Core Viewpoint - The optical module (CPO) concept is gaining significant traction in the A-share market, with a notable increase in stock prices and market interest [1]. Group 1: Market Performance - On September 11, the A-share optical module concept sector rose by 6.64%, leading all concept sectors in terms of growth [1]. - Key companies in the optical module sector include Xinyi Technology (SZ300502, stock price 357.98 yuan, market cap 355.8 billion yuan), Zhongji Xuchuang (SZ300308, stock price 422.09 yuan, market cap 469 billion yuan), and Tianfu Communication (SZ300394, stock price 185.65 yuan, market cap 144.3 billion yuan) [1]. Group 2: ESG Reporting - Among the 18 companies in the A-share optical module sector, 9 have published ESG-related reports, resulting in a disclosure rate of 50% [1]. - Of the 9 companies, 6 disclosed "Scope 1" (direct carbon emissions) and "Scope 2" (indirect carbon emissions) information, while only 1 company reported "Scope 3" (value chain carbon emissions) data [1][3]. Group 3: Challenges in Carbon Emission Reporting - The calculation of "Scope 3" carbon emissions faces significant challenges across industries, primarily due to data availability and accuracy issues [2][3]. - The complexity of the optical module and CPU supply chain, with dispersed emission sources, exacerbates the difficulty in carbon accounting [3]. Group 4: Responsible Sourcing - Companies like Zhongji Xuchuang and Dongshan Precision emphasize responsible sourcing, ensuring that their products do not use "conflict minerals" sourced from regions controlled by armed groups [4][5]. - These companies have implemented measures such as signing "Conflict Mineral Declarations" with suppliers to ensure compliance with RBA standards and OECD guidelines [4]. Group 5: Innovation and Intellectual Property - High-tech companies in the optical module sector prioritize technological innovation and intellectual property protection in their ESG reports [6]. - The top three companies in R&D spending for 2024 are Ruijie Networks (21.9 billion yuan), Zhongji Xuchuang (13.3 billion yuan), and Dongshan Precision (12.7 billion yuan) [6]. - Zhongji Xuchuang's chairman emphasizes that social responsibility is not only an obligation but also a driving force for corporate development [6]. Group 6: Recommendations for Improvement - Companies are advised to address issues related to biodiversity, climate impact, and labor rights in mineral extraction [7]. - Respecting and protecting intellectual property is crucial for maintaining fair competition and fostering innovation in the high-tech industry [7].

Group 1 - The optical module (CPO) concept has gained significant attention in the capital market, with a 6.64% increase on September 11, making it the top-performing sector [1] - Among the 18 companies in the A-share optical module sector, 9 have published ESG-related reports, resulting in a disclosure rate of 50% [1] - Only 6 companies disclosed Scope 1 and Scope 2 greenhouse gas emissions, with just 1 company reporting Scope 3 emissions, highlighting challenges in data availability and accuracy [1][4] Group 2 - Leading companies like Zhongji Xuchuang and Tianfu Communication have established dedicated ESG governance structures, indicating a commitment to sustainable development [2] - Zhongji Xuchuang has implemented a three-tier ESG management organization, while Tianfu Communication has a similar governance framework [2] - The focus on responsible sourcing is evident, with companies like Zhongji Xuchuang and Dongshan Precision committing to avoid "conflict minerals" in their supply chains [5] Group 3 - The top three companies in R&D spending for optical modules in 2024 are Ruijie Networks, Zhongji Xuchuang, and Dongshan Precision, with expenditures of 2.19 billion, 1.33 billion, and 1.27 billion respectively [6] - Companies emphasize the importance of intellectual property protection and innovation as key drivers for their development [6][7] - Tianfu Communication has allocated 2.32 million for R&D, representing 7.14% of its revenue, showcasing a strong commitment to innovation [6]

Group 1 - The optical module (CPO) concept has gained significant attention in the capital market, with a 6.64% increase on September 11, making it the top-performing sector [1] - Among the 18 companies in the A-share optical module sector, 9 have disclosed ESG-related reports, resulting in a disclosure rate of 50% [1] - Only 6 companies reported Scope 1 and Scope 2 greenhouse gas emissions, with just 1 company disclosing Scope 3 emissions, highlighting the challenges in calculating these emissions due to data availability and accuracy [3][4] Group 2 - Leading companies like Zhongji Xuchuang and Tianfu Communication have established dedicated ESG governance structures, indicating a commitment to sustainable development [2] - Zhongji Xuchuang has implemented a three-tier ESG management framework, while Tianfu Communication has a similar governance structure, emphasizing the importance of ESG management [2] Group 3 - Companies are increasingly focusing on responsible sourcing of minerals, with Zhongji Xuchuang ensuring that its materials do not come from conflict-affected areas [5] - The emphasis on responsible mineral sourcing is driven by heightened scrutiny from regulators, investors, and customers regarding ESG risks associated with mining [5] Group 4 - The optical module sector is characterized by high technological content, with significant investments in R&D, as evidenced by the top three companies' R&D expenditures: Ruijie Networks (2.19 billion), Zhongji Xuchuang (1.33 billion), and Dongshan Precision (1.27 billion) [6] - Companies are adopting various incentive mechanisms for high-quality talent, with Tianfu Communication allocating 7.14% of its revenue to R&D in 2024 [6] Group 5 - The protection of intellectual property is crucial for the optical module sector, as it directly influences competitive order and innovation [7] - Recommendations for companies include addressing biodiversity and labor rights issues related to mineral extraction, ensuring fair competition through IP protection, and aligning technological advancements with human values [7]