On December 10th, the internationally recognized rating agency MSCI (Morgan Stanley Capital International) released the Environmental, Social, and Governance (ESG) rating results for Longi Green Energy (601012.SH). In 2024, the rating was upgraded to "BBB," and the weighted average key issue score is ranked as the highest in the semiconductor industry and the first in the photovoltaic industry chain.
MCSI ESG Ranking Recognizes LONGi's Achievements in Business Ethics, Resource and Supply Chain Management
The MSCI ESG Rating Report indicates that LONGi's practices in business ethics, water resource management and talent management are ahead of most global peers. In terms of business ethics, the company has not only implemented a comprehensive anti-corruption policy but also established an independent audit committee to strengthen internal risk control mechanisms. In the area of water resource management, LONGi has effectively promoted the conservation and protection of water resources through measures such as water recycling and setting quantitative water saving targets. As a result, in 2023 LONGi carried out 118 water-saving process projects within the whole group and saved 5.5293 million tons of water annually. The overall water consumption of the whole group decreased by 12.75% year-on-year, and 33.52% compared with the base year.
In the field of clean technology opportunities, the Company has contributed to the development of clean energy technology by relying on skilled personnel in the research and development of photovoltaic products.
MSCI ranking acknowledges supply chain management practices
In addition, the MSCI rating report also points out that LONGi has made significant progress in its supply chain management practices, demonstrating particularly outstanding performance. In the key area of supply chain labor standards, LONGi has implemented strict ESG management of suppliers, effectively controlling potential ESG risks of suppliers and demonstrating the company's high standards and strict requirements for supply chain management. This achievement not only highlights the Company's deep concern for protecting the rights and interests of workers in the supply chain, but also reflects the Company's firm commitment and determination to integrate the protection of labor rights into the ESG management system of suppliers.
Consistently positive ESG-performance since 2019
Since LONGi was included in the MSCI Index in 2019, its ESG rating has consistently remained at the forefront of the industry. By benchmarking against a range of international mainstream ESG rating requirements, including MSCI, LONGi actively manages and improves its practices and disclosures on material ESG issues.
Over the past year, LONGi has strengthened its human rights due diligence management, green supply chain and diversity and inclusion activities, and has successively issued a Human Rights Policy, a Diversity, Equity and Inclusion Policy and a Conflict Minerals Procurement Policy, among other social management policies.
In terms of supply chain management, LONGi has helped suppliers conduct carbon audits and energy saving and emission reduction measures, initiated a diversified supplier program, promoted the construction of ESG management systems among suppliers accounting for more than 50% of procurement spending, actively pursued external certification, and worked with upstream and downstream partners to build a green and sustainable supply chain, thus continuously improving the company's ESG rating performance and competitiveness.
About the MSCI ESG Ratings
MSCI ESG ratings are services provided by Morgan Stanley Capital International, aimed at measuring companies' resilience to long-term, financially relevant environmental, social, and governance (ESG) risks. As the world's largest index compiler, MSCI conducts ESG ratings for over 17,500 companies globally, becoming one of the most authoritative and influential mainstream international ESG ratings.