Hengan International Group Company Limited has released its 2025 Climate-Related Financial Disclosures (TCFD) Report, detailing a strengthened four-tier climate-governance model, updated risk-assessment findings, and new environmental targets for its core papermaking operations.
The board remains the top decision-making body on ESG and climate issues, supported by an ESG Committee, a cross-functional working group and individual business units. During 2025 the board reviewed global climate-policy trends, affirmed the scientific soundness of Hengan’s transition pathway and maintained the company’s CDP “B” rating.
The latest risk mapping consolidates six priority risks—two physical (extreme weather, water stress) and four transition-related (carbon-price escalation, tighter regulation, consumer green preferences, and raw-material shortages)—plus one principal opportunity: expanding low-carbon product lines. Scenario analysis using IPCC and IEA pathways indicates carbon-price exposure could rise to as much as 5 percent of revenue by 2050 under an NZE scenario, while physical-risk exposure remains moderate but requires ongoing adaptation measures.
Key mitigation initiatives in 2025 included: • Energy-efficiency upgrades such as replacing legacy Y-series motors with YE4/YE5 high-efficiency units, yielding electricity-savings of up to 52 percent on selected lines. • Waste-heat recovery projects that are projected to curb natural-gas use by 1.63 million m³ annually, avoiding roughly 3,500 tCO₂e. • Expansion of distributed photovoltaics to 52.70 MW across 13 plants, generating 57 million kWh—an 84 percent year-on-year increase—cutting more than 30,000 tCO₂e. • Green-power procurement of 35,892 MWh, avoiding approximately 19,000 tCO₂e. • Low-carbon logistics measures, including 660,000 m³ of sea- and rail-freight, saving an estimated 170,000 tCO₂e versus road transport; deployment of 3,296 new-energy delivery vehicles; and 100 percent electrification of forklifts. • Product innovation such as bamboo-pulp tissues and lighter-weight sanitary products, reducing material use by up to 45 percent per unit.
For climate adaptation, Hengan has enhanced extreme-weather contingency plans, upgraded flood- and wind-proof infrastructure, and implemented digital systems for real-time logistics and energy monitoring.
Greenhouse-gas performance improved. Combined Scope 1 and location-based Scope 2 emissions totalled 1.52 million tCO₂e in 2025, up 6.2 percent year on year, while market-based Scope 2 accounting reduced the total to 1.50 million tCO₂e. Scope 3 emissions were 1.80 million tCO₂e, with purchased goods and services representing more than 70 percent of the total.
Direct and indirect energy use reached 4.08 million MWh, a 5.2 percent increase that reflected higher output and the commissioning of new high-quality paper lines; energy-intensity held at 1.80 MWh per RMB 10,000 of revenue.
New 2030 environmental targets for the papermaking segment include: • Energy-intensity capped at 0.40 tce per tonne of paper (2025 actual: 0.34 tce). • Water-withdrawal intensity below 10 tonnes per tonne of paper (2025 actual: 8.00 tonnes). • Waste-water discharge intensity below 4 tonnes per tonne of paper (2025 actual: 3.60 tonnes).
Hengan reports four national “Green Factory” certifications and plans further photovoltaic expansion and green-power purchases through 2026 to sustain progress toward its dual-carbon commitments.
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