Actively implementing the concept of sustainable development, Li Ning's MSCI ESG rating was upgraded to BBB in 2024

Recently, Morgan Stanley Capital International (MSCI), an authoritative international index agency, announced the latest environmental, social and governance (ESG) rating results for 2024, and Li Ning's ESG rating was upgraded to BBB.

The MSCI ESG rating thoroughly assesses the performance of enterprises in environmental protection, social responsibility, and corporate governance, and is one of the ESG evaluation systems widely recognized by global investment institutions. The MSCI ESG rating upgrade fully demonstrates Li Ning's unremitting efforts and remarkable achievements in ESG management.

As early as 2006, Li Ning released the first corporate social responsibility report; in 2014, he voluntarily released the first ESG report, and has published an ESG report for 10 consecutive years; in 2021, Li Ning established an ESG management committee and established a vision and strategy for sustainable development. Over a long period of time, Li Ning Group has implemented the sustainable development vision of “continuously surpassing itself to achieve the sustainability of products and operations, so that employees, enterprises, society and nature can develop harmoniously, and jointly build a healthier and better world”. It has taken active actions in environmental product exploration, green operation implementation, social responsibility, corporate governance, etc., and has reaped many results and achieved “moving forward every step of the way”.

Continue to innovate and break through, explore a variety of green and environmentally friendly product solutions

As one of the leading enterprises in the domestic sporting goods, textile, footwear and apparel industry, Li Ning Company promotes the improvement of the professional performance of Li Ning products through material and technological innovation, supports better sports performance, and also explores various environmentally friendly product implementation solutions to provide consumers with more green choices, support and encourage a sustainable lifestyle.

Compared with the previous generation, the carbon footprint of Li Ning's ultra-lightweight 21 running shoes is further reduced

Li Ning focuses on the innovation and application of green materials, and promotes the sustainable development of the industry through technology research and development. In May 2024, Li Ning unveiled fully degradable shoes for the first time. Samples were tested by authorities, and the degradation rate of all shoes was over 80%. Li Ning also became the first Chinese sports brand to achieve full degradation in professional sports shoes.

Li Ning Company already has green low-carbon materials including wire technology, aluminum substrates, GCR and GCU. Compared with traditional substrates such as rubber, Li Ning reduced carbon emissions by about 1,500 tons, 438 tons, and 1,176 tons respectively through the use of GCR, GCU, and rubber substrates in 2023.

Li Ning achieved a breakthrough in full degradation in professional sneakers

In terms of clothing products, Li Ning Company has transformed plastic bottles from waste garbage to environmentally friendly yarn to clothing by recycling waste materials. In 2023, Li Ning used a total of about 2,839 tons of recycled environmentally friendly yarn, reducing carbon emissions by 2,731 tons. In the 2023-2024 season of the Chinese Men's Basketball Professional League (CBA), Li Ning produced uniforms using environmentally friendly yarn made from recycled plastic bottles. In total, he produced about 6,400 sets of uniforms. In total, more than 166,400 plastic bottles were recycled. While actively promoting environmental recycling, he promoted the concept of environmental protection through professional sports arenas.

Relying on intelligent and efficient upgrades, we continue to deepen green operations

In addition to continuing to move towards new green practices on the product side, Li Ning has also achieved a more comprehensive green development of the enterprise through digital intelligence technology and the use of clean energy.

In enterprise parks and logistics bases, Li Ning implemented intelligent office systems to reduce electricity and water consumption by adjusting lighting, air conditioning and ventilation systems, and promoting water-saving facilities. At Li Ning's East China Smart Logistics Center in Jiading, Shanghai, Li Ning is actively building a “black light factory”, operating under unlit conditions, and exploring effective ways to reduce energy consumption in warehouses.

Li Ning is also actively exploring the low-carbon operation of the store. The Shanghai Li Ning Center flagship store has deeply integrated environmental protection concepts in design and operation — using eco-friendly building materials and recycled materials such as straw-based straw boards and acrylic with a high recycling ratio, adjusted the lighting plan. Compared with the traditional scheme, the number of lights was reduced by 18%, and a real-time energy consumption monitoring and intelligent control system was also built. The electrical equipment in the store can be switched intelligently, which is expected to reduce carbon dioxide emissions by 13.5 tons per year.

Shanghai Li Ning Center flagship store carbon data board

The green business requires everyone to work together to promote it. Li Ning actively works with supply chain partners to continuously optimize the green supply chain. Since 2020, Li Ning has carried out carbon inventory work on major suppliers. As of 2023, a total of about 40 suppliers have completed carbon screening work. In addition, Li Ning continues to train suppliers on energy and carbon emission management, discuss energy saving and carbon reduction plans, and lay the foundation for formulating carbon footprint reduction plans for suppliers and products.

In line with a serious attitude of social responsibility, Li Ning has continuously improved the relevant regulations on the management of chemical use by suppliers. As one of the founding brands of the “Zero Emissions of Hazardous Chemical Substances Foundation (ZDHC)”, Li Ning has formed a restricted substance (RSL) enterprise standard, requiring all suppliers to sign a declaration of compliance and monitor the entire process to guide the use of safer chemicals in the value chain, drive upstream and downstream partners, and strive to achieve green co-creation and win-win value.

Employees, enterprise, society and nature are integrated to practice social responsibility to shape a sustainable future

In terms of corporate social responsibility, Li Ning has always adhered to the corporate values of “harmonious development of employees, enterprise, society and nature”, and achieved a win-win situation among employees, enterprises, and all parties in society with a sustainable concept.

Li Ning Company strictly protects the legitimate rights and interests of employees at the level of recruitment, promotion, diversification and anti-discrimination; optimizes the remuneration and welfare system, strengthens talent training and development efforts, and provides strong talent support for high-quality business development. In addition, Li Ning continues to build a healthy and sustainable welfare system and organize various employee care activities to enhance employees' happiness and satisfaction.

Since its inception, Li Ning has actively assumed social responsibility and demonstrated corporate responsibility through practical actions. As a sports company, Li Ning has accumulated a large amount of sports resources over a long period of time. Adhering to the concept of “using sports people”, Li Ning has invested its superior resources in youth sports to achieve full coverage of the popularization of physical education and sports talent training. With public welfare as the original intention and sports as the carrier, Li Ning continues to inspire and support young people to find their love in sports.

Li Ning has long supported youth sports

In terms of social assistance, Li Ning Company responded positively to social emergencies, donated donations, and worked with the people in the disaster area to overcome difficulties.

In June of this year, Kantar Group, a global brand data and analysis company, released the complete list of the 2024 Kantar BrandZ Top 50 Sustainable Brands. With its continuous investment and remarkable results in the field of sustainability, Li Ning ranked 15th, ranking first in the industry. The MSCI ESG rating upgrade is another affirmation of Li Ning's long-term commitment to sustainable development efforts and achievements.

As a highly responsible corporate citizen, in the future, Li Ning will continue to be firm in the direction of sustainable development, adhere to a pragmatic attitude, promote the gradual implementation of a sustainable vision through orderly and strong actions, and continue to improve in environmental protection, social responsibility, and corporate governance to achieve “moving forward every step of the way”!