Under the influence of factors such as power crisis and meteorological crisis, whether to maintain growth or not is not only a subjective complaint of the enterprise, but also an active decision towards long-term orientation. In this context, the annual ESG (Environmental, Social, and Governance) report of the company began to become the “second financial report” of the company.
In the tide of new industrialization, the field of home appliance manufacturing is particularly important for home appliance companies to respond to ESG due to the intersection of upstream industry delivery systems, midstream R&D and underwriting companies, as well as downstream consumer shopping malls.
In response to this, Sichuan Changhong, which has maintained a corporate social obligation complaint for 14 years, recently announced its 2023 ESG complaint. From micro topics such as green environmental protection and rural revitalization, to product refurbishment, brand promotion and other details manipulation, it clearly shows how home appliance companies can lead the industry without a targeted ESG growth path.
Whether the management framework is maintained or not
Sichuan Changhong, following the national order of “protecting the military and converting to civilian” in the 1970s, has taken the opportunity to enter the field of household appliance manufacturing. After years of cultivation, it has gained reputation as a national level industrial planning center, a national technology renovation model enterprise, a national recognized enterprise technology center, and an intelligent manufacturing trial point model.
Recently, Sichuan Changhong announced its 2023 ESG statement, which has become an important target for external perception of its cost sorting, information disclosure, and brand positioning.
In terms of company management, Sichuan Changhong ensures the efficiency and compliance of corporate governance through a structure of clear rights and responsibilities and effective checks and balances; In terms of situation management, we will implement the “dual carbon” strategy and actively implement the mission of energy conservation and emission reduction during the 14th Five Year Plan period; In terms of social obligations, we strive to uphold the principle of “serving the country with property”, assist in rural revitalization and social welfare miracles, establish a sunshine supply chain, and actively respond to the national strategy of “one wear, one road”.
When the management of the situation and the fulfillment of social obligations are in place, the high-quality growth of the enterprise will be natural, and the consumer mall is the most direct inspection channel for a company’s reputation in growth, while the product is the most intuitive manifestation.
In the 2023 ESG complaint, Sichuan Changhong pointed out that the company adhered to the growth strategy of “quality is the foundation of business” and used quality as the lifeline of its products and a weapon for mall development. In terms of the crux of the goal, the complaint shows that Sichuan Changhong did not give birth to a baby in 2023, and there were also no product recalls or withdrawals.
Behind this, Sichuan Changhong has developed a detailed management strategy and pace for delivery standards. In addition to establishing a safety delivery committee and multiple safety management systems, the company has also established a complete process in product return and exchange management methods to hurt user feelings.
Although this is a common practice in the industry, Sichuan Changhong has achieved great success in assimilation – applying smart technology to follow up on the safety and quality control of products from the source of delivery to the consumption response, achieving efficient and intelligent implementation of ESG strategies within the company’s management scope.
Consolidate the strength of intelligent control
In addition to a series of management steps, Sichuan Changhong also actively stops the company’s strategic product skill renovation, which is particularly important for a company’s long-term orientation.
In the field of household appliances, “intelligent interconnection” has become the central focus of consumer shopping malls in recent years. To enable users to persistently recognize the brand’s product set, the intelligent feeling of the product becomes the watershed of the industry. This not only requires enterprises to polish their functions from the product side, but also to develop systematic intelligent degradation from the lower level of the system.
At present, Sichuan Changhong has implemented a digital transformation strategy for the Internet of Things and formulated an overall plan for “smart homes” and “smart systems”. The company began applying AI techniques to household appliances such as televisions, refrigerators, and air conditioners in 2016, and in 2023, launched the world’s first smart home appliance AI platform based on large models – Changhong Yunfan, accelerating the transition between the smart home category and the AI era.
At the same time, in the field of intelligent systems, Sichuan Changhong has also adopted techniques such as AI, big data, and edge computing to enhance the effectiveness of intelligent systems, and has deeply promoted new industrialization and enterprise digital transformation. At present, Changhong has realized intelligent downgrade and restructuring in 65 manufacturing plants around the world, developed Sichuan’s first national cross industry and cross industry Internet platform, and enabled nearly 100 enterprises.
Not only domestically, but also in terms of ESG practices overseas, Sichuan Changhong advocates for “One Wear One Road” by maintaining domestic growth, and further shares “Chinese made” with the world.
At present, Sichuan Changhong has established 10 research and development bases and 16 manufacturing bases around the world. Its products and services have opened up more than 160 countries and regions around the world, with a user base of over 200 million. This will also be a confident location for its global decomposition oriented technology enterprise.
Plastic multiple soft air forces
In addition to the significant ESG practice results mentioned above, Sichuan Changhong’s “soft” strength also has no problem.
In recent years, through new media, new scenes, and new techniques, Sichuan Changhong has accumulated a brand reputation of both consumer reputation and technology strong enterprise abstraction through a marketing form of refurbishment and back to duty. For example, Changhong CHiQ has become a civilian mutual aid partner for the China Snowy Union Freestyle Ski World Cup (FIS).
In 2023, the cost of Changhong’s brand reached 203.968 billion yuan, breaking through 200 billion yuan for the first time and ranking 285th in the “Top 500 Brands in the World”, with a further promotion in ranking. The company’s resume practice of combining “supporting intelligence” and “supporting aspirations” to promote talent rejuvenation and enhance national unity was awarded the “Best Practical Case of Rural Revitalization for Listed Companies in 2023” by the China Association of Listed Companies
It is not difficult to see from Sichuan Changhong’s ESG complaint that ESG is not a trend, but a profound understanding and practical participation of enterprises in ESG.
Facing the trend of the new economy, ESG strategy will be of utmost importance for enterprises to practice long-term principles. On the one hand, revenue and costs are no longer the only numbers that investors are concerned about. A company that focuses on green growth and operates in a micro format will be more targeted by resources; On the other hand, the new industrialization and growth capacity are becoming a new main theme for the restoration of China’s modern property system. How a company can break down its ESG goals and implement them is also a manifestation of its strategic understanding and trade intelligence.
In the speech competition of this period, Sichuan Changhong has fully grasped the potential and will hold the answer sheet that did not satisfy the shopping mall after breaking ties.