FENGHONG

Sustainability

Sustainability as Operating Capability

Embedding sustainability into materials, manufacturing, and supply chains

Supporting long-term cooperation through verifiable improvement

For a functional additives and new materials company, responsibility is not limited to whether an individual product is greener. It also depends on whether the material helps customers improve formulation efficiency, reduce resource use, enhance application stability, and whether the company manages energy, supply chains, employee safety, and business compliance in a disciplined way.

Embedding sustainability into materials, manufacturing, and supply chains
Scope 1/2/3
Internal energy and carbon accounting foundations in progress
Approx. 10%
Cumulative rooftop PV electricity share at selected facilities
No coal use
Non-electric energy transition focuses on steam and efficient drying

Product Responsibility

Product responsibility starts from customer applications

Fenghong focuses not only on whether a material carries a lower environmental burden, but also on whether it can improve efficiency, reduce formulation complexity, enhance application and storage stability, and support more responsible end-use performance.

Connect sustainability with performance

Across coatings, adhesives, new energy, personal care, and related fields, we connect sustainability with material substitution, application stability, formulation efficiency, and technical service.

Plan lower-carbon products and next-generation lines

Fenghong is planning next-generation production lines focused on process optimization, a higher renewable-energy share, and reduced product carbon footprint.

Product responsibility starts from customer applications

Resource Efficiency and Carbon Management

Lower-carbon operations start with data, process, and energy structure

Fenghong treats energy and carbon management as a long-term, data-driven effort, following a clear sequence: build solid measurement and accounting first, then set external targets. We already track electricity, steam, and fuel data internally and keep refining our accounting system, preparing the ground for a baseline year, staged reduction targets, and more complete CO2e accounting.

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01

Water recycling

Process wastewater varies in composition. Fenghong has gradually built a closed-loop water system that links pure-water preparation, reclaimed-water reuse and compliant treatment: production discharge and concentrate pass through ultrafiltration and reverse osmosis and return to the line, lowering both water intake and effluent, while high-concentration streams that cannot be reused are treated separately and discharged only after meeting standards. The system is still being extended and refined, and is managed together with energy data, equipment upgrades and production scheduling as part of routine green manufacturing.

02

Manufacturing efficiency

Actions include process insulation, batch scheduling optimization, and higher-efficiency equipment, reducing energy waste in production as the foundation of lower-carbon operations.

03

Rooftop solar PV

Selected facilities have installed rooftop solar PV. Based on cumulative data up to last month, PV supplied approximately 10% of electricity consumption at the relevant facilities.

04

Non-electric energy transition

A significant share of heating equipment has shifted to steam, creating a technical base for renewable steam sources such as biomass steam. Limited natural gas remains for high-temperature drying where steam is not yet feasible. Coal is not used.

05

Energy data tracking

Energy use is tracked through electricity meters, steam and fuel records, utility bills, and plant-level digital monitoring to support carbon accounting and energy intensity management.

Responsible supply chains and management systems address customer ESG priorities

Supply Chain and Governance

Responsible supply chains and management systems address customer ESG priorities

Customers look beyond a single product. They also ask about raw material origin, supplier practices, certification coverage, carbon accounting, and transparency. Fenghong is integrating these expectations into supplier communication and governance systems.

Key raw materials mainly sourced in China

For relevant products supplied to customers, key raw materials are mainly sourced domestically in China, helping shorten transport distance and improve supplier communication.

Encouraging lower-carbon supplier practices

For upstream mineral raw materials, Fenghong encourages suppliers to explore electric mining and transport equipment to reduce emissions from extraction and logistics.

Governance and certification materials

The company plans to renew its EcoVadis assessment and maintain ISO 14001 and ISO 50001 documentation for production facilities relevant to customers.

Carbon-accounting transparency

The current priority is building data foundations rather than publishing unsupported commitments. As the framework matures, Fenghong will further clarify baselines, target years, and staged improvements.

People and Organization

A stable organization is part of long-term delivery

Stable material supply depends on a stable organization. Fenghong values employee safety, health, and dignity, and strengthens team capability through role-based training, employee participation, career development, and safety management.

  • Occupational health, safety environment, and site management

  • Role-based training and professional capability building

  • Employee participation, communication, and organizational collaboration

  • Career development, promotion paths, and long-term growth

Long-term Improvement

Advancing sustainable material applications with customers

Fenghong believes meaningful sustainability comes from continuous improvement, not one-time commitments. We will continue to work on material innovation, energy efficiency, renewable energy, supplier collaboration, employee safety, and compliant governance while responding to customer needs with clearer data and more transparent communication.