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Strategy and Management
Shared Prosperity Across theValue Chain
Employees and Communities
Sustainable ProductsClimate and EnvironmentAbout this ReportPresident’s MessageSustainability Highlights of the YearAbout M&G
Sustainable Development StrategySustainable Development GoalsSustainable Development GovernanceManagement of Sustainability Topics
Business EthicsSupply Chain ManagementPartner Development
Occupational Health and SafetyTalent Cultivation and DevelopmentHappy WorkplaceSocial Welfare
ESG Performance ReportAppendix
Developing More Sustainable Products
Commitment to High Quality
Chemical Safety
Climate StrategyEnergy ManagementResource UseEco-Friendliness
Independent Assurance StatementIndicator Index
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AppendixM&G Stationery 2024 Environmental, Social, and Governance (ESG) Report
About this Report
This Report is prepared in accordance with theGuidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of ListedCompanies—Sustainability Report (Trial)("SSE Sustainability Report Guidelines") issued by the Shanghai Stock Exchange("SSE"). It also references theCorporate Sustainability Disclosure Standards – Basic Standards (Trial)jointly issued by nineChinese government authorities including the Ministry of Finance of the People's Republic of China, theGRI SustainabilityReporting Standards("GRI Standards") issued by the Global Sustainability Standards Board ("GSSB"), theIFRS SustainabilityDisclosure Standards(IFRS S1 and IFRS S2) issued by the International Sustainability Standards Board ("ISSB"), therecommendations of the Task Force on Climate-related Financial Disclosures ("TCFD"), and the United Nations SustainableDevelopment Goals ("SDGs").
Reporting scope: The reporting period aligns with M&G's 2024 Annual Report, covering January 1, 2024, to December 31, 2024(hereinafter referred to as "this year" or "the reporting period"). Selected content and data may extend to or reference otheryears where appropriate.Organizational Scope: Unless specically stated, the information and data disclosed in this Report align with the scope of M&G's2024 Annual Report, encompassing M&G Stationery and its subsidiaries.
Basis of Preparation
Scope of Report
This report is the fourth Environmental, Social, and Governance Report (hereinafter referred to as "this Report") released byShanghai M&G Stationery Inc. (hereinafter referred to as "M&G Stationery", "M&G", "we", or "the Company"), focusing onthe disclosure of M&G's concepts, progress, and highlights in environmental protection, social responsibility, and corporategovernance during 2024.To facilitate readers' better understanding of M&G's sustainability topics and performance in their respective areas of interest,this report categorizes its main chapters by information type:
●Sustainability Strategy and Management: M&G's sustainable development governance, strategies, risk management, etc.;
●Four chapters include Sustainable Products, Climate and Environment, Shared Prosperity Across the Value Chain, Employeesand Communities: Key annual progress and case studies under M&G's sustainable development strategy;
●ESG Performance Report: Management approaches and target plans for M&G's sustainability initiatives.
Data used in this Report is sourced from the Company's o?cial documents, related reports, and statistical reports. Unlessotherwise specied, all monetary amounts in this Report are in RMB.This Report has been reviewed and approved at the 10th meeting of the 6th Board of Directors, the 1st meeting of the StrategyCommittee in 2025, and the 10th meeting of the 6th Board of Supervisors of M&G held on March 24, 2025.
To enhance the authenticity and reliability of this Report, it has undergone third-party assurance by CECEP (HK) AdvisoryCompany Limited. An independent assurance statement has been provided, with detailed content available in the "IndependentAssurance Statement" chapter.
This Report is available in both Simplied Chinese and English versions. In case of any discrepancy between the two versions,the Simplied Chinese version shall prevail.This Report is published in both printed and electronic formats. The electronic version can be viewed and downloaded on theSSE website (www.sse.com.cn), the CNInfo Information Disclosure Platform (www.cninfo.com.cn), and M&G Stationery's o?cialcorporate website (www.mg-pen.com).
For any inquiries or feedback regarding this Report, please contact us through the following channels:
Address: No. 5, Lane 288, Qianfan Road, Xinqiao Town, Songjiang District, ShanghaiEmail: ESG@mg-pen.com
Statement
Report Assurance
Access to Report
Feedback and Suggestions
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President’s Message
Strategic Leadership in Sustainable DevelopmentLeveraging our extensive experience in sustainability,we have further rened our long-term roadmap, settingquantiable targets and implementation pathways toward2030 under four strategic pillars: Sustainable Products,Response to Climate Change, Sustainable Supply Chain,and Empowering Employees and Communities. Our focusis on transforming the ESG philosophy into measurableand traceable actions. To ensure full and e?ectiveimplementation of the targets, we continue to enhanceour ESG governance system. Our Risk Management andCompliance Committee now operates regularly. We havecompleted a comprehensive Group Risk Map. Additionally,we have achieved a 96% completion rate in training ontheM&G Code of Business Conduct, comprehensivelyimproving our employees’ ability and awareness regardingrisk prevention and control. Furthermore, we have setup special task forces focused on key topics such assustainable product development, chemicals management,and occupational health and safety, fostering e?cient cross-
departmental collaboration to drive goal achievement. Wehave also incorporated ESG metrics as a key performancefactor in the evaluation of business unit and departmentleaders, creating a long-term incentive mechanism.Driving Green Consumption with Sustainable Products
At M&G, we view our products as the vital bridge betweenthe Company and consumers. We are committed tocontinuously delivering innovative, high-quality, andsustainable solutions that meet the expectations of the newgeneration of environmentally conscious consumers. Thisyear, we expanded our portfolio of sustainable products,introducing the “Endangered Animals: Wetland” and “DeepBlue Planet” series. These new o?erings incorporaterecycled plastics and biodegradable materials as primaryraw materials, signicantly reducing their impacts on natureand the environment. Building on this momentum, wehave rened our sustainable product evaluation standards,establishing a unied framework that now guides thedesign and development of all sustainable products. This
framework has been fully integrated into our internalproduct development process. Through themed online ando?ine initiatives such as “Rell for the Earth” and “GreenCredits,” we leverage our products as a platform to promotelow-carbon lifestyles and plastic reduction habits. Togetherwith our consumers, we are turning sustainability intoaction—“Writing a Greener Future.”Advancing Climate Action and Carbon ReductionAcross the Value ChainM&G is actively advancing the carbon peaking andcarbon neutrality goals of China, driving green and low-carbon development while fostering a sustainable supplychain in partnership with our upstream and downstreamstakeholders. In our own operations, we have set emissionreduction targets aligned with theParis Agreementandcontinue to implement our carbon reduction strategythrough improved energy and resource e?ciency andthe expanded use of renewable energy. By 2024, we hadsuccessfully reduced Scope 1 and Scope 2 emissionsby 46.4% compared to 2021. At the same time, we areembedding the sustainability philosophy throughout ourvalue chain, prioritizing ESG management and green andlow-carbon development among our key suppliers. Thisyear, we expanded our ESG assessments to cover all keysuppliers and conducted one-on-one on-site audits andimprovement initiatives, raising the rectication pass rateof audited suppliers to 96.3%. Additionally, we completedcarbon emissions data collection for 110 suppliers andexplored multiple sustainability initiatives, includingpackaging reduction and recycling, display prop reuse, andenhanced energy e?ciency in logistics and warehousing.By extending these e?orts across our value chain, we arereinforcing our commitment to building a low-carbon andgreen future.People-Oriented Approach: Embodying the Values of“Beneting Others” Through ActionAt M&G, we believe that coexistence and shared prosperitywith our employees and communities are fundamental tolong-term success. We are dedicated to building a platformfor employee growth and development, as well as aharmonious and fair workplace environment, ensuring thehealth and safety of all employees. Diversity, Equity, andInclusion (“DEI”) are embedded in our corporate culture.
Chen HuxiongPresident of Shanghai M&G Stationery Inc.
In 2024, against a backdrop of increasing geopoliticaland economic uncertainty, the global transition towardsustainable development has become an unstoppableforce. In response to this shift, M&G remained committedto advancing its sustainability strategy, embedding thesustainability philosophy into strategic decision-making andbusiness operations. Over the past year, we have madesignicant strides across multiple key areas—includingstrategy, products, climate, supply chain, employees, andcharity. This year, M&G achieved an A rating in the MSCIESG Ratings, was recognized as a National Green Factory,and earned a spot on 2024FortuneChina ESG Impact List,all representing major milestones on our journey toward“Writing a Sustainable Business Future.”
We conduct systematic employee engagement surveys,using scientically grounded survey results to continuouslyimprove our talent management strategies. Our ultimategoal is to enhance organizational performance and supportthe long-term development of our employees.This year, the Shanghai M&G Foundation deepenedits support for rural art education, leveraging corporateresources to launch innovative strategic charity initiativesaligned with China’s rural revitalization strategy. Since2022, these initiatives have generated 1.1 million instancesof benet, expanding access to high-quality educationalresources for students and teachers. We have also builtplatforms for charity participation. This year, the ShanghaiM&G Foundation, along with other M&G’s subsidiaries,mobilized employees in charity events, generating 4,435instances of participation, contributing 9,221 hours ofservice, and building a corporate culture of “Everyone forCharity.”The journey ahead may be long and arduous, but withsustained actions, we will eventually reach our destinationand embrace a brighter future. We are condent that ourunwavering commitment to sustainable development willunlock new opportunities for growth and create meaningfulsocietal impact. M&G remains steadfast in its mission,driven by pragmatism and innovation, creating lastingvalue for shareholders, employees, customers, and society.Looking ahead, we invite all stakeholders to join us inbuilding a greener, more sustainable future.
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Sustainability Highlights of the Year
Sustainability Honors and Recognitions
●
Linked ESG performance with executive compensation and incorporated ESG factors into the performanceevaluation of 11 business unit heads
●The Risk Management and Compliance Committee held 4 meetings and incorporated ESG risks into the Company’soverall risk assessment process
●The completion rate of the online training course on theM&G Code of Business Conduct reached 96%
●Conducted internal control audits on business conduct, covering 22 operating locations that represent 100% ofM&G’s operational sites
●Training system covered 98% employees; average hours of training per employee reached 14.6
●Female employees accounted for 48% of the workforce
●32 female mid-to-senior managers participated in the Women’s Leadership Workshop
●The inaugural Sustainability Culture Month attracted over 3,000 employees’ participation
●
M&G Foundation’s “Art Education Plan” program was extended to 624 rural schools and 36 community centersacross 23 provinces and cities;
The “Golden Seed Plan” education assistance program donated over 60,000 stationery kits;Generating over 440,000 instances of benet for primary and secondary school students throughout the year
●A total of 4,435 instances of employee participation in voluntary services, contributing 9,221 hours
●
Charitable donations totaling RMB8.44 million
Empowering employees and communities
Responsible governance
Strategy and management
Sustainable products
●The Group’s Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions totaling 48,935 tCO
e, a 46.4% reductioncompared to 2021
●
Promoted smart energy management, air compressor retrotting, and waste heat recovery projects, with anestimated annual electricity saving of 1.74 million kWh
●Consumption of renewable energy-generated electricity exceeding 21.6 million kWh, accounting for 17% of the totalelectricity consumption
●
Collected GHG emission from 110 suppliers, establishing an initial supplier GHG emission data management system
Response to climate change
●
ESG audits covered 100% of key suppliers, with a rectication pass rate of 96.3%
●Incorporated ESG risk assessment factors into the assessment system for new supplier development andonboarding
●100% of M&G’s product-related suppliers signed theSupplier Code of Conduct
●Launched a selection of outstanding ESG cases of suppliers and awarded the “ESG Innovation Practice Award”
Sustainable supply chain
●
Conducted over 40 safety inspections, with total safety training hours reaching 25,489
●Zero severe injuries or fatalities; minor injury rate at the Shanghai base decreased by 27% year on yearEmpowering employees and communities
Second “Guoxin Cup”ESG Golden Bull Award
Top 100
2024 “China GreenPoint” Case of the Year
HRoot Awards 2024Best Employers inGreater China 2024
Southern Weekly2024 Dream Builders Public WelfareConference - Public Welfare Case of the Year
The China Association forPublic Companies2024 Outstanding PracticeCase of SustainableDevelopment for ListedCompaniesKantar BrandZ2024 Inspirational Starof Innovation
The Employer Branding InstituteDEI Employer Awards
(China) 2024
MSCIESG Rating: A
Wallstreetcn.comThird “Zero CarbonFuture” ESG Awards
2024 National GreenFactory
Fortune2024FortuneChinaESG Impact List
●Dened the 2030 Strategic Goals for Sustainable Development and established a goal management system
●Revised the M&G Sustainable Product Evaluation Standard and fully integrated it into the productdevelopment process
●Launched sustainable products including the “Endangered Animals: Wetland,” “Deep Blue Planet,” and“Carbon Emission Reduction Plan” series
●Accumulated a total of 20 sustainable products
●Innovated sustainable marketing models by integrating multi-channel resources such as productrecommendations, social media interaction, dedicated product displays, and study tours, achieving over 550million impressions throughout the year
China Business Network (Yicai)
The China Securities Journal
Ministry of Industry andInformation
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AppendixM&G Stationery 2024 Environmental, Social, and Governance (ESG) Report
As one of the world's largest stationery manufacturers, Shanghai M&GStationery Inc. is a comprehensive stationery supplier and o?ce servicer.The Company integrates the value of creativity into its products and serviceadvantages, advocates a fashionable stationery lifestyle, and provides solutionsfor study and work, committed to making study and work more joyful ande?ective. M&G's products mainly include writing instruments, student stationery,o?ce supplies and other related products. On January 27, 2015, M&G Stationerywas o?cially listed on the Shanghai Stock Exchange A shares under stock code603899.The Company has an independent and complete operation from branding,product design and development, procurement of raw materials and accessories,product manufacturing, supply chain management and warehouse and logistics,to distribution network management. M&G is present in nearly 70,000 retailstationery shops nationwide, including 779 large retail stores—M&G Life andJiumu Store. In addition, due to market demand, thousands of new productsare launched by M&G every year, and its products are exported to worldwidepartners.
M&G focuses on the development of four major product categories—mass market stationery segment, premium stationerysegment, arts and kids drawing segment, and o?ce stationery segment. The Company also vigorously innovates on developingnew channels, including large retail store business such as Jiumu Store and M&G Life, the direct o?ce supplies business—M&GColipu, and the independent trendy cultural and creative brand, More-Than-Fun (Qizhihaowan). With the acquisitions of AxusStationery (which owns the well-known wooden pencil brand MARCO) and the Norwegian high-end ergonomic backpack brandBeckmann, M&G is expanding its international market and continuously strengthening its brand portfolio.
M&G Business Operation
About the CompanyBusiness Overview
Distribution networkmanagement
Warehouseand logistics
Supply chainmanagement
ProcurementManufacturingProduct designand development
Corporate Culture
2024 Business Performance
Year-on-yeargrowth:
4%Revenue:
RMB
24.2
billion
Total number ofemployees:
5,549
Retail shopsnationwide:
Nearly70,000
V
ision
:
World-class
M&G
Mi
ssion
:
Make
stu
dy
and
work
more joyful
and
e?
e
ctive
Core Culture
Prioritizing thewell-being of othersbefore our ownV
alu
es:
C
o
n
sumer
-centric
mindse
t
,
opennes
s
and
inclusiven
ess
,
s
in
c
e
r
ity
,
f
o
c
u
s
,
an
d
w
in
-
w
i
n
m
i
n
d
s
e
t
Branding
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AppendixM&G Stationery 2024 Environmental, Social, and Governance (ESG) Report
M&G has established its sustainability vision of "writing a sustainable business future." Centered on four strategic pillars:
sustainable products, response to climate change, sustainable supply chain, and empowering employees and communities,the Company has dened its 2022-2025 Sustainable Development Strategy. Committed to leading industry-wide sustainabledevelopment, M&G focuses on advancing sustainable consumption, green production, responsible sourcing, employee growthinitiatives, and equitable education programs.
Sustainable Development Strategy
Sustainable Development Strategy and Management
M&G Stationery Sustainable Development Strategy
Becoming an industry leader of sustainable development, including:
sustainable consumption, green production, responsible procurement, focus on employee growth, and
promoting equal education
Responsible corporate governance:
building a top-down corporate management and governance system
Writing a Sustainable Business Future
Sustainable products
StrategicPositioning
Four Pillars
SystematicFoundation
Vision
Response to climatechange
Sustainable supply
chain
Empowering employees
and communities
During the reporting period, M&G comprehensively reviewed and rened its 2030 strategic goals for sustainable developmentbased on the four strategic pillars of its sustainable development strategy, ensuring a deeper integration of sustainability philosophyinto business operations through goal-driven implementation. The goal-setting process was informed by research on Chineseand international regulations and policies, industry best practices, and an assessment of the Company’s internal status, ensuringthat the goals balance both foresight and feasibility. At the same time, after multiple rounds of discussion, the Company’s coremanagement team reached a consensus on the magnitude and implementation roadmap of these goals. Each goal has beenfurther broken down into annual action indicators, with progress linked to the performance assessments of business unit anddepartment heads. Regular progress reports are submitted to the Board Strategy Committee to ensure e?cient execution andimplementation.
Sustainable Development Goals
M&G Sustainable Development Goals
For more information on the denition and evaluation methods of sustainable products, please refer to the “Sustainable Products – Developing MoreSustainable Products” section of this Report.
PillarGoalBase YearTarget YearProgress During the Reporting Period
SustainableProducts
Responseto climatechange
Sustainablesupply chain
Empoweringemployees and
communities
To adopt sustainable design for 20% ofproducts
/2030
●Dened the sustainable product evaluationstandard and incorporated it into the productdevelopment processTo perform sustainable product evaluationfor 100% of new product development
/2030
●Continued to launch innovative sustainableproducts, with 20 sustainable productsdeveloped to dateTo reduce Scope 1 and Scope 2 GHGemissions from operations by 42%
20212030
●Reduced Scope 1 and Scope 2 emissions by
46.4% in 2024 compared to 2021
To achieve carbon neutrality across thevalue chain
20212050
●Established an initial supplier GHG emissiondata management system and collected GHGemission data from 110 suppliersTo ensure that 100% of key supplierscomply with M&G ESG guidelines
/2025
●ESG audits covered 100% of key suppliers,with a rectication pass rate of 96.3%To ensure that ESG assessments andaudits cover 80% of suppliers
/2030To integrate ESG requirements into allnew supplier screening and onboardingstandards
/2025
●Incorporated ESG risk assessment factorsinto the assessment system for new supplierdevelopment and onboardingTo ensure that 100% of full-timeemployees are covered by the trainingsystem
/2028
●
The training system covered 98% of full-timeemployeesTo maintain zero severe injuries andfatalities annually
2024/
●Zero severe injuries and fatalitiesTo achieve ten million instances ofempowerment
20222030
●Since 2022, the Shanghai M&G Foundation'seducational charity initiatives have generatedover 1.1 million instances of benet
●Producing sustainableproducts
●Sustainable designconcept
●
Sustainable raw materialselection
●
Chemical managementsystem
●
Group-level carbonemission reduction targets
●
Improving energye?ciency, energyconservation, andconsumption reduction
●
Optimizing energyconsumption structure
●
Green logistics
●
Green o?ce operation
●
Supply chain managementsystem
●
Anti-corruptionmanagement of supplier
●
Supplier capacity building
●
Supply chain traceability
●Management system ofoccupational health andsafety
●Employee training andcareer development system
●Employee benets
●Diverse and inclusive workculture
●Internal social supportmechanism
●Featured communityactivities
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M&G’s Governance Framework for Sustainable Development
M&G has established a clear and well-structured sustainable development governance framework that integrates top-downcoordination. This framework consists of the Board of Directors, the Strategy Committee, the Sustainability O?ce, business units,departments, and subsidiaries, forming a tiered governance system to drive the implementation of the Company’s sustainabledevelopment strategy.The Board of Directors and its Strategy Committee serve as the decision-making body, responsible for the comprehensivemanagement and oversight of the Company’s sustainable development impact, risks, and opportunities. They review andapprove sustainable development strategy, goals, and information disclosures, while also supervising and reviewing sustainabledevelopment-related policies, management practices, performance, and target progress.At the coordination level, M&G has established a Sustainability O?ce, led by the Chief Sustainability O?cer (CSO). The teammembers possess professional expertise and experience in the eld of sustainability. The Sustainability O?ce is responsiblefor breaking down ESG goals into actionable targets, coordinating role assignments across business operations, conductinginternal and external sustainability communications and dissemination, identifying and tracking ESG risks and opportunities, andreporting progress on strategic objectives to the Strategy Committee on a regular basis. During the reporting period, M&G furtherstrengthened the cross-business unit and cross-department ESG taskforces, aligning business segments with the Company’soverall sustainable development goals. The Company developed detailed action plans and implementation pathways based onactual business conditions, enhancing the e?ectiveness of the Company’s sustainability initiatives.At the execution level, business units, departments, and subsidiaries are responsible for implementing specic projects to achievesustainable development goals. To incentivize the management of the Company to advance sustainability e?orts, M&G hasincorporated ESG factors into the annual performance evaluations of the heads of core strategic implementation departments forthree consecutive years.
Sustainable Development Governance
Board of DirectorsBoard Strategy Committee
Each business unit, functional department, and subsidiary
Decision-Making
Coordination
Execution
Sustainability O?ce
Cross-business unit, cross-department ESG taskforcesSustainable
products
Sustainable supply
chainResponse toclimate change
Empoweringemployees and
communities
M&G’s Key Potential ESG Risks
M&G has established a risk management system
to ensure e?ective risk control measures. The Company places great emphasison ESG risks, integrating them into its overall risk management framework. During the reporting period, under the coordination ofthe Risk Management and Compliance Committee, M&G established and rened its risk management processes. The Companycompiled a preliminary risk list based on the types of risks identied, high-risk positions, risk descriptions, and existing controlmeasures observed during operations. This process was followed by a qualitative and quantitative risk materiality assessment,ultimately resulting in the creation of the Company’s risk map. To e?ectively manage ESG-related risks, M&G also integrates theassessment results for the materiality of its ESG topics, conducts a comprehensive assessment of sustainability-related impacts,risks, and opportunities, and accordingly adjusts its sustainable development strategy and key information disclosures.
For detailed information on the risk management system, governance framework, and control processes, please refer to the “ESG Performance Report –Governance – Risk Management” section in this Report.
Denition of the timeframe: Short-term: within 1 year; medium-term: 1 to 5 years; and long-term: over 5 years.
For climate risk-related disclosures, please refer to the “Climate and Environment – Climate Strategy” section of this Report.
Management of Sustainability TopicsESG Risk Management
ESG Risk TypePotential Impact
ImpactTimeframe
M&G’s Response MeasuresProduct qualityand safety
Stricter and higher-level product qualityinspections and chemical safety riskmanagement require additional nancialinvestment. Additionally, if a quality-relatedadverse event occurs, it may lead to productrecalls and reputational damage, ultimatelya?ecting the Company’s revenue.
Long-term
Strengthen the product quality and safety managementsystem to reduce quality risks while strictly controlling thequality and safety of raw materials and nished productsacross the supply chain.Supply chainmanagement
The governance, environmental, and labormanagement practices of suppliers impactsupply chain stability and security, which inturn a?ects the Company’s reputation andprotability.
Long-term
Improve the supplier evaluation system, incorporate ESGindicators into supplier management processes, helpsuppliers enhance ESG risk management capabilities, andfoster a green and sustainable supply chain.Human capital
Employee turnover, safety incidents, oroccupational health issues could negativelyimpact the Company’s long-term sustainableoperations.
Long-term
Enhance the training and development system, improveemployee benets, and create a healthy and safework environment to continuously increase employeesatisfaction.Technologicalinnovation
Technological innovation and intellectualproperty protection require additional nancialinvestment, with uncertainty regarding return oninvestment.
Long-term
Build an R&D and innovation system and increase R&Dinvestment to continuously improve technological innovationcapabilities.Response toclimate changeand energymanagement
Increasing regulatory compliance requirementsand heightened climate-related physical andtransition risks could lead to higher operationalcosts and reduced market competitiveness.
Medium- tolong-term
Establish and implement carbon reduction targets andplans and continuously advance energy-saving andemission reduction initiatives.EnvironmentalCompliance
Stricter national environmental regulations andenforcement may require additional investmentin the construction and operation of pollutioncontrol facilities, increasing operational costs.
Short-term
Improve the environmental management system, clearlydene environmental management responsibilities,and regularly engage qualied third-party agencies forenvironmental monitoring to identify and address potentialissues in a timely manner, ensuring compliance withpollutant discharge regulations.Business ethicsand integrity
Non-compliance with business ethics orcompliance requirements could result inreputational damage, leading to a negativecorporate image and a decline in brand value.
Medium- tolong-term
Strengthen business ethics, anti-corruption, and anti-unfaircompetition systems, and implement training programs toenhance employee awareness.
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The materiality assessment of sustainability topics serves as the foundation for M&G’s sustainability planning, internal andexternal communication, and information disclosure. During the reporting period, M&G updated its assessment methodology inaccordance with the latest international and Chinese disclosure standards and conducted its rst “double materiality” assessment.This approach integrates the “nancial materiality” of topics through a nancial lens into the previous assessment of their “impactmateriality,” providing a comprehensive analysis by incorporating ESG risk assessment results. This enables a more thoroughunderstanding of the nancial, economic, environmental, and social impacts of sustainability topics on M&G.
Materiality Assessment
Based on the Company’s business development, the strategic goals under its four sustainability pillars, andESG risk assessment results, M&G reviewed the 24 material sustainability topics identied in 2023. Theirapplicability was assessed for the reporting period to serve as the foundation for the topic library during theperiod.TopicReview
During the reporting period, M&G conducted impact materiality and nancial materiality assessments forthe selected sustainability topics.Impact Materiality Assessment: The Board of Directors, senior management, ESG experts, and otherstakeholders were invited to evaluate the importance of each topic’s economic, social, and environmentalimpact and assign ratings categorized as high, medium, or low.Financial Materiality Assessment: The Company’s internal management was invited to assess thenancial importance of each topic based on two dimensions: “resource continuity” and “relationshipdependency,” with ratings categorized as high, medium, or low.By integrating the results of the impact materiality and nancial materiality assessments, M&G developeda Sustainability Topic Matrix based on the two dimensions of “importance to the economy, society, andenvironment” and “importance to the Company’s nancial performance.” This matrix presents the prioritylevels of each topic, resulting in a classication of 22 material sustainability topics into high, medium, orlow importance.The Sustainability O?ce conducted a comprehensive review and validation of the materiality assessmentresults, which were then submitted to the management for review. 22 material sustainability topicswere nal approved and are highlighted in this report, along with details on their management andimplementation.
M&G updated its sustainability topic library based on sustainability disclosure standards (SSESustainability Reporting Guidance, GRI Standards, IFRS S1, TCFD, etc.), ESG ratings (MSCI ESGRatings, S&P Global Corporate Sustainability Assessment), national policies and macroeconomic trends,and material topics that concerned the consumer goods sector and related industries. Subsequently, theCompany consolidated the topics and adjusted their scopes.During the reporting period, M&G identied 22 material sustainability topics, with eight adjustmentscompared to the previous year:
2023 Topics2024 Updates
Sustainable materialsMerged with “Packaging materials” into “Sustainable products”Water resources ande?uents
Revised to “Water resources management”Integrated e?uent-related content with other environmental topics into thenew topic “Environmental compliance and pollutant management”Consumer health andsafety
Revised to “Product quality,” focusing on ensuring consumer health andsafety through product quality improvementsProduct and service qualitySplit into “Product quality” and “Marketing and after-sales”Responsible marketingIncorporated into the new topic “Marketing and after-sales”Human rights protectionRevised to “Labor rights,” expanding the topic scopeCommunity supportIncorporated into the “Social welfare” topic
TopicUpdates
ResultsReview andEvaluation
DoubleMaterialityAssessment
High
Impact Materiality
HighFinancial MaterialityLow
M&G’s 2024 Sustainability Material Topic Matrix
Governance topics
Corporate governanceMarketing and after-salesProduct quality
Environmental compliance andpollutant management
Supply chain management
Carbon emissions and energymanagement
Water resources management
Labor rights
Chemical safetySustainable products
Technological innovation
Waste management
Business ethics
Social welfare
Response to climate change
Occupational health and safety
Diversity and equal opportunities
Employee benets
Training and developmentRisk management
Information security and privacyprotection
Biodiversity
Medium
Medium
Social topicsEnvironmental topics
●Sustainable products
●
Environmental compliance andpollutant management
●Carbon emissions and energymanagement
●Waste management
●Response to climate change
●Biodiversity
●Water resources management
●Business ethics
●Risk management
●Corporate governance
●Product quality
●Technological innovation
●Occupational health and safety
●Marketing and after-sales
●Chemical safety
●Employee benets
●Information security and privacyprotection
●Supply chain management
●Labor rights
●Diversity and equal opportunities
●Training and development
●Social welfare
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StakeholdersConcerned Material TopicsCommunication Mechanisms and Methods
Government andregulatory authorities
●Corporate governance
●Carbon emissions and energymanagement
●
Product quality
●Special reports
●Participation in government meetings
●Supervision and assessment
●Field research
●Information disclosure
Shareholders andinvestors
●
Response to climate change
●Carbon emissions and energymanagement
●Waste management
●General meetings
●
Investor meetings
●Performance briengs
●Information disclosure
Consumers and customers
●Product quality
●Marketing and after-sales
●Chemical safety
●Information security and privacyprotection
●Product sales and promotion
●After-sales service
●Consumer survey
●Customer satisfaction survey
●Exhibition events
●O?cial website and corporate WeChataccount
Suppliers
●Product quality
●Chemical safety
●Occupational health and safety
●Bidding
●Supply chain conference
●Contract signing and execution
●Daily business communication
●Supplier training
●Supply chain ESG assessment and on-siteaudit
M&G is committed to establishing two-way, unimpeded,and regular communication channels with all stakeholders.Through diverse communication formats, we enable timelyunderstanding and addressing of stakeholders' concerns andexpectations.
Stakeholder Communication
StakeholdersConcerned Material TopicsCommunication Mechanisms and Methods
Distributors
●
Product quality
●Marketing and after-sales
●Business ethics
●Information security and privacyprotection
●Channel cooperation conference
●Marketing conference
●Market visits
●Daily business communication
Employees
●Labor rights
●Occupational health and safety
●
Training and development
●
Employee benets
●
Product quality
●
Information security and privacyprotection
●
WeCom
●
Internal email
●
Performance interview
●
Employee satisfaction survey
●
Training and workshop
●
Employee clubs and activities
●
Annual company meeting
●
Internal corporate culture platform
●
Employee suggestion platform
NGOs/Philanthropic
organizations
●
Social welfare
●
Waste management
●
Sustainable product design
●Products and packaging materials
●Cooperation and dialogue
●Public welfare projects and activities
●O?cial website and corporate WeChataccount
Media
●Product quality
●Marketing and after-sales
●Sustainable product design
●O?cial website and corporate WeChataccount
●Media interview and cooperation
●Forums and seminars
●Information disclosure
Industry associations
●Technological innovation
●Product quality
●Chemical safety
●Forums and seminars
●Participation in industry standard formulation
●Project collaboration
●Visit and communication
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Sustainable ProductsM&G actively embraces the green consumption trend, striving to provide consumers with high-qualitysustainable products. We integrate sustainable design principles into the development of various productcategories, expand the application of sustainable materials in both products and packaging, and advocatefor a sustainable lifestyle by “writing a greener future” using our products. Adhering to the belief that “onlywith high quality can we achieve sustainability,” we continuously enhance our quality management system,increase R&D investment, and strictly manage chemical safety, ensuring that our green product transition isaccompanied by high standards of quality and safety.
●Revised the M&G Sustainable ProductEvaluation Standard and fully integrated it into the
product development process
●Launched sustainable products including the“Endangered Animals: Wetland”, “Deep BluePlanet”, and “Carbon Emission ReductionPlan” series
●Sustainable products – Apply durability,replaceability, and recyclability principles in productdesign; use recyclable, biodegradable, recycled,or environmentally certied materials, and promotelightweight design and circular use for packaging.
●Product quality – Strengthen rened qualitymanagement to ensure product quality.
●Technological innovation – Focus on newtechnology development and innovative applicationsof existing technologies, establish an innovationmanagement system, participate in collaborativeR&D projects, and improve a scientic patentmanagement mechanism to protect technologicalinnovation achievements.
●To adopt sustainable design for 20% of productsby 20302024 Highlights
Material Topics
Goals
●Marketing and after-sales – Ensure transparent,accurate, and easy-to-understand productmarketing information, avoiding false or misleadingpromotions; improve after-sales services and theproduct recall system; establish clear customercomplaint handling approaches and processes.
●Chemical safety – Control and eliminate hazardouschemical substances in products, strictly controlchemicals used in production, and ensure safety;conduct consumer education on ingredient safety.
●To perform sustainable product evaluation for100% of new product development by 2030
●Accumulated a total of 20 sustainable products
●
Innovated sustainable marketing models byintegrating multi-channel resources suchas product recommendations, social mediainteraction, dedicated product displays, and studytours, achieving over 550 million impressionsthroughout the year
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Developing More Sustainable Products
To achieve our sustainable product strategy and goals and establish a clear direction for sustainable product development, M&Gintroduced its rstSustainable Product Evaluation Standardin 2023. This standard referenced domestic and international greenproduct certication systems and incorporated M&G’s product category characteristics to dene clear requirements across fourkey dimensions: materials, functionality, safety, and packaging. The result is a di?erentiated, industry-leading sustainable productevaluation system. In 2024, M&G further upgraded the standard, expanding its scope from single writing instruments to multipleproduct categories. The standard was also enhanced with clearer and more specic evaluation indicators, improving practicalapplicability and enabling a more systematic and standardized approach to sustainable design.
According to M&G’s corporate sustainable product standard, products are graded based on the degree of integration betweensustainability and products. This grading system guides product development toward higher levels of sustainability standards.
Products at the basic level meet circular economy principles,incorporating durability, reusability, and recyclable packagingin their design.
At the green label level, products go beyond sustainabledesign by utilizing more environmentally friendly materials,such as recycled or biodegradable materials.
M&G aims for 20% of its products toadopt sustainable design by 2030.
As of the end of the reporting period,20 sustainable products have beendeveloped.
Amid the global green consumption trend, M&G recognizes the market potential and consumer demand for sustainable products.As one of the core pillars of our sustainability strategy, we are committed to providing safe, low-carbon, and eco-friendly sustainableproducts and experiences.
The new sustainable product standard has been fully integrated into M&G’s newproduct development process. To enhance its implementation e?ectiveness, we haveconducted standard training sessions, compiled design guidelines, and optimizedevaluation procedures. These e?orts strengthen product designers’ awarenessand practice of sustainable design. Our goal is that by 2030, 100% of new productdevelopment will undergo sustainable product evaluation.
M&G’s Denition and Evaluation of Sustainable Products
M&G Sustainable Product Grading Method
The evaluation framework is built around ve key dimensions: product safety, resource e?ciency, green and low-carbon impact,sustainable design, and social value. Each dimension is assigned a weight based on its importance, and product sustainability isgraded based on specic indicator scores.
Products that meet the internal evaluation standards can feature the sustainableproduct green label “Write a Greener Future” on packaging, communicatingsustainability values to consumers. The green label has already been applied toseveral new products this year.
M&G Sustainable Product Green Label
Sustainable Product Standard Explanation Session
Evaluation Criteria
Green Labeling
Examples of Sustainable Design Products
The M&G Acrylic Series Markers feature a liquid-ink,high-capacity design, increasing ink volume by over 15%compared to conventional wick-based structures. Thisreduces ink residue and signicantly improves resourceutilization e?ciency. The Da Mo Wang (High-Capacity) SeriesWhiteboard Markers and Permanent Markers incorporatetechnical optimizations, extending their writing length to morethan twice the industry standard, e?ectively prolonging theirlifespan and reducing replacement frequency.
The M&G Power Saving No. 12 Stapler and Power Saving ProSeries have undergone technological upgrades, increasingtheir stapling lifespan to ve times the industry standard (upto 100,000 uses). This signicantly reduces resource wastewhile providing high-e?ciency, durable o?ce solutions.
The M&G Retractable Rell Highlighter features a valve-sealed structure with a side-press retract feature for quickretraction. Its rell design extends the product’s lifecycle whilereducing the use of disposable components.
M&G Power Saving Pro Series Staplers
M&G Retractable Rell Highlighter
Da Mo Wang (High-Capacity) Whiteboard Markers /
Permanent Markers
Large-Capacity Design
Extended Product Lifespan
Replaceable Component Design
Basic Level
M&G SustainableDesign Products
Green LabelLevel
M&G Green Label
Products
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M&G continuously expands the development and application ofsustainable materials in both products and packaging, enhancingsustainability of resource utilization. During the reporting period, M&Glaunched several new products incorporating a variety of sustainablycertied materials. For example, the “Deep Blue Planet” series gelpen uses Global Recycled Standard (GRS)-certied recycled plastic.Additionally, some notebooks, toner cartridges, and shreddersreceived China Environmental Labeling Product Certication (Ten RingCertication), while laser printers and dot matrix printers obtained ChinaEnergy Conservation Product Certication. The Red M&G Printer Paperholds Forest Stewardship Council (FSC) Certication. Moreover, theM&G Food-Grade Soft-Tip Watercolor Pen incorporates environmentallyfriendly materials, reducing energy consumption during production by10% and earning the UL green label validation (U.S.).
Sustainable Materials
M&G Food-Grade Soft-Tip Watercolor Pen with UL
green label validation
Gel Pens Using PCR Materials
During the reporting period, M&G conducted a range of material optimization e?orts on raw materials such as plastics, paper, andwax, aimed at improving the environmental footprint and safety characteristics of these materials.Raw Materials
Since 2023, M&G has successfully incorporated PCR and PLA materialsinto multiple sustainable product series to replace virgin plastics,thereby reducing plastic pollution and the carbon footprint of products.During the reporting period, the Company continued material propertyanalysis, equipment modications, and process optimization for thesetwo materials to overcome technical bottlenecks and enhance productperformance. Currently, M&G has developed ve types of PCR plastics,with recycled plastic content reaching up to 100% in certain products.Initially, products made from PCR materials were limited to darkercolors, but over time, the color options have broadened to include lighterand transparent hues. The range of applications has also expanded,moving beyond writing instruments to include correction tapes,mechanical pencils, and other product categories.
Red M&G Printer Paper and some M&G Colipu Printer Paper productshave received FSC certication. Additionally, for events such as theBoao Forum for Asia 2024 and the Consumer Goods Forum (CGF), aswell as customized stationery sets and notebooks for corporate clients,M&G has actively used FSC-certied paper.
Post-Consumer Recycled (PCR) Materials and Polylactic Acid (PLA) Materials
FSC-Certied Paper
Notebooks Customized for Boao Forum for Asia2024 — Made with FSC-Certied Paper
This series uses PLA biodegradablematerials and recycled plastics asthe primary raw materials for penbarrels, helping to reduce plasticwaste and pollution. By minimizingthe risk of animals ingesting plasticor becoming entangled in it, thedesign aims to protect wildlife.The series collaborates with theMangrove Wetlands ConservationFoundation (MCF) and incorporatesthe images of ve endangeredwetland species, including theBlack-faced Spoonbill and OrientalStork, into its packaging. Thisinitiative raises consumer awarenessof wetland conservation andbiodiversity.
This sustainable product line is madeprimarily from PLA biodegradablematerials and recycled plastics. Incollaboration with organizations suchas WildAid, the design highlightsmarine ecosystem protection,featuring species such as theManta Ray, Narwhal, Dugong,and Green Sea Turtle, along withecological scenarios such as coralreefs and polar glaciers. The seriesencourages consumers to recognizeand respect marine biodiversity.
The primary materials for this productcome from recycled lamp housings,transparent plastic componentsof plastic products, and plasticwaste sourced from dismantled oldLCD TVs and monitors. Throughprofessional disassembly andremanufacturing, these materials arerepurposed for circular use. Eachgel pen contributes to a reductionof approximately 49g of CO
eemissions.
“Endangered Animals: Wetland”Series
“Deep Blue Planet” Series“Carbon Emission Reduction
Plan” Gel Pen
The M&G Writing Master Gel Pen is manufactured usingrefurbished and repurposed retired molds, preserving the classicproduct’s functionality and design style while giving the productnew life.
M&G Writing Master Gel Pen
“Endangered Animals: Wetland” Series
Recycled Plastic Gel Pen
“Deep Blue Planet” Series PLABiodegradable Gel Pen
“Carbon Emission Reduction Plan”
Gel Pen
Retired Mold Reuse
Examples of Green Label Products
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M&G has developed an eco-friendly glitter paint-freematerial, enabling metallic gloss e?ects directly throughinjection molding without the need for spray painting orelectroplating, thus avoiding the environmental impactof these processes. This material has been successfullyapplied to certain correction tape products.
M&G has developed water-soluble paints and non-toxicmaterials to produce easy-to-clean children’s art supplies,ensuring child safety while reducing impacts towardswater environment.
Correction Tape Using Glitter Paint-Free MaterialsEasy-to-Clean Children’s Art Supplies
M&G actively promotes the green transformation of product packaging, prioritizing the use of more eco-friendly packaging materialsand printing inks to enhance packaging sustainability.
Metal pen holderpackaging has switchedfrom single-use plasticbags to paper boxes.
“Deep Blue Planet” seriesdisplay stands are madefrom kraft paper.
Skin-Friendly High-Transparency Self-Adhesive Book Coverpackaging uses moreenvironmentally friendlyand safer water-basedinks.
M&G Eye ProtectionDesk Lamp’s outerpackaging boxes usesingle-color ink printing.
Packaging Materials
Packaging Material Substitution
Printing Ink Optimization
Green Lifestyle
M&G is committed to promoting the sustainable consumption philosophy of “writing a greener future” through its sustainableproducts, encouraging the public to adopt greener habits in everyday life. The Company also carries out diverse advocacy initiativestailored to both daily consumer and o?ce procurement scenarios.
Leveraging its online and o?ine retail networks, M&G provides consumers with a green consumption environment. Through variousgreen-themed educational and promotional activities, the Company fosters greater awareness of sustainability. Over the year,M&G’s environmental and public welfare campaigns reached an audience of over 550 million views.
Advocating for Sustainable Consumption
Creating Sustainable Consumption ScenariosCase
Jiumu Store has established sustainable product sections in over 700 stores nationwide, integrating eco-friendlythemes, rell initiatives, and interactive activities to promote environmental awareness. Additionally, Jiumu Storelaunched the “Green Credits for Members” program, rewarding consumers who purchase sustainable products ordecline single-use shopping bags with points redeemable for rewards and fostering the development of sustainableconsumption habits. During the reporting period, the program issued over 2.77 million Green Credits, resulting in morethan 1.29 million instances of consumption.
Sustainable Product Section in Jiumu Store“Green Credits for Members” of Jiumu Store
2.77+
millionGreen Credits issued
1.29+
millioninstances of consumption
Eco-Friendly Paint-Free MaterialsEasy-to-Clean Art Supplies
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Green O?ce
As businesses and institutions increasingly prioritize green o?ce practices, M&G actively promotes the green o?ce philosophythrough various channels, o?ering corporate clients eco-friendly o?ce solutions that combine functionality with the environmentalprotection philosophy.At the Shanghai International Carbon Neutrality Expo, M&G collaborated with Lingang Group to launch a co-branded green o?cekit and initiative. Additionally, M&G established green o?ce sections at major events such as the Boao Forum for Asia, CGF, Forumon China-Africa Cooperation, and China International Import Expo, where it showcased a diverse range of environmental stationeryand personalized eco-friendly solutions, receiving widespread recognition from attendees.During the reporting period, M&G Colipu organized multiple promotional activities to highlight M&G’s eco-friendly stationery andFSC-certied printer paper. Through its o?cial website, WeChat o?cial account, and other online platforms, M&G Colipu providedclients with diverse sustainable products and green, low-carbon procurement solutions, collectively advancing green o?ceprocurement.
Green O?ce Section at the Boao Forum for AsiaRecommended Eco-Friendly Products on M&G Colipu Website
On April 22, 2024 (Earth Day), M&G launched the “Rell for the Earth: Reducing Plastic Starts with Me” initiative anda green campus public welfare initiative. The event took place at six schools in Shanghai, Suzhou, and Chengdu,where nearly 200 students, guided by a professional artist, created the environmental art installation “Innite Planet”using discarded pen rells and cardstock. On June 5, 2024 (World Environment Day), this artwork was exhibited at theShanghai International Carbon Neutrality Expo, inspiring public reection on the relationship between waste recyclingand a sustainable future.
CaseCo-Creating Environmental Art with Students
Campus Environmental Art Workshop“Innite Planet” Environmental Art Installation
Quality Management System
M&G Product Quality Control Process
Commitment to High Quality
M&G has established and continuously improved a comprehensive full-process quality control system, covering product designand development, raw material procurement, production processes, nished product inspection, and after-sales service, ensuringthat the Company’s products comply with relevant regulations, standards, and market demands. The Company has set up adedicated Quality Center, building a quality management system that includes Quality Control (QC), Quality Assurance (QA), andQuality Engineering (QE). It has also formulated regulations such as theIncoming Inspection RegulationsandAssembly InspectionRegulationsto standardize quality control procedures. During the reporting period, M&G further enhanced the quality controlsystem for writing instruments across raw materials, R&D, production, and after-sales service, establishing an eight-step qualitycontrol process, covering raw material and incoming inspection, new product evaluation, product assembly inspection, processinspection, nished product inspection, sample retention management, and grid-based management of business partners. Eachstep has clearly dened inspection procedures and guidelines, enabling a systematic and e?ective approach to controlling qualityrisks in writing instruments.
M&G is dedicated to delivering high-quality products and services. We uphold strict quality control measures for both ourproducts and suppliers, maintaining rigorous standards across manufacturing, production, and after-sales service. In addition, wecontinuously advance R&D and innovation to provide superior, e?cient products and services for consumers and clients.Product Quality Management
Design andDevelopment
Production Process
Raw MaterialProcurement
Final Product Inspection
●
Dene product quality objectives and requirements during project planning and conduct qualityfunction deployment analysis;
●
Review design plans and drawings to verify feasibility and rationality during the design process;
●Produce samples and conduct performance and reliability tests, improving designs based on testresults.
●Conduct nal inspection on product appearance, performance, and packaging according toquality standards;
●Process warehousing for qualied products, and handle non-conforming products accordingto non-conformance procedures.
●Strictly control raw material quality in accordance with supplier management measures;
●Evaluate and select suppliers through on-site inspections and audits of their quality managementsystems;
●
Sign quality agreements during procurement to dene quality requirements and responsibilities;
●Inspect raw materials upon arrival using sampling or full inspections, determining acceptancebased on results.
●Establish key quality control points and conduct scheduled inspections and sampling to monitorproduction process stability;
●Operators perform self-inspections and mutual inspections. If quality issues are detected, operationsare halted for corrective action and reporting;
●Segregate, label, review, and handle non-conforming products to prevent them from enteringsubsequent processes.
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To strengthen product reliability and reduce quality risks, M&G has established and rened a product audit mechanism. Thismechanism tailors inspection plans based on di?erent product categories, including new products, high-risk products, andregular products, while also dening procedures for handling non-conforming products. By adopting higher standards and stricterrequirements, M&G continuously improves product quality control.
Quality Assurance MechanismM&G continuously strengthens quality monitoring and management at all stages—before, during, and after product launch—topromptly identify and resolve potential quality issues, ensuring continuous improvement in product quality.
The new product development process has been optimized, with specicreview standards established for structure, printing, and packaging,e?ectively reducing process anomalies during product launch. In 2024, thenew product anomaly rate decreased by 71% compared to 2023.
The supplier quality assessment system has been upgraded, introducingnew product witness testing for qualied inspection and optimizingthe reward and penalty mechanism. The periodic quality risk reviewmanagement system has been updated, and a new product complianceself-check system has been established.
A core raw material supplier management system has been establishedto conduct comprehensive inspections and monitoring of raw materialusage and key production processes for core categories. Measuresinclude requiring suppliers to provide raw material inspection reports forcomparison with internal test results, verifying raw material procurementinvoices, and conducting unannounced audits on raw materials andproduction processes to ensure strict quality control.
The M&G Stationery Testing Laboratory has been accredited by the ChinaNational Accreditation Service for Conformity Assessment (CNAS), aligningits testing capabilities with international standards to ensure more e?cientand timely quality testing and improvement measures.
New Product Development
SupplierManagement
Raw MaterialControl
Production Process QualityMonitoring
In 2024, Jiumu Store implemented a range of quality control enhancement measures: strengthening the qualitycontrol team by establishing quality inspection and quality control positions; developing a quality control workowand warehouse entry inspection standards; revising and improving thePreliminary Quality Control Process for JiumuStore ProductsandCommodity Testing Report & Mass Production Sample Collection Guidelines, carrying out specialrectications for products and suppliers that repeatedly failed warehouse inspections to prevent the recurrence ofsimilar defects; and establishing a regular store inspection mechanism to strengthen quality control during the salesprocess.
CaseEstablishing and Improving Jiumu Store’s Quality Control System
Improving Quality Management CapabilitiesM&G actively strengthens quality awareness and management capabilities among employees and suppliers through training andempowerment programs. During the reporting period, the Company organized four specialized quality training sessions, coveringtopics such as packaging weighing operation guidelines, rework requirements for non-conforming products, skill enhancement forfull-inspection personnel, and fountain pen manufacturing and process technology. These initiatives helped improve employees’technical expertise in quality management. Additionally, M&G organized various supplier quality improvement programs, providingtraining, exchange meetings, and on-site guidance to help suppliers understand and apply product improvement methodologies,thereby enhancing product performance.
M&G places great importance on quality testing and continuously improves monitoring capabilities to enhancequality management e?ciency and accuracy. In 2024, M&G gradually deployed and applied 19 intelligent detectiondevices, enabling real-time in-process quality control for writing instruments, notebooks, and other products. The newequipment enhances functional testing, allowing for press-force anomaly detection, silicon bead inspection, and ironstaple binding inspection. For appearance inspection, it enables comprehensive nished pen appearance checks, caplabeling detection, and labeling machine inspections, e?ectively preventing quality defects from being overlooked.
Case
Case
Enhancing Testing Capabilities and Strengthening Quality Control
Supplier MBS Empowerment and Improvement
The MBS (M&G Business System) is a unique internal management framework and business operation modeldeveloped by M&G, based on lean management principles. It includes a systematic and structured problem-solvingand continuous improvement toolkit. In 2024, M&G launched a series of MBS empowerment programs for suppliers,enhancing their quality management capabilities through the MBS improvement logic. For example, to address writingfunction defects in marker pens, M&G provided on-site guidance, helping suppliers understand and apply the “identifyroot causes, implement countermeasures, and ensure sustainability” approach from the MBS logic. This successfullyresolved key quality issues such as dry nibs and ink leakage, achieving a category pass rate of over 99.5%.
M&G Supply Chain 2024 MBS Empowerment Exchange Conference
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ChannelPartners
Large Retail
Stores
E-commerce
Platforms
M&G Colipu
M&G actively listens to feedback from customers and consumers, has formulated theCustomer Complaint Handling Process,and established and improved complaint and feedback mechanisms and channels. During the reporting period, the Companyestablished a grid-based quality partner management mechanism, proactively collected customer feedback from sales channels,and organized relevant departments to complete issue analysis and corrective action cycles. The number of market feedbackissues decreased by 54% compared to 2023. In addition, M&G carried out targeted improvements to enhance the timeliness ofcomplaint handling by optimizing the complaint handling process and adding a fast-track service channel for one-on-one qualitysupport, resulting in an improved timely response rate for complaint handling compared to 2023.
Complaint Handling and After-Sales Service
Winner of the 2024 RedDot Design Award andthe Gold Award in theO?ce Supplies categoryof the 2024 Stationery -China Stationery IndustryInnovation Competition
Winner of the Gold Awardat the CSID 2024 (ChinaStationery InnovativeDesign Competition 2024)
Winner of the Gold Awardat the CSID 2024 (ChinaStationery InnovativeDesign Competition 2024)Winner of the 2024 RedDot Design Award andthe Gold Award in theCultural and EducationalInnovation category ofthe 2024 Stationery -China Stationery IndustryInnovation Competition
M&G Circle Drawing
Tool
M&G DIY FingertipCrayonM&G Smart Large-Screen
Microscope
Selected Award-Winning Products in 2024
M&G is committed to enhancing R&D and innovation to drive product vitality. Since 2010, the Company has been recognizedas a National High-Tech Enterprise and has continuously advanced its technical capabilities. In 2024, nearly RMB190 millionwas invested in technological R&D and product innovation. Its subsidiary, Axus Stationery, was honored as a “specialized andsophisticated enterprise that produces new and unique products” by the Shanghai Municipal Commission of Economy andInformatization.M&G’s product design has won all four major international industrial design awards—Germany’s iF DESIGN AWARD and Red DotDesign Award, Japan’s Good Design (G Mark) Award, and the International Design Excellence Awards (IDEA) of the United States.It has also received several prestigious design accolades, such as the Golden Pin Design Award and Red Star Design Award,demonstrating its world-class design strength. During the reporting period, M&G received the China National Light Industry CouncilScience and Technological Innovation Award and the Science and Technology Progress Award.
M&G has established R&D management regulations to standardize various tasks involved in the R&D and innovation processand has continuously strengthened the accumulation and consolidation of technical experience. During the reporting period, M&Greviewed its existing R&D management regulations and compiled a comprehensive guide covering processes including projectinitiation, development, testing, pilot production, inspection, project conclusion, product launch, and post-launch tracking, therebyenhancing the systematization and standardization of R&D and innovation management.
R&D and Innovation
M&G Utility Knife Pro
Progress in the Development of Customer Complaint and Feedback Mechanisms Across Various Channels
M&G regularly conducts consumer research and customer satisfaction surveys, distributingsatisfaction questionnaires to channel partners every six months. These surveys cover productquality, delivery timeliness, new product availability, information communication, service attitude,and after-sales service, in order to assess partner satisfaction. Based on the feedback analysis,targeted improvement plans are formulated. In 2024, the channel partner satisfaction rate reached90%.
Jiumu Store established a comprehensive complaint handling process, standardizing the handlingprocedures and statistical analysis for customer complaints across online and o?ine channels,and formulated rules for complaint escalation. For products with high complaint rates, on-sitequality improvements are regularly conducted at suppliers to reduce complaint rates.
M&G formulated theCustomer Complaint Handling Standardsand other management documentsto standardize the full process management of customer complaints in e-commerce saleschannels. During the reporting period, the Company claried the division of responsibilities for pre-sales, in-sales, and after-sales functions, and established an after-sales data team responsible fordaily review and correction of related complaint handling. By the end of 2024, a dedicated after-sales work order team was formed to shorten the waiting time for online consumers’ after-salesissue resolution.A monthly complaint data analysis dashboard is produced, and the results are used for subsequentcomplaint collection, review, and investigation and optimization work, thereby developing moretargeted measures to improve complaint service quality.During the reporting period, M&G Colipu established procedures for platform-based ordercancellation and return/exchange requests, and optimized its customer feedback follow-upmechanism. M&G Colipu also dened clear follow-up operation regulations for both interceptableand non-interceptable orders, aiming to improve the e?ciency and quality of complaintresolution. In parallel, M&G Colipu continued to conduct customer satisfaction surveys throughvarious channels, including phone interviews, mini-program questionnaires, and service groupquestionnaire surveys. Feedback from corporate clients is collected and used to rene serviceexperiences in subsequent service processes, with the goal of consistently enhancing overallcustomer satisfaction.
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M&G continuously improves its intellectual property management system and policies to protect the outcomes of R&D andinnovation. In 2021, the Company obtained certication of the Intellectual Property Management System (GB/T 29490-2013) andhas since undergone annual certication audits. During the reporting period, M&G initiated a new round of certication updates forthe intellectual property management system and revised 16 management policies, including theIntellectual Property Handbook
and thePatent Management Method, based on the revised standard (GB/T 29490-2023). As of the end of the reporting period, theCompany had led a total of 2,901 patent applications, received 2,625 granted patents, and held 1,336 valid patents.
During the reporting period, morethan 50 technological achievementswere put into practical application.The Company achieved keytechnological breakthroughsin foundational technologicalinnovations in each category,unique product functionality,and core consumer needs. Newinnovative products launchedinclude the Acrylic Series Markers,Odor-Free Easy-to-Clean Markers,Boron-Free Antibacterial Low-OdorClay, Dr. Clean Eraser, RetractableRellable Correction Tape, etc.
Anti-stick Ruler – Solved the problem of eraserssticking to rulers through material innovation
Odor-Free Easy-to-Clean Oil-Based Marker –Innovated ink formula to eliminate pungent odor
from oil-based markers
M&G places great importance on intellectual property protection and rmly opposes piracy. During the reporting period,the Company cooperated with law enforcement authorities in cracking down on 72 cases involving intellectual propertyinfringement and worked with e-commerce platforms to combat the sale of counterfeit products, image theft, and otherviolations. These e?orts serve to fully protect the legitimate rights and interests of consumers, the M&G brand, andchannel partners.In June 2024, M&G discovered that a store on an e-commerce platform was selling counterfeit M&G-branded gel pensand rells in large quantities. The Company promptly gathered clues and compiled relevant materials to report thecase to the local economic investigation authority. M&G successfully assisted the police in solving the case, and therelevant suspects were apprehended and brought to justice.
CaseSafeguarding Market Order and Combating Counterfeit Products
Chemical SafetyM&G is committed to providing high-quality and safe products, and applies standards stricter than regulatory requirements tostrengthen chemical safety management. The Company continues to phase out substances of high concern and actively seekssafer alternative materials. In parallel, it continuously improves product information disclosure to enhance transparency in productsafety.
M&G has formulated and implemented theChemical Management Policy
, which clearly denes regulations regarding chemicalmanagement principles, the prohibition and phase-out of certain chemicals, safety standards and certication requirements, productaudits, and supplier chemical management. The policy is managed by the Company’s Chemical Management Committee
, ensuringthe uniformity and standardization of chemical usage, management and control processes in products. The Company closelymonitors updates to relevant regulatory standards. During the reporting period, in accordance with newly updated standards suchasExercise Books(QB/T 1437-2023),Fountain Pens and Nibs(GB/T 26717-2024),Children’s Acrylic Paint and Acrylic Markers (T/SLIA 0003-2024), and the GB 4806 series of food safety standards, M&G conducted a comprehensive review of existing productsand promptly upgraded related product inspection standards and control requirements to ensure that product development,manufacturing, and quality control comply with the latest regulatory requirements.
M&G identies substances of high concern that are prohibited or restricted based on national standards and industry regulations,and formulates a chemical control list. This list is dynamically updated according to changes in regulations and policies, consumerand market concerns, as well as the needs of business and product expansion, thereby continuously strengthening chemicalmanagement controls. For example, all inks used in M&G’s writing instruments must not only comply with applicable productstandards and theRequest in Common Use of Security for Student’s Articles(GB 21027-2020), but should also meet the morestringent EU EN71-3 standard. In addition, the control of black gel ink is benchmarked against the restricted substances list inAppendix XVII of the EU REACH regulation.
Chemical Safety Management
Restriction and Phase-Out of Chemicals
M&G’sChemical Management Policy has been publicly disclosed on the Company’s o?cial website under the “Investor Relations - ESG” section.
For details regarding the Company’s chemical safety management framework and the list of applicable regulations and standards, please refer to the “ESGPerformance Report – Social – Chemical Management” section of this Report.
For certain chemicals that pose potential risks to human health or the environment, M&Gdevelops and implements phase-out plans to gradually reduce and ultimately eliminate harmfulcomponents from its products. In 2020, M&G phased out phthalates from all student suppliesin accordance with theRequest in Common Use of Security for Student’s Articles (GB 21027-2020). In 2021, the Company eliminated short-chain chlorinated para?ns from the same productcategory. The phase-out of both substances has now been fully completed. M&G also activelyexplores safer and healthier chemical alternatives and promotes its research results acrossthe industry through standard-setting participation, contributing to improved chemical safetystandards at the industry level. For instance, M&G independently developed and launcheda boron-free clay product to reduce the toxicity risk associated with boron additives. Buildingon this, during the reporting period, M&G led the revision plan of theModeling Clayindustrystandard, promoting the inclusion of stricter limits on migratory elements (including boron), freeformaldehyde, and preservatives. This standard revision project has o?cially been led with theMinistry of Industry and Information Technology.
202220232024
2,391
2,612
2,901
202220232024
2,235
2,407
2,625Cumulative Number of Patent Applications
(Unit: Item)
Cumulative Number of Patents Granted
(Unit: Item)
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Out of strong concern for chemical safety in its products, M&G actively develops more environmentally friendly and safer materials,continuously launching safe and non-toxic products.R&D of Healthy and Safe Products
M&G has actively implemented PVC substitutione?orts for several consecutive years. TheCompany has prohibited the use of PVC materialsin certain product components, such as blisterpacks, bases, trays, and packaging materials, andcontinues to develop safer alternatives to PVC.These include ethylene vinyl acetate (EVA) zipperbags and thermoplastic elastomer (TPE) erasers,among others. M&G will continue to expand therange of applications where PVC materials arereplaced.
M&G continues to increase its e?orts in developingfood-grade children’s art products. Food-gradematerials have already been applied to a varietyof product subcategories, including outline pens,markers, watercolor pens, oil paint sticks, andcrayons. During the reporting period, the Companyfurther developed and launched food-gradepainting sticks, markers, and crayons, forming acomprehensive food-grade product portfolio andsteadily expanding its food-grade product series.
CaseCasePromoting PVC MaterialSubstitution
Expanding the Portfolio of Food-Grade Children’s Art Products
M&G Exam Set (EVA Zipper Bag)M&G Food-Grade Crayons
M&G is committed to enhancing the transparency of productchemical safety. For all chemical substances procured, theCompany requires suppliers to provideSafety Data Sheets
(SDS) of chemicals and respond to relevant informationrequests from regulatory agencies, customers, and otherstakeholders. Products promoted with health and safety asselling points are subject to strict inspection and must passrequired testing and obtain relevant certications beforebeing launched to the market. Certication informationmust be disclosed as required, and false advertising isstrictly prohibited. At the same time, M&G actively promoteschemical safety knowledge to consumers, using live-streaming e-commerce platforms and other channels toprovide public education on product chemical content,encouraging consumers to pay greater attention to chemicalsafety.
Raising Awareness of Chemical Safety
Explaining Chemical Safety of Watercolor Pens during
Campus Art Activities
Presenting Chemical Safety Knowledge through Livestreams and
Product Promotions
CaseDeveloping Safer Acrylic Marker Series
M&G actively promotes the development of standardsfor children’s acrylic art supplies. The Companyparticipated in drafting the group standardChildren’sAcrylic Paint and Acrylic Markers(T/SLIA 0003-2024),which was o?cially released in 2024. This standardfeatures chemical safety requirements that are stricterthan commonly adopted industry product standards.M&G has already taken the lead in applying thesestandard requirements in the development of itsacrylic marker products.
M&G Acrylic Marker Series
M&G’s European subsidiary Beckmann has developed a chemical compliance guide and restricted substances list based on thelaws and regulations of the country where it operates, EU regulations, and voluntary standards. The same chemical managementrequirements are imposed on all suppliers. For certain chemicals, the restrictions in this guide are even more stringent than thoseunder the EU REACH regulation. Beckmann has already eliminated phthalates, polyvinyl chloride (PVC), per- and polyuoroalkylsubstances (PFAS), bisphenol A (BPA) and other chemical from its products.
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Climate and EnvironmentM&G views climate action and environmental protection through a long-term lens, integrating greentransformation into its broader corporate development plan. To this end, we have proactively explored anddened our climate strategy and emission reduction targets for 2030 and 2050. Guided by the principles of thecircular economy, we strive to enhance resource e?ciency, embed the philosophy of biodiversity protection intoforest land management and consumer education, and are committed to continuously reducing the carbon andenvironmental footprint across our operations and value chain.
●
The Group’s Scope 1 and Scope 2 GHGemissions totaling 48,935 tCO
e, a 46.4%reduction compared to 2021
●Promoted smart energy management, aircompressor retrotting, and waste heat recoveryprojects, with an estimated annual electricitysaving of 1.74 million kWh
●To reduce Scope 1 and Scope 2 GHG emissionsfrom operations by 42% by 2030 compared to thebase year 20212024 Highlights
Goals
●To achieve carbon neutrality across the entirevalue chain by 2050
●Consumption of renewable energy-generatedelectricity exceeding 21.6 million kWh, accountingfor 17% of the total electricity consumption
●Collected GHG emission data from 110 suppliers,establishing an initial supplier GHG emission datamanagement system
●Response to climate change - Formulate group-levelcarbon neutrality strategy and targets, systematicallyidentify climate risks and opportunities, and develop aclimate action plan for the full value chain.
●Carbon emissions and energy management -Implement energy-saving and e?ciency-enhancementmeasures, expand the use of renewable energy, andcontinuously reduce emissions across all processes ofthe value chain.
●Environmental compliance and pollutant control -
Improve the environmental management system,mitigate environmental compliance risks; promotepollution prevention and emission reduction measures,and strictly control pollutant discharge.
Material Topics
●
Water resources management - Use water resourcesrationally and promote water conservation, recyclingand reuse.
●
Waste management - Establish and improve a waste
management system, and promote waste reduction atsource, resource utilization, and compliant disposal.
●Biodiversity - Implement biodiversity and ecosystem
protection through operation facility design andconstruction, raw material procurement, and consumerawareness initiatives.
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In response to the increasingly severe global warming crisis, M&G actively assumes corporate responsibility and has proactivelyestablished and gradually advanced a group-level climate action strategy to support the carbon peaking and carbon neutralitygoals (Dual Carbon) of China through concrete action. Building on the commitment announced in 2022 “to be carbon neutral by2050,” M&G completed a comprehensive GHG emission inventory at the group level in 2023. Based on the inventory results,we conducted an emission reduction potential analysis this year and, drawing on domestic and international climate policies andregulations and corporate best practices, formulated a mid-term emission reduction target: by 2030, reduce GHG emissions fromour own operations (Scope 1 and Scope 2) by 42% compared to the base year 2021. This target is aligned with the 1.5°C goal oftheParis Agreement. Following thorough internal discussions, the target has been broken down into feasible annual implementationplans to ensure scientic and achievable execution.
Climate Strategy
2021 - 20302030 - 2050
Using 2021 as the base year, to reduce GHG emissions fromour own operations (Scope 1 and Scope 2) by 42% by 2030
To achieve carbon neutralityacross the entire value chain
Scope 1 and Scope 2
Scope 3
Explore energy-saving potential, optimize energymanagement, and improve energy e?ciency;Increase the proportion of renewable energy and graduallytransition to clean energy.
Establish a carbon emissions accounting system for thesupply chain;Encourage suppliers to set energy-saving and emissionreduction targets and regularly track progress;Gradually conduct product carbon footprint accounting andmanagement;Empower suppliers to enhance carbon management andsupply capabilities for green products.
Conduct regular carbonmanagement;Continue expanding renewableenergy use;Introduce innovative low-carbontechnologies, processes, andmanagement models;Explore additional carbonreduction opportunities such ascarbon credits.Optimize logistics routes and improve transportatione?ciency;Use new energy transportation vehicles;Enhance warehouse intelligence and improve energye?ciency in storage facilities.
Explore recycling, remanufacturing, and reuse ofmaterials and products;Promote sustainable product design to improve therecyclability of products and packaging.
Optimize lighting and heating, ventilation, and air conditioningsystems;Promote low-carbon o?ce and lifestyle concepts.
Manufacturing
Supply Chain Management
Warehousing and Logistics
Product End-of-Life Management
O?ce Operations & Green Stores
M&G Carbon Emission Reduction Strategy and Action Roadmap
2021 (Base Year)
2030
M&G has integrated climate change-related issues into its overall sustainability governance structure. The Board of Directorsand the Board Strategy Committee are responsible for overseeing the Company’s management of climate-related risks. TheSustainability O?ce is tasked with coordinating the implementation of the climate strategy, establishing the corporate carbonmanagement system, facilitating the establishment of cross-departmental working mechanisms, monitoring the progress of targetimplementation, and conducting climate-related disclosures. During the reporting period, M&G strengthened its climate governancee?orts. Under the leadership of the Sustainability O?ce, responsible departments across production bases and other emissionsources decomposed emission reduction targets and formulated specic action plans to e?ectively implement related reductionmeasures.
To assess the short-, medium-, and long-term impacts of climate-related risks and opportunities on corporate strategy, M&Gadopted a scenario analysis approach, comparing projected physical and socio-economic developments under two contrastingglobal warming scenarios: the “turquoise scenario” (temperature rise limited to 1.5°C - 2°C) and the “brown scenario” (temperaturerise of 4°C - 5°C). This analysis enabled M&G to identify and evaluate potential climate-related risks and opportunities for its corebusiness, thereby supporting the development of more targeted and e?ective response strategies.
Governance
Strategy
Risk TypesPotential Impacts
ImpactsTimeframe
Primary Response Measures
Physical
Risks
AcuteRisks
●
Extreme weather events such as hightemperatures, typhoons, and heavyrainfall may cause damage to facilitiesand equipment, disrupt logistics, anda?ect the supply of raw materials;
●
Extreme weather events like heatwavesand thunderstorms may endangeremployee health and safety.
Short-,
medium-,
and long-
term
●
Conduct regular inspections andupgrades of facilities and equipmentstability to improve resilience againstnatural disasters;
●
Develop disaster emergency responseplans, conduct emergency drills,purchase accident insurance, andmaintain daily reserves of disasterprevention and relief supplies.
Chronic
Risks
●
Rising sea levels may lead to greateroperational instability for facilities locatedin coastal areas;
●
Increased ecosystem vulnerability maya?ect the stable supply of raw materialsin M&G’s supply chain, such as timberand pulp;
●The likelihood of virus transmission andoutbreaks may increase, potentiallyimpacting employee health and safety.
Medium- to
long-term
●Gradually incorporate climate riskconsiderations into infrastructuredevelopment and future businessplanning;
●Strengthen prevention and control offorest-related risks such as re, winddamage, and pest outbreaks; deepensustainable forest land management;
●
Improve employee health and safetybenets, including insurance coverage.
Transitional
Risks
Policy andLegal Risks
●
With the continued advancement ofthe Dual Carbon policy, enterpriseswill face stricter regulations on energyconservation and carbon reduction. M&Gmay need to intensify emission reductione?orts and increase nancial investment;
Medium-term
●
Monitor and stay informed aboutnational climate policy developments,and incorporate policy requirementsinto operational planning in a timelymanner;
Climate-Related Risks
Denition of timeframe for climate risks and opportunities: Within 1 year is short-term; 1 to 5 years is medium-term; more than 5 years is long-term.
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M&G integrates the identication, assessment, and management of climate-related risks and opportunities into the Company’soverall risk management system to systematically control climate risks.
Risk Management
Climate Risk IdenticationClimate Risk AssessmentClimate Risk ResponseThe Sustainability O?ce compilesa climate risk list based ondomestic and international policytrends and stakeholder feedback.
The Risk Management andCompliance Committee evaluatesbusiness risks, climate risks, andother ESG-related risks throughqualitative and quantitativeanalysis from short-, medium-, andlong-term perspectives, prioritizesthem, and submits the results tothe Board Strategy Committee forreview.
Climate risks identied as highpriority are assigned to responsibledepartments to develop andimplement mitigation plans.
During the reporting period, M&G established a carbon emission reduction target for 2030 and broke it down into annual goals.These targets have been integrated into the ESG performance evaluations of responsible leaders at each base and business unit,and the Company will regularly track and assess the progress and achievement of these targets.M&G continues to calculate and disclose Scope 1 and Scope 2 GHG emissions at the organizational level on an annual basis.The accounting follows standards and specications such as ISO 14064-1:2018Specication with Guidance at the OrganizationLevel for Quantication and Reporting of Greenhouse Gas Emissions and Removals, GB/T 32150-2015General Guidelinesof the Greenhouse Gas Emissions Accounting and Reporting for Industrial Enterprises, and the2019 Renement to the 2006IPCC Guidelines for National Greenhouse Gas Inventories, with the organizational boundary dened based on the operationalcontrol approach. At the same time, the Company is gradually advancing Scope 3 data collection, continuously improving theGHG emission data management capabilities across the value chain. M&G has collected carbon emission data from suppliersfor two consecutive years and provided training and support to enhance the accuracy of data reporting. The number of suppliersparticipating in GHG emission data collection increased from 52 in 2023 to 110 in the reporting period.
Metrics and Targets
M&G GHG Emissions Data
Climate-Related OpportunitiesOpportunity
Type
Potential Impacts
ImpactsTimeframe
Primary Response MeasuresResourceE?ciency
●Improvements in energy and carbonemissions management can promote energyconservation and emission reduction, whilealso reducing costs and enhancing e?ciency.
Short-term
●Identify energy-saving potential andcontinuously improve energy e?ciency;
●Actively promote green logistics and greeno?ce practices to strengthen energyconservation and emission reductionacross all operational stages.
Energy Source
●
Early deployment of renewable energy canreduce future dependence on fossil fuels.
Medium- to
long-term
●
Expand the use of renewable energy andoptimize the energy mix.
Products and
Services
●
As consumer awareness of green andlow-carbon practices increases, andgreen procurement becomes a growingtrend among government and corporateentities, the market demand for high-qualitysustainable products will continue to rise.Developing green and low-carbon productswill help the Company further enhance itscompetitiveness and increase revenue.
Short-,medium-, and
long-term
●
Increase investment in the R&D andpromotion of sustainable products;
●
Guide product development by adoptingsustainable design principles;
●
Communicate the concept of sustainabilityto consumers and engage them in jointclimate action.
Market
Scope 1 GHG Emissions
(Unit: tons of CO
equivalent)
Total GHG Emissions (Scope 1 and Scope 2)
(Unit: tons of CO
equivalent)
Scope 2 GHG Emissions
(Unit: tons of CO
equivalent)
202120212021202220222022202320232023202420242024
- 3.5%2,481
2,170
2,115
2,393
- 47.6%88,876
46,668
45,940
46,542
- 46.4%
91,357
48,83848,055
48,935
Risk TypesPotential Impacts
ImpactsTimeframe
Primary Response Measures
TransitionalRisks
Policy andLegal Risks
●Companies included in the EmissionsTrading Scheme (ETS) are required tofulll their carbon allowance settlementresponsibilities. Rising carbon prices willlead to increased compliance costs;
●International green trade policies, suchas the EU’s carbon border tax policy, willincrease export costs.
Medium-term
●Continuously enhance carbonmanagement capabilities, promoteenergy structure transformation,and implement energy-savingtechnological upgrades;
●
Strengthen carbon managementacross the supply chain andimplement green procurement to driveemission reductions throughout thevalue chain.Technology
Risks
●
Stricter future carbon reduction policieswill require continuously increasing R&Dinvestment in energy-saving and emission-reducing technologies. Failure to adoptgreen low-carbon technologies in time mayweaken market competitiveness and leadto revenue decline.
Short- to
medium-
term
●
Actively identify carbon reductionpotential, implement energy-savingand emission-reducing projects, andcontinue to increase the share ofrenewable energy usage;
●
Promote digitalization and intelligenttechnologies to improve energye?ciency.MarketRisks
●
The phase-out of fossil-based rawmaterials may cause an increase in theprices of plastics and other materials,thereby raising operational costs.
Medium-
term
●
Develop green and low-carbon rawmaterials and apply them to thedevelopment of more sustainableproducts.ReputationalRisks
●
Increasing attention from media,professional organizations, andindustry associations on corporate ESGperformance may result in reputationaldamage and revenue loss if relatedexpectations are not met.
Short- to
medium-
term
●
Implement carbon reductionmeasures and ensure that relatedcommunication and promotionalcontent is objective, accurate, andtraceable.
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M&G actively advances the development of its energy management system, focusing on multiple areas including energy-savingtechnological upgrades, clean energy utilization, energy management optimization, green logistics, and low-carbon o?ce practices.The Company continues to identify opportunities for energy conservation and carbon reduction. During the reporting period, M&G’sShanghai base was included in the list of National Green Factories for 2024.
Energy Management
M&G continuously enhances equipment energy e?ciency and reduces energy waste by introducing advanced productiontechnologies. The Company also consistently carries out energy-saving assessments and energy management optimizationinitiatives. During the reporting period, energy-saving and emission-reduction projects were implemented at M&G’s Shanghaiproduction base, including air compressor energy-saving upgrades, injection molding machine e?ciency improvements, and thelaunch of a digital energy management system.
●Equipment Upgrade: Replaced rotary screw air compressors with centrifugal air compressors, improving equipment e?ciencyand achieving annual electricity savings of approximately 500,000 kWh;
●Compressed Air Station Retrot: Converted distributed compressed air stations into a centralized air supply system,enhancing compressor e?ciency, reducing the energy consumption of auxiliary equipment, and completely resolvinghigh-temperature failures caused by condenser blockage due to paper dust. This resulted in annual electricity savings ofapproximately 370,000 kWh.
●At M&G’s Shanghai base, retrotting was carried out using return water heating, and thermal insulation was applied todomestic hot water from the dormitory to the canteen to reduce energy consumption during operations.
●
Equipment replacement and process optimization were implemented in the injection molding process, completing energye?ciency upgrades for 31 injection molding machines;
●By shortening the injection molding cycle time, an overall e?ciency improvement of approximately 20% was achieved.
Energy Conservation and E?ciency Improvement
Air Compressor E?ciency Optimization
Heat Recovery Upgrade
Injection Molding Equipment Upgrade
M&G continuously optimizes its energy mix by expanding the use proportion of renewable energy. During the reporting period, theCompany continued to advance photovoltaic power generation projects. The total installed capacity of photovoltaics at M&G andits subsidiary Axus Stationery reached approximately 16,100 kW, with a photovoltaic electricity consumption of 14.67 million kWh,equivalent to a reduction of 6,519 tCO
e. In addition, M&G’s Shanghai base and Axus Stationery increased their use of renewableenergy by purchasing 6.93 million kWh of green electricity. The Company also continued to retrot solar-powered streetlightsand began replacing biofuel in canteen operations and diesel used for dormitory hot water supply with electricity, while graduallysubstituting liqueed petroleum gas (LPG) in the canteen with natural gas to further enhance the clean energy utilization rate.
Clean Energy Utilization
Air compressors are a core energy-consuming component in manufacturing. M&G carried out an intelligent upgradeof the air compressor system at the Qingcun production park to optimize supply-demand matching. The systemincorporates functions such as narrow-band constant pressure control, air consumption trend analysis, and individualunit e?ciency monitoring, resulting in improved operational e?ciency and enhanced energy performance.The upgraded system uses AI technology to predict air demand in real time, enabling precise control of supplypressure while reducing pressure uctuations. This minimizes energy waste caused by high pressure and decreasesthe frequency of equipment starts and stops. After the upgrade, the air-to-electricity ratio was reduced from 0.114kWh/m? to 0.103 kWh/m?, achieving a 9.6% energy savings rate and approximately 700,000 kWh in annual electricitysavings.
Digital Management of Air Compressor System Illustration
CaseIntelligent Upgrade of Compressed Air System
Total installed capacity ofphotovoltaics
16,100 kW
Photovoltaic electricityconsumption
14.67
million kWh
Equivalent to areduction of6,519 tCO
e
202220222022202320232023202420242024
911.5
13,612
0.7
1,322
13,873
0.6
2,16016,5230.7Consumption of Renewable Energy-Generated
Electricity (Unit: 10,000 kWh)
Total Energy Consumption(Unit: tce)
Total Energy Intensity(Unit: tce / RMB million in revenue)M&G Energy Consumption Data
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M&G continues to strengthen energy-saving measures in logistics and warehousing by leveraging digital technologies andequipment upgrades to achieve high e?ciency and low energy consumption in material transportation and warehousingmanagement.
M&G integrates the concept of energy conservation and environmental protection into daily o?ce operations. The Companycontinues to promote a “Lights Out Hour” initiative at its Shanghai o?ce building and places energy-saving reminder labels onswitches in public areas to raise employee awareness. During the reporting period, the average monthly electricity consumption ofthe building decreased by approximately 1.5%. For retail terminal stores, the Company also encourages franchisees to use LEDeco-friendly energy-saving lighting xtures during renovations.
Green Logistics and Warehousing
Energy Conservation in Operations
With the help of digital systems such as theTransportation Management System (TMS), theCompany conducts detailed analysis of delivery routesand warehouse operations to identify optimal solutionsand reduce ine?cient deployments caused by routemismatches. While improving logistics e?ciency, M&Galso signicantly reduced fuel consumption. In therst three months after implementation, fuel savingsamounted to approximately 93,000 liters compared tothe same period last year. In addition, the Companyactively promotes the use of new-energy vehicles(NEVs) to replace traditional fuel vehicles and reducetransportation-related carbon emissions. By the endof the reporting period, M&G Colipu had a eet of12 new-energy freight vehicles, an increase of threevehicles compared to 2023.
At the Shanghai production and distribution center,the Company upgraded its Rail Guided Vehicle (RGV)systems and adopted energy e?ciency as a keycriterion in equipment selection. The newly deployed27 energy-e?cient RGVs are equipped with a power-saving mode that automatically shuts down operationafter more than ve minutes of inactivity, reducingdaily electricity consumption by approximately 100kWh. Additionally, M&G Colipu has fully adopted LEDeco-friendly energy-saving lights across its entirewarehouse lighting system, further reducing energyconsumption in warehousing operations.
To further enhance the operational e?ciency of its logistics and warehousing systems while improving energy usage,M&G carried out hardware and software upgrades to its automated warehouse at the Shanghai base during thereporting period. Optimization of the existing software system enabled unied management of trunk line logisticssystems, and big data analytics was applied to evaluate logistics and warehouse management needs holistically togenerate optimized logistics dispatch solutions. On the hardware side, warehouse equipment was simultaneouslyupgraded, increasing daily outbound capacity from 5,000 pallets to 8,500 pallets, representing a 70% improvement inoperational e?ciency.
CaseAutomated Warehouse Retrot to Improve Operational and Energy E?ciency
Transportation and LogisticsWarehouse Management
M&G vigorously explores “packaging reduction” following the principles of “simplicity and practicality,” minimizing the use ofpackaging materials without compromising product quality. During the reporting period, the Company evaluated existing productsand logistics packaging and implemented a series of design optimizations.
Packaging Reduction and Recycling
Simplied Packaging for the Exam Prep
Pen Set
Small-sized Packaging for the Smart
Large-Screen Microscope
Canister Design for the “EndangeredAnimals: Wetlands” Series Gel Pens
M&G applies the concept of e?cient resource utilization across the entire production and operation process. Through simplieddesign, e?cient use of raw materials, and process improvement, the Company enhances resource use e?ciency and minimizeswaste. It also practices the “3R” principles of the circular economy—Reduce, Reuse, and Recycle—by systematically managingpackaging materials, water resources, and production waste.
Resource Use
Product Packaging Reduction
Unnecessary cartons and innerboxes were removed, and turnoverboxes were used to reducesecondary packaging.
Customized small-sized cartonswere designed for the smart large-screen microscope, saving 32%of paper per box. A total of 4,677square meters of cardboard wassaved during the reporting period.
The e-commerce packaging forM&G’s “Endangered Animals:
Wetlands” series gel pens adopta canister design, allowing thepackaging to double as a penholder for reuse, e?ectivelyreducing resource waste.
Packaging Optimization forExam Prep Pen Set
Small-sized Packaging for SmartLarge-Screen Microscope
Customized Eco-FriendlyDesign
Daily outbound capacity increased from5,000 pallets to
8,500 pallets
Improvment in operationale?ciency
70%
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M&G has innovatively designed a display propcalled the “Mini Shelf,” featuring a compact size,modular assembly, reusability, and replaceablebackboards. This design not only signicantlyreduces the plastic used per unit but alsofacilitates reuse across stores. Its smaller sizealso enhances logistics and transportatione?ciency while enabling easier in-store productdisplay, achieving a win-win for both businessand environmental benets.
M&G “Mini Shelf”
CaseInnovative Launch of “Mini Shelf” to Reduce Display Material Consumption
Recycling and Reuse of Logistics Packaging
M&G and its subsidiaries continue to promote the recycling and reuse of used cartons across logistics bases and o?ce locations.During the reporting period, a total of 868,000 cartons were recovered and reused, helping conserve resources and enhanceeconomic e?ciency. At M&G’s Shanghai logistics base, used logistics packaging is sorted: plastics are uniformly collected by thirdparties, while cartons are gathered on-site by designated personnel and redistributed for use by Jiumu Store’s o?ine deliveries orfor e-commerce shipments. The reuse rate of second-hand cartons at Jiumu Store o?ine stores reached 72%, with the remainingportion delivered in full-box shipments to minimize waste from secondary packaging. Additionally, carton reuse racks have beeninstalled in o?ce buildings to encourage employees to use second-hand cartons for internal transfers or parcel deliveries.
Number of cartons recovered and reused
868,000
Reuse rate of second-hand cartons in Jiumu Store72%
Recycling and Reuse of Display Shelves
Prop Reuse and RecyclingM&G actively promotes the reuse and recycling ofshop display prop materials. M&G Life recycles andreuses leftover props—such as acrylic boards andpegboards—from closed stores, thereby reducingthe need for new display materials; Jiumu Storealso collects, recycles and reuses props from closedstores, cutting down the carbon emissions associatedwith the reproduction of these items. During thereporting period, props from a total of nine stores wererecovered.
M&G Colipu has introduced a cardboard cutting machineto convert non-reusable cartons into mesh-style cushioningmaterials, replacing traditional plastic bubble wrap. Thisinitiative not only reduces plastic use but also promotes therecycling of cardboard cartons.
M&G Colipu repurposes cartons into cushioning ller materials
CaseM&G Colipu Carton Recycling Practice
Water Resources Management
Waste Management
M&G is committed to water conservation and integrates the concept of sustainable water use into its production and operations.The Company continuously monitors indicators such as municipal water intake, water recycling and reuse volumes, andwastewater discharge, maintaining comprehensive visibility over water usage. There are no reported issues with water resourceavailability. At the same time, the Company actively promotes water recycling and conducts water-saving upgrades on equipmentand infrastructure to continuously improve water e?ciency. During the reporting period, a water-saving project was implemented inthe dormitory area of the Shanghai base. The project involved identifying and repairing leakage points and optimizing toilet ushingsystems to reduce water waste; at the South China base, a new water ltration system was installed to recycle cleaning water,improving the water reuse rate. These measures saved approximately 194 tons of water in total in 2024.
M&G strictly complies with applicable laws and regulations by classifying and properly handling solid waste generated duringproduction and operations to ensure legal compliance and minimize environmental impact. At the Shanghai base, M&G continuallyimproves resource use e?ciency and reduces waste generation at the source. For example, plastic scraps generated during theinjection molding process of gel pens are recycled and reused without compromising product quality, enhancing material circularity.During the reporting period, M&G conducted a comprehensive inventory and collection of waste types, proportions, and disposalmethods at the Shanghai base to further improve its classication and management system. Referring to zero-landll wastemanagement standards, the Company preliminarily evaluated the implementation of resource valorization, incineration for powergeneration, and harmless treatment methods. It also analyzed waste disposal pathways to identify areas for improvement, laying afoundation for the gradual achievement of zero waste landll goals.
Green Operations
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Axus Stationery places high importance on sustainable forest management and biodiversity protection. It has obtained FSC ForestManagement (FM) Certication and Chain of Custody (CoC) Certication from Bureau Veritas. During the management of itsown forest land, Axus Stationery strictly adheres to felling quotas and avoids large-scale felling. It conducts continuous ecologicalmonitoring, has established a forest ranger patrol system, and regularly inspects forest land to monitor the status of wildlifeand assess the ecological impact of operations. If any potential issues are identied, corrective measures are taken promptly.Additionally, Axus Stationery maintains a section of ecological forest in Xinjiang under the principle of maintaining its naturalecology without human interference, in order to fully protect the environment and biodiversity.
Forest Land Ecosystem Protection
M&G is committed to environmental protection and fostering ecological harmony by protecting the natural environment, conservingnatural habitats and promoting ecological awareness to minimize the environmental negative impact of its operations.Eco-Friendliness
Axus Stationery’s Forest Farm in Xinjiang
Green O?ce
M&G’s Shanghai automated warehouse has undergone hardware and software upgrades to fullyimplement personal digital assistant (PDA)-based online inventory, replacing paper-based operationsand signicantly reducing paper usage in logistics and warehousing. Additionally, starting from August2024, M&G Colipu’s Warehouse and Distribution Department has switched from paper delivery receiptsto electronic signatures for self-dispatched orders, with an estimated annual saving of approximately 3million A4 sheets;Since 2023, M&G has actively promoted paperless o?ce practices, encouraging employees to prioritizethe use of electronic documents during daily work and optimizing print management. For documents thatmust be printed, the Company mandates double-sided printing and encourages the reuse of discardedprinting paper with a blank side. The Company has also set the default conguration of all o?ce printers touse double-sided printing;Restroom paper has been replaced with single-sheet, pull-out rolls to encourage on-demand use; forinternal meetings, employees are encouraged to use personal cups, and bottled water at externalmeetings must be registered before issuance; the Company also hosts sta? activities such as item swapsand waste material upcycling to encourage the formation of low-carbon o?ce habits.
M&G embeds green practices into its daily operations by improving online systems and promoting paperless work to continuouslyreduce resource consumption and achieve low-carbon operations.
DigitalO?ce
PaperlessO?ce
HabitFormation
M&G organizes a variety of sustainability campaigns on di?erent ecological themes to raise public awareness about environmentalprotection, including wetland and marine ecosystems.Ecological Protection Awareness
M&G collaborated with the MangroveWetlands Conservation Foundation(MCF) to launch an ecological protectionawareness campaign. The campaignincorporates images of protected wetlandanimals into product packaging, organizesparent-child wetland educational trips forconsumers, and provides virtual reality (VR)experiences on wetland ecology at stores,enabling consumers to better understandmangrove ecosystems and endangeredspecies conservation. M&G also donatesa portion of the sales revenue from its“Endangered Animals: Wetlands” series tothe MCF in support of wetland conservationand environmental education.
M&G joined forces with WildAid, Better Blue, and other partners to advocate for ocean conservation. In August 2024, apublic pop-up event for marine protection was held on Wuzhizhou Island, Hainan, serving as the rst lesson on oceanprotection for students nationwide at the start of the new school year. A nationwide beach cleanup campaign was alsolaunched. During the reporting period, M&G, together with Better Blue and Pick Up China, held multiple beach cleanupsin Sanya, Beihai, Qingdao, Shanghai, Dalian, Xiamen, and Wanning. Nearly 100 volunteers participated, removingalmost 300 kilograms of trash from beaches. These e?orts not only reduced the environmental burden on coastal areasbut also inspired broader public attention toward marine ecosystem protection.
Consumers experience birdwatching in VR at a Jiumu Store
M&G organized volunteers for nationwide beach cleanupsMarine Protection-Themed Public Pop-up Event
Case
Case
Wetland Ecosystem and Endangered Species Protection
Marine Ecosystem Protection
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Shared Prosperity Across theValue ChainM&G upholds the altruistic philosophy of "Prioritizing the well-being of others before our own" and thebusiness principle of “Partnership for a Shared Future.” The Company works hand in hand with upstream anddownstream industry partners to foster a clean and mutually benecial business environment. M&G shares itssustainable development practice experience with partners, leading and inspiring the entire industry toward amore sustainable future.
●The completion rate of the online training courseon theM&G Code of Business Conductreached
96%
●Conducted internal control audits on businessconduct, covering 22 operating locations thatrepresent 100% of M&G’s operational sites
●ESG audits covered 100% of key suppliers, witha rectication pass rate of 96.3%
●Business ethics - Comply with laws and regulationsrelated to anti-corruption, anti-bribery, and anti-unfair competition, and continuously strengthenthe business ethics and compliance managementsystem.
●
Marketing and after-sales - Ensure that marketing
information is transparent, accurate, and easyto understand, and prevent false or misleadingadvertising; improve after-sales service and productrecall mechanisms; and clearly dene complainthandling channels and procedures.
●To ensure that 100% of key suppliers complywith M&G ESG guidelines by 2025
●To ensure that ESG assessments and auditscover 80% of suppliers by 2030
●Supply chain management - Strengthen supply chainrisk management to ensure supply chain security andresilience; enhance the ESG management systemfor suppliers and empower them to improve ESGmanagement performance.
●Risk management - Reinforce internal control andcompliance management and enhance the Company’srisk control capabilities.
●Corporate governance - Improve the corporategovernance structure and operational standardsto promote more scientic decision-making andmanagement.
●To integrate ESG requirements into all newsupplier screening and onboarding standardssince 2025
●Incorporated ESG risk assessment factorsinto the assessment system for new supplierdevelopment and onboarding
●100% of M&G’s product-related suppliers signedtheSupplier Code of Conduct
●Launched a selection of outstanding ESG casesof suppliers and awarded the “ESG InnovationPractice Award”
Material topics
Goals
2024 Highlights
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Business Ethics
M&G adheres to the principle of integrity and compliance in business operations and has established a comprehensive andsystematic business ethics and compliance management system
by formulating and publishing a series of management policies,including theCode of Business Conductand theSupplier Code of Conduct
. The Company’s Risk Management and ComplianceCommittee serves as the coordinating body for compliance e?orts and is responsible for optimizing policies and procedures,assessing compliance risks, implementing audit and supervision measures, and fostering a culture of compliance. This ensures thatall business activities conform to applicable laws and regulations, industry standards, and internal management requirements.
M&G has established management policies such as theManagementSystem Against Fraudulence
, forming a mechanism to regulate thecompliance behavior of employees and suppliers. During the reportingperiod, the Company increased e?orts to promote the signing of theTransparent Procurement & Integrity Conventionand theSupplier Codeof Conductby suppliers, expanded the types of contracts signed, andbroadened the scope of anti-fraud management coverage. By the end ofthe reporting period, 100% of M&G’s product-related suppliers had signedtheSupplier Code of Conduct.
M&G continuously improves its business ethics and compliance management system by establishing comprehensive policies onanti-corruption, anti-bribery, and anti-unfair competition. The Company strengthens audit and supervisory mechanisms to build aclean and impartial corporate environment.Management System
Anti-Corruption and Anti-Bribery
For information on M&G’s business ethics and compliance-related policies and management measures, please refer to the section “ESG PerformanceReport – Social – Business Conduct” in this Report.
TheCode of Business Conductand theSupplier Code of Conducthave been publicly disclosed in the “Investor Relations – Corporate Governance” and
“Investor Relations – ESG” sections of the Company’s o?cial website, respectively.
TheManagement System Against Fraudulencehas been publicly disclosed on the Company’s o?cial website under the “Investor Relations – ESG”section.
100%
of M&G’s product-related suppliers had signed the
Supplier Code of Conduct
M&G Business Ethics and Compliance
Management System
Anti-Corruptionand Anti-Bribery
Anti-UnfairCompetition
Anti-Monopoly
Data Securityand PrivacyProtection
ProductCompliance
IntellectualProperty
M&G places great importance on identifying and internally controlling therisks of commercial bribery and corruption. The Audit Department of theCompany carries out audits in accordance with the Company’sInternalAudit Management Policy, systematically reviewing the business scope,summarizing common fraud risk types, analyzing potential fraudulentmethods, identifying high-risk key positions, and creating a risk map. Basedon this, the Company continues to formulate and improve targeted controlmeasures.During the reporting period, M&G conducted an internal audit of theCodeof Business Conduct, covering 27 items including compliance with laws,regulations, and business ethics, fair competition and antitrust, anti-fraud,and adherence to and responsibilities under the Code. Issues identied inthe audit were promptly fed back to the relevant responsible departments,and improvements were actively tracked. Internal control audits includebusiness ethics audits, covering fraud, falsied expense claims, andmisappropriation of funds or assets. In 2024, audits were conducted at 22operating sites, achieving 100% coverage of the Company’s operationalprocesses.
M&G has consistently promoted fair competition and formulated theGuidelines of Anti-Monopoly and Complianceto safeguarda healthy and rational market order. During the reporting period, the Company established regional distributor authorizationmanagement regulations and a pricing management system. By clarifying the scope of authorization and the pricing framework,we aim to prevent distributors from engaging in unauthorized cross-regional sales or price dumping and other unfair competition.In the area of marketing and promotion, the Company released thePromotion Compliance Guidelines, theProduct Draft ReviewWhite Paper, and the2024 M&G Online Business Sustainability Guidelines, all of which explicitly require promotional activities tobe truthful, lawful, accurate, and clear, and to use proper expressions—strictly prohibiting false or misleading advertising.
Review and Supervision
Anti-Unfair Competition
100%
coverage of the Company’soperational processes
In 2024, audits wereconducted at
operating sites
M&G has established complaint and whistleblowing channels, which are publicly disclosed on the o?cial website. The Companyalso sends monthly communications to all employees to raise awareness about fraud whistleblowing channels. All employees andexternal parties may report identied fraudulent and other non-compliant behaviors via hotline, email, or the Company’s WeCom.To ensure that the whistleblowing and investigation process is carried out in an orderly manner, M&G has established theInternalInvestigation and Handling System for Employee Misconductand theWhistleblower Protection and Non-retaliation System. Theseensure strict condentiality of whistleblower information and prohibit any form of discrimination or retaliation.
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Since joining the Trust and Integrity Enterprise Alliance in 2023, M&G has actively participated in alliance-organized seminars,forums, and exchange events. Topics have included internal fraud governance in private enterprises, integrity risk preventionin overseas operations, and the application of AI and big data in corporate internal controls, facilitating experience sharing withalliance members, and continuously enhancing the professionalism of M&G’s integrity practices.
M&G promotes integrity and ethical behavior among employees through diverse activities that help cultivate aclean and upright workplace culture. In July 2024, the Company held the “Summer of Integrity, Green Care” eventat the Shanghai Songjiang o?ce building, attracting over 200 employees with o?erings such as complimentary tea,interactive games, and giveaways of integrity-themed merchandise. In December, in response to “International Anti-Corruption Day”, the Company hosted the “Knowledge for Rewards: Anti-Fraud Training Challenge,” motivating allemployees to complete theManagement System Against Fraudulencecourse through engaging activities like giftredemption and team competitions.M&G Colipu has also carried out a variety of employee activities centered around anti-corruption and integrity. Theseinclude incorporating integrity and honesty into monthly new employee training, as well as organizing awarenesssessions on integrity, e?ectively enhancing employees’ awareness of integrity.
Organizing Anti-Corruption and Integrity-Themed Activities
M&G’s “Knowledge for Rewards: Anti-Fraud Training Challenge”
Anti-Fraud Training Campaign
M&G Colipu’s Integrity Awareness Campaign for “International
Anti-Corruption Day”
Case
Supply Chain Management
M&G continually improves its supplier management system with clearly dened protocols for new supplier development andonboarding, product quality inspection and management, supplier assessment and evaluation, and exit mechanisms to e?ectivelycontrol supply chain risks and ensure stable, secure, and high-quality product supply.During the reporting period, the Company expanded supply chain management to include non-tier-one suppliers and enhanced theKey Tier 2 Material Control Processby adding a dual rule of “internal quality inspection and external third-party testing.” Throughon-site assessments and internal/external verication of Tier 2 materials in critical categories, qualied Tier 2 material suppliers areselected and required to sign centralized procurement agreements, thereby ensuring consistent product quality and enhancing coste?ciency.
M&G continues to deepen the construction of its supplier ESG management system. Building on the supplier ESG assessmentsconducted in 2023, the Company further integrated ESG criteria into supplier onboarding, selection, management, and incentivemechanisms, embedding sustainable development principles throughout the entire supply chain management process. Duringthe reporting period, M&G was nominated for the “Sedex Supply Chain Awards 2024 – Best Practice Award – EnvironmentalContribution.”
During the reporting period, M&G revised itsNew Supplier Onboarding Management Measuresand comprehensive assessmentforms for new suppliers to include ESG risk audit elements in the onboarding evaluation system for new supplier development.Assessment criteria cover areas such as labor practices, environmental protection, health and safety, business ethics, etc.
M&G implements a tiered and categorized supplier management system, selecting key suppliers based on the scale andimportance of the collaboration. All key suppliers are included in the scope of ESG assessments, with regular ESG auditsconducted to encourage improvement in their ESG management capabilities year by year. For other suppliers, the Companyintegrates ESG evaluation criteria into their annual performance assessments based on the procurement management system.
M&G is committed to building a stable, secure, and green sustainable supply chain. The Company has established andcontinuously improved its supplier ESG management system and empowers its suppliers through ongoing engagement to achievemutual benets and win-win cooperation in the pursuit of a sustainable supply chain.Supply Chain Management System
Supply Chain ESG Management
Supplier Onboarding
Supplier Selection
M&G requires all new hires and employees in key positions to sign theLetter of Commitment on Integrity and Self-Disciplineandactively organizes training on business ethics and anti-fraud, as well as themed cultural activities, to continuously build a clean andfair business environment. During the reporting period, the Company launched online courses on theCode of Business Conduct
andManagement System Against Fraudulenceon its learning platform, requiring all employees to complete them. These courseshave also been made compulsory for new employees before they pass probation. By the end of the reporting period, the completionrate for theCode of Business Conductcourse reached 96%. In addition, a total of 13 training sessions were held on topics includinganti-fraud, advertising compliance, and intellectual property management, generating 2,311 instances of participation. Targeted anti-fraud training was also conducted for key business departments such as product development and sales, strengthening employees’compliance awareness and risk prevention capabilities.
Integrity Culture Development
Number of compliance-related training sessions
Rectication pass rate
96.3%
Completion rate for theCode ofBusiness Conductcourse96%
Percentage of key suppliers covered by ESG assessment
100%
The compliance trainingcovered2,311 person-times
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M&G conducts annual ESG assessments and audits of suppliers,evaluating their ESG performance across ve areas: sustainableprocurement, environmental protection, health and safety, labor practices,and business ethics. Eight zero-tolerance items are dened to preventmajor ESG risks. The ESG evaluation process consists of ve steps:
self-assessment questionnaire, document review, on-site audit, rating,and corrective actions, forming a closed-loop management systemfor continuous improvement. During the reporting period, a total of 85suppliers participated in M&G’s ESG audits, achieving 100% coverage ofkey suppliers. M&G conducted 38 on-site audits and required suppliersto rectify any non-compliance issues. The rectication pass rate reached
96.3%.
M&G recognizes and promotes suppliers who proactively implement ESG practices and achieve outstanding results, enhancingtheir sense of honor and encouraging broader participation of suppliers in building a sustainable supply chain. During the reportingperiod, M&G selected the “Best ESG Practice Award” recipients based on exemplary ESG performance, innovation, scalability,and operating results. Outstanding supplier progress in energy conservation and emissions reduction, solid waste minimization,air pollutant reduction, and water conservation was identied and celebrated. Awards were presented to winning suppliers at theannual M&G Supply Chain Conference.
Operating without environmental permits,illegal hazardous waste disposal, failure topass re safety inspections, employmentof child labor, forced labor, discrimination,non-compliance with minimum wagestandards, and bribery
M&G empowers suppliers to enhance their ESG management capabilities through regular communication, experience sharing, on-site guidance, and periodic training. During on-site ESG audits, M&G works with suppliers to analyze the root causes of key issuesand o?ers improvement suggestions to suppliers. With M&G’s support during the reporting period, multiple suppliers made tangibleimprovements in areas such as chemical storage and use management, workplace safety equipment optimization, safety signageposting, use of renewable energy, waste management optimization, etc.For internal procurement sta?, M&G organized a special training session in 2024 on “Green Supply Chain and Supplier ESGManagement,” covering ESG audit and assessment processes and case studies to improve sta?’s awareness and risk identicationcapabilities in supply chain ESG management. This empowers sta? to support suppliers more e?ectively in day-to-day interactions.During the reporting period, M&G organized three special training sessions on supply chain ESG management, covering a total of91 employees.
Supplier Empowerment
On-site ESG Audit on SuppliersSupplier Empowerment Training
Zero-Tolerance Items in M&G ESGAssessments for Suppliers
Supplier Management
Supplier Incentives
M&G is committed to empowering retail partners by enhancing their service capabilities and market inuence. During the reportingperiod, the Company focused on standardizing store visuals and creating designated product zones to help stores upgrade theirimage, improve product display e?ectiveness, and o?er consumers a better shopping experience.
M&G has built a comprehensive digital sales and marketing platform to improve the operational e?ciency of sales sta? and channelpartners. During the reporting period, M&G launched a self-developed retail system that enables terminal store owners to monitorproduct sales in a timely manner and improve business quality. The Company also upgraded key channel tools such as “JuBaoPen”and the M&G Alliance System to enhance user satisfaction and continuously support sales e?orts.
Quality Service
Partner DevelopmentM&G actively provides business guidance and technical support to partners at all levels to establish a long-term, stable, andmutually benecial cooperation ecosystem. The Company also actively participates in industry associations, forums, and industrystandard setting, working alongside industry partners to promote high-quality development across the sector.
To ensure that store partners can e?ectively understand and utilize dedicated product zone materials, M&G developedtheM&G Space Brand Visual Guidelines, which dene material standards and o?er over 30 material solutions to meetdiverse customer needs. The Company also compiled theBarrier-Free Zone Implementation Standards Manualto o?ersystematic and standardized operational guidance for display area implementation. Supporting these e?orts, M&Gconducted training sessions on display materials, o?ering detailed instructions on the application of the visual identitysystem and the specications for various materials. During the reporting period, nearly 80 clients were empoweredthrough the implementation of special zone standards, signicantly improving in-store product presentation and theoverall store image.
Demonstration Area of Special Zone Visual Identity Guidelines in M&G Life
CaseEmpowering Retail Stores with Image Upgrades
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M&G regularly organizes elite training camps, channel partner conferences, and other events, while providing training and strategicguidance for its channel partners to foster close collaboration and information sharing, achieving mutually benecial development.During the reporting period, M&G held four channel partner conferences with a total of more than 4,800 instances of participation.
M&G 2024 Channel Partner Conference
M&G attended CGF China Day event and participated in the
roundtable discussion
M&G participated in the 2024 WorldDesign Cities Conference, showcasingdesign and product innovation
capabilities
M&G attendedThe FortuneESG Summitand participated in the panel discussion“Consumer Awakening: ResponsibleProduction and Brand Strategy”
M&G attended the Fifth Dream BuildersPublic Welfare Conference organized bySouthern Weekly and participated in the
roundtable dialogue
M&G’s environmental artworksexhibited at the Shanghai InternationalCarbon Neutrality Expo
M&G attended the 2024 Kantar BrandZChina Gala Event, sharing practices insustainability and brand innovation
Adhering to the philosophy of mutual development and win-wincooperation, M&G actively participates in the work of industryassociations such as the China Stationery and Sporting GoodsAssociation and the China Writing Instrument Association,contributing to the healthy and orderly development of theindustry. During the reporting period, the Company joined 21industry associations and chambers of commerce, with anannual membership fee payment of RMB241,000. In the eldof sustainable development, M&G successively participatedin initiatives such as the “Global Sustainable ConsumptionInitiative,” “Low-Carbon O?ce Initiative,” and “SustainableDevelopment Industry Consensus” initiative. In 2024, M&Gbecame a member of the Consumer Goods Forum (CGF),contributing the strength of China’s stationery corporates to theglobal sustainable development of consumer goods.M&G actively participates in industry standard formulation, transforming its experience and practices accumulated in productR&D into enforceable industry standards. During the reporting period, M&G led or participated in the development of six nationalstandards, 17 industry standards, and four group standards, expanding its professional inuence beyond the pen industry tostationery, sports goods, and the four treasures of the study (brush, ink, paper, and inkstone). The Company also took part inthe development of product safety and ESG-related standards, such as theChildren’s Acrylic Paint and Acrylic Markers,GeneralRequirements for Recyclability Design of Plastic Products,Carbon Footprint Accounting Methodological Guidelines for Cultural andSport Products, andGuideline for Green and Low Carbon Supply Chain Construction and Evaluation, supporting the standardizeddevelopment of industry sustainability.
Industry Collaboration
M&G showcased sustainable productsat the 29th meeting of the Conference ofthe Parties (COP) to theUN FrameworkConvention on Climate Change, alsoknown as “COP29”
ToolDescriptionProgressJuBaoPen
Provides digital guidance for channel partners atall levels across three dimensions: People (taskfollow-up, decision-making support), Product(category opportunity exploration, accurate ordercopying), and Place (store operation analysis).
The system manages orders from channel partnersat all levels, enabling strict inspection and follow-up to ensure closed-loop order fulllment; activelycorrects issues such as excessively low productprices in a timely manner to promote e?cient pricecontrol.M&G Alliance
A mobile application tailored for retail stores,focusing on connection, matching, salesassistance, and services, with in-depth supportfor retail stores.
M&G has worked with Meituan to lower barriersto store onboarding and product listing, helpingstores quickly open stores on Meituan; It supportsself-initiated onboarding applications by stores,increasing the number of purchasing stores.
Instances of participation4,800
Number of channel partner conferences held
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Employees and CommunitiesM&G has always adhered to the principle of “people-oriented” development, striving to create a healthy andsafe working environment, fully safeguarding the physical and mental health of employees. The Companycontinuously improves talent cultivation and development mechanisms to support employee growth andprogress, while actively building a fullling workplace to enhance employees’ sense of belonging and well-being. In addition, M&G actively fullls its corporate social responsibilities by promoting rural art education andvolunteering initiatives, gathering the strength of all sectors of society to jointly contribute to social harmonyand development.
●
Conducted over 40 safety inspections, with total safetytraining hours reaching 25,489
●Zero severe injuries or fatalities; minor injury rate at theShanghai base decreased by 27% year on year
●Training system covered 98% employees; averagehours of training per employee reached 14.6
●Female employees accounted for 48% of the workforce
●32 female mid-to-senior managers participated in theWomen’s Leadership Workshop
●The inaugural Sustainability Culture Month attractedover 3,000 employees’ participation
●To ensure that 100% of full-time employees arecovered by the training system by 2028
●
To maintain zero severe injuries and fatalitiesannually
●M&G Foundation’s “Art Education Plan” programwas extended to 624 rural schools and 36community centers across 23 provinces and cities;
The “Golden Seed Plan” education assistanceprogram donated over 60,000 stationery kits;
Generating over 440,000 instances of benet forprimary and secondary school students throughoutthe year
●A total of 4,435 instances of employee participationin voluntary services, contributing 9,221 hours
●Charitable donations totaling RMB8.44 million
●To achieve ten million instances ofempowerment by 2030
●Occupational health and safety - Improve theoccupational health and safety management system,implement hazard inspection, safety training, facility andequipment optimization, and emergency response tocontinuously reduce occupational health and safety risks.
●Training and development - Build a comprehensive,diversied, and multi-level training system; establish fairand transparent promotion standards and evaluationsystems to provide employees with a clear careerdevelopment path.
●Labor rights - Ensure lawful payment of wagesand social insurance contributions, and standardizerecruitment procedures; properly handle labor disputes,emphasize the rights and benets of exible workers,and maintain stable labor relations.
Material topics
●
Employee benets - Improve the employee
benets system to enhance employees’ sense ofhappiness and fulllment.
●Diversity and equal opportunities - Create fair
employment opportunities, provide an equal platformfor talents of di?erent backgrounds and abilities, andfoster a diverse and inclusive work environment.
●Social welfare - Focus on art education and
promote diversied public welfare programs, andorganize employee volunteer services to supportrural revitalization and social welfare.
●Information security and privacy protection -
Establish a sound information security managementsystem, strictly protect the personal information ofcustomers, consumers, and employees, and preventdata breaches and cyberattack risks.
2024 Highlights
Goals
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Occupational Health and Safety
Upholding the principle of “prevention as priority, response as supplement, e?ective control, and continuous improvement,” M&Ghas built a comprehensive Quality, Environment, Health, and Safety (QEHS) management system. During the reporting period,M&G further strengthened its production safety accountability system by establishing a group-level safety management team andcreating an Environment, Health, and Safety (EHS) responsibility map to assign responsibilities clearly, eliminate blind spots, anddene responsibility boundaries. Additionally, the Company holds quarterly safety management meetings to review and summarizesafety system performance across all locations and determine improvement plans based on inspection results.In 2024, M&G increased the frequency of safety inspections and carried out over 40 special safety inspections at o?ces andproduction logistics sites. Potential safety hazards were comprehensively identied, and a list of issues was compiled. A follow-upmechanism ensured that rectications were tracked to form a closed-loop management process, e?ectively reducing the occurrenceof accidents. For special equipment, M&G further improved its safety management system. In accordance with requirements of theRegulations on the Supervision and Administration of the Implementation of Primary Safety Responsibilities by Special EquipmentUsers(State Administration for Market Regulation Order No. 74), the Company has implemented safety responsibility measuresfor the use of special equipment. A comprehensive work mechanism of “daily management, weekly inspections, and monthlyscheduling” has been established to promptly eliminate potential safety hazards.
M&G always prioritizes production safety and employee occupational health, continuously improving safety management systemsand the occupational health and safety systems to foster a healthy and safe work environment.Safety Management System
M&G Safety-themed Training
Following a statistical analysis of past accident data, M&G’s Shanghai production base identied the reduction ofequipment-related safety accidents as one of its key safety improvement priorities for 2024. The Company conductedin-depth analyses of previous incidents, including video reviews and observational analysis, to comprehensivelyassess equipment operational risks. Based on these risk assessments, each plant formulated ve targetedimprovement projects related to equipment start-up and shutdown procedures, human-machine collaboration, ippingline equipment, injection molding robotic arms, and power distribution cabinets. Over 1,400 pieces of equipment wereinspected for hazards, and specic improvement measures were developed, ultimately resulting in a 15.6% year-on-year decrease in equipment-related accident rates.
CaseStrengthening Equipment Safety Risk Inspections and Controls to Reduce Accident Rates
Talent Cultivation and Development
M&G continuously expands its introduction channelsthrough campus recruitment, social hiring, internalreferrals, and the “Huoshui Plan” (an internaltalent mobility mechanism). During the reportingperiod, M&G reviewed, updated and released 25recruitment processes and standard operatingprocedures (SOPs) to improve recruitmente?ciency while ensuring fairness in hiring practices.In campus recruitment, M&G strengthenedpartnerships with multiple universities and organizedopen days, roadshows, information sessions, andspecial job fairs to attract outstanding students tojoin the Company’s career development platform.
M&G continuously strengthens occupational disease prevention measures to reduce the risks associated with dust, toxic gases,noise, and other hazardous occupational exposures. The Company provides employees with labor protective gear and requiresthem to wear it. During the reporting period, the Shanghai production base enhanced pre-employment and on-the-job medicalcheckups, established and maintained occupational health records, and reassigned employees identied with occupationalcontraindications to avoid exposure to occupational disease hazards; the subsidiary Axus Stationery upgraded the sealing of itspainting line to reduce irritating odors’ impacts on employees, while the South China base organized rst aid training courses withthe Red Cross to help employees learn emergency response skills. For o?ce environments, M&G appointed safety o?cers on eachoor of its Shanghai o?ce building and organized re safety training to enhance safety awareness.
M&G is committed to supporting the comprehensive development of its employees. Focusing on the full lifecycle of talent, theCompany emphasizes talent standards, talent review, development, mobility, inventory and other key factors. It has sorted out andestablished a multi-level, multi-format, and diversied talent development system, providing high-quality learning resources andgrowth platforms to stimulate talent vitality and support mutual growth between the Company and its employees.
Talent Introduction
Occupational Health Management
M&G’s Shanghai base continued its noise reduction e?orts during the reporting period, setting a goal of reducing thenumber of employees a?ected by noise by 30% compared to the previous year. The Company implemented noisecontrol measures such as installing soundproof covers and creating separate zones in various workshop areas. Asa result, the proportion of employees impacted by noise was successfully reduced by 57%. The subsidiary, AxusStationery, also conducted noise prevention measures tailored to its specic conditions, installing noise barriers forhigh-decibel equipment in the pencil workshop, signicantly lowering noise levels.
CaseNoise Control and Improvement
In 2024, M&G recorded
cases of serious injury or fatal accidentsThe Company lawfully organized safety education and training foremployees at its production sites. Special operations personnel and thosein key safety positions are required to be certied before commencing work.New employees must undergo three levels of safety training at the plant,workshop, and pre-post stages, and the Company continuously improvesthe inspection mechanism for onboarding safety training. In accordance withthe annual safety training plan, M&G organized a series of training sessionsfor frontline safety o?cers and management personnel, covering topicssuch as re safety emergency management, hazard identication and riskassessment, production safety laws and responsibilities, and operationalsafety. During the reporting period, total safety training hours reached25,489.
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M&G Campus Open DayM&G Colipu Campus Recruitment Information Session
M&G has formulated theEmployee Promotion Management Systemto provide employees with a clear career developmentframework and advancement pathway. The Company has established multiple promotion mechanisms, including annual promotion,on-post promotion, management trainee promotion, and management-level promotion. Promotion criteria are determined based oncomprehensive performance evaluations, center achievements, and other dimensions to ensure fairness and transparency in thepromotion system.M&G implements a variable compensation mechanism for all employees based on performance evaluation. In accordance with theCompany’sPerformance Management System, a closed-loop management process is applied covering performance goal setting,guidance, assessment, and result application. Performance evaluation results are used to calculate performance-based bonusesand year-end bonuses, as well as to support position and compensation adjustments. During the reporting period, M&G alsointroduced tailored incentive schemes for employees in sales, overseas business, Jiumu Store’s development personnel, and otherbusiness units. Furthermore, the Company launched theM&G Talent Cash Incentive Plantargeting middle management to fullystimulate employee motivation.
M&G empowers its talent through three dimensions: generalcompetency, professional skills, and leadership development.The Company organizes targeted training courses accordingto the development characteristics of employees at di?erentlevels and functions, and supplements this with diverseformats such as mentorship and executive roundtables toshare practical experience and growth insights. These e?ortsfoster employees’ well-rounded development while enhancingthe Company’s talent competitiveness.
Promotion and Incentives
Training and Growth
Training system coverage rate98%
M&G Colipu Employee Training
M&G continuously improves its online learning platform. As an internal corporate culture communication and learning platform,it aligns employees’ personal growth with organization's strategic goals. The platform consists of two main sections: culturalpromotion and training & learning. Its functions include course and learning plan creation, training data collection, surveys,examinations and assessments, mentoring, live teaching, article posting, and community operations. Currently, the platform o?ers304 courses, including 112 culture promotion courses, 54 professional empowerment courses for retail stores, 22 new employeeempowerment courses, 35 leadership courses, and 81 general courses. As of the end of the reporting period, 98.4% of employeeshad used the platform for self-improvement.As the Group’s B2B integrated digital e-commerce platform, M&G Colipu has built a comprehensive internal training system basedon its business characteristics. It has set up four major training modules: emerging capability, general capability, professionalcapability, and management capability, covering corporate culture, business processes, sales skills, product knowledge, andmanagement skills to fully meet the training needs of employees at di?erent development stages. Over the year, 21 trainingprograms were carried out with a 100% employee participation rate. For internal trainers, M&G Colipu has formulated detailedcertication programs and management systems to encourage more employees to become certied instructors. Through regulartraining and feedback, the quality of instruction is assessed, promoting knowledge transfer and building a learning-orientedorganization.Average training hours peremployee
14.6
Programs suchas the “Child ofLight” managementtrainee developmentprogram and the“M&G First Light”new employeeorientation helpnewcomers fullyunderstand M&G’sdevelopment journey,values, and businessmodules, enablingquicker adaptationto the new workenvironment.
New Employee
Integration
Initiatives includethe New ManagerBootcamp, “FiveDysfunctions of aTeam” workshop, andWomen’s LeadershipWorkshop. Externalresources suchas the GlobalLeadership Summit(GLS) are alsointroduced toequip managerswith leadershipskills and improveteam collaboratione?ciency.
Leadership Training
The M&GManufacturingInstitute wasestablished forproduction baseemployees, o?eringa series of trainingmodules coveringteam leader skills,injection moldingtechniques,assemblytechniques, planning,and safety toenhance employees’technical capabilities.
Professional SkillsTraining
Specializedprograms such asthe sales system’s“CommanderDevelopmentProgram”, thetechnical center’s“Communicationand CollaborationThemed Workshop”,and the overseasteam’s “Life StorySharing Session”are launched tomeet businessdevelopment andteam-building needs.
Specialized
Training
General coursessuch as structuredthinking andexpression,problem analysisand solving, andtime managementare o?ered to helpemployees overcomehabitual thinkingand enhance cross-disciplinary learningand problem-solvingcapabilities andoverall literacy.
General Competencyfor All EmployeesTo further empower fresh graduate recruitment and enhance the accuracy of job matching for fresh graduates, M&G upgraded itscampus recruitment toolkit by aligning with competency models and key behaviors and providing standardized interview questionsand processes. The Company also introduced online assessment tools, conducted interviewer training, and comprehensivelyimproved the proles and development plans for management trainees, thus enhancing the quality and e?ciency of campusrecruitment. Additionally, M&G Colipu actively adopted online tools to optimize the recruitment process by building an onlinerecruitment management system that supports online resume submission, data sorting, interview evaluation, and messagenotications—signicantly streamlining the recruitment process and improving the candidate experience.
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M&G regards management trainees asstrategic reserve talent for the future andhas prioritized their development. During thereporting period, the Company conducted acomprehensive upgrade of the managementtrainee program across the entire chain fromtalent selection and identication to trainingand development. A total of 91 traineeswere recruited. With the implementation of aseries of training mechanisms and systems,these management trainees were e?ectivelysupported in transitioning from novices to avital “combat force” within the Company. Bythe end of the reporting period, the retentionrate of this cohort of management traineeshad reached 98%.
To support new managers in quickly adapting to their roles, M&G launched the ve-month “2024 Rising Sun –Management Role Transition Program” during the reporting period. The program was designed with a systematicdevelopment path and diverse training formats integrating both training and practice. It addressed common scenariosand challenges encountered by new managers, helping participants build their leadership capabilities and better driveteam and personal growth.
Case
Case
“Child of Light” Management Trainee Program
“Rising Sun” – Management Role Transition Program
2024 Management Trainee Onboarding Bootcamp
2024 “Rising Sun” – Management Role Transition Program
The Human Resources Centerclosely collaborated with eachbusiness unit to update andrene the talent prole andselection criteria.
During the 18-month training period,development was structured aroundve pathways: training and learning,progress evaluation, rotation,engagement and attention, andmentorship empowerment. Businessmentors and human resourcesbusiness partners (HRBPs) provideddouble guidance to ensure the growthand development of trainees.
Within two weeks, trainees gainedan intensive understanding ofthe Company’s history, culture,strategy, brand, and business logic,combined with frontline rotationexperiences, enabling a 360-degreeunderstanding of and immersioninto M&G through listening,watching and feeling.
Selection and InterviewOngoing DevelopmentOnboarding Bootcamp
Jiumu Store launched two sets of courses: “Xingtu Program” and “Xingyao Program” targeting employees atdi?erent levels and positions in retail stores, aiming to enhance their knowledge and skills and empower their careerdevelopment.
CaseRetail Talent Development Program of Jiumu Store
Happy WorkplaceM&G respects and safeguards employees’ legitimate rights and interests, continuously improves the benets system, valuesemployee diversity, and provides an equal and inclusive work environment. The Company also organizes a wide range of employeeactivities to foster a vibrant and positive sustainability culture.To gain a more comprehensive understanding of employees’ voices and needs, M&G launched an employee engagement surveyat the end of 2024. Through questionnaires, the Company collected feedback and opinions on corporate culture, work environment,career development, and other areas. Based on the analysis results, the Company continuously followed up and optimized itspractices to enhance employee engagement. Over 90% of employees participated in the survey this year.
“Top Human Resources ManagementAwards—Outstanding Employer”
“2024 Top 100 HappyEnterprises: Best CSR Top 30”
“DEI Employer Awards 2024” and“Top 100 DEI Employer 2024”
“2024 Asia Best Workplace—Healthy Workplace Advocate”
“2024 Human ResourceAward—Best Employers”
“Model Happy Workplace”51job
The Economic Observer
HRag
AIA
HRoot
αi Quality Workplace
M&G Employer Awards in 2024
ProgramTargetContentOutcomes“XingtuProgram”
Sales associatesand storemanagerassistants
Performance management, merchandisemanagement, personnel management,sales techniques, system operationtechniques, etc.
38 sessions held throughoutthe year with nearly 1,600participants trained and atraining coverage rate of nearly99%
“XingyaoProgram”
On-duty andreserve dual-store managers
O?ine courses cover personnelmanagement, goal management,display management, and merchandisemanagement, supplemented with practicessuch as store management training,mentorship, and dynamic coaching, toempower participants in improving storemanagement capabilities
Five sessions held throughoutthe year with 87 participantstrained and nearly 40 hours ofinstruction
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In addition to fullling statutory obligations to pay various types of social insurance, M&G has established and continuouslyimproved an employee benets system covering ve key categories: allowances and subsidies, health and well-being, protectionagainst risks, paid leaves, and accommodations. During the reporting period, the Company provided additional benets and care toensure the well-being of every employee.
M&G and its subsidiaries regularly organize a wide variety of employee events such as sports festivals, arts festivals, team-buildingactivities, club activities, holiday salons, and family days. These activities help employees relieve work stress, balance work andlife, and stimulate creativity and team spirit.
Provided all employees with additional commercialinsurance, including term life insurance, critical illnessinsurance, accidental injury insurance, and accidentalmedical insurance.In addition to regular check-ups, o?ered supplementarywomen’s health screenings and health education;opened an inrmary at the Shanghai o?ce building toprovide emergency medicine, blood pressure monitors,thermometers, and other basic medical supplies;established a medical service station in the park to o?erdiagnosis, medication, dressing change, and healthmanagement services for common illnesses.
Renovated old dormitories at the Shanghai productionbase, retrotted supporting facilities, repainted hallways,and maintained the hot water system to improveemployee satisfaction with accommodations.Invited external professionals to host ve charitablemental health salons to help employees develop self-awareness and enhance workplace well-being, with atotal of 70 employees participating.
Employee Benets and Activities
The 2024 M&G Sports Game lasted 30 days and included sixindividual events and ve team events, generating nearly 1,000instances of participation from 21 departments. With events suchas curling, shooting hoops, tug of war, and long rope skipping,participants competed for the M&G “Champion’s Cup,” gaining honor,joy, and unity in the process. Additionally, the newly launched M&GArts Festival received enthusiastic responses from 26 departmentsand branch plants, with 137 employee submissions in photography,painting, singing and dancing, talk shows, and more, showcasingemployees’ vibrant and artistic sides beyond work. These events notonly enhanced physical tness and creativity but also strengthenedteam cohesion and enriched corporate culture.
CaseSports Game and Arts Festival: Showcasing Diverse Talents and Uniting Collective Strength
M&G “My YOUNG” Sports Game
M&G Arts Festival
M&G Colipu InternationalWomen’s Day CelebrationM&G Programmers’ DayM&G Club Activity Jiumu Store Family Day
Additional Commercial Insurance
Physical Health Promotion
Improvement of Living Conditions
Mental Health Focus
M&G integrates the concept of Diversity, Equity, and Inclusion (DEI)with the corporate value of “openness and inclusiveness,” and iscommitted to creating a workplace where employees from diversebackgrounds can fully realize their potential and achieve personalvalue. During the reporting period, M&G reviewed the current statusof internal DEI practices and proposed management objectivessuch as increasing the proportions of female employees and femaleexecutives, which will guide the Company in gradually strengtheningthe DEI system establishment and its implementation in future years.The Company has clearly stipulated in theEmployee Handbookthatany form of discrimination based on gender, region, ethnicity, age,marital status, or other factors is strictly prohibited. Gender equalityand fair treatment are emphasized in all aspects of human resourcemanagement. Furthermore, M&G attaches great importance to therights and interests of female employees, supporting their careerdevelopment and helping them balance work and life. M&G and itssubsidiaries, including M&G Colipu and Axus Stationery, providefemale employees with various types of leave, such as maternityleave and parental leave. Nursing rooms are also available ato?ce locations, o?ering clean and private spaces for breastfeedingemployees. The Company has continued to organize “ParentChild Mother EQ Course” and held its rst Women’s LeadershipWorkshop during the reporting period to help female employees betterunderstand their strengths and potential and to empower them topursue their career goals more condently.
Diversity and Equal Opportunities
Handmade Decoupage Bag Activity for International
Women’s Day
Female employeesaccounted for
48%of M&G’stotal workforce
On November 22, 2024, M&G held its rst Women’s Leadership Workshop, attended by 32 female mid- and senior-level managers. This workshop created a dedicated space for female leaders and o?ered a series of educational andempowering activities. Through these sessions, participants enhanced their self-awareness, discovered the uniquestrengths of female leadership, and gained empowerment through mutual exchange and resonance.
CaseWomen’s Leadership Workshop
M&G’s First Women’s Leadership Workshop
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In September 2024, M&G launchedits rst “Sustainability Culture Month,”organizing a series of engaging andmeaningful activities under four weeklythemes: “99 Giving Day,” “Protectingthe Deep Blue,” “SustainabilityKnowledge Enhancement,” and“Safety Matters,” along with anonline check-in campaign titled “Let’sBuild a Sustainable Life Together.”The initiative enabled employees toexperience, participate in, and co-promote sustainable development.During the campaign period, over 10events were held, generating morethan 3,000 instances of participation.A total of 123 employees participatedin the online check-in campaign, withthe cumulative number of check-insexceeding 500, signicantly enhancingemployees’ awareness of sustainability.
Case“Hello, Sustainability” – M&G’s First Sustainability Culture Month
Fire Safety DrillSustainability Strategy Sharing
Charity SaleCo-created Ocean Poetry
2024 M&G Sustainability AmbassadorsAwarding Ceremony for Outstanding Individuals for ESG Performance
at the M&G Annual Gala
M&G continuously promotes the development of an internal sustainability culture. For the second consecutive year, each centerand department has appointed a Sustainability Ambassador. The Company also rened theCharter of Sustainability Ambassadors
to clarify the ambassadors’ responsibilities, goals, management mechanisms, support, and incentive mechanisms, thereby bettermotivating participation. During the reporting period, 25 ambassadors actively communicated the Company’s sustainability updatesand activity information, promoted low-carbon o?ce practices such as energy, water, and paper conservation, and created greenwork environments within their departments. They also independently organized over ten sustainability-themed employee activities,helping to concretize abstract concepts such as sustainability and ESG in ways that resonated with sta?, subtly integrating theseideas into daily work.In addition, M&G introduced ESG awards into its annual company recognition program to commend outstanding individuals andteams. This award mechanism not only celebrates achievements but also encourages internal reection on ESG e?orts andpromotes cross-center communication and collaboration.
Sustainability Culture Development
Social Welfare
Since its inception, M&G has been actively fullling its social responsibilities. In 2015, the M&G Rainbow Charity Fund wasestablished. In 2020, the Shanghai M&G Foundation (“M&G Foundation”) was o?cially founded. Upholding the philosophy of“promoting quality education and empowering inclusive community development,” M&G Foundation has carried out a variety ofcharity programs. During the reporting period, M&G Colipu established the Colipu Charity Fund under the M&G Foundation andmade an initial contribution of RMB100,000 to support its charity undertakings in 2024. Throughout the year, various initiatives werecarried out, including charity forest visits, donation of teaching supplies, and volunteer services for art classes, further expandingthe Company’s charity strength.
Instances of employeevolunteer service participation4,435
Volunteer service hours9,221
Art education plays an irreplaceable role in enhancing aesthetic literacy, enriching the spiritual world, and cultivating innovationawareness among rural students. In recent years, the government has issued multiple documents such as theOpinions onComprehensively Strengthening and Improving School Art Education in the New Eraand theNotice on the ComprehensiveImplementation of the Art Education Inltration Action in Schools, emphasizing the importance of art education and encouragingsocial forces to participate in its development, thereby forming a joint force to educate through art.
Focusing on Rural Art Education
Physical Exhibition of Works from the Rural Art Competition
M&G Foundation has long been committed to rural art education.In 2022, it launched the “Art Education Plan” program based onaccumulated experience. The program enhances the aestheticliteracy of rural schools and communities through lesson plancollection, teacher training, and art supply donations. It alsoconnects resources from other charity foundations, enterprises, anduniversity volunteer associations to build an ecosystem for children’sart education in rural areas. In 2024, with support from the O?ceof the National Working Committee for Youth A?airs, the programorganized large-scale art education events on school campuses,increasing the number of beneciary schools to 624. During theyear, M&G Foundation also successfully brought art courses into 36communities, enabling migrant and left-behind children to participatein art activities after school or during holidays. A special rural artcompetition co-hosted with M&G Foundation and One Foundationattracted over 120,000 student submissions nationwide, withmore than 3,000 outstanding works exhibited in over 100 physicalexhibitions across the country. These works were also developedinto charitable stationery products, driving continued attention to arteducation in rural schools through high-quality painting competitions.
M&G Foundation adheres to the philosophy of guiding the industryin joining the e?orts for doing good, focusing on three major areas:
rural education, care for special groups, and community care. Ithas carried out the rural art education program, the “Golden SeedPlan” education assistance program, and the Autism SupportProgram. It also actively engages employees, customers, and otherstakeholders in charitable activities. As of the end of the reportingperiod, M&G Foundation had carried out educational charityinitiatives in 138 prefecture-level cities across 32 provinces in China.During the reporting period, the total amount of charity funds andmaterial donations from M&G Foundation and M&G’s subsidiariesreached RMB8.44 million, generating more than 440,000 instancesof benet. A total of 4,435 instances of employee volunteer serviceparticipation were recorded, contributing 9,221 hours of volunteerservice.
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M&G actively promotes a corporate culture of“Everyone for Charity.” Each year, it organizes seniorexecutives and employees to participate in large-scalecharity events such as the “E.G.G Walkathon” charitywalk, the “99 Giving Day” events, and ExecutiveCharity Trips. It also hosts monthly charitableactivities in various themes, including summer artclass assistantships, charity markets, environmentallm screenings, and visits to M&G Foundation Forest,gradually integrating charity into the daily lives ofM&G employees. During the reporting period, M&Gestablished the M&G Volunteer Team, implementeda volunteer service points and reward system, andenabled volunteer service hours to be logged inthe o?cial Shanghai volunteer database, allowingvolunteers to enjoy government incentive policies.M&G Foundation also presents commemorativecerticates to volunteers at the end of each activityand during annual review events, establishing a long-term incentive mechanism to encourage employees’continuous participation in charity.
Everyone for Charity
Over 300 employees participated in the “E.G.GWalkathon” charity walkAll M&G senior executives participated in the Executive Charity Day,engaging in close and heartfelt interactions with children with autism
M&G Foundation’s Short FilmSunrise
Employees created traditional Chinese paintingbookmarks and wrote heartfelt messages for rural childrenWith the support of M&G Foundation, employees initiated charitablepainting activities in local communities
A Thousand Sunrises Charity Exhibition
In addition to mobilizing internal resources for charity, M&G Foundation has been actively expanding external partnerships. Duringthe reporting period, it established collaborations with multiple foundations and philanthropic enterprises, exploring innovativemodels such as carrying out charity livestreaming and joining “Goods for Good” program, aiming to jointly build a sustainablecharity ecosystem.
Innovative Charity
M&G Foundation has long carried out the AutismSupport Program, empowering individuals with autismand their families through artistic creation. On April 2,2024, “World Autism Awareness Day”, M&G Foundationpartnered with Gaotu High School to launch a charitylivestream to raise public awareness about autism. Thelivestream also featured the release of a creative giftset, “Happy Planet,” inspired by drawings by childrenwith autism. This charity product served as a creativemedium to advocate for a more inclusive society forindividuals with autism. The livestream attracted over50,000 viewers, and 100% of the prots from productsales were donated to support income-generatingprojects for both individuals with autism and women inrural communities.
M&G Foundation joined Alibaba’s “Goods for Good” program. During the reporting period, it collaborated with toplivestreamers on Taobao to host multiple livestreaming charity sales featuring M&G’s charity stationery products. Allsales proceeds were donated to M&G Foundation’s projects, enabling consumers to support the charity by purchasingproducts and unlocking a new model for charity engagement. M&G and several other consumer goods brands wereawarded the “2024 Innovative Charity Award” by Alibaba Foundation.
Case
Case
Charity Livestream to Raise Awareness for Autism
Teaming up with Alibaba Foundation to Launch Livestreaming Charity Sales
Introducing the Charitable Story behind the Creative Gift Set
during the Livestream
Livestreaming Charity Sales of M&G’s Charity Products on Taobao
On World Children’s Day 2024, M&G Foundation released the short lmSunriseand held theA Thousand Sunrisesrural children’sart exhibition at Zikawei Library in Shanghai, showcasing over 100 “sunrise impressions” created by children from rural schools.Through over 85.75 million online views and a month-long physical exhibition, the initiative not only highlighted rural children’stalent in creating beauty but also raised broader public awareness of rural art education.
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Environmental Compliance Management
Pollutant Discharge
Waste Management
Energy UtilizationESG Performance Report
M&G strictly complies with theEnvironmental Protection Law of the People’s Republic of China, theLaw of the People’s Republicof China on Environmental Impact Appraisal, and other relevant laws and regulations. The Company has established environmentalmanagement systems, including theEnvironmental and Safety Management Operation Control Proceduresand theEnvironmentalFactor Identication and Control Procedures. To ensure e?ective environmental compliance management, M&G developed theControl Procedures for Emergency Preparedness and Response, conducted environmental and safety risk inspections, andestablished emergency preparedness and response plans. The Company organized environmental and safety emergency drills andimplemented risk assessments for environmental incidents and emergency response management for unexpected environmentalincidents. M&G Shanghai production base has passed the ISO 14001 Environmental Management System certication. Duringthe reporting period, M&G did not experience any major environmental incidents, nor was it subject to signicant administrativepenalties or criminal liabilities by the Ministry of Ecology and Environment or other relevant authorities.
M&G is committed to environmental protection, strictly adhering to relevant laws and standards such as theEnvironmentalProtection Law of the People’s Republic of China, theLaw of the People’s Republic of China on Prevention and Control ofWater Pollution, theIntegrated Emission Standard of Air Pollutants, and theEmission Standard for Industrial Enterprises Noiseat Boundary. The Company has implemented environmental management systems, including theEnvironmental and SafetyManagement Operation Control Procedures, to ensure the compliant discharge of wastewater, exhaust gas, and noise.In accordance with theRegulations on the Administration of Pollutant Discharge Permits, M&G has completed pollutant dischargeregistration and established comprehensive monitoring, recording, and reporting processes for pollutant discharge, as well asemergency response measures for excessive discharge. The Company regularly monitors pollutant discharge and issues testingreports for wastewater, exhaust gas, and noise to detect and address discharge anomalies in a timely manner. Pollution controlequipment is continuously maintained and updated. Axus Stationery has installed complete dust and odor removal systems forequipment involving exhaust gas and adopted measures such as adding desulfurization and denitrication systems, using low-nitrogen burners, and replacing biomass boilers with centralized heating to eliminate or reduce negative environmental impacts asmuch as possible. For wastewater treatment, M&G has formulated theM&G Stationery Water Treatment Facility Operation Manual
and strictly follows its procedures to ensure compliant discharge into municipal sewage pipelines. During the reporting period,M&G’s discharge of wastewater, exhaust gas, and noise met the relevant national and local pollution discharge standards and legalrequirements.
M&G strictly complies with theLaw of the People’s Republic of China on Prevention and Control of Environmental Pollution by SolidWasteand other relevant laws and regulations. The Company has developed systems and management procedures, such as theSolid Waste Control Planand theHazardous Waste Storage Facility Management System, assigning clear responsibilities acrossdepartments for the classication and compliant disposal of waste. M&G follows the principles of reduction, reuse, and recycling tomaximize resource utilization and minimize waste at the source. Recyclable waste is promptly handed over to recycling companiesfor recyle and reuse; non-recyclable waste and domestic garbage are collected and processed by qualied service providers;hazardous waste is entrusted to licensed third-party companies for compliant disposal.
M&G strictly complies with laws and regulations such as theLaw of the People’s Republic of China on Energy Conservationand
the ISO 50001:2018 Energy Management Systems standard. The Company has developed and implemented theM&G Energy
Management Manual. M&G’s energy management system has been certied to ISO 50001. During the reporting period, while
ensuring a stable energy supply, M&G increased investment in renewable energy such as photovoltaic power generation and green
electricity procurement to gradually increase the proportion of clean energy usage. Each base has set annual energy-saving targets
based on the Company’s climate strategy and action roadmap, as well as its actual status, and actively implemented energy-saving
initiatives, including equipment upgrades, process optimization, waste heat recovery, and digital management. These e?orts are
expected to save approximately 1.74 million kWh of electricity annually, equivalent to reducing 770.8 tCO
e emissions.Environment
Ecosystem and Biodiversity ProtectionM&G is committed to implementing ecological and environmental protection measures in strict compliance with theEnvironmentalProtection Law of the People’s Republic of China, theLaw of People’s Republic of China on Environmental Impact Appraisal,theLaw of the People’s Republic of China on Water and Soil Conservation, and other laws and regulations. During the reportingperiod, all major M&G operational and business sites were located outside the scope of ecological protection redlines. As a wood-based pencil manufacturer, the subsidiary Axus Stationery owns 1,853 mu of forest land, which has been FSC certied. AxusStationery has formulated theSustainability Management Policy, pledging not to use any uncertied tropical rainforest species andcontinuously monitors the biodiversity of the forest land during its operations to ensure sustainable utilization of forest resources.
M&G’s Measures for Ecosystem and Biodiversity ProtectionProject Site SelectionProject ConstructionProduction and Operation
●Conduct on-site inspections toassess the impact of constructionon local biodiversity, and avoidnatural habitats, wetlands, forests,wildlife corridors, and agriculturalland;
●Conrm the project scope andminimize the impact of constructionon ora and fauna.
●
Carry out environmental impactassessments for construction projectsto identify key environmental impactfactors, formulate and implementvarious environmental protectionmeasures, and maintain the originalecological state of the plant area;
●Conduct ecological monitoring of theenvironment surrounding the plant asrequired to understand environmentalchanges and potential impacts.
●Formulate and implement strictmanagement measures forwastewater, exhaust gas, andnoise and forest land protection,monitor the surroundingenvironment, and reduceenvironmental impact.
Product Quality and SafetyM&G strictly complies with theLaw of the People’s Republic of China on Product Quality, theRequest in Common Use of Securityfor Student’s Articles(GB 21027-2020), theHygienic Requirements of Study Products for Myopia Prevention and Control inChildren and Adolescents, theWork Plan for the Safety Protection of Children and Student Supplies, and other laws, regulations,and standards. The Company has established the M&G Quality Management System and formulated various product safetypolicies and procedures, including theManagement and Control Procedure for Product Safety, theM&G Product Audit SamplingMechanism (Trial), theQuality Risk and Opportunity Control Procedure, theDesign and Development Control Procedure, theProcess Control Procedure, theProduction Control Procedure, theProduct Monitoring and Measurement Control Procedure,theNonconforming Product Control Procedure, theIdentication and Traceability Management Control Procedure, and theCompliance Obligations and Compliance Evaluation Control Procedure. These ensure that every stage from raw material toproduct delivery is subject to strict quality control. During the reporting period, M&G and subsidiaries, such as M&G Colipu andAxus Stationery, successfully obtained ISO 9001 Quality Management System certication. In terms of product certication, weensure that all products subject to China Compulsory Certication (CCC), such as educational devices, pinyin learning machines,and microscopes, complete certication prior to market launch. During the reporting period, there were no major safety or qualityincidents related to M&G’s products or services.
Social
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Marketing and After-sales
Innovation-driven Development
Chemical Management
M&G strictly complies with theAdvertisement Law of the People’s Republic of China, theCopyright Law of the People’s Republicof China, and other relevant laws and regulations. The Company has issued institutional documents such as thePromotionCompliance Guidelinesand theProduct Draft Review White Paperto ensure that advertising is legal and compliant, salesinformation is transparent and accurate, and legitimate consumer rights and interests are protected. It published theM&G SocialMedia Platform Content Guidelinesto regulate content on self-media platforms, requiring that “all content published on socialmedia platforms shall be truthful, legitimate, healthy, and accurate, and must not contain false or misleading information, or deceiveor mislead consumers;” it has also formulated theM&G Media Relations Guidelinesand theM&G Public Opinion ManagementSystem, which clearly state that M&G employees are required to communicate with the media and other inuential audiencesbased on facts, maintaining an honest, clear, and transparent attitude, while actively practicing responsible marketing.M&G has established a complaint-handling mechanism and continuously improves theCustomer Complaint Handling Procedure,designating departments and personnel responsible for addressing customer complaints and inquiries in a timely manner.Meanwhile, the Company has developed a product recall management system that denes responsibilities, recall procedures, andoversight mechanisms to protect consumers’ lawful rights and interests.
M&G invests more than RMB100 million annually in technological R&D and product innovation. As a national high-tech enterprise,the Company has established the China Writing Instrument Industrial Base, the China Writing Instrument Center, the NationalIndustrial Design Center, and the Key Laboratory of Writing Instrument Engineering Technology of China National Light Industry.It has also formulated comprehensive R&D management standards and an intellectual property management system. During thereporting period, M&G invested nearly RMB190 million in R&D and innovation, accounting for 0.8% of main business revenue; R&Dpersonnel made up 8% of its workforce; it led 20 invention patent applications, eight of which were granted; the total number ofvalid patents reached 1,336.M&G has formulated theChemical Management Policyin accordance with relevant national laws, regulations, and supervisoryrequirements. The Company has strengthened, standardized and unied management of chemical usage, ensured that noprohibited chemicals are used in product R&D, and guaranteed that all procured chemicals are sourced from qualied suppliers.
Key Chemical Safety Standards Referenced by M&G
China
Inventory of Severely Restricted Toxic Chemicals of ChinaThe Regulations of the People’s Republic of China on Administration of Controlled Chemicals - Various MonitoredChemicals ListRequest in Common Use of Security for Student’s Articles (GB 21027-2020)
Gel Ink Ballpoint Pens and Rells(GB/T 37853-2019)
National Safety Technical Code for Toys (GB 6675-2014)
Requirements of Concentration Limits for Certain Restricted Substances in Electrical and Electronic Products(GB/T 26572-2011)Hygienic Requirements of Study Products for Myopia Prevention and Control in Children and Adolescents(GB40070-2021)
Technical Requirements for Environmental Labeling Products Cultural Paper (HJ 410-2017)Student Modeling Clay (T/CSSGA 1006-2018)
Book Cover and Slipcase(T/CSSGA 1001-2017)
Children’s Acrylic Paint and Acrylic Markers (T/SLIA 0003-2024)
Exercise Books(QB/T 1437-2023)
Fountain Pens and Nibs (GB/T 26717-2024)
General Safety Requirements on Food Contact Materials and Articles(GB 4806.1-2016) and other national foodsafety standardsEU
Registration, Evaluation, Authorization and Restriction of Chemicals (REACH Regulation)Safety of Toys - Part 3: Migration of Certain Elements (EN71-3)
Safety of Toys - Part 9: Organic Chemical Compounds Requirements (EN71-9)
Supply Chain Safety
M&G has established a Chemical Management Committee composed of the Sustainability O?ce, Procurement Center, ProductionCenter, Technical Center, and Quality Center. This committee is responsible for coordinating chemical safety management,formulating performance evaluation standards, promoting compliance, gradually phasing out chemicals prohibited or restricted byregulations, enhancing information transparency, and raising public awareness of the chemical safety of M&G’s products.
M&G has established and improved its supply chain management system, formulating a series of institutional documents such asthe Supplier Management Method, theSupplier Code of Conduct,theNew Supplier Development and Onboarding ManagementMethod, theSupplier Evaluation Management Method, and theSupplier Management Control Procedure. These documentsstandardize the e?ective implementation of supplier development, evaluation, performance assessment, and control management.The Company actively manages supply chain risks by strengthening risk assessment and early warning systems, implementingsupplier diversication strategies, improving supplier introduction mechanisms, enhancing the stability of strategic suppliers, andconducting supply chain ESG assessments and management to ensure supply chain resilience and security. At the same time,the Company continuously improves independent innovation capabilities, develops raw materials and production processes withproprietary intellectual property rights; enhances information sharing and collaborative cooperation with suppliers; and promotesrened management through the implementation of MBS (M&G Business System) to improve overall supply chain e?ciency. Thesee?orts continuously strengthen M&G’s supply chain’s advantages and competitiveness.
Chemical Management CommitteeProcurement CenterSustainability O?ceQuality CenterProduction CenterTechnical Center
M&G Chemical Safety Management Structure
Labor Rights and Benets
M&G strictly complies with theLabor Law of the People’s Republic of China, theLabor Contract Law of the People’s Republic ofChina, and other relevant laws and regulations, as well as the seven core conventions ratied by China issued by the InternationalLabor Organization (ILO), including theEqual Remuneration Convention. The Company has developed human resourcesmanagement systems, such as theEmployee Handbook,to lawfully safeguard employees’ legal rights and interests. M&G rmlyprohibits forced labor and the employment of child labor, does not tolerate any unlawful infringement of employees’ legitimate rightsand benets, and forbids discrimination based on gender, region, ethnicity, religion, age, pregnancy or marital status, disability,or any other legally protected characteristic. It maintains zero tolerance towards harassment and violence. M&G strictly complieswith theTrade Union Law of the People’s Republic of Chinaand has established open and equal consultation channels within theCompany. All employees are members of the trade union, and no labor disputes occurred during the reporting period.M&G actively recruits talent through campus recruitment, professional recruitment, and internal referrals, and o?ers exibleemployment opportunities such as manual workers, equipment operators, ip-op workers, full inspectors, scanners, sorters,and loading/unloading personnel. The Company has formulated theRecruitment Management Policyto ensure that recruitmentand hiring processes are compliant, fair, and transparent, while continuously optimizing recruitment procedures and e?ciency.In response to possible job adjustments due to organizational restructuring, the Company has established a humane employeeplacement system, providing either severance packages or job transfer solutions.M&G strictly adheres to national laws, regulations, and local policies in its operating locations to ensure employee compensationexceeds the minimum wage standards. Salaries are determined based on job value, capability, and performance, and are regularlybenchmarked against market levels to dynamically manage compensation. This ensures its compensation system remainscompetitive within the industry and region.
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Occupational Health and SafetyM&G complies with theLaw of the People’s Republic of China on Work Safety, theLaw of the People’s Republic of China onPrevention and Control of Occupational Diseases, theRegulation on Work-Related Injury Insurance, and other relevant laws andregulations. It has formulated and implemented systems such as theEnvironmental and Safety Management Operation ControlProceduresand theSafety Management Standardsto build the QEHS management system and production safety accountabilitysystem. The Company provides employees with safety training and work injury insurance. M&G’s occupational health and safetymanagement system has been certied under ISO 45001. During the reporting period, no general or more serious safety incidentsoccurred. A total of RMB2.956 million was invested in work-related injury insurance, covering 100% of employees.
Career Development and TrainingM&G is committed to building a fair and comprehensive promotion mechanism and a multi-level, diversied training system.During the reporting period, the Company’s training system covered 98% of employees, with an average of 14.6 training hours peremployee. Annual training expenditures totaled RMB2.049 million. M&G encourages and supports employees to enhance theirvocational skills through training and further education. For employees in nance and auditing positions, it o?ers reimbursements forprofessional certication exam fees. During the reporting period, the Company supported 197 employees in obtaining certications.
The Shanghai M&G Foundation (M&G Foundation) actively responds to China’s rural revitalization strategy. In light of the currentfragmentation of art education resources, M&G Foundation integrates social resources to launch the “Art Education Plan” program,aiming to build an industry ecosystem for children’s art education in rural areas and to promote rural revitalization and improvementin local aesthetic literacy through art education. During the reporting period, M&G Foundation invested a total of RMB2.92 million inrural revitalization. The “Art Education Plan” program was implemented in 624 rural primary schools and 36 community child servicecenters, o?ering charity art classes. The Golden Seed Plan education assistance program donated over 60,000 stationery giftpacks, generating more than 440,000 instances of benet. M&G’s regional channel partners actively responded to the Company’scall by organizing charitable donation events to support local educational development.
Rural Revitalization and Social Contribution
Data Security and Customer Privacy ProtectionM&G continuously improves its information security management system and has formulated multiple management policies,including theInformation Security Management Manual, theInformation Security Policy, theInformation Security ManagementOrganization, theSystem Construction Security Management Policy, theInformation Classication and Grading LabelingManagement Policy, and theInformation Security Incident Management Policy. The Company has established an InformationSecurity Management Working Group that is fully responsible for information and network security. Additionally, an informationsecurity self-inspection taskforce has been established to conduct monthly inspections, address security issues, and performemergency drills across all business systems. M&G Alliance has passed the Level 3 certication of the Security ClassiedProtection for Information System Registration; the membership system of Jiumu Store has also passed the Level 3 certication ofthe Security Classied Protection for Information System Registration, while the email system has passed Level 2 certication ofthe same standard.During the reporting period, M&G implemented several measures to enhance its information security capabilities:
M&G has formulated a business continuity plan (BCP), which includes data backup, system redundancy, disaster recoverysolutions, and specic operational procedures and responsibilities. BCP simulation tests are conducted at least semi-annually. Inparallel, an information security emergency plan and incident response procedures have been developed to ensure the secureoperation of information systems.In terms of privacy protection, M&G strictly complies with theLaw of the People’s Republic of China on the Protection ofConsumer Rights and Interestsand other relevant laws and regulations. The Company has issued thePersonal InformationSecurity Protection Management Measuresto properly safeguard the data of both M&G and its customers in accordance withcondentiality arrangements and privacy protection policies, ensuring the security of information. M&G openly and transparentlyinforms customers of the purpose, scope, method, use, and sharing of data collection and obtains customer consent. In the eventof a customer data breach, M&G promptly initiates an investigation, takes control measures, noties relevant personnel, andimplements remedial actions based on the investigation results to minimize the impact on customers. During the reporting period,M&G conducted a compliance audit on personal information protection to ensure all related work was carried out in accordancewith legal and regulatory requirements and internal management policies. M&G Colipu has obtained ISO/IEC 27701 privacyinformation management system certication.M&G regularly conducts information security awareness campaigns, education, and training, and has launched an instructionalvideo titledM&G Employee Information Security Training. Anti-fraud awareness initiatives are also carried out, including thedevelopment of anti-fraud training modules made available on the learning platform, anti-fraud orientation sessions for new hires,and anti-fraud email alerts.During the reporting period, M&G did not receive any complaints related to information security or privacy protection and reportedno incidents of data or information security breaches, including customer data leakage or loss.
M&G conducted information security risk analysisand inspection across the Company, completing anassessment that covered core business systems, networkarchitecture, and data storage. Based on the ndings,a formal risk evaluation was developed and a securityenhancement plan was implemented.
M&G conducted third-party vulnerability analysis throughclassied protection testing and third-party securityscans to identify and x vulnerabilities. Additionally, M&Gresponded to a cybersecurity vulnerability scan initiated bythe Cyberspace Administration of Songjiang, completed allrequired remediation measures, and submitted the reportas requested.
M&G enhanced the application of technical tools forinformation security by deploying threat detection anddefense systems to improve the identication of potentialthreats.
M&G optimized access rights management to restrictaccess to sensitive data, ensuring secure storage andtransmission of sensitive information.
Corporate Governance
M&G continuously improves its corporate governance structure. The Board of Directors has established four specializedcommittees: the Strategy Committee, the Remuneration and Appraisal Committee, the Nomination Committee, and the AuditCommittee. As of the end of the reporting period, the Board consisted of seven directors, including three independent directors, withwomen accounting for 14% of the Board. The three independent directors have professional experience in law, accounting, andcorporate management consulting, and possess expertise in strategic development, corporate governance, and risk management,providing e?ective input into decision-making across various dimensions of the Company’s development. One of the independentdirectors has experience in the manufacturing industry.M&G considers multiple factors in the composition of the Board, including professional experience, educational and culturalbackground, age, gender and other diversity factors, to ensure the Board’s scientic decision-making capabilities. The electionof directors shall rst be reviewed and approved by the Board of Directors, and then submitted to the General Meeting for nalapproval before taking e?ect. Each term of o?ce for a director is three years, and directors may be re-elected upon expiration oftheir term. However, the consecutive term of service for an independent director shall not exceed six years.The Board of Supervisors, under the authority of the General Meeting, functions as a permanent oversight body independentfrom the Board of Directors. It exercises supervisory authority over the Board of Directors, senior management, and the overallmanagement of the Company. As of the end of the reporting period, the Board of Supervisors comprised three members: oneemployee representative supervisor and two external supervisors.M&G has established a comprehensive remuneration and incentive system for all employees. For middle and senior management,equity incentives are provided as part of a long-term incentive plan. The Company has linked sustainability performance to thecompensation of certain senior executives as part of their variable remuneration. Regarding clawback and recoupment provisions,theEmployee Handbookclearly states that the Company reserves the right to reclaim employee compensation due to companyproperty damage or loss caused by employees and rights of other recovery of payment authorized by employees. This clawbackprovision also applies to senior executives.
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Risk Management and Control
M&G conducts risk management and control with the objectives of “optimizing operations, preventing corruption, and controllingrisks”. The Board of Directors is responsible for planning and establishing the risk management framework, formulating riskmanagement policies and related guidelines, and supervising the implementation of risk management measures; the Boardof Supervisors e?ectively supervises the establishment of internal control systems and the implementation of internal controlmeasures by the Board of Directors; and the management is responsible for coordinating the daily operation of internal controlsin the Company. In 2023, the Company established the Risk Management and Compliance Committee, which operates underthe leadership of the President of the Company. Members of this committee include heads of the Sustainability O?ce, HumanResources Center, Audit Department, Legal A?airs Department, and Finance Center. The committee functions independently frombusiness management departments to ensure the objectivity and independence of the Company’s risk management function.
Risk Management andCompliance CommitteePresident
Finance Center
Human ResourcesCenterLegal A?airsDepartmentAudit DepartmentSustainability O?ce
The Organizational Structure of M&G Risk Management and Compliance Committee
M&G has established an internal control framework and continuously renes its three lines of defense risk management system,which is composed of “business departments, functional departments for risk management, and the audit department”. During thereporting period, M&G focused on high-risk business processes and conducted pilot improvement projects in areas such as policydevelopment, process optimization, and system enhancement; the Company also assessed the internal control maturity of thesepilot projects, maintaining ongoing attention to the e?ectiveness and progress of internal control improvements.
M&G “Three Lines of Defense” Risk Management System
●
Each business unit is the primary responsible party for internalcontrol, responsible for resolving over 95% of issues
●Developing business process standards
●Developing relevant processes
●
Developing risk strategies
●Monitoring activities and conducting inspections
●Providing “coaching” on the internal control system
●Carrying out inspections to ensure sound internal control ofhigh-risk businesses
●Carrying out special audits
●Carrying out internal control audits
●Carrying out spot inspections for audits for corruption andfraudulent incidents as a deterrent
Firstline ofdefenseBusinessunits/functionaldepartmentsFunctional departments for riskmanagement (Internal ControlDepartment and ComplianceDepartment)
Audit Department
Secondline of defense
Third line of defense
Business Conduct
Investor Communication
M&G strictly complies with theAnti-Monopoly Law of the People’s Republic of China, theInterim Provisions on ProhibitingCommercial Bribery, theLaw of the People’s Republic of China Against Unfair Competition, and other relevant laws and regulations.The Company continuously strengthens its practices in business ethics, anti-bribery, anti-corruption, and the prevention of unfaircompetition. M&G has established and implemented internal policies such as theCode of Business Conduct, theSupplier Code ofConduct, theManagement System Against Fraudulence, and theGuidelines of Anti-Monopoly and Compliance. New employeesand those in key positions are required to sign theLetter of Commitment on Integrity and Self-Discipline. In addition, all suppliers inprocurement, service, and engineering categories are required to sign theTransparent Procurement & Integrity Convention. Duringthe reporting period, M&G had no legal cases related to commercial bribery, corruption, or unfair competition.
M&G consistently upholds the principle of maximizing shareholder value and operates with an open and transparent philosophy,continually strengthening communication and interaction with investors while listening to diverse opinions and suggestions. TheCompany has established theInvestor Relations Management Systemto standardize related operations and built a communicationsystem to enhance the engagement with investors and potential investors through announcement disclosures, performancebriengs, the SSE E-interactive, on-site research, telephone, email, and other channels to provide timely and e?ective responses toinvestor inquiries.To e?ectively safeguard the legal rights and interests of minority shareholders, M&G assigns dedicated personnel to maintainand monitor communication platforms, ensuring the smooth operation of the SSE E-interactive platform, public investor email,and hotline. During the reporting period, M&G responded to over 70 questions on the SSE E-interactive platform with a 100%response rate. The Company also proactively disclosed four institutional investor research summaries in the “Listed CompanyAnnouncements” section of the platform. M&G was honored with the 15th Tianma Award for Investor Relations Management ofChinese Listed Companies during the reporting period.
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Board of Directors
ESG Performance Data
Governance Performance
IndicatorUnit202220232024Number of directorsperson777Number of independent directorsperson333Attendance rate of directors at annual board meetings%100100100Rate of directors by ageUnder 30 years old%00030-50 years old%01414Over 50 years old%1008686Rate of directors by genderMale%868686Female%141414
Business Ethics
IndicatorUnit20232024Number of operational sites audited for business ethicsnumber2222Rate of operational sites covered by business ethics audits%100100
IndicatorUnit20232024Number of public legal cases regarding corruption broughtagainst the Company or its employees
case00Total number of employees participating in anti-corruptiontraining
person2,3642,868Number of personnel receiving anti-corruption training by position levelNon-management personnelperson/2,494Management personnelperson/374
Unless otherwise specied, the scope of ESG performance data for 2024 includes M&G and its subsidiaries.
The 2024 anti-corruption data covers M&G, Jiumu Store, More-Than-Fun, and M&G Colipu. The categorization methodology was adjusted in 2024 tonon-management personnel and management personnel, aligning with the categorization in the “Employment” section. Historical data by position level for2023 is unavailable and therefore not disclosed.
The 2024 energy and GHG emissions data cover M&G Stationery's Shanghai base, Shanghai headquarters o?ce building, South China base, NorthChina base, Central China base, Axus Stationery, M&G Colipu, and Jiumu Store (Company-owned stores). LPG, natural gas, and steam are newlydisclosed metrics in 2024.
Anti-corruption
Environmental Investment
Energy
GHG Emissions
Environmental Performance
IndicatorUnit202220232024Environmental investmentRMB10,000222239594
IndicatorUnit202220232024Gasolineton458959Dieselton485414418Liqueed petroleum gas (LPG)ton//40Natural gasm?//189,421Steamton//29,102Purchased electricitykWh94,360,79192,582,027102,087,954Renewable energy consumptionkWh9,114,71813,222,55921,603,572Percentage of renewable energy usage%81217Total energy consumptiontce13,61213,87316,523Total energy consumption intensitytce/million RMB0.70.60.7
IndicatorUnit202220232024Scope 1 GHG emissionstCO
e2,1702,1152,393Scope 2 GHG emissionstCO
e46,66845,94046,542Total GHG emissions (Scope 1 and 2)tCO
e48,83848,05548,935GHG emission intensity
tCO
e/million RMBrevenue
2.42.12.0
IndicatorUnit20232024Percentage of personnel receiving anti-corruption training by position levelNon-management personnel%/85Management personnel%/60
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Materials
Water Resources
Waste & E?uents
IndicatorUnit202220232024Total material usageton42,40158,01961,708
Plasticton21,00023,28623,648Paperton18,00028,87731,425Inkton3,4013,1143,124Woodton/4951,760Pencil leadton/2,2471,751Material usage intensity
ton/million RMB
revenue
2.12.52.5
IndicatorUnit202220232024Total water consumptionton546,100570,185588,923Water intensity
ton/million RMBrevenue
27.324.424.3Recycled and reused waterton45,00049,77238,851
IndicatorUnit202220232024Total solid wasteton7286638,219
Hazardous wasteton282922General waste (non-hazardous)ton7006348,197
Packaging MaterialsIndicatorUnit20232024Total packaging materials
ton24,11424,850Paperton21,01021,560Plasticton2,5772,989Other
ton527301
The 2024 materials data cover M&G, Jiumu Store, and Axus Stationery. The data of 2023 for paper, total material usage, and intensity were revised dueto methodology updates.
The 2024 total amount of packaging materials covers M&G, Jiumu Store, Axus Stationery, and M&G Colipu.
The main other packaging materials are metal (iron boxes).
The 2024 water resources data cover M&G Shanghai base, Shanghai headquarters o?ce building, South China base, and Axus Stationery.
The 2023 waste and e?uents data cover M&G Shanghai base. In 2024, the South China base and the North China base are newly added to the datascope. Among them, due to the change of the statistical method of general waste (non-hazardous), the statistical system has been further improved.Therefore, the data of general waste (non-hazardous), total solid waste and solid waste intensity in 2024 have increased.
New data for 2024. Due to the inability to trace past years' data, data for 2022 and 2023 have not been disclosed in this Report.
The data scope for the total number of employees on parental leave in 2024 includes M&G, Jiumu Store, and More-Than-Fun.
The ratio of basic salary and compensation for male/female employees in 2024 includes data from M&G, Jiumu Store, and More-Than-Fun.
IndicatorUnit202220232024Solid waste intensity
ton/million RMB
revenue
0.040.030.3Amount of recycled and reused waste
ton//7,303Wastewater dischargeton2,0001,8762,413
EmploymentSocial Performance
IndicatorUnit202220232024Total number of employeesperson5,5745,8395,549Number of employees, by ageUnder 30 years oldperson1,5272,0801,83330–50 years oldperson3,6423,3113,279Over 50 years oldperson405448437Number of employees, by educational backgroundBachelor's (college) degree or aboveperson3,4013,6213,659High school, vocational schoolperson997964618Otherperson1,1761,2541,272Number of employees, by levelNon-management personnelperson/4,5064,277Management personnelperson/1,3331,272Total number of employees on parental leave
person3078142Number of employees on parental leave, by genderMaleperson72862Femaleperson235080Ratio of basic salary and compensation for male employees
Basic salary%666677Additional compensation%343423Ratio of basic salary and compensation for female employeesBasic salary%777782Additional compensation%232318
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IndicatorUnit202220232024Percentage of vacancies lled by internal candidates(internal recruitment)
%/2033New employee hire rate
%//14.2Employee turnover rate%13.411.916.5Percentage of employees covered by the trade union%100100100Employee Training
IndicatorUnit20232024Percentage of employees trained, by genderMale%9498.9Female%9299.0Percentage of employees trained, by levelNon-management personnel%/98.9Management personnel%/99.4Average training hours per capitahour11.814.6Average training hours per capita, by genderMalehour13.716.2Femalehour9.813.5Average training hours per capita, by levelNon-management personnelhour/13.9Management personnelhour/18.5Performance Assessment
Occupational Health and Safety
Products and Services
Intellectual Property and Technological Innovation
IndicatorUnit202220232024Percentage of employees receiving regular performanceassessment
%100100100
IndicatorUnit202220232024Percentage of workers covered by occupational health andsafety management system
%100100100Fatalities caused by work-related injuriescase000Rate of fatalities caused by work-related injuries%000Severe work-related injuries (excluding fatalities)case000Severe work-related injury rate (excluding fatalities)%000Recordable work-related injuries
case182169Recordable work-related injury rate (per million workinghours)
/9.05.83.6Total safety training hourshour18,00020,22025,489Total number of employees who received safety trainingperson200,000202,020230,035Investment in labor protectionRMB10,000222208274
IndicatorUnit202220232024Number of health and safety violations related to productsand services
case010Customer satisfaction by average satisfaction scorescore8883.592.2Completion rate of after-sales problem implementation
%//99.8
IndicatorUnit202220232024Technological improvement, innovation, and R&D investmentRMB10,00018,35517,75218,858Number of R&D personnelperson429503467Number of patent lings during the yearitem275212290Number of invention patent lings
item//20Number of patents granted during the yearitem312148229Number of invention patents granteditem//8Number of valid patentsitem/1,2111,336Cumulative patent lingsitem2,3912,6122,901Cumulative patents granteditem2,2352,4072,625
The percentage of vacancies lled by internal candidates (internal recruitment) for 2024 includes data from M&G, Jiumu Store, and More-Than-Fun.
New data for 2024. Due to the inability to trace past years' data, data for 2022 and 2023 have not been disclosed in this Report.
The data scope of employee training indicators in 2023 includes M&G, Jiumu Store, More-Than-Fun, and M&G Colipu, which has been expanded in 2024to also include Axus Stationery. The scope of statistics for 2024 has been changed to include non-management and management personnel, aligningwith the categorization in the “Employment” section. However, due to the inability to trace past years' data, the data for 2022 and 2023 have not beendisclosed in this Report.
The data scope of occupational health and safety in 2024 includes the Shanghai base, the South China Base, and Axus Stationery.
The number of recordable work-related injuries in 2023 only includes full-time employees, and in 2024, non-regular employees were also included in thedata statistics, so the data has increased.
New data for 2024. Due to the inability to trace past years' data, data for 2022 and 2023 have not been disclosed in this Report.
The number of invention patent lings and number of invention patents granted are new data for 2024. Due to the inability to trace past years' data, datafor 2022 and 2023 have not been disclosed in this Report.
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M&G Stationery 2024 Environmental, Social, and Governance (ESG) Report
Supply Chain Management
IndicatorUnit202220232024Number of suppliers participating in ESG audit number707185Percentage of key suppliers participating in ESG audit %/100100Number of assessed suppliers with substantial actual/potential negative impacts
number/61
Charitable and Philanthropic Activities
IndicatorUnit202220232024Total cash donationsRMB10,000425303311Total in-kind donationsRMB10,000108305533Number of participants in volunteer servicesperson-time/3,7784,435Volunteer service hourshour/5,7309,221
The data scope for supply chain management in 2024 includes M&G.
The data scope for charitable and philanthropic activities in 2023 includes M&G Foundation, M&G Colipu, and Jiumu Store. In 2024, Axus Stationery wasadded to the scope.
Independent Assurance Statement
CECEP (HK) Advisory Company Limited ("CECEPAC (HK)"or "We") has been engaged by Shanghai M&G Stationery Inc. ("M&G Stationery"),to conduct an independent limited assurance engagement ("Assurance Engagement ") on the information and data related to sustainabledevelopment inM&G Stationery 2024 Environmental, Social, and Governance Report("ESG Report"), and disclosed the results and conclusionsof the Assurance Engagement to the intended users of the ESG Report in the form of an independent assurance statement.CECEPAC (HK) has been engaged to assure M&G Stationery’s adherence to the four AA1000 Accountability Principles of Inclusivity, Materiality,Responsiveness and Impact set out in the AA1000 Assurance Standard v3 ("AA1000AS v3"). CECEPAC (HK) has also been engaged toprovide limited assurance on the reliability and quality of specied performance information disclosed in the ESG Report that has been selectedin accordance withthe Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)
("Sustainability Report Guidelines") published by Shanghai Stock Exchange ("SSE").Should there be any discrepancies or di?erences between the Chinese and English versions of the independent assurance statement, theChinese version shall prevail.
I. Independence and CompetenceCECEPAC (HK) was not involved in collecting and calculating data involved in the ESG Report, or in the development of the ESG Report.CECEPAC (HK)'s activities of Assurance Engagement are independent from M&G Stationery. There is no relationship between CECEPAC (HK)and M&G Stationery beyond the contractual agreement for providing proper service of assurance.CECEPAC (HK)'s assurance team consists of professional personnel who are experienced in the industry and have received professional trainingin sustainability-related standards such asGRI Sustainability Reporting Standardsissued by Global Sustainability Standards Board, AA1000ASv3, the Sustainability Report Guidelines issued by SSE, ISO 14001, ISO 9001, etc.CECEPAC (HK)'s assurance team has rich experience in conducting assurance and has a full understanding and practical ability of AA1000ASv3. Meanwhile, the assurance team of CECEPAC (HK) carries out assurance work on sustainable development issues in accordance with theinternal assurance protocol of CECEPAC (HK).II. M&G Stationery’s ResponsibilitiesM&G Stationery is responsible for the preparation and presentation of the ESG Report in accordance with the Sustainability Report Guidelinesissued by SSE. M&G Stationery is also responsible for implementing internal control procedures to ensure that contents of the ESG Report arefree from material misstatement, whether due to fraud or error.III. Assurance Provider’s ResponsibilitiesCECEPAC (HK) is responsible for issuing an independent assurance statement according to AA1000AS v3 and the Sustainability ReportGuidelines issued by SSE to M&G Stationery. This independent assurance statement applies solely to the ESG Report in the specied scope,expresses a conclusion on the assurance work, and does not serve any other intents or purposes.CECEPAC (HK) ensures that all personnel involved in assurance work meet professional qualication, training, and experience requirements,and are procient in conducting Assurance Engagement. All results of assurance and certication audit are internally reviewed by senior sta? toensure that methodologies used in the process are su?ciently stringent and transparent.
IV. Scope of the Assurance Engagement? The scope of the Assurance Engagement is limited to the data and information in the ESG Report that related to M&G Stationery and itssubsidiaries, and does not include M&G Stationery’s suppliers, contractors and data or information provided by other third parties;? AA1000AS Type 2 Moderate Level of Assurance was adopted to evaluate the nature and extent of M&G Stationery’s adherence to the fourAA1000 Accountability Principles (Inclusivity, Materiality, Responsiveness and Impact) set out in the AA1000AS v3;? M&G Stationery and CECEPAC (HK) reached an agreement to select the specied performance information in the ESG Report as part of thecontent for Assurance Engagement. The selected specied performance information is as follows:
? The Assurance Engagement was with respect to information disclosed from January 01, 2024 to December 31, 2024 only. Any information thatfalls outside this period that is disclosed in the ESG Report is not included within the scope of the Assurance Engagement. Therefore, we do notexpress any conclusions on this information; and? The scope of the Assurance Engagement is conned to the information and data provided by M&G Stationery. Any queries regarding the contentor related matters within this independent assurance statement should be addressed to M&G Stationery only.
? Scope 1 GHG emissions ? Scope 2 GHG emissions ? Number of valid patents ? Recordable work-related injury rate (per million working hours)
? Number of suppliers participating inESG audit
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Appendix
M&G Stationery 2024 Environmental, Social, and Governance (ESG) Report
March 17, 2025Hong Kong SAR, China
Index of Shanghai Stock Exchange Guidelines on Sustainability ReportIndicator Index
DimensionArticlesTopicReport Page Numbers or Notes
Environmental
Articles 21 to 28Response to climate change9-12; 35-43; 74; 82; 88-89Article 30Pollutant discharge9-12; 73Article 31Waste management9-12; 44-47; 73; 83-84Article 32Ecosystem and biodiversity protection9-12; 47-48; 74Article 33
Environmental compliancemanagement
9-12; 73Article 35Energy utilization9-12; 41-43; 74; 82Article 36Water resources utilization9-12; 46; 83Article 37Circular economy9-12; 17-23; 41-47; 73; 84
Social
Article 39Rural revitalization9-12; 70-71; 77; 87Article 40Social contributions9-12; 70-72; 77; 87Article 42Innovation-driven development9-12; 30-31; 75; 86Article 43Ethics of science and technology
Since M&G did not engage in sensitive
elds such as life sciences or AI during the
reporting period, therefore this article is not
applicableArticle 45Supply chain security9-12; 30-31; 54-55; 76; 87
Article 46
Fair treatment of small and medium-sized enterprises
Since M&G did not have any instances
during the reporting period where accounts
payable (including notes payable) accounted
for more than 50% of total assets, nor any
outstanding unpaid information regarding
payments to small and medium-sized
enterprises (SMEs), therefore this article is
not applicableArticle 47Product and service safety and quality9-12; 17-34; 56-57; 74-76; 86Article 48
Data security and customer privacyprotection
9-12; 77-78Article 50Employees9-12; 59-69; 76-77; 84-86SustainableDevelopment-relatedGovernance
Article 52Due diligence12; 51-52; 54-55; 79; 87Article 53Stakeholder communication9-12; 15-16; 80Article 55
Anti-commercial bribery and anti-corruption
9-12; 51-55; 80-82Article 56Anti-unfair competition9-12; 51-55; 80
V. Methodology of the Assurance EngagementCECEPAC (HK)’s Assurance Engagement was conducted at the headquarters and some of subsidiaries of M&G Stationery and the workincluded:
? Evaluating the appropriateness of M&G Stationery’s stakeholder engagement process;? Conducting on-site interviews with M&G Stationery’s employees involved in sustainability management, preparation of the ESG Report and theprovision of relevant information;? Assessing whether the reporting and management approach disclosed for the ESG Report responded to the principles of Inclusivity, Materiality,Responsiveness and Impact as dened in the AA1000AS v3;? Conducting sampling of evidence pertaining to the reliability and quality of the selected specied performance information;? Recalculating the selected specied performance information;? Assessing the degree of conformity of the ESG Report with the Sustainability Report Guidelines; and? Performing other procedures we deemed necessary.Assurance Engagement was performed and the conclusions within were based upon information and data provided to CECEPAC (HK) by M&GStationery and on assumptions that the information provided was complete and accurate.VI. LimitationsThe absence of a signicant body of established practice on which to draw to evaluate and measure non-nancial information allows for di?erent,but acceptable, measures and measurement techniques and can a?ect comparability between entities.
VII. ConclusionsIn accordance with the principles of Inclusivity, Materiality, Responsiveness and Impact in the AA1000AS v3, and the specied performanceinformation, our ndings and conclusions are as follows:
InclusivityM&G Stationery has identied key stakeholders and continuously communicated with key stakeholders in various way to understand theirexpectations and concerns. On this basis, M&G Stationery has formulated policies in consideration of key stakeholders’ expectations andconcerns. Our professional opinion is that M&G Stationery adheres to the principle of Inclusivity.MaterialityM&G Stationery has conducted a materiality assessment for the ESG Report, collected the opinions of key stakeholders, identied materialissues through appropriate methods, and presented the results of material assessment in its ESG Report. Our professional opinion is that M&GStationery adheres to the principle of Materiality.ResponsivenessM&G Stationery has established relevant communication channels with its key stakeholders to collect their concerns and responded to thekey stakeholders on material issues related to sustainability. Our professional opinion is that M&G Stationery adheres to the principle ofResponsiveness.ImpactIn its risk management system, M&G Stationery has established a process to understand, measure, assess and manage impacts. M&GStationery carried out a regular corporate signicant risk evaluation to identify and rank related risks based on their signicance levels. Ourprofessional opinion is that M&G Stationery adheres to the principle of Impact.
Specied Performance InformationBased on the procedures CECEPAC (HK) performed and the evidence we obtained, nothing has come to our attention that causes us to believethat the disclosures of the ve selected specied performance information in the ESG Report is unreliable and unqualied or not prepared in allmaterial respects in accordance with the basis of reporting.
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GRI Standards (2021) Content Index
GRI StandardDisclosurePages
GRI 2: General Disclosures2021
2-1 Organizational details1-22-2 Entities included in the organization's sustainability reporting1-22-3 Reporting period, frequency and contact point1-22-4 Restatements of information81-872-5 External assurance88-892-6 Activities, value chain and other business relationships7-8; 15-162-7 Employees84-852-8 Workers who are not employees54-57; 762-9 Governance structure and composition11; 782-10 Nomination and selection of the highest governance body782-12 Role of the highest governance body in overseeing the managementof impacts
3-4; 11; 782-13 Delegation of responsibility for managing impacts11; 782-14 Role of the highest governance body in sustainability reporting112-15 Conicts of interest11; 51-522-16 Communication of critical concerns112-17 Collective knowledge of the highest governance body112-18 Evaluation of the performance of the highest governance body112-19 Remuneration policies782-20 Process to determine remuneration782-22 Statement on sustainable development strategy9-102-23 Policy commitments
15-16; 51-52; 66-68;
76; 802-24 Embedding policy commitments11; 51-53; 802-27 Compliance with laws and regulations73-802-28 Membership associations582-29 Approach to stakeholder engagement15-16GRI 3: Material Topics 2021
3-1 Process to determine material topics13-143-2 List of material topics143-3 Management of material topics13-14; 17-80
GRI StandardDisclosurePagesGRI 101: Biodiversity 2024
101-1 Policies to halt and reverse biodiversity loss47-48; 74101-2 Management of biodiversity impacts47-48; 74101-4 Identication of biodiversity impacts47-48; 74GRI 201: EconomicPerformance 2016
201-1 Direct economic value generated and distributed7-8201-2 Financial implications and other risks and opportunities due toclimate change
38-39GRI 202: Market Presence2016
202-1 Ratios of standard entry level wage by gender compared to localminimum wage
GRI 205: Anti-corruption2016
205-2 Communication and training about anti-corruption policies andprocedures
51-53; 55; 80GRI 206: Anti-competitiveBehavior 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopolypractices
GRI 301: Materials 2016
301-1 Materials used by weight or volume83301-2 Recycled input materials used44-47; 83GRI 302: Energy 2016
302-1 Energy consumption within the organization41-42; 82302-3 Energy intensity41; 82302-4 Reduce of energy consumption74GRI 303: Water andE?uents 2018
303-1 Interactions with water as a shared resource46; 73303-2 Management of water discharge-related impacts73303-4 Water discharge84303-5 Water consumption83
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions40; 82305-2 Energy indirect (Scope 2) GHG emissions40; 82305-3 Other indirect (Scope 3) GHG emissions40; 82305-4 GHG emissions intensity82305-5 Reduction of GHG emissions35; 37; 74
GRI 306: Waste 2020
306-1 Waste generation and signicant waste-related impacts44-46; 73306-2 Management of signicant waste-related impacts44-46; 73306-3 Waste generated83-84306-4 Waste diverted from disposal84306-5 Waste directed to disposal83-84GRI 308: SupplierEnvironmental Assessment2016
308-1 New suppliers that were screened using environmental criteria54-55; 76308-2 Negative environmental impacts in the supply chain and actionstaken
54-55; 76GRI 401: Employment 2016401-1 New employee hires and employee turnover85
Statement of use
M&G Stationery has reported the information cited in this GRI content index for the period January 1, 2024to December 31, 2024 with reference to the GRI Standards.GRI 1 usedGRI 1: Foundation 2021
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GRI StandardDisclosurePagesGRI 401: Employment 2016
401-2 Benets provided to full-time employees that are not provided totemporary or part-time employees
66-68401-3 Parental leave84
GRI 403: OccupationalHealth and Safety 2018
403-1 Occupational health and safety management system61-62; 77403-2 Hazard identication, risk assessment, and incident investigation61-62; 77403-3 Occupational health services61-62; 77403-5 Worker training on occupational health and safety61-62; 77403-6 Promotion of worker health61-62; 67; 77403-7 Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
61-62; 77403-8 Workers covered by an occupational health and safetymanagement system
403-9 Work-related injuries86403-10 Work-related ill health62; 86GRI 404: Training andEducation 2016
404-1 Average hours of training per year per employee85404-2 Programs for upgrading employee skills and transition assistanceprograms
63-66; 77404-3 Percentage of employees receiving regular performance andcareer development reviews
GRI 405: Diversity andEqual Opportunity2016
405-1 Diversity of governance bodies and employees68405-2 Ratio of basic salary and remuneration of women to men84GRI 413: LocalCommunities 2016
413-1 Operations with local community engagement, impactassessments, and development programs
70-72; 77GRI 414: Supplier SocialAssessment 2016
414-1 New suppliers that were screened using social criteria54-55; 76414-2 Negative social impacts in the supply chain and actions taken54-55; 76GRI 416: Customer Healthand Safety 2016
416-1 Assessment of the health and safety impacts of product andservice categories
27-28; 74416-2 Incidents of non-compliance concerning the health and safetyimpacts of products and services
74; 86GRI 417: Marketing andLabeling 2016
417-1 Requirements for product and service information and labeling26-27; 32-34; 74-76GRI 418: Customer Privacy2016
418-1 Substantiated complaints concerning breaches of customer privacy
and losses of customer data
77-78