Luxshare Precision: Heavy Resource Use Weighs on ESG Progress

4.97
30 ratings

Luxshare Precision Industry is a provider of precision components, consumer electronics, other connectors globally. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores unfavorably, outperforming on the Emissions Score front, but underperforming on the Environmental Innovation Score front.


For instance, it has implemented a resource reduction policy, which compares to the presence of a clear policy in the prior year. The company has not implemented a water efficiency policy, with an energy efficiency policy not implemented as well. This compares to the lack of a similar policy in the prior year.


Environmental policy areas the company is currently lacking include Resource Reduction Targets, while areas the company has addressed include the setup of an Environment Management Team and Environment Management Training.


The company has also not implemented renewable energy use, which compares to the lack of a clear policy in the prior year. The company has also notably not implemented green buildings as well, which compares to the lack of a defined policy in this regard in the prior year.


In terms of its carbon footprint, the company's Estimated CO2 Equivalents Emission Total stands at 346,849 in the latest fiscal year, which compares to 239,503 in the prior year based on a Median CO2 Estimation Method.


Social


From a social standpoint, the company scores favorably, particularly outperforming on the Workforce Score front, but underperforming on the Human Rights Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented an Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented as well. This compares to the lack of a similar policy in the prior year. The company has produced an increase in Net Employment Creation.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores favorably, particularly outperforming on the Management Score front, but underperforming on the CSR Strategy Score front.


The company does not have a Corporate Governance Board Committee, does not have a Nomination Board Committee, does not have an Audit Board Committee, and does not have a Compensation Board Committee. The company does have a Board Structure Policy and does not have a Policy Board Independence in place. The Board has held nine meetings in the last fiscal year, which compares to 7 in the prior year. The Board size currently stands at seven members based on the latest annual/ESG report. As a % of members, the Board diversity stands at 42.9% for gender diversity.


The company has implemented a Policy for Executive Compensation Performance but has not tied Executive Compensation to ESG Performance. The company has implemented a Policy Executive Retention but has not implemented a Succession Plan and an External Consultants policy.


The company has implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation rose in the latest fiscal year. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is also not linked to long-term objectives. Additionally, sustainability compensation incentives have not been implemented. There have not been any executive compensation controversies thus far.


Sources:


https://www.csrhub.com/CSR_and_sustainability_information/Luxshare-Precision-Industry-Co-Ltd


http://en.luxshare-ict.com/invest/index418.html

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Business FinancePoliticsCorporate GovernanceUnited States Environmental Protection AgencyChief Executive OfficerPolicyBoard Of Directors