Three Sustainability Focus
We believe that sustainability development will enable us to innovate and keep us stay ahead in our industry, improve business efficiency and create longer-term value to our shareholders. For this reason, we carefully consider all aspects of sustainable development and abide by the sustainable development philosophy of the following pillars.
01
Good Corporate Governance and Business Ethics
Anti-Corruption Management
At Impro Group, we have established a robust anti-corruption system built upon our Code of Conduct & Business Ethics Policy. This system encompasses various aspects of our operations, including procurement, human resources, finance, and sales. Moreover, we maintain stringent controls over sensitive transactions to prevent any potential ethical issues. To reinforce our commitment to integrity, our CEO has issued a directive mandating that employees report any involvement in sensitive transactions, such as receiving gifts, money, or securities, to the Audit and Supervision Department for proper records. In 2023, we have strengthened our “anti-corruption” awareness by educating all employees about the company’s policy through training, examinations and conducting activities.
Customer Privacy Protection
At Impro Group, we place utmost importance on privacy protection and prioritize safeguarding the privacy of our customers, suppliers, and employees. To ensure comprehensive protection, we have implemented a stringent confidentiality system specifically designed for customer information. Our approach involves conducting thorough audits of business processes and security risks, focusing on areas such as network security, external devices, and document circulation. Through robust access control measures and the utilization of an internal network security platform, we effectively mitigate the risk of confidentiality breaches across various channels.
Intellectual Property Rights Protection
We have formulated the Intellectual Property Management System within the Company, established a sound intellectual property management system, and clarified the requirements of intellectual property application, management and other aspects. Apart from safeguarding our own intellectual property rights, we actively promote the involvement of our partners, customers, and other stakeholders in the protection of intellectual property. We actively engage in the signing of Confidentiality Agreements with our customers and suppliers, fostering an environment of mutual trust and ensuring the preservation of each other’s intellectual property. By encouraging collaboration and cooperation in intellectual property protection, we aim to create a secure and respectful ecosystem that benefits all parties involved.
Supply Chain Management
The effective and sustainable management of our supply chain is crucial to the overall success of our manufacturing company. To ensure this, we have recently updated our internal procurement policy, including the Supplier Management Procedure, to establish a comprehensive procurement management system. This system encompasses supplier screening, access, examination, and verification processes. When selecting suppliers, we prioritize those who possess relevant environmental and labor certifications, or who have demonstrated outstanding performance in environmental and social responsibility areas. By considering these factors, we strive to build a supply chain that a l i g n s with our commitment to environmental and social sustainability.
Safety in Production and High-Quality Products
As the world’s 6th largest independent and China’s largest investment casting component manufacturer, safety is one of the six essential factors of achieving our success. With the goal of safety in the production of high-quality products, we are committed to ensuring that the quality of our products conforms to strict standard systems through our own stringent and continuous quality management. In addition, we pay continuous attention to occupational health and safety of employees, ensuring compliance with standard operation and relevant rules by employees and constantly improve and enhance internal controls in order to ensure superior safety standards.
7S Management Concepts
Impro Group is dedicated to fostering a secure and healthy work environment through enhanced governance, comprehensive inspections, and equipment updates. We are committed to raising employee awareness regarding production health and safety, while actively promoting the principles of 7S Management, namely Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu), Sustain (Shitsuke), Safety, and Saving.
Quality Management
Impro Group strictly complies with the requirements of the Law of the People’s Republic of China on Product Quality, the Standardization Law of the People’s Republic of China and other laws, regulations and regulatory policies, and has been improving internal quality management processes and systems. During the Reporting Period, we updated the Management Regulations on Advanced Product Quality Planning, the Management Regulations on Equipment and Facilities and other management policies. Impro Group takes various measures to ensure production quality, including conducting quality audit to reveal and address product quality issues. During the Reporting Period, we focused on strengthening the internal audit system. Impro Group actively benchmarks our quality standards against industry standards in many industries and identifies improvement opportunities. During the Reporting Period, we renewed our quality management system certifications.
Quality Enhancement
We introduced equipment automation, established a factory quality management board and organized a variety of quality enhancement thematic activities in order to improve detection capability and precision, then the product quality from both “hardware” and “software” aspects. Moreover, we have also established relevant systems including the “Product Approval Management Rules”, “Control Rules for Deficient Products” and “Treatment of Customer Complaints and Returned Products”, to reach a high product qualifying rate as well as to safeguard the interest of customers.
Safety Management
In strict adherence to the Production Safety Law of the People’s Republic of China, the Law on Prevention and Control of Occupational Diseases, the Regulation on Work-Related Injury Insurance, and other relevant laws and regulations across all our operational sites, Impro Group prioritizes safeguarding employees from occupational hazards. We have implemented internal policies throughout our facilities to clearly define the scope of our EHS (Environmental, Health, and Safety) management system, governing day-to-day production and operations. Additionally, our Code of Conduct and Business Ethics includes a safety commitment that applies to both employees and suppliers.
02
Environmental Responsibility
At Impro, we are dedicated to fostering an environmental conscience and integrating ESG principles into our business model. We actively engage in ongoing research to develop bold, impactful, and innovative solutions that optimize our operations, minimize waste generation, and enhance our energy and water efficiency. Through these efforts, we strive to make sustainable choices that align with our commitment to environmental stewardship and ESG integration.
Management System
Impro’s commitment to green development is firmly rooted in a robust environmental management system. Since the release of our Environmental Policy in 2022, which applies to both Impro Group and our subsidiaries, we have actively disseminated this guidance and policy to our colleagues at all levels and across various departments. Our aim has been to enhance awareness and encourage feedback on environmental matters. Adherence to this policy is mandatory for all employees, suppliers, and contractors, as it governs the functioning of our environmental management system. The policy outlines specific targets for energy, water, emissions, and waste reduction. These targets serve as a guide for us to take immediate and sustainable actions towards development. The Sustainability Committee is entrusted with overseeing the implementation of this policy, ensuring its effective execution. Additionally, the Board will review the policy every three years to ensure its alignment with Impro’s current situation and the expectations of our stakeholders.
Improve Energy Efficiency
Strictly complying with local regulations and drawing inspirations from international and local best practices within the industry, Impro Group consistently seeks innovative ways to conserve energy and enhance efficiency. We actively explore the adoption of energy-saving equipment and optimize our processes to reduce our reliance on energy sources. Additionally, we invest in utility infrastructures and integrate smart technologies from the outset of our business operations to minimize resource consumption. These proactive measures align with our commitment to sustainability and reflect our dedication to responsible resource management.
Water Resources Management
We adjust the composition of water utilization continuously and have set out targets to facilitate our resource saving actions., improving the water utilization approach, and actively adopt water conservation technology to scientifically increase the utilization efficiency and avoid wastage of water resources. We enhance water conservation promotion and water conservation awareness of all staff and post conservation notice in operating and living areas. Regarding water resources used in production, daily meter reading is carried out by category for tonnage monitoring. Equipped with high pressure washing equipment, the utilization rate of wash water is increased and water resources wasting is avoided. We continuously optimize techniques and recycle and reuse water used in production by technical transformation.
Low Carbon and Emission Reduction
We have set targets and implemented a strict greenhouse gas emission management system to reduce the emission of greenhouse gases through conservation of energy and reduction in consumption. We divide waste into recyclable waste, general industrial solid waste, household waste and hazardous waste as well as upgraded the equipment to reduce environmental impact and effectively reduced the discharge of hazardous waste.
POLLUTANT EMISSIONS
We have formulated the Waste Gas Emission Management Rules and the Waste Water Discharge Management Rules to suit our production processes. We are determined to regularly monitor, measure and analyse the waste gas emission and waste water discharge. In 2023, our waste water emission recorded a 55.0% drop compared with 2022. The significant improvement in waste water discharges is mainly due to the significant reduction in production at the Nantong Surface Treatment Plant as a result of the fire incident in June 2022 and the effectiveness of a series of waste water management measures.
03
Employee Care
Impro Group is committed to cultivating an inclusive and motivating working environment where every employee feels valued and empowered. We place a strong emphasis on fostering diversity and inclusion, actively promoting employee well-being, and fostering open and effective communication channels. By prioritizing these aspects, we aim to build a solid foundation for the Company and create a workplace culture that nurtures success and innovation.
Diversity, Equity and Inclusion
Impro Group is fully committed to eradicating all forms of bullying, discrimination, and harassment based on gender, age, sexuality, marital status, physical health, religious belief, and other personal attributes. Our dedication to promoting equality and inclusivity is reflected in the inclusion of anti-discrimination policies within our Code of Conduct and Business Ethics. We staunchly support the fundamental rights of our employees, aiming to eliminate any form of injustice or inequity. This commitment extends to providing equal employment opportunities, promotion prospects, as well as fair compensation and benefits for all individuals. Furthermore, the Company actively identifies human rights risks across its various sites, ensuring a proactive approach to addressing potential issues.
Competitive Remuneration and Benefits
At Impro Group, we recognize the importance of providing fair and equitable compensation to our employees. To ensure this, we have implemented a range of internal policies, including the Corporate Remuneration Policy, Corporate Benefit Policy, Corporate Reward and Reprimand Policy, and Corporate Overtime Policy. These policies have been developed to establish standardized guidelines for managing compensation and benefits across the organization, taking into account market standards and best practices. We value the dedication and hard work of our employees by offering a competitive compensation and benefits package that aligns with market norms. The compensation structure for our staff consists of three main components: basic salary, position salary, and performance bonuses. Additionally, we provide supplementary pay and bonuses to further recognize and appreciate our employees’ contributions.
Talent Promotion
Impro Group places a strong emphasis on empowering its talent. We have established the Corporate Position Management Policy, which governs the application, approval, and overall management process of positions and their adjustments. To enhance talent management and drive business performance, the Company regularly conducts skill matrix evaluations and talent inventory analyses. By utilizing skill matrix evaluations, employees can identify skill gaps and determine suitable skill development programs available at Impro plants. The evaluation encompasses various factors, such as leadership, risk management, occupational health and safety management, and computer skills.
Promotion Channels
The Group recognizes the importance of talent empowerment. The Company implements skill matrix evaluation and talent inventory analysis regularly to identify current risks and opportunities and make better informed decisions to improve talent management and eventually business performance. Utilizing various talent promotion channels, an employee after probation has the possibility to be promoted from the entry-level position to engineer, executive, manager and even a member of senior management based on personal performance and assessment results.
Community Engagement
Supporting and investing in our communities lies at the heart of our corporate responsibility strategy. Impro Group actively drives the development of the local economy by implementing a range of community-focused initiatives. We make strategic investments in multiple plants, generating new employment opportunities and attracting foreign investment to benefit the community. We also collaborate closely with local universities and schools, actively contributing to education and talent cultivation.
Caring Our Community
The Group promotes the local economy development through various community-driven programs. We invest in various plants to create more employment opportunities while attracting foreign investment for the community. We also contribute to local education and talent fostering by actively cooperating with local universities or schools. Through the new plant development, the Mexican plants increased the local full-time employees by more than 50% and the completion of new plant construction in Wuxi included a new hostel with capacity of more than 540 staff.
Helping the Underprivileged
The Group is dedicated to help the underprivileged and actively organize activities to integrate with the society. To advocate the traditional Chinese virtue of caring for children, on the International Children’s Day, the representatives of the Group partnered with Wuxi Children’s Welfare Institute to carry out the “Love Donation, Full of Love on June 1” campaign to send more than 150 boxes of gifts including milk, nuts, fruits and snacks to the children. In 2022, the Turkish plants actively participated in Istanbul Marathon, the world’s only intercontinental marathon, to raise funds and awareness for children battling cancer.
