Embedding Sustainability at the Core

At Jiahua Chemicals, sustainability is not just a priority, it is the foundation of our strategic direction, our innovation programme, and our daily operations. As a manufacturer of specialty chemicals which are used in diverse formulations, from enhancing processing and thermal efficiency to improving comfort and extending product lifespans, we are committed to delivering solutions that support a better future.

2024 marked the launch of our comprehensive sustainability strategy which sets out to reinforce our commitment to responsible business practices and meet the evolving expectations of our stakeholders. This strategy is built around four core pillars: People, Planet, Innovation, and Performance. Each pillar reflects our dedication to creating long term value for our customers, employees, and communities.

Under our 'Planet' pillar, we acknowledge our responsibility to reduce environmental impact, particularly in addressing climate change and greenhouse gas (GHG) emissions across our value chain. Given the energy-intensive nature of our operations, we are actively pursuing initiatives to lower our direct emissions footprint. These include:

·       Energy efficiency upgrades across facilities

·       Transformation of energy infrastructure

·        Site-specific decarbonization plans

To further accelerate our transition to renewable energy, we are securing clean energy through power purchase agreements and installing solar panels at multiple sites to diversify and strengthen our renewable energy mix.

Through these efforts, Jiahua Chemicals is demonstrating how sustainability can be a driver of innovation, operational excellence, and ethical leadership.

Progress against Scope 1&2 emissions targets (Verified by SGS)

Scope 2 emissions reduction of 30% vs baseline

Scope 1 emissions reduction of 6% vs baseline

Improving Green Energy Usage at our Shanghai Site

At our Shanghai site, we are making significant strides toward a more sustainable future. As part of our commitment to reducing our environmental impact, we have signed Power Purchase Agreements (PPAs), enabling us to source over 30% of the site’s energy from 100% renewable sources.

We are also transitioning our material handling operations to cleaner technologies. By the end of 2024, more than 40% of our diesel forklift fleet had been replaced with electric models, with further upgrades planned.

We've recently invested in state-of-the-art equipment that significantly improves the efficiency of our exhaust gas treatment process. This new system neutralises exhaust gases at lower temperatures, delivering two key benefits: enhanced emissions control and reduced energy consumption.

As a result of this process innovation, we've achieved an estimated 10% reduction in CO₂ emissions from exhaust gases. Additionally, volatile organic compounds (VOCs) are now effectively neutralised, preventing their release into the atmosphere and further supporting our commitment to environmental responsibility.

Looking ahead, we have approved a major investment in on-site solar energy. Installation of solar panels is scheduled for 2026, further diversifying our energy mix and reinforcing our long-term sustainability goals.

These initiatives reflect our ongoing efforts to reduce emissions, improve energy efficiency, and lead by example in sustainable manufacturing.