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Publish Time: 2026-06-30 Origin: Site
Anhui Royal Chemical Co., Ltd.
2025 Environmental, Social and Governance Report
Reporting period: January 1 – December 31, 2025
Published: June 2026
Prepared with reference to the GRI Standards 2021
CHAPTER 00
01 About This Report
02 Message from the General Manager
03 Company Profile and Governance
04 Materiality Assessment and Stakeholder Engagement
05 2025 ESG Performance Overview
06 Environmental Performance
07 Labor and Human Rights
08 Business Ethics and Compliance
09 Sustainable Procurement
10 UN Global Compact Communication on Progress
11 Community Engagement
12 Forward-Looking Targets 2026–2028
13 GRI Content Index
14 Alignment with the UN Sustainable Development Goals
CHAPTER 01
Anhui Royal Chemical Co., Ltd. (hereinafter "the Company" or "Royalchem") has prepared this report with reference to the GRI Standards 2021, covering the period from January 1 to December 31, 2025. The report explains to customers, employees, suppliers and other stakeholders how the Company manages environmental, social and governance topics, the progress made during the year, and the directions for continuous improvement.
Public Disclosure and Treatment of Commercially Sensitive Information
• This report is a voluntary ESG disclosure by a privately held company. It does not constitute financial statements, an audit report, tax filings, securities disclosure or legal advice.
• To protect the business information of customers, suppliers and the Company, this public version does not disclose customer names, supplier trade names, individual or total purchase amounts, profit or tax data, or any other data from which commercially sensitive information could be derived.
• For key indicators such as supplier ESG coverage, audit counts, training coverage and incident numbers, the report retains aggregated figures that demonstrate management maturity. Where necessary, underlying ledgers, certificates, questionnaires and audit records can be provided to EcoVadis or customer due-diligence platforms under confidentiality.
• Headcount figures follow the annual organizational-boundary statistics. Because customer due-diligence forms may use different scopes (legal entity, office location, submission date, average vs. year-end headcount, inclusion of overseas or affiliated offices), reasonable variances in reported headcount may occur.
| Item | Description |
| Reporting entity | Anhui Royal Chemical Co., Ltd. and the office locations within the Company’s operational control |
| Reporting period | January 1 – December 31, 2025 |
| Reporting cycle | Annual |
| Frameworks | GRI Standards 2021 (with reference to); GHG Protocol Corporate Standard; UN Global Compact principles |
| Organizational boundary | Operational control approach; covering the Company’s main office operations in China and overseas |
| Disclosure approach | The public version discloses aggregated ESG management information; commercially sensitive data is retained as internally controlled evidence |
| Contact | info@royal-chem.com | www.royal-chem.com |
| Data area | Source | Method |
| Scope 1 GHG | Vehicle fuel records | Activity-data method: fuel consumption × emission factor |
| Scope 2 GHG | Utility electricity bills and office electricity records | Location-based and market-based methods disclosed in parallel; the market-based method reflects retired green electricity certificates |
| Scope 3 logistics | Internal shipment records and third-party calculation tools | Shipment-by-shipment freight emission accounting aligned with the GLEC Framework / ISO 14083 |
| Employee and training data | HR system, training sign-in sheets and training records | Aggregated by annual organizational boundary; the public version uses aggregated or ratio-based figures |
| Supplier ESG data | Supplier self-assessment questionnaires, on-site audit reports, supplier management records | Disclosed as coverage by purchase value and number of audits; purchase amounts are not disclosed |
CHAPTER 02
Dear stakeholders,
On behalf of Royalchem, I am pleased to present the Company’s 2025 Environmental, Social and Governance report. As a small but professional chemical trading and service company, we understand that ESG is not a requirement reserved for large listed companies — it is a long-term responsibility for every participant in the chemical supply chain.
In 2025 we continued to embed sustainability requirements into product sourcing, chemical compliance, employee care, business ethics and supplier management. We do not pursue one-off "perfect disclosure"; we pursue genuine, verifiable and improvable progress in management. Highlights of the year include:
Further improved our greenhouse gas inventory, covering office operations, vehicle fuel, purchased electricity, freight logistics and employee commuting as the main emission sources.
Covered our 2025 office electricity consumption with green electricity certificates, bringing market-based Scope 2 emissions to zero.
Maintained zero work injuries, zero major environmental incidents, zero confirmed corruption cases and zero major customer complaints.
Completed initial certification to ISO 14001:2015 and ISO 45001:2018, further strengthening our environmental and occupational health & safety management systems.
Continued to take part in UN Global Compact learning and actions, and integrated supplier ESG management into our procurement process.
Achieved a Silver-level performance in the EcoVadis assessment, and are advancing the next stage of improvement in a more robust, more verifiable way.
Looking ahead to 2026–2028, the Company will raise its ESG management maturity in a pragmatic way: continuing to improve environmental data quality, expanding supplier ESG coverage, strengthening supply-chain compliance and product safety, and balancing transparency with the protection of business information in public disclosure.
Alan Zhao (Zhao Zhiren)
General Manager / Legal Representative
Anhui Royal Chemical Co., Ltd.
May 2026
CHAPTER 03
Anhui Royal Chemical Co., Ltd. (brand: Royalchem), founded in 2008, is a professional chemical trading and service company connecting Chinese chemical producers with industrial customers worldwide. The Company’s core business is trading and services; it does not own or operate manufacturing plants, and products are typically shipped to customers by third-party manufacturers through qualified logistics providers.
The Company holds a hazardous chemicals business license and continuously follows Chinese and international chemical compliance requirements such as REACH, SVHC, K-REACH and GHS. Its business registration, legal status and basic operating information can be independently verified through Dun & Bradstreet (D-U-N-S number: 54-820-5422).
2008 Founded 18 years of industry experience | ~40 Employees Annual organizational boundary | 25+ Countries served Public version uses ranges | 380+ SKUs Fine chemicals and more | ~50 Key suppliers Annually active suppliers |
Royalchem’s business covers fine chemicals, pharmaceutical intermediates, agrochemicals, coatings and adhesives, dyes and pigments, food additives and related customized services. The Company continuously develops its portfolio of bio-based, renewable-carbon and lower-impact products, helping customers find more compliant, safer and more sustainable chemical solutions.
The Company serves customers in the chemical, materials, life-science, coatings, agrochemical and food-additive industries worldwide. To protect customer relationships and contractual confidentiality obligations, this report does not disclose specific customer names. Customer references can be provided separately under confidentiality for customer due diligence or EcoVadis assessments.
| Category | Standard / Program | Status |
| Quality | ISO 9001:2015 | Valid |
| Environment | ISO 14001:2015 | Certified in 2025 |
| Occupational health & safety | ISO 45001:2018 | Certified in 2025 |
| Hazardous chemicals trading | China hazardous chemicals business license | Valid |
| Chemical regulatory compliance | REACH / SVHC / GHS compliance support | Ongoing |
| Sustainability rating | EcoVadis | Silver-level performance, improving continuously |
| External initiative | UN Global Compact | Participant, continuous learning |
Ultimate responsibility for ESG rests with the General Manager. A cross-functional ESG working group drives the environmental, labor and human rights, business ethics, sustainable procurement and chemical compliance agenda. The group reports regularly to management and coordinates policy updates, data collection, training, supplier engagement and customer questionnaire support.
| Function | ESG responsibility |
| General Manager / management | Final ESG approval, resource allocation, policy sign-off and major decisions |
| ESG coordinator | EcoVadis assessment, report preparation, data collection, training organization and cross-department coordination |
| HR & administration | Employee data, training records, satisfaction surveys, occupational health & safety and employee activities |
| Sales & procurement roles | Supplier ESG assessment, code-of-conduct distribution, supplier audits and corrective-action follow-up |
| Finance | Energy and water bills, related expense records and documentation |
| Documentation / operations / regulatory support | Logistics emissions, SDS/TDS, REACH/SVHC compliance documentation |
| Compliance & management | Whistleblowing handling, business ethics, anti-corruption and information security oversight |
CHAPTER 04
In 2025, the Company identified the ESG topics most material to itself and its stakeholders, based on customer requirements, industry risks, EcoVadis themes, the GRI disclosure framework and its own business model. As a trading-type chemical company, we consider product safety, supply-chain sustainability, GHG and logistics emissions, business ethics, and employee health and safety to be the highest management priorities.
Topic identification: with reference to the GRI Standards, EcoVadis themes, TfS supply-chain practice, customer questionnaires and peer benchmarks.
Stakeholder input: customer questionnaires and meetings, supplier communication, employee satisfaction surveys, management discussion and compliance requirements.
Materiality assessment: along two dimensions — importance to stakeholders and impact on the Company’s operations and customer value.
Prioritization: topics are ranked high / medium / low, with high-priority topics disclosed in greater depth in this report.
| No. | Material topic | Priority | Section |
| 1 | Product safety and chemical compliance | High | 6.7 |
| 2 | Supply-chain sustainability | High | 9 |
| 3 | GHG emissions and climate action | High | 6.2–6.3 |
| 4 | Business ethics and anti-corruption | High | 8 |
| 5 | Employee health, safety and well-being | High | 7.4–7.5, 7.7 |
| 6 | Fair labor and human rights | Medium | 7.1, 7.3, 7.8 |
| 7 | Energy and resource efficiency | Medium | 6.4 |
| 8 | Training and development | Medium | 7.6 |
| 9 | Waste management and recycling | Medium | 6.5 |
| 10 | Water management | Low | 6.4 |
| Stakeholder | Engagement channels | Key outcomes in 2025 |
| Customers | Meetings, trade fairs, satisfaction surveys, regulatory and technical consultation | High customer satisfaction maintained; no major product-safety complaints |
| Suppliers | ESG self-assessment, on-site audits, code of conduct, environmental agreements | Supplier ESG coverage reached 23.8% by purchase value; 5 supplier audits/re-audits conducted |
| Employees | Satisfaction surveys, training, employee activities, grievance channels | Satisfaction continued to improve; zero work injuries maintained |
| Management | Quarterly ESG reviews, ISO management reviews, ESG working-group meetings | Drove ISO 14001/45001 certification and sustainable procurement development |
| Regulators and external bodies | Hazardous chemicals licensing, ISO audits, regulatory compliance support, UNGC learning | Zero major compliance violations maintained |
CHAPTER 05
This section summarizes the Company’s key ESG indicators. The public version prioritizes aggregated indicators that demonstrate management performance; commercially sensitive purchase amounts, customer names, supplier names and tax/financially derivable information are not disclosed.
| Indicator | Unit | 2024 | 2025 | Trend |
| Total GHG emissions (market-based) | tCO₂e | 1,634 | 1,578 | Down 3.4% |
| Scope 1 (vehicle fuel) | tCO₂e | 7.28 | 6.27 | Down |
| Scope 2 (market-based) | tCO₂e | 7.43 | 0.00 | Covered by green certificates |
| Scope 3 (mainly logistics) | tCO₂e | 1,599 | 1,550 | Down |
| Total electricity consumption | kWh | 12,791 | 17,703 | Up |
| Renewable electricity coverage | % | 0% | 100% | Improved |
| Total water consumption | m³ | 153.5 | 120.81 | Down |
| Environmental incidents | cases | 0 | 0 | Maintained |
| Indicator | 2025 public disclosure |
| Workforce size | Approx. 40 employees (annual organizational boundary) |
| Female employees | Approx. 70% |
| Master’s degree or above | Approx. 30% |
| Employee satisfaction | Approx. 85.8% |
| Average training hours per employee | Approx. 20 hours |
| Work injuries / fatalities / lost-time incidents | 0 / 0 / 0 |
| Fire and emergency drills | At least annually; 2 conducted in 2025 |
| Indicator | 2025 public disclosure |
| Confirmed corruption cases | 0 |
| Confirmed major whistleblowing cases | 0 |
| Anti-corruption training coverage | 100% |
| Employee integrity pledge signing rate | 100% |
| Information security incidents | 0 |
| Customer complaints | 0 major complaints |
| Supplier ESG self-assessment coverage (by purchase value) | 23.8% (purchase amounts not disclosed) |
| Supplier on-site audits / re-audits | 5 suppliers |
| Product SDS coverage | 100% |
| SVHC products identified and notified | 3 |
CHAPTER 06
As a chemical trading company with no manufacturing operations, Royalchem’s direct environmental footprint comes mainly from office operations, vehicle fuel, purchased electricity, water use and waste; the more significant indirect impacts arise from third-party logistics and the supply chain. The Company therefore focuses its environmental management on data accounting, product compliance, logistics emission management and supplier environmental performance.
| Policy / system | Main content |
| Environmental Policy | Environmental compliance, pollution prevention, resource conservation, continuous improvement |
| Energy Management Rules | Office energy saving, electricity monitoring, assigned responsibilities |
| Logistics and Air Pollution Prevention Policy | Transport-mode optimization, air-freight control, logistics emission management |
| Customer Health, Safety and Product Environmental Responsibility Policy | SDS, product compliance, hazard communication, customer technical support |
| Environmental Services and Advocacy Policy | Green product portfolio, greener alternatives for customers |
| Climate Change Response and Carbon Neutrality Commitment Policy | GHG inventory, reduction targets, green electricity coverage |
| HSE Management Manual | Health, safety and environmental management requirements |
The Company follows the GHG Protocol Corporate Accounting and Reporting Standard, using the operational control approach. The 2025 inventory covers the main office operations and the freight activities for which data is available. Scope 3 logistics emissions are calculated shipment by shipment; in 2025 the inventory covered 1,431 shipment records, using GLEC-recognized emission factors in accordance with ISO 14083.
| Scope | Emission source | 2024 tCO₂e | 2025 tCO₂e | Change |
| Scope 1 | Company vehicle fuel | 7.28 | 6.27 | Down |
| Scope 2 (location-based) | Purchased electricity | 7.43 | 10.28 | Up |
| Scope 2 (market-based) | Purchased electricity after GEC coverage | 7.43 | 0.00 | Down to zero |
| Scope 3.4 | Upstream transportation and distribution | 1,599 | 1,550 | Down |
| Scope 3.6 | Business travel | 8.94 | 13.15 | Up |
| Scope 3.7 | Employee commuting | 11.68 | 8.93 | Down |
| Total (market-based) | Main emission scopes | 1,634 | 1,578 | Down 3.4% |
Data note
• The 2024 Scope 3 logistics figure has been restated using the unified 2025 accounting boundary and transport-leg definitions, and therefore differs from the value disclosed last year. The restatement does not affect the completeness of the 2025 reporting-period data.
The Company purchased, in 2026, green electricity certificates (GECs) corresponding to its 2025 office electricity consumption, bringing market-based Scope 2 emissions to zero. It plans to maintain renewable electricity coverage in the coming years and to keep improving GEC record-keeping and verification. The certificates originate from the Hongtian photovoltaic power station in Shenmu, Shaanxi Province; the national-platform transaction number is N0012601000014379d, publicly verifiable on China’s national green certificate platform.
| Indicator | 2024 | 2025 | Note |
| Total electricity | 12,791 kWh | 17,703 kWh | Office electricity; 2025 usage returned to a normal level |
| Electricity intensity per employee | ~337 kWh | ~466 kWh | Estimated on annual workforce size |
| Vehicle fuel | 3,134 L | 2,702 L | Down year-on-year |
| Water consumption | 153.5 m³ | 120.81 m³ | Office domestic water |
| Renewable electricity coverage | 0% | 100% | Covered by GECs |
The Company is a pure office operation and generates no production-related hazardous waste. In 2025 it reduced the impact of general office waste through waste sorting, paper and plastic recycling, and the reuse or donation of retired office equipment.
Waste sorting and regular checks implemented at office locations.
Reuse of paper, plastics, packaging materials and idle office supplies promoted.
No production or chemical handling takes place on office premises, so no production-related hazardous waste is generated.
The Company’s direct air-pollutant emissions are low and come mainly from vehicle fuel. Indirect impacts arise chiefly from freight transport, especially air freight. The Company reduces these through transport-mode optimization, shipment consolidation, prioritizing sea and rail, cutting unnecessary air freight and engaging logistics partners. Shipment-level carbon accounting for 2025 shows that air freight accounted for only about 0.2% of total freight volume but contributed about 19% of logistics-related emissions. This disproportionate profile is the key focus of our logistics decarbonization work and the core rationale for continued modal optimization and air-freight reduction.
Product safety is a core responsibility of a chemical trading company. The Company maintains SDS for traded products and provides downstream customers with the necessary hazard communication, regulatory information and technical support.
100% SDS coverage: safety data sheets are maintained and regularly reviewed for all traded products.
REACH / SVHC compliance: SVHC screening and customer notification for relevant products entering the EU market.
In 2025, 3 SVHC products were identified and managed, with customer notification and compliance assessment completed as required.
The hazardous chemicals business license remains valid; no hazardous chemical samples or inventory are stored on office premises.
No major product-safety-related customer complaints in 2025.
The Company maintains a portfolio of bio-based, renewable-carbon and lower-impact products — for example bio-based surfactants, bio-based monomers, bio-based plasticizers and other degradable or low-impact solutions. In 2025 these products accounted for about 10.9% of purchase value. The public version does not disclose specific customers or purchase amounts.
Near-term (2025–2027): reduce Scope 1+2 emissions by 10% by 2027 against the 2024 baseline, while maintaining 100% renewable electricity coverage.
Mid-term (2028): reduce Scope 3 logistics emission intensity by 10% against the 2025 baseline.
Science-based targets: assess the feasibility of an SBTi commitment via the SME route, subject to management approval and external requirements.
Long-term vision: progressively strengthen emission management across office operations and logistics.
CHAPTER 07
Royalchem is committed to fair employment, a safe working environment and respect for human rights. The Company complies with Chinese labor laws and regulations, and continuously improves its labor and human rights management with reference to the ILO core conventions, the UN Guiding Principles on Business and Human Rights and the UN Global Compact principles.
| Policy / document | Coverage |
| Labor and Human Rights Policy | All employees and related personnel |
| Labor and Human Rights Implementation Rules | Recruitment, compensation, working hours, non-discrimination, grievance procedures |
| Occupational Health and Safety Policy | All office locations |
| Employee Handbook | Employee rights, obligations, discipline, benefits and grievance mechanism |
| HSE Management Manual | Health, safety and environmental management |
| Work Safety Emergency Response Plan | Office premises and related emergency management |
At the end of the reporting period the workforce within the organizational boundary was approximately 40 employees. Because customer questionnaires, supplier registration forms and international due-diligence forms may use different statistical scopes, this report does not disclose granular location or department headcounts.
| Dimension | Public disclosure |
| Workforce size | Approx. 40 employees |
| Contract type | Predominantly regular full-time employees |
| Female employees | Approx. 70% |
| Master’s degree or above | Approx. 30% |
| Age structure | Mainly 30–50 years old, with both younger and experienced employees |
| Locations | Mainly office locations in China, with overseas business support |
Equal pay for equal work: compensation is based on role, experience, performance and market benchmarks.
Non-discrimination: no differential treatment on grounds of gender, age, ethnicity, religion or family status.
Anti-harassment: zero tolerance enforced through training and reporting channels.
Family-friendly: statutory maternity leave, flexible arrangements and employee care implemented.
Social insurance and housing fund contributions made for eligible employees as required by law.
Supplementary medical insurance and annual health check-ups provided.
Holiday benefits, employee activities and team building organized.
Training, career development discussions and internal growth opportunities offered.
The Company’s operating environment is office-based: no production processes, no industrial machinery, and no chemical handling on office premises. It nonetheless manages occupational health and safety in line with the principles of ISO 45001:2018.
0 Work injuries 2025 | 0 Fatalities 2025 | 0 Lost-time incidents 2025 | 2 Fire drills 2025 |
Fire drills and emergency training organized.
Safety induction for new employees; hazardous-chemical safety and compliance training for relevant roles.
Emergency plans, emergency contacts and basic emergency supplies maintained.
Office environment and ergonomic risks monitored.
In 2025 the Company ran about 20 training sessions with more than 300 attendances in total, averaging about 20 training hours per employee.
| Category | Example topics |
| ESG / sustainability | EcoVadis, TfS, GHG inventory, UNGC learning, carbon footprint workshops |
| Environment | Energy saving, waste sorting, environmental policy |
| Occupational health & safety | Hazardous-chemical safety, fire drills, emergency response |
| Business ethics | Anti-corruption, gift policy, conflicts of interest, whistleblower protection |
| Labor and human rights | Labor rights, equal opportunity, anti-discrimination and anti-harassment |
| Chemical compliance | REACH, CLP, SVHC, GHS, SDS management |
| Information security | Data protection, account permissions, phishing awareness and NAS management |
In 2025 the Company organized a range of employee activities covering cultural celebrations, sports and health, team building, annual employee recognition and family-friendly events. The annual employee satisfaction survey showed an overall satisfaction level of about 85.8%.
| Salient issue | Where the risk sits | How it is managed |
| Forced labor in the supply chain | Upstream production | Supplier code of conduct, ESG self-assessment, on-site audits |
| Excessive working hours in the supply chain | Upstream production | Working hours and employee welfare reviewed during audits |
| Workplace harassment and discrimination | Company offices | Anti-harassment training, anonymous reporting channels |
| Product-safety impact on downstream users | Customer use phase | SDS, REACH/SVHC compliance, customer technical consultation |
| Data privacy and information security | IT and customer data management | Access control, encryption, training and confidentiality clauses |
CHAPTER 08
The Company applies a zero-tolerance policy toward corruption, bribery, fraud, money laundering and other unethical business conduct, and safeguards business integrity through policies, training, integrity pledges, whistleblowing mechanisms and internal oversight.
| Policy / document | Coverage |
| Business Ethics and Compliance Policy | Anti-corruption, anti-bribery, fair competition, gift management |
| Employee Business Ethics and Integrity Pledge | Signed annually by all employees |
| Whistleblowing and Grievance Protection Policy | Anonymous reporting, anti-retaliation, identity confidentiality |
| Information Security Management Rules | Data protection, access control, encryption, incident response |
0 Corruption cases Confirmed cases | 0 Major complaints Customer complaints | 100% Training coverage Anti-corruption training | 0 Security incidents 2025 |
Facilitation payments, bribes, kickbacks and any form of corruption are strictly prohibited.
Cash, shopping cards, vouchers, kickbacks and cash equivalents may not, as a rule, be accepted.
Low-value courtesy gifts must be transparent, moderate and traceable; gifts or hospitality above internal thresholds, or posing conflicts of interest, must be declared or declined.
Anti-corruption training and integrity pledges applied to high-risk roles in procurement, sales and finance.
Suppliers accept integrity requirements through the code of conduct and related commitments.
The Company provides reporting channels for employees, suppliers, customers and external stakeholders, via line managers, HR & administration, management or a designated mailbox. The Company protects the identity of good-faith whistleblowers and prohibits any form of retaliation. No confirmed major whistleblowing cases were received in 2025.
Role-based access control over customer, supplier, contract, financial and employee information.
Sensitive documents stored on the internal NAS or authorized systems, with permission management and backups.
Employees trained in data protection and cybersecurity awareness.
All contracts and customer data handled under confidentiality requirements.
No major legal or regulatory violations occurred in 2025. The Company conducts ongoing internal compliance reviews relating to REACH, GHS, SVHC, K-REACH and China’s hazardous chemicals regulations, and undergoes external ISO management-system audits.
CHAPTER 09
For a chemical trading company, the supply chain is where ESG impact is most concentrated. The Company integrates ESG criteria into supplier selection, onboarding, assessment, on-site audits, day-to-day cooperation and improvement follow-up.
Public disclosure approach in this chapter
• Supplier ESG coverage, audit counts, audit themes and improvement directions are retained.
• Supplier trade names, individual purchase amounts, total purchase value and other commercially structural information are not disclosed.
• Underlying supplier questionnaires, on-site audit forms, purchase-value calculations and corrective-action records are kept as internally controlled evidence and can be submitted separately to customers or the EcoVadis platform on request.
During new-supplier onboarding and the management of key suppliers, the Company requires suppliers to acknowledge and comply with the Supplier Social Responsibility Code of Conduct, the environmental agreement, the supplier management rules and related integrity requirements.
| Tier | Description | Public disclosure scale |
| Upstream | Chinese chemical producers and related service suppliers | ~50 annually active key suppliers |
| Royalchem | Sourcing coordination, SDS/regulatory compliance, logistics coordination, customer technical support | ~40 employees, office-based, no owned manufacturing plants |
| Downstream | Customers in pharmaceuticals, coatings, food additives, agrochemicals, materials and other industries | 25+ countries and regions |
In 2025, supplier ESG self-assessment and on-site audit coverage reached 23.8% measured by internal purchase value. The public version discloses only the coverage ratio and audit counts, not purchase amounts or supplier names.
| Supplier group | Share of purchase value | ESG self-assessment | On-site audit / re-audit | Disclosure status |
| Supplier A | >10% | Completed | Completed | Internal records |
| Supplier B | 5%–10% | Completed | Completed | Internal records |
| Supplier C | 1%–5% | Completed | Completed | Internal records |
| Supplier D | ~1% | Completed | Completed | Internal records |
| Supplier E | <1% | Completed | Completed | Internal records |
| Total | 23.8% coverage by purchase value | 5 suppliers | 5 suppliers | Aggregate disclosure only |
Audits covered environmental management, occupational health & safety, chemical handling, social responsibility, quality systems and business ethics.
Several suppliers hold ISO 9001, ISO 14001 and/or ISO 45001 certifications.
Minor improvement items identified — sub-supplier traceability, record completeness and continuous-improvement mechanisms — are tracked through corrective actions.
No material child labor, forced labor, major environmental violations or major occupational health & safety risks were identified.
Suppliers are segmented by purchase value, ESG risk profile (country, industry, product category), strategic importance and cooperation history. High-risk or high-impact suppliers are prioritized for ESG self-assessment, code-of-conduct confirmation, on-site audits or corrective-action follow-up.
Supplier Social Responsibility Code of Conduct and environmental agreement distributed to key suppliers.
Procurement and commercial staff trained on TfS, PCF and EcoVadis sustainable procurement requirements.
Supplier ESG performance factored into supplier evaluations and future cooperation decisions.
For products entering the EU market, the Company manages compliance risk through pre-shipment SVHC screening, regulatory support and customer notification. In 2025, 3 SVHC products were identified and managed, with customer notification and compliance assessment completed as required.
| Year | Target | Action |
| 2026 | Supplier ESG coverage 30%+ by purchase value | Engage the top-10 suppliers by purchase value; add 2–3 audits or re-audits |
| 2026 | Launch PCF data collection with key suppliers | Align with the TfS PCF guideline; pilot with key suppliers |
| 2027 | Supplier ESG coverage 35%+ by purchase value | Cover more high-impact suppliers; integrate ESG scores into sourcing decisions |
| 2027 | Logistics partner decarbonization | Engage main logistics partners on emission reduction and low-carbon transport options |
CHAPTER 10
The Company joined the UN Global Compact as a participant in 2025. As part of its annual Communication on Progress, this report presents its commitments and actions on the Ten Principles across human rights, labor, environment and anti-corruption.
| UNGC principles | Area | Royalchem actions | Section |
| Principles 1–2 | Human rights | Human rights policy, supplier code of conduct, human rights risk identification | 7, 9 |
| Principles 3–6 | Labor | Freedom of association respected; forced labor and child labor prohibited; anti-discrimination and equal opportunity | 7 |
| Principles 7–9 | Environment | ISO 14001, GHG inventory, GECs, green product portfolio, supplier environmental requirements | 6, 9 |
| Principle 10 | Anti-corruption | Zero-tolerance policy, whistleblowing mechanism, integrity pledges, training coverage | 8 |
In 2025, relevant staff completed UNGC online learning modules covering human rights, labor standards, environment, anti-corruption, and sustainability strategy and reporting; certificates are archived internally.
CHAPTER 11
The Company takes part in community and charitable activities within its capacity, focusing on education support, employee volunteering and environmental awareness. The public version does not disclose details involving personal privacy or partners’ sensitive arrangements.
Supported rural education infrastructure and school supply donation programs.
Encouraged employees to join charitable visits and volunteer activities.
Participated in industry exhibitions and exchanges, supporting capability building in the chemical industry.
Planned an Environmental Awareness Month covering office energy saving, environmental knowledge, plant adoption and outdoor environmental action.
CHAPTER 12
The Company has set the following ESG targets to guide continuous improvement in 2026–2028. Items marked "to be confirmed" are subject to internal approval, supplier cooperation or external verification; actual progress will be updated in future annual reports.
| Year | Area | Target | Status |
| 2026 | EcoVadis | Further improve EcoVadis performance, moving toward Gold level | In progress |
| 2026 | Supplier ESG | Supplier ESG assessment coverage of 30%+ by purchase value | Planned |
| 2026 | Public disclosure | Publish the public ESG report on the corporate website | In progress |
| 2026 | Renewable energy | Maintain 100% renewable electricity coverage via GECs | In progress |
| 2026 | Climate | Assess the feasibility of an SBTi commitment via the SME route | To be confirmed |
| 2026 | Assurance | Assess the feasibility of limited assurance on Scope 1+2 GHG data | To be confirmed |
| 2026 | Procurement | Pilot PCF data collection with key suppliers | Planned |
| 2027 | GHG | Reduce Scope 1+2 emissions by 10% against the 2024 baseline | Planned |
| 2027 | Supplier ESG | Supplier ESG assessment coverage of 35%+ by purchase value | Planned |
| 2027 | Logistics | Engage main logistics partners on decarbonization | Planned |
| 2028 | GHG | Reduce Scope 3 logistics emission intensity by 10% against the 2025 baseline | Planned |
| Ongoing | Safety and compliance | Maintain zero major work injuries, zero major environmental incidents, zero confirmed corruption cases | Ongoing |
CHAPTER 13
The Company discloses relevant information for the reporting period with reference to the GRI Standards 2021. As a privately held, non-manufacturing small chemical trading company, some detailed items are addressed through explanatory or aggregated disclosure.
| GRI disclosure | Title | Location |
| GRI 2-1 | Organizational details | 3 |
| GRI 2-2 | Entities included | 1 |
| GRI 2-3 | Reporting period, frequency and contact point | 1 |
| GRI 2-6 | Activities, value chain and business relationships | 3, 9 |
| GRI 2-7 | Employees | 7.2 |
| GRI 2-9 / 2-12 / 2-13 | Governance structure and responsibilities | 3 |
| GRI 2-22 | Statement on sustainable development strategy | 2 |
| GRI 2-23 / 2-24 | Policy commitments and their embedding | 6, 7, 8, 9 |
| GRI 2-26 | Mechanisms for seeking advice and raising concerns | 8.4 |
| GRI 2-29 | Stakeholder engagement | 4 |
| GRI 3-1 / 3-2 / 3-3 | Material topics | 4, 6–9 |
| GRI 302 | Energy | 6.4 |
| GRI 303 | Water | 6.4 |
| GRI 305 | Emissions | 6.2, 6.9 |
| GRI 306 | Waste | 6.5 |
| GRI 308 / 414 | Supplier environmental and social assessment | 9 |
| GRI 401 / 403 / 404 / 405 / 406 | Employment, OHS, training, diversity and non-discrimination | 7 |
| GRI 205 / 206 | Anti-corruption and fair competition | 8 |
| GRI 416 | Customer health and safety | 6.7 |
CHAPTER 14
| SDG | Royalchem’s contribution |
| SDG 3 Good Health and Well-being | Zero work injuries, supplementary medical insurance, annual check-ups, employee satisfaction programs |
| SDG 4 Quality Education | Employee training, rural education charity support |
| SDG 5 Gender Equality | High share of female employees, equal pay, anti-discrimination policy |
| SDG 7 Affordable and Clean Energy | Green electricity certificates covering office power, LED lighting, energy management |
| SDG 8 Decent Work and Economic Growth | Fair labor practices, training, anti-forced-labor, employee development |
| SDG 12 Responsible Consumption and Production | SDS coverage, product compliance, supplier ESG management, green product advocacy |
| SDG 13 Climate Action | GHG inventory, Scope 3 logistics tracking, reduction targets |
| SDG 16 Peace, Justice and Strong Institutions | Anti-corruption policy, whistleblower protection, business ethics training |
| SDG 17 Partnerships for the Goals | UNGC, EcoVadis, regulatory partners, supplier engagement |
Closing statement and disclaimer
• This report was prepared internally and reviewed by management. Unless otherwise stated, data refers to the reporting period January 1 – December 31, 2025.
• The information herein is believed accurate as of the publication date; any subsequent adjustments arising from changes in statistical scope, external factors, customer requirements or management boundaries will be explained in the next annual report.
• Detailed customer, supplier, purchase, contract, invoice, shipping and personal information is not disclosed in this public version; the underlying evidence is retained under internal control.
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