainable Development Yearbook and achieving a BBB rating in MSCI ESG ratings, positioning it among the leaders in the Chinese liquor industry [9][10]. - The company’s innovative approach to ESG management serves as a reference model for the industry, particularly with its adoption of a "double materiality" framework in its 2024 ESG report [11]. Long-term Strategy and Vision - Shui Jing Fang is committed to a long-term strategy that integrates ESG principles into its operations, aiming for sustainable growth and high-quality development [12][13]. - The company emphasizes the importance of balancing economic benefits with social value creation and environmental stewardship as part of its corporate vision [13].