2025 Environmental, Social & Governance Report
This report presents an overview of the sustainability initiatives and critical performance metrics of Hainan Jinpan Smart Technology Co., Ltd. and its affiliated companies. This report serves as an annual report, covering the period from January 1, 2024, to December 31, 2024. Certain contents exceed the above time range to enhance the completeness and continuity of the report. The information and data presented in this report are sourced from the Company’s annual reports, internal official documents, internal statistical data, and publicly available information.
A Note From The Chairman
Facing the new era of artificial intelligence, JST is firmly committed to driving strategic leaps through a dual-innovation model, reshaping the industrial landscape with intelligent manufacturing, and defining the future of growth with AI + energy and power. We strive to achieve the value symbiosis of economic benefits, social contributions, and ecological responsibility, interpreting the mission of our era in intelligent manufacturing through innovative practices.
Zhi Yuan Li
Chairman, Jinpan Smart Technology
Continued Focus on Digitalization through AI Intelligent Manufacturing
Jinpan Smart Technology (JST) continues to advance from traditional digitalization toward full-spectrum intelligent manufacturing, using artificial intelligence as a core enabler. The company is building an AI Factory architecture that integrates digital platforms, computing infrastructure, and AI agents to transform the entire value chain, from R&D to production, supply chain, and services.
This transformation is supported by significant investments in AI-driven technologies, including solid-state transformers (SST), HVDC systems, robotics, and AI-powered data platforms. The strategy combines incremental and breakthrough innovation, positioning the company at the intersection of AI + energy infrastructure, particularly to support growing demand from AI data centers. Through global partnerships and digital factory expansion, JST is creating a next-generation manufacturing model that enhances efficiency, resilience, and sustainability, while also addressing risks such as data security and AI ethics.
60.8% PERCENT REDUCTION IN GHGS COMPARED TO 2023
11,763 TONS OF CO2 REDUCTION FROM CLEAN ENERGY USE
89.17% TOTAL CLEAN ENERGY UTILIZATION RATE
Environmental Highlights
We significantly strengthened our environmental leadership in 2025, embedding low-carbon and circular economy principles across operations and its value chain. The company made major progress toward its climate goals, achieving a 60.8% year-on-year reduction in greenhouse gas emissions (Scope 1 & 2) and reaching a clean energy utilization rate of 89.17%.
JST operates four zero-carbon factories, supported by intelligent energy systems, renewable energy adoption, and digital carbon management tools. Environmental initiatives span the full lifecycle, from green design to waste recovery, while also supporting customers and partners through low-carbon products and energy solutions.
JST also aligns with global frameworks such as SBTi and TCFD, reinforcing its commitment to long-term decarbonization and climate transparency.
- 60.8% reduction in Scope 1 & 2 emissions (YoY)
- 89.17% clean energy utilization rate
- Operation of 4 zero-carbon factories
- Adoption of science-based targets (SBTi) for emissions reduction
- Significant investment in renewable energy and energy systems
- Deployment of:
- Photovoltaic generation (20M+ kWh)
- Energy storage and virtual power plant systems
- 16 products with carbon footprint certifications
- Strong progress in waste reduction, recycling, and circular economy practices
- No environmental violations reported in 2025
- Integration of digital tools for carbon tracking and energy optimization
98.39% CUSTOMER SATISFACTION RATING
2,286 TOTAL EMPLOYEES WORLDWIDE
357 MILLION RMB R&D INVESTMENT
Social Highlights
JST’s social strategy focuses on people, innovation, and shared value creation. The company invested heavily in employees, innovation, and stakeholder engagement, with R&D spending of RMB 357 million and over 185,000 hours of employee training delivered in 2025.
The company emphasizes employee wellbeing, diversity, and inclusion, while maintaining high standards for occupational health and safety, including zero fatalities and zero workplace accidents.
Beyond internal initiatives, JST contributes to society through philanthropy, rural revitalization programs, and community partnerships, reinforcing its role as a responsible corporate citizen and partner in sustainable development.
- RMB 357 million invested in R&D
- 185,100 total training hours; 100% employee training coverage
- Workforce of 2,286 employees
- Strong diversity & inclusion focus (female leadership representation, inclusive hiring)
- Zero fatalities, zero workplace accidents in 2025
- High customer satisfaction (98.39%)
- Robust employee benefits, talent development, and training systems
- Active community engagement and philanthropy
- RMB 463,900 in donations
- Rural revitalization and education programs
- Strong supplier and partner ecosystem (1,591 suppliers)
- Focus on AI training and future workforce skills
100% SIGNING RATE FOR EMPLOYEE INTEGRITY COMMITMENT
100% SIGNING RATE FOR NEW SUPPLIER INTEGRITY COMMITMENT
100% TRAINING COVERAGE FOR GLOBAL EMPLOYEE BASE
Governance Highlights
JST continues to strengthen governance through a robust ESG governance framework, integrating sustainability into corporate strategy and operations. A three-tier governance structure, Board of Directors, ESG Committee, and ESG Working Group, ensures effective oversight, risk management, and execution.
The company enhanced compliance, risk management, and transparency through digital systems and structured processes, including advanced risk monitoring platforms and internal controls. Ethical business practices are a core priority, with zero corruption or legal violations reported in 2025, and full participation in compliance and anti-corruption training.
Governance improvements also include board-level engagement, stakeholder communication, and integration of ESG performance into incentives and decision-making.
- ESG fully integrated into strategy and decision-making
- Zero corruption incidents or major legal violations
- 100% anti-corruption training coverage
- Digital risk monitoring and internal control systems
- Strengthened compliance, transparency, and disclosure practices
- Active stakeholder engagement and communication programs
- Integration of ESG into performance evaluation and incentives
- Enhanced board governance and oversight structures
- Strong focus on business ethics and integrity across operations and supply chain
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