Sustainability Management
Sustainable Impact Assessment
Sustainability Value and Impacts
To implement sustainability strategies and monitor our progress toward goals, USI introduced Social Return on Investment (SROI) and Environmental Profit and Loss (EP&L) in 2019 and 2020 separately to manage social projects' performances and make effective decisions on environmental issues. In 2021, USI implemented Total Impact Measurement and Management (TIMM) evaluation to assess the impacts and contributions to stakeholders from the Company's operations in Economic, Social, Environmental, and Tax dimensions. USI created positive contributions on economic and tax dimensions and invested in environmental and social activities to bring contributions to stakeholders. Based on the TIMM evaluation, USI generated CNY 26,595 million in sustainability value for stakeholders in 2025.
Environmental Profit and Loss
To further create useful products and services by natural capital and reduce the direct or indirect impact on the environment, we focus on major environmental issues related to operations, including GHG emissions, air pollution emissions, waste generation, water resources use, and biodiversity. We map out the impact event chain of environmental pollution emissions and resource consumption and calculate the environmental cost of human health damage, environmental resource reduction and ecosystem impact caused by these behaviors.
The environmental impact of USI production operations in 2025, after value conversion, was CNY 61.4 million. Compared with 2024, our external environmental costs reduced CNY 6.2 million, a decrease of 9%, which proves the company’s implementation on its environmental policy to reduce negative impacts significantly. After further analysis, the major reasons for GHG emissions (the impact of GHG emissions is the result of offsetting the positive benefits of carbon capture from biodiversity) Scopes 1 and 2 (market-based) account for 68%; followed by water consumption accounting for 24%. In addition to the continuous efforts in energy efficiency improvement and reduction in energy costs, USI's environmentally friendly measures, such as biodiversity and recycled water, respectively generated a positive value of CNY 4.8 million and CNY 7.2 million in 2025, signifying that USI's efforts in environmental protection were able to mitigate negative impacts.
Social Impact
USI's business operations not only have direct financial impacts on stakeholders, but also positive and negative social impacts including supplier partnership, employee engagement & development, employee health & safety, and social cohesion. In 2025, the total value of social impact was CNY 16,162.4 million which was mainly contributed by supplier partnership. The impact value of social dimension from direct operations was CNY 16,143.3 million, CNY 2,387.3 million lower than in 2024.
Please refer to the link below for the results of USI Sustainable Impact Assessment.
