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On May 7, 2025, Cubic Sensor and Instrument Co., Ltd. (hereinafter referred to as “Cubic,” stock code: 688665.SH) officially released its 2024 Environmental, Social, and Governance (ESG) Report (hereinafter referred to as “the Report”). The Report systematically presents Cubic’s innovative practices and outstanding achievements in the areas of environmental protection, social responsibility, and corporate governance (ESG). It also highlights the Cubic's commitment as a tech-driven enterprise to promoting high-quality economic and social development and addressing global challenges.
Advancing the ESG Strategy to Build Sustainable Competitiveness with a Global Vision
With over 20 years of development, Cubic has become a leading enterprise in the domestic and international fields of intelligent gas sensors and high-end gas analysis instruments. The "Cubic" brand is increasingly recognized in global markets.
Dr. Youhui Xiong, Chairman of Cubic, emphasized that in the context of deep restructuring of global industrial chains, Cubic recognizes that ESG is not only a "passport" to international markets but also a strategic cornerstone for building long-term core competitiveness. Unlike evaluation systems based solely on financial indicators, ESG highlights the social responsibilities companies should undertake as corporate citizens during the business development, through the lenses of environment, society, and governance. Enterprises need to establish more comprehensive sustainability management frameworks and systems, enabling a bottom-up, self-driven, progressive improvement and continuous iteration cycle across business units, thus enhancing overall competitiveness.
Based on in-depth insights into industry trends and stakeholder expectations, Cubic has introduced the innovative ESG strategy known as the “I-GROW Growth Pyramid.” The strategy identifies five key material topics: innovation-driven, green development, responsible sourcing, organizational building-up, and winning clients. Through practical actions, the company demonstrates its strong commitment to ESG and brings fresh momentum into its sustainable development.
Cubic has innovatively proposed the ESG strategy "I-GROW Growth Pyramid."
Empowering Low-Carbon and Environmental Protection with Technology, Contributing to the Construction of a Beautiful World.
Cubic’s commitment to sustainable development is not only an embodiment of its corporate social responsibility but also a cornerstone of its long-term competitiveness and robust growth. Guided by the philosophy of sustainability and in active response to “Dual Carbon” strategy, Cubic has been steadfast in advancing effective carbon reduction initiatives and leveraging technological innovation to drive environmental protection and social progress.
Relying on its diversified gas sensing technology platforms, Cubic closely aligns its technological innovation with policy directives, proactively addressing national environmental protection plans and carbon neutrality goals. The company has independently developed a series of innovative products for monitoring greenhouse gases, methane emissions, outdoor particulate matter, and fixed/mobile pollution sources—demonstrating the breakthrough application of environmental gas monitoring technologies in both environmental governance and industrial emission reduction.
The company’s Environmental and Climate Action Management Rules comprehensively cover areas including climate change, energy management, circular economy, water resource management, air quality, and noise management. Making climate action and sustainable development strategic priorities, Cubic actively supports the global climate goals outlined in the Paris Agreement. By utilizing renewable energy and procuring green electricity, the company is committed to achieving low-carbon operations. Currently, two green photovoltaic projects have been implemented at Cubic R&D Center and Cubic Jiashan Factory, with an estimated annual electricity generation of 1.18 million kWh and a reduction of 804 tons of CO₂ emissions. A 1,140 kW photovoltaic project at Cubic headquarters is also underway, which is expected to raise the green electricity self-sufficiency rate to 20%, providing solid support for the realization of the “Dual Carbon” goals.
Photovoltaic power generation contributes to energy conservation and emission reduction.
Fulfilling Responsibilities and Driving Green Development through Technology
As an enterprise advocate and practitioner of ESG principles, Cubic embeds social responsibility into its corporate DNA. The company takes a multi-dimensional approach across technological innovation, supply chain management, customer service, quality control, and public welfare to embody its commitment through concrete actions.
In recent years, Cubic has consistently strengthened its technological innovation capabilities and upgraded its R&D system, integrating circular economy concepts into product design. In 2024, R&D investment continued to increase, and the company had accumulated a total of 233 patents. Its Laser Raman technology was included in the General Technology Catalog for Smart Chemical Parks. Cubic has also supported continuous innovation and patent protection by bringing in postdoctoral research talent and improving intellectual property management, maintaining its technological leadership. In 2025, the company was successfully recognized as a National Enterprise Technology Center.
has been recognized as a National Enterprise Technology Center.
In terms of supply chain management, Cubic is committed to sustainable supply chain practices, aiming to integrate business development with social responsibility. The company has formulated the Cubic Supplier Sustainability Management Guidelines, which cover multiple critical aspects of the supply chain. ESG evaluations have been conducted for over 100 suppliers, and 43% of core suppliers have signed the Code of Conduct for Sustainable Development. These efforts are driving carbon reduction across the supply chain and facilitating a broader green transition.
Cubic firmly understands that ensuring product quality and customer satisfaction is fundamental to its sustainable development. With customer satisfaction as the core goal, the company focuses on value creation throughout the entire product lifecycle and leverages digital technologies to empower manufacturing, delivering high-quality products and services. Currently, Cubic serves as a supporting supplier for many Fortune Global 500 companies and industry leaders.
Guided by the principle of “people-oriented development, rooted in traditional Chinese culture,” Cubic has long been dedicated to advancing education and preserving traditional Chinese culture. The company fulfills its social responsibility through initiatives including supporting university education, establishing scholarships, promoting cultural heritage protection, and backing carbon reduction projects.
Cubic has long been committed to fulfilling its corporate social responsibility.
Cubic adopts multiple measures to attract talent.
In talent development, Cubic provides equal opportunities for all employees, striving to build a comprehensive and in-depth training system, which includes structured programs such as onboarding initiatives, the “Leadership Development Program,” academic advancement support, and a competency-based employee development model—all aimed at fostering sustainable growth for its talent pool.
Establishing a diversified employee training system to support sustainable talent development.
While focusing on employee growth and development, Cubic also places great emphasis on employee well-being. Through a series of thoughtful initiatives including employee canteens, dormitories, commuter shuttles, fitness equipment, birthday meals, daily health apples, and employee roundtable discussions, Cubic places care into concrete actions that enhance the daily work and life experience of its staff.
A series of employee care activities.
Cubic attaches great importance to corporate culture, regarding it as a key driver of high-quality development. A wide array of creative cultural and recreational activities including the Cubic Dragon Boat Race, annual health run, the “Winter Camp” for employees’ children, the Cubic Lion Dance Team, classic cultural pottery, and flower arrangement workshops. The multiple activities integrate cultural heritage with team-building, showcasing the company’s social responsibility and unique cultural charm. Notably, the Cubic Dragon Boat Race, held for three consecutive years, has become a signature element of the company’s culture. In 2024, Cubic’s dragon boat team won the championship in the Hubei Provincial Dragon Boat Competition.
A vibrant and diverse array of corporate cultural activities.
By fostering a harmonious, equitable, and inclusive labor relationship with employees, the company has strengthened cohesion, productivity, and resilience across the workforce.
Amid the profound global changes and industrial transformation of the time, Cubic is currently leveraging ESG as a strategic pivot to build a virtuous cycle of “technological leadership – commercial success – social value.” Through continuous innovation and strong social responsibility, Cubic embodies the evolution of intelligent manufacturing toward the higher end of the global value chain, establishing “CUBIC” as a globally trusted benchmark for sustainable development.
