With the growing threat to social development of mankind from climate change and global warming,Group Compliance & Sustainability set up an energy management team, established energy strategy and set SBTi target.

Group implements various energy-saving projects and activities to keep enhancing the energy efficiency and gradually increases proportion of renewable energy to minimize the impact of factory operation on the climate and environment.

To respond with climate change and meet the goals of the Paris Agreement – limiting global warming to 1.5°C above pre-industrial levels, Huali Group made a commitment on GHG emissions reduction to SBTi in February 2023. After 18 months of relentless efforts, both the near-term and long-term targets of Huali Group were successfully validated by SBTi in August 2024, making it one of the few exemplary companies in the footwear industry.

Overall Net-Zero Target: Huali Industrial Group Co., Ltd commits to reach net-zero greenhouse gas emissions across the value chain by 2050.

Near-Term Targets: Huali Industrial Group Co., Ltd commits to reduce absolute scope 1 and 2 GHG emissions 50.4% by 2032 from a 2022 base year.* Huali Industrial Group Co., Ltd also commits to reduce absolute scope 3 GHG emissions from purchased goods and services 30% within the same timeframe.

*The target boundary includes land-related emissions and removals from bioenergy feedstocks.

Long-Term Targets: Huali Industrial Group Co., Ltd commits to reduce absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2022 base year.* Huali Industrial Group Co., Ltd also commits to reduce absolute scope 3 GHG emissions 90% within the same timeframe.

*The target boundary includes land-related emissions and removals from bioenergy feedstocks.

In order to improve the openness and transparency of greenhouse gas emission data and promote the consistency and credibility of greenhouse gas quantification, monitoring, reporting and verification.

In August 2024, Huali Group commissioned TUV Rheinland to conduct a third-party verification of the greenhouse gas emission data of the company's shoe factories in accordance with ISO14064-1: 2018 standards. The verified greenhouse gas emissions accounted for 91% of Huali's total emissions. And the unverified scope included some upper and accessories factories and trading companies.

At the same time, Huali Group completed the 2023 CDP data disclosure on September 30, 2024.