On April 21, Joyson Electronics (600699.SH / 00699.HK) published its 2025 Sustainability Report and 2025 Nature-related Disclosures Report for the first time simultaneously. The company also announced its ambition to achieve carbon neutrality across its core operations by 2040.

In recent years, Joyson Electronics has continued to embed sustainability into its corporate strategy and long-term development. The company has made steady progress in technology innovation, green manufacturing and corporate responsibility, while also participating in international sustainability initiatives. It has joined the United Nations Global Compact and become the first company in China’s auto parts industry to support the Taskforce on Nature-related Financial Disclosures (TNFD).

Building Future-ready Products Through Technology Innovation and Low-carbon Solutions

S&P Global has noted that assisted and autonomous driving technologies provided by auto components manufacturers represent new business opportunities, while also creating new challenges for quality standards.

As a leading global provider of intelligent automotive technology solutions, Joyson Electronics continues to respond to the industry’s shift toward smarter mobility. In 2025, the company invested approximately RMB 4.42 billion in forward-looking technology research and development. It held around 3,500 patents and had 26 certified high-tech enterprises within the group.

In intelligent driving, Joyson Electronics follows a technology roadmap built on multi-chip platforms and ecosystem collaboration. The company has advanced the integration of cockpit, connectivity and driving functions with AI-enabled central computing, while continuing to upgrade L3/L4 advanced driver assistance technologies. Among the company’s RMB 97 billion in global new orders in 2025, emerging businesses such as intelligent driving and central computing units achieved important early breakthroughs. Orders related to automotive intelligence are expected to become a core growth engine for the company’s automotive electronics business.

As pressure continues to grow to reduce greenhouse gas emissions from vehicles, auto parts suppliers are also playing an increasingly important role in developing lower-carbon solutions. Joyson Electronics supports this transition not only by improving mobility efficiency through intelligent driving and connected vehicle technologies, but also by developing high-voltage, low-loss energy management solutions for new energy vehicles. Its solutions cover the full process of charging, power conversion, energy storage and discharging, supporting the development of greener mobility worldwide.

Beyond the automotive sector, Joyson Electronics is also extending its vehicle-based technologies into emerging intelligent systems and server infrastructure, creating new growth opportunities. In emerging intelligent systems, the company has launched key component solutions covering control systems, energy management and actuator modules, and is working with leading customers in China and overseas.

In optical modules and server power systems, Joyson Electronics has invested in an optical module company with production capacity in North America to support the global commercialization of automotive communication optical module technologies. At the same time, the company is expanding automotive-grade power system products into industrial-grade server power applications.

ESG Progress Recognized Internationally, with UN Global Compact Participation

In 2025, Joyson Electronics joined the United Nations Global Compact, committing to uphold the Ten Principles of the UN Global Compact. The company also became the first company in China’s auto parts industry to support the TNFD. By publishing its first standalone Nature-related Disclosures Report, Joyson Electronics aims to further enhance transparency and strengthen forward-looking management of nature-related issues, while supporting the United Nations Sustainable Development Goals.

During the reporting period, Joyson Electronics also joined the Responsible Business Alliance (RBA) and the Responsible Minerals Initiative (RMI). Through these initiatives, the company is committed to promoting the responsible sourcing and use of minerals, and to strengthening management of environmental, human rights, labor and business ethics issues across its own operations and upstream value chain.

With continued improvement in ESG performance, Joyson Electronics has been included in S&P Global’s Sustainability Yearbook (China Edition) for two consecutive years and recognized as an Industry Mover. The company also received positive assessments in CDP Climate Change, Forests and Water, obtained third-party recognition including an EcoVadis Silver Medal, and was named to the 2024–2025 Forbes China Sustainable Industrial Enterprises List, becoming one of 40 Chinese industrial companies recognized for sustainability performance.

Advancing Low-carbon Globalization 3.0 and Targeting Carbon Neutrality Across Core Operations by 2040

Joyson Electronics operates more than 25 R&D centers and 60 production sites worldwide, serving over 100 global automotive brands. The company integrates ESG principles across the lifecycle management of its products and services, and is building what it describes as Globalization 3.0 — a more premium, intelligent and low-carbon global operating model designed to provide agile, efficient and competitive services to customers worldwide.

In particular, Joyson Electronics is incorporating green principles into the operations and supply chain management of its global sites. The company has set a climate ambition to achieve carbon neutrality across its core operations by 2040.

Over the past year, Joyson Electronics used nearly 250,000 MWh of renewable energy, accounting for approximately 34% of its total annual energy use. Renewable energy use increased by 27% compared with 2024, helping avoid more than 100,000 tonnes of CO₂ equivalent emissions. A total of 10 production sites achieved operational carbon neutrality, while 23 production sites operated with 100% clean electricity.

Looking ahead, Joyson Electronics will continue to strengthen its core competitiveness through quality management and low-carbon production. In 2025, nearly 100% of the company’s production sites obtained ISO 9001 or IATF 16949 certification. During the reporting period, the company recorded zero major product safety incidents and zero related administrative penalties. In addition, 18 factories obtained ISO 50001 Energy Management System certification, and 100% of production sites obtained ISO 14001 Environmental Management System certification.

Joyson Electronics has also set resource efficiency targets using 2024 as the baseline year. By 2030, the company aims to reduce both water withdrawal intensity and waste generation intensity by 6%.

Looking forward, Joyson Electronics will continue to integrate ESG governance into its corporate strategy and operations. The company will further strengthen its ESG management system, identify and manage the impacts of environmental, social and governance factors on its business, and support a virtuous cycle between high-quality growth and responsible business practices. Through these efforts, Joyson Electronics aims to create a more prosperous and sustainable future for society.