On July 28, China's down jacket leader, BOSIDENG (03998), released its tenth ESG (Environmental, Social, and Governance) report, systematically detailing its sustainability achievements in the 2025/26 fiscal year. As China's economy shifts toward high-quality development and global green and low-carbon transformation deepens, ESG has evolved from a bonus to a crucial factor affecting long-term corporate competitiveness. For BOSIDENG, which has been in the down jacket sector for 50 years, the company embeds sustainable concepts deeply across its entire value chain, including R&D, production, logistics, and retail. By transforming ESG practices into product strength, brand power, and operational resilience, it has become a core foundation for the brand's stable and sustained growth.

Leading with Top-tier Governance: From Strategic Planning to Full-Chain Implementation

The key to effectively implementing an ESG strategy lies in whether a company can establish a governance system with clear responsibilities, robust mechanisms, and quantifiable assessments. According to knowledge from Zhitong Finance, BOSIDENG has built a top-down ESG governance structure that permeates all business operations. The Chairman of the Board and CEO is directly responsible for ESG work, with 5% of their compensation tied to climate action performance. At the strategic level, the company operates under the "1+3+X" ESG framework, focusing on three core areas: "Product Pioneer, Nature Positive, and People-First." The Sustainable Development Steering Group coordinates efforts, and a cross-departmental mechanism integrates ESG indicators into the business processes of each unit. Simultaneously, BOSIDENG is upgrading its ESG digital management platform to cover stores, supply chains, logistics, offices, and employee behavior. This enhances data-driven management of key metrics like carbon emissions, chemical risks, and supplier performance, ensuring data traceability, process quantification, and management optimization. In terms of industry standards, under the direct leadership of the Group Chairman, the company has led and participated in the formulation and release of several group standards. By consolidating scientific methodologies, building standard frameworks, collecting data, and repeatedly validating standards with experts, BOSIDENG has transitioned from an industry standard executor to a rule co-creator, leading the narrative of "Chinese solutions" in international dialogue. For its continuous practice in building responsible supply chains, BOSIDENG was selected as a founding member of the UN Global Compact's "25 Sustainable Development Chain Leader Alliance" and was included in the UN's "Creating Sustainable Brands" 2025 representative case study. In October 2025, MSCI upgraded BOSIDENG's ESG rating to AAA, making it the first and only company in the Asian textile and apparel industry to achieve this highest rating.

Decarbonizing the Entire Value Chain: Targeting Net-Zero in Operations by 2038

As global climate governance intensifies, corporate decarbonization efforts are shifting from single operational aspects to industry-wide collaborative emission reductions. BOSIDENG promotes carbon reduction through its own operations, industry chain collaboration, and ecological restoration. In terminal operations, BOSIDENG has completed energy-saving renovations for 100% of its over 1,000 directly-operated offline stores, using LED high-efficiency lighting and smart temperature controls to enhance energy efficiency. Its Beijing Sanlitun flagship store deeply participated in drafting industry standards for "carbon-neutral stores" in the domestic retail sector, exploring green retail models. In logistics, BOSIDENG uses an intelligent dispatch system to optimize national delivery routes, increases the proportion of new energy vehicles, and leverages photovoltaic power generation and smart warehousing at its East China core logistics park to reduce carbon emissions. In the 2025/26 fiscal year, the average carbon footprint per single package decreased by 28% year-on-year, driving parallel improvements in logistics efficiency and low-carbon transformation. For supply chain green transformation, BOSIDENG continues to act as a "chain leader," promoting collaborative green transformation upstream and downstream. In the 2025/26 fiscal year, total clean energy usage by upstream suppliers reached 5,455 MWh, optimizing the energy structure from the source. The company organized 10 ESG training sessions for suppliers, achieving 100% coverage for audits and training, extending green production requirements along the supply chain. In ecological restoration and resource cycling, BOSIDENG advances practices of "carbon reduction + carbon sequestration + resource utilization." The company launched a new "Carbon Neutral Forest" project in Alxa covering 660 acres, planning to plant 33,000 trees to enhance ecological carbon sinks through desert vegetation restoration. In waste management, the company received the China Quality Certification Centre (CQC) Diamond-Level Certification for Zero Waste to Landfill, continuously improving waste recycling and resource utilization. Packaging materials are fully switching to FSC or FSC Mix certified sustainable forest paper, reducing forest resource consumption at the source. For the long term, BOSIDENG has set a clear target of achieving net-zero emissions in its operations by 2038, continuing to advance carbon reduction through supply chain green transformation, energy structure optimization, and product lifecycle management, exploring a low-carbon development path tailored to the textile and apparel industry.

Product Innovation as a Driver: Boosting Value with Green Innovation

BOSIDENG integrates green and low-carbon concepts into the entire product R&D, design, and service process, turning sustainable attributes into core product competitiveness and long-term brand value. Technological R&D is a key support for green product innovation. In the 2025/26 fiscal year, BOSIDENG filed 471 patent applications and obtained 314 authorized patents, bringing cumulative authorized patents to 1,812. In material innovation, the company is actively exploring low-carbon, environmentally friendly materials like bio-based nylon, recycled polyester, and fluorine-free waterproof fabrics. It has launched a circular product line using single bio-based materials, reducing resource consumption while enhancing product recyclability. In functional innovation, technologies like dynamic cold protection and temperature control are applied to improve warmth while promoting lightweight design, balancing user experience with low-carbon attributes. In circular economy practices, BOSIDENG continues to innovate with its Circular 3.0 product line, aiming for "garment-to-garment (G2G)" recycling. Using single polyester materials and modular, detachable designs, it improves product recyclability, solving the industry pain point of difficult recycling for traditional mixed materials. This product received CIRCULARITY certification from Switzerland's TESTEX and won the ISPO Global Design Gold Award and the US IDEA Industrial Design Silver Award. Additionally, BOSIDENG extends product lifecycles through services like "Renewal Workshops." In the 2025/26 fiscal year, the company provided repair services for 183,000 products, reducing approximately 274.5 tons of textile waste. Through activities like clothing upcycling and circular fashion, it guides consumers toward green consumption. The value of sustainable development is also reflected in brand value enhancement. A special survey during the reporting period showed that 90.8% of surveyed consumers agree that BOSIDENG is a brand that emphasizes environmental protection and sustainable development. This increased brand sustainability awareness contributed approximately 1.7 percentage points to overall revenue growth. As of 2025, BOSIDENG has been listed on the Brand Finance Global Apparel Brands 50 for six consecutive years, ranking 45th. Overall brand customer satisfaction reached 96%, and the 400 customer service hotline satisfaction rate was 98.7%.

People-First Approach: Fostering Talent Development and Fulfilling Social Responsibility

The core of sustainable development ultimately rests on "people." BOSIDENG's social responsibility practices encompass both internal talent cultivation and rights protection, as well as external contributions, creating a symbiotic relationship between the company, employees, and society. For internal talent system building, BOSIDENG has established dual career paths: the management "Eagle Series Plan" and a professional track. Using the "721" practical training model, a digital learning platform, and a special program for academic advancement, it provides growth support for employees at different levels. In the 2025/26 fiscal year, employee training coverage reached 100%, with total annual training hours exceeding 185,000 hours. The proportion of women in management reached 52.5%, up 0.7 percentage points from the previous year. The company has also launched eight equity incentive plans, covering 285 core key employees, and has incorporated ESG indicators into its performance management system. In terms of social responsibility, BOSIDENG has donated a total of 1.55 billion yuan over the years, with its charitable footprint covering 30 provinces across the country and benefiting 1.923 million people in need. From the long-standing "Warm China" cold-weather material donations, to scholarship programs for needy university students, to a 22-year-old voluntary blood donation campaign, and emergency aid after the Hong Kong Tai Po fire, BOSIDENG consistently uses action to interpret its brand essence of warmth, demonstrating the responsibility and commitment of a Chinese enterprise.

Unlocking ESG Value: Supporting Long-Term Corporate Development

As global responsible investment concepts deepen, ESG governance capability has become a key reference for institutional investors in evaluating a company's long-term value. For BOSIDENG, ESG practices are gradually creating synergies between brand building, product innovation, supply chain management, and capital market value. On the business side, green products help enhance consumer recognition and brand loyalty. On the supply chain side, green management capabilities enhance industry chain resilience. On the capital market side, authoritative international recognition like the MSCI ESG AAA rating and inclusion in the S&P Sustainability Yearbook further enhance the company's long-term value creation ability. From its first to its tenth ESG report, BOSIDENG's sustainable practices have evolved from "compliance disclosure" to "strategic integration." As the textile and apparel industry enters a new phase of high-quality development, ESG is becoming a vital path for companies to navigate cycles and build long-term competitive advantages. BOSIDENG's full-chain sustainable practices, centered on "Product Pioneer, Nature Positive, and People-First," provide a valuable industry benchmark for Chinese consumer brands exploring green transformation.