
ESG
Our Sustainable Development Framework and Strategy
Environmental, social, and governance issues are key focuses of the group's operations and strategic planning, and the group continues to strive to deeply integrate sustainable development into its corporate development. At the beginning of 2021, our Sustainable Development Committee formulated the "10 Year Sustainable Development Plan" from 2021 to 2030, focusing on three themes: supply chain management, environmental protection, and social responsibility, emphasizing the group's long-term commitment to sustainable development by incorporating environmental and social priorities into its business model.
Environmental, social, and governance issues are key focuses of the group's operations and strategic planning, and the group continues to strive to deeply integrate sustainable development into its corporate development. At the beginning of 2021, our Sustainable Development Committee formulated the "10 Year Sustainable Development Plan" from 2021 to 2030, focusing on three themes: supply chain management, environmental protection, and social responsibility, emphasizing the group's long-term commitment to
sustainable development by incorporating environmental and social
priorities into its business model.
Employee management and community investment are also core components of this plan. We ensure fair labor practices, provide safe working conditions, and offer ongoing training and development
opportunities for our employees. In addition to our organization, we also support local communities through donations, volunteer service, and fostering a culture of health and fitness. We aim to inspire
positive change by promoting sports and using our platform to
advocate for fairness, inclusivity, and diversity.

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To achieve sustainable development, we need to consider our entire supply chain. We have established strict environmental, social, and governance assessments and capability development goals in our supplier program. Through partnerships, we are committed to shaping a more responsible future. Both potential and existing suppliers must meet our environmental and social assessment standards. Through this rigorous approach, we collectively enhance the resilience of humanity and the planet.
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Over the past three years, we have made significant progress in sustainable development performance through effective implementation of our plans. We plan to build on these achievements and pave the way for a more sustainable future. Therefore, we are refining our sustainable development framework and strategies to align with emerging trends and continuously move towards long-term positive impacts on our stakeholders and the environment. With the persistence of our group at all levels, we are committed to deepening our commitment to sustainable development in the sports equipment industry.
| Sustainable Development Framework | Related Sustainable Development Goals | Main aspects | Theme | 2030 Goal | Apply to | Progress in 2023 | ||
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To enhance environmental, social, and governance performance evaluation by introducing new suppliers
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Regularly conduct supplementary performance reviews of first tier suppliers
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Provide environmental, social, and governance training and advice to existing suppliers
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Establish a regular review mechanism to inspect the environmental, social, and governance performance of existing suppliers
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Increase the proportion of products using environmentally friendly lactic acid materials
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Xtep's main brand | ![]() |
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Invest in 60 clothing products using environmentally friendly materials annually
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Xtep's main brand | ![]() |
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Invest in 60 clothing products using environmentally friendly materials annually
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Sokoni and Maile | ![]() |
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Invest in 60 clothing products using environmentally friendly materials annually
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K · SWISS and Paladin | ![]() |
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Increase the penetration rate of water-based adhesive for footwear products to 50% or
above
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Xtep's main brand | ![]() |
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Obtain standards for volatile organic compounds in vehicle air quality
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Xtep's main brand | ![]() |
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Strengthen cooperation with manufacturers of blue logo dyeing auxiliaries in the field of
clothing production
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Sokoni and Maile | ![]() |
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Increase the penetration rate of water-based adhesive for footwear products to>=30%v
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K · SWISS and Paladin | ![]() |
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Reduce electricity, gas, cooking, and carbon emissions
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Reduce the power consumption and corresponding carbon emissions of shoe production plants by 20%
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Reduce the use of electricity, gas, cooking and other energy in clothing production plants by 20%, and increase the use of energy by 20%
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Reduce office carbon emissions by 20%, decrease paper usage by 20%, and increase testing equipment utilization to 90%
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Reduce water consumption per unit output value of shoe production plants by 10%
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Increase the water resource utilization rate of clothing production plants to 50%
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Realize 100% harmless treatment of harmful substances and increase the general waste
recycling rate of footwear products to 50%
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Using forest management certification to produce certificates and tags for clothing products
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Maintain a turnover rate (excluding factory piece rate workers) of less than 30%
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Regularly review salaries and benefits to maintain the competitiveness of our group in the market
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Standardize security procedures for all business operations
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Promote occupational health and personal safety management
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The proportion of first successors in key positions has increased to over 80%
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Increase the number of corporate culture instructors to over
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Develop at least three sets of evaluation tools for each talent standard module
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Sponsor at least 20 marathons every year (excluding the shadow police of the COVID-19), and sub support more than 200000 marathons Participants in running activities
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Promote the development of the younger generation in China through various sports and activities
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Donate sports equipment worth over RMB 80 million annually
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Establish a Xigong team and organize at least two public welfare volunteer activities per year
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The Sustainable Development Goals are 17 interrelated goals established by the United Nations in 2015. These 17 goals cover the economic, social, political, and environmental goals to be achieved before 2030, and are a blueprint for achieving a better and more sustainable future for all



