Following the disclosure of ESG findings that were better than rivals, RLX Technology Inc. (NYSE: RLX) shares increased by 12.00% to trade at $1.40 at the time of our most recent review.
How superior was RLX’s ESG?
In the most recent annual CSA (Corporate Sustainability Assessment), RLX Technology (RLX), renowned for its RELX-branded e-vapor products, got its S&P Global ESG score, placing it higher than other international e-vapor competitors.
Business ethics, innovation management, supply chain management, human capital development, and customer relationship management all yielded outstanding results for RLX.
One of the most thorough evaluations of business sustainability efforts anywhere in the world is the S&P Global CSA. In order to accurately reflect ESG management and information disclosure of firms, the evaluation quantifies and rates various ESG management and performance of organizations.
ESG has long been considered a crucial component of RLX’s fundamental competitiveness. Since its founding, RLX has kept up its efforts in ESG. In order to create sustainability plans and guarantee the execution of pertinent activities, it has formed an ESG committee at the board level. The committee’s goals are to significantly enhance the company’s ESG performance.
What led RLX towards the ESG initiative?
In 2021, RLX’s ESG core challenges included combating climate change, maintaining a sustainable supply chain, and product responsibility. RLX has spent RMB 800 million on R&D projects since its foundation. A “1+4” scientific research chain including product quality, physiochemical research, toxicological research, long-term effect assessment, and clinical research has been designed by RLX and consists of eight labs for various purposes.
Additionally, RLX is dedicated to advancing sustainable growth throughout the whole value chain. RLX periodically evaluates the ESG performance of its current vendors. Additionally, it carries out independent audits of certain suppliers in accordance with the SA8000 Standard and the RELX Code of Conduct for Business Partners.
In the interim, RLX promotes the idea of sustainable consumption and urges customers to take part in the recycling campaign “Pods Reborn” to recycle discarded pods. By the end of June 2022, the Pods Reborn recycling initiative will have reached 188 cities in China. Aim for Zero, RLX’s net-zero emissions strategy was also introduced in April 2022. Its goal is to become carbon neutral in its direct activities by 2033 and throughout the value chain by 2050.
How did RLX continue to support ESG efforts?
Since 2021, RLX has been disclosing its environmental data to the Carbon Disclosure Project (CDP), including carbon emissions, initiatives for addressing climate change, and risk and opportunity analyses related to the issue. The gold standard for business environmental transparency is commonly regarded as CDP’s environmental disclosure and rating system. In the future, RLX will regularly update investors and the general public on its progress and accomplishments in the decarbonization process.