Shanghai Chicmax Cosmetic Co., Ltd. 2025 ESG Report: Key Highlights and Strategic Developments for Investors

Shanghai Chicmax Cosmetic Co., Ltd. has released its 2025 Environmental, Social, and Governance (ESG) Report, providing a comprehensive overview of its sustainability strategy, achievements, and forward-looking plans. The report presents critical information that may influence investor sentiment and potentially impact the company’s share value.

1. Climate Strategy and First-Time Scope 3 Disclosure

• 2030 Climate Target: The company has established its first climate target, aiming to reduce absolute Scope 1 & 2 greenhouse gas (GHG) emissions by 15% by 2030, using 2024 as the baseline. This ambitious target aligns with China’s national goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.
• First-Time Scope 3 Disclosure: For the first time, Chicmax has disclosed Scope 3 GHG emissions, enhancing transparency and meeting evolving regulatory and market expectations.
• Climate Scenario Analysis: The company undertook its first climate scenario analysis, stress-testing the resilience of its business under various climate outcomes. The results indicated low risk across all scenarios, but the company is committed to refining its analysis as methodologies and data availability improve.
• Measurable Progress:
  • GHG emission intensity (Scope 1 & 2) improved by 5% year-on-year.
  • Energy consumption intensity reduced by 20% year-on-year.
  • Non-hazardous waste intensity decreased by a significant 71% year-on-year.

2. ESG Governance Structure and Materiality Assessment

• Board-Level Oversight: The Board of Directors holds ultimate responsibility for sustainability strategy, supported by an ESG Working Group comprising management from core functions. This structure ensures ESG risks and opportunities are integrated into the company’s overall governance and strategic planning.
• Comprehensive Materiality Assessment: 27 sustainability issues were assessed and prioritized, with 17 deemed most material for the year. These issues span climate resilience, clean beauty, product safety, data protection, and anti-corruption, among others.

3. Commitment to Sustainable Innovation and Responsible Supply Chain

• Clean Beauty Leadership: Chicmax released China’s inaugural “White Paper on Clean Beauty Industry” in partnership with Tmall Beauty, TMIC, and Kantar. The company also contributed to the development of the General Principles of Clean Cosmetics, setting standards for ingredient selection and safety.
• Sustainable Packaging: A high percentage of new products use FSC® certified eco-friendly paper and plant-based inks. The company is rolling out refillable packaging and prioritizing recyclable materials, supporting circular economy goals.
• Responsible Supply Chain: Rigorous supplier assessment and ongoing evaluation processes are in place, emphasizing environmental and social performance. Chicmax also engages third-party organizations for product safety testing and is proactive in animal welfare, exploring alternative testing methods.

4. Social Responsibility and Human Capital Management

• Charitable Impact: In 2025, Chicmax donated approximately RMB 2.88 million to charitable causes, focusing on children with special needs. The subsidiary Baby Elephant launched the Anxin Guardian Program, supporting children in Xinjiang with skin-care products and funding.
• Diversity, Equity & Inclusion: The company actively promotes gender equality, diversity, and an inclusive workplace. A zero-tolerance policy on corruption and comprehensive employee training are in place.
• Employee Well-Being: Competitive salaries, comprehensive benefits, and a range of special paid leaves are provided. Over 19,000 hours of employee training were conducted, and no material non-compliance was reported regarding labor, safety, or anti-corruption matters.

5. Financial and Operational Performance Data

• GHG Emissions (2025): Total Scope 1 & 2 emissions: 15,334.01 tonnes CO₂-e; Scope 3: 2,846.00 tonnes CO₂-e.
• Energy Consumption (2025): Total energy consumption: 37,462.09 MWh; 4,289.46 MWh from on-site renewable sources.
• Water Consumption (2025): 321,714.20 m³, with improved efficiency year-on-year.
• Waste Management (2025): Non-hazardous waste: 1,291.37 tonnes (down from 3,342.60 tonnes in 2024); hazardous waste: 12.24 tonnes.
• Packaging Materials (2025): 123,264.62 tonnes used, with significant reductions in plastic and glass usage compared to 2024.

6. Risks, Opportunities, and Regulatory Alignment

• Physical and Transition Risks: The company has identified risks ranging from acute climate events to policy and market risk due to tightening regulations and evolving consumer expectations. Mitigation measures include supply chain localization, crisis management, and continuous monitoring of regulatory changes.
• Opportunities: Investments in renewable energy and energy efficiency are expected to reduce long-term costs and enhance brand value. The company is closely monitoring the potential for new revenue streams such as green certificates.
• Regulatory Compliance: Chicmax adheres to all major PRC and applicable overseas regulations related to product quality, labor, environmental protection, and anti-corruption.

7. Awards and Industry Recognition

• 2025 Awards: Received accolades such as Annual Outstanding Performance Award for Infant and Child Efficacy Skincare Brands, Hong Kong Stock Value Growth Award, and the 2025 New Consumption Benchmark Golden Bull Award.

8. Shareholder-Relevant Considerations

• Forward-Looking Compliance and Disclosure: Enhanced ESG disclosures, especially first-time Scope 3 GHG emissions and scenario analysis, position Chicmax as a leader in sustainable transparency in the beauty sector, potentially attracting ESG-focused investors and supporting long-term valuation.
• No Material Non-Compliance or Legal Cases: The company reported no material non-compliance, product recalls, or legal cases regarding corruption, which supports operational stability and reduces risk for shareholders.
• Continued Investment in Sustainability: Ongoing efforts to meet and exceed evolving ESG regulations and market expectations may require capital allocation but position the company for resilient growth.

Conclusion

Shanghai Chicmax’s 2025 ESG Report demonstrates a strong commitment to sustainability, climate action, responsible supply chain management, and social impact. The company’s proactive approach in setting measurable targets, improving resource efficiency, and enhancing governance aligns with global best practices and may enhance long-term shareholder value. The new climate targets, detailed scenario analysis, and first-time Scope 3 disclosure are particularly noteworthy for investors tracking sustainability-driven performance and regulatory compliance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their investment objectives and risk tolerance before making any investment decisions.

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