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Li Chaodong of Nu Skin Group: Investing in ESG has brought many benefits to Nu Skin Group

2024-08-20

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21st Century Business Herald reporter Wang Yuanyuan and intern reporter Shi Yanning report from Shanghai

On August 17, the high-end think tank forum on new productivity and the second "Energy · ESG" hosted by 21st Century Business Herald and Orient Securities was held in Hongkou, Shanghai. Li Chaodong, senior vice president of Nu Skin Greater China and chief representative of Beijing Representative Office, participated in the roundtable discussion on "Green consumption leads a new lifestyle".

When talking about his understanding of green consumption and green trends, Li Chaodong believes that the new quality productivity, high-quality development, green environmental protection, green consumption, etc. advocated by my country now are actually an organic part of the overall national development strategy.

"Green consumption, broadly speaking, can be divided into three levels. The first is the national level. The country must formulate correct policies and regulations to encourage green environmental protection, provide policy and financial support to enterprises that implement green transformation, and impose certain penalties on high-energy-consuming enterprises that violate relevant carbon emission regulations. The national policy will strongly encourage and support the smooth implementation of green transformation; the second is the enterprise level. The green consumption behavior of enterprises must be implemented in all aspects such as green buildings, raw material screening, production methods, sales and after-sales service. Energy conservation and emission reduction is the most important aspect for all enterprises under the current situation; the third is the consumer level. Consumers must first establish the correct concept of green consumption and cultivate a green consumption lifestyle and consumption behavior." Li Chaodong said.

At the same time, Li Chaodong also called on everyone to pay attention to the United Nations Climate Change Conference. Li Chaodong believes that the United Nations holds a climate change conference every year to study how to control the rise in global temperature. At the first United Nations Climate Change Conference in 2022, the UN Secretary-General pointed out that controlling global temperature changes is the most important focus at present: "Humanity is still stepping on the accelerator in terms of carbon emissions, rushing towards rising temperatures."

The second conference was held in November 2023. 2023 is the hottest year since temperature records began. The entire earth is in an extreme temperature situation. Some places are scorching hot, and some places are suffering from floods. This puts forward requirements for consumers, governments and businesses to accelerate green environmental protection and green consumption.

As a fast-moving consumer goods company, Nu Skin Group's main products are nutritional supplements and skin care cosmetics. It has currently established branches in 50 countries and regions. Its total sales in China exceed RMB 35 billion, and its total tax payments exceed RMB 15 billion. It has been listed among the top 100 foreign-invested enterprises in Shanghai many times.

Li Chaodong said: "Our company has implemented the concept of green environmental protection since the construction of the factory. In 2014, we established the Greater China Innovation Park in Shanghai. At the end of last year, the second phase of the factory was officially opened. Both places have won the highest award in the US green building rating system - LEED Gold Award. Our second phase factory was also awarded the title of 'zero waste factory' issued by Shanghai not long ago."

In terms of green concepts, Nu Skin Group promotes the "3P" concept and the "Go Green" concept in China. The "3P" refers to the Earth and the Environment (Planet), Humanities and Communities (People), and R&D and Products (Product). Nu Skin Group's adherence to green development over the years has also brought great gains. "We have invested a lot of manpower and material resources in this regard, and the main gains are in three aspects. The first gain is the establishment of green environmental protection concepts among global employees. This is a very important aspect. We have nearly 400,000 employees around the world, and they will affect everyone around them. The second gain is that we have reduced unit energy consumption and improved labor productivity through energy conservation and environmental protection, and the benefits in this regard have gradually been reflected. The third gain is that ESG has become a value system for our company's annual self-assessment. As a listed company, the practice of ESG can bring many intangible benefits to our company's brand building." Li Chaodong said.