ESG Full-Link “De-Stigmatization” Transformation Solution

Addressing the “original sin” pain points of the e-cigarette industry such as health controversies, environmental pollution, and youth protection, we build a three-in-one ESG transformation system covering environment, society, and governance. From an environmental perspective, we focus on the circular economy: promoting recyclable product material design, adopting biodegradable plastic casings and recyclable charging modules, and achieving packaging reduction (reducing plastic usage by 30%); building a closed-loop recycling system for disposable e-cigarettes, cooperating with more than 200 regional service providers worldwide to set up recycling stations, and classifying and processing plastic casings, lithium batteries, and chemical residues to help enterprises achieve carbon neutrality goals in line with the EU Circular Economy Action Plan. From a social perspective, we strengthen responsibility boundaries: establishing a full-process youth protection mechanism, integrating multiple age verification systems (ID card + facial recognition) on online platforms, training offline retail terminals on strict age verification processes, and fully avoiding youth-induced elements in advertising and marketing; cooperating with public health organizations to fund long-term research on the health impacts of e-cigarettes, verifying harm reduction effects through third-party institutions and publishing reports to enhance social credibility; carrying out community feedback projects, launching “smoking cessation public welfare programs” in core markets, and providing rewards for successful quitters to weaken negative industry perceptions. From a governance perspective, we improve compliance transparency: establishing an independent ESG committee, linking compliance performance to executive compensation, and regularly releasing third-party audited ESG reports; improving the internal control system, standardizing “harm reduction” publicity rhetoric, eliminating false marketing, building a policy communication mechanism, and proactively participating in industry standard-setting, transforming from “passive compliance” to “active responsibility” to reshape the brand’s social image.