S&P Global recently announced the results of RLX Technology Inc.’s (RELX) Corporate Sustainability Assessment (CSA), a premier external sustainability assessment, ranking RELX’s Environmental, Social, and Governance (ESG) practices first among all global e-cigarette companies for the second consecutive year. Despite an increasingly stringent rating standard and a higher-level requirement for disclosure, RELX’s ESG score rose 13% compared to last year.
The S&P Global Corporate Sustainability Assessment (CSA) is one of the world’s most extensive annual assessments of corporate sustainability practices. With its comprehensive, rigorous, and transparent quantitative scoring model, it not only reflects the ESG level of corporates but also becomes an essential reference for the capital market to measure each corporation’s sustainability capabilities.
In this assessment, RELX scored well above the industry average in many ESG topics, such as product innovation management, business ethics, talent development, greenhouse gas emissions, and transparency of information disclosure. This also indicates that the capital market highly recognized RELX’s performance in these areas.
Product innovation and product quality are essential ESG issues for RELX in 2022. After the implementation of the national standard “Electronic Cigarette,” the Management Measures for E-Cigarettes, and other relevant laws and regulations, RELX strictly abides by the regulatory requirements, develops national standard products, and establishes a full life-cycle product quality assurance program to ensure product quality and safety in an all-round way.
Regarding product innovation, RELX has established a 1+4 scientific research chain of “product quality + physicochemical research, toxicological research, clinical research, and long-term impact assessment,” systematically carried out scientific research, and made several breakthroughs. RELX also actively conducts research projects with universities and institutes and has published many SCI papers in international journals, continuing to fill the gaps in electronic atomization science.
In addition, RELX is highly concerned about the climate change issue. In April 2022, the company launched the “Aim for Zero” plan, committed to achieving carbon neutrality in its operation in 2033 and its entire value chain in 2050. In 2022, TÜV Rheinland certified that RELX has already achieved carbon neutrality in Beijing, Shanghai, and Shenzhen offices and laboratories.
On this basis, RELX promotes the “Pods Reborn” used pods recycling program, which encourages users to use its products in a green way, and at the same time, centrally treats the recycled empty pods into cement clinker, which is then made into cement and applied to rural revitalization. As of May 2023, the ” Pods Reborn” program has entered 298 cities in China, and RELX has invested RMB 43 million in biodiversity conservation, environmental protection, and rural revitalization.
In addition to its strict requirements on its operations, RELX also incorporates ESG into supply chain management. The company integrates ESG indicators into new supplier assessments. For existing significant suppliers, it carries out ESG self-assessments every year. Moreover, RELX conducts third-party audits for selected important suppliers to evaluate their compliance with the RELX Code of Conduct for Business Partners and the requirements of the SA8000 Standard.
RELX has always regarded ESG as one of the company’s core competencies. RELX has set up an ESG committee at the board level, integrated ESG into the company’s long-term development strategy, and incorporated ESG factors into the company’s decision-making and daily operations.
RELX has released ESG reports for three consecutive years. In 2022, RELX achieved “A” by MSCI ESG Ratings. In the future, RELX will continue to work with stakeholders in the value chain and contribute to the industry’s sustainable development.
