In the latest ESG rating results (October 31, 2025) released by China Securities Index, HitGen (688222.SH) received an A rating. Among listed companies in the life science tools and services sector, its ESG performance ranks at the forefront of the industry. Compared to the previous rating (July 31, 2025) of BB, the company achieved a significant leap in this period, showing marked improvement within the year.

In addition to the rating improvement, HitGen recently formally submitted a commitment letter to the Science Based Targets initiative (SBTi), pledging to set near-term science-based carbon targets that meet SBTi standards within two years. The company plans to develop and implement a series of emission reduction measures to cut greenhouse gas emissions across its entire value chain to levels consistent with the Paris Agreement’s 1.5°C temperature control goal. This move indicates the company is elevating climate issues from a “compliance matter” to a “long-term strategic issue.”

According to its inaugural (2024) sustainability report, the overall structure is relatively complete with a solid foundation for disclosure, though the ESG report has not yet undergone external assurance. During the period, the company identified and screened 20 key issues, including six “high-importance” topics: occupational health and safety, waste management, R&D and innovation, talent attraction and retention, product safety and quality, and intellectual property protection.

In terms of governance, the company has established an ESG working group, and a three-tier working system comprising the “Board of Directors—Strategy and Sustainability Committee (proposed)—ESG Working Group” is being refined. The company performed well in information disclosure, publishing a total of 39 announcements, 4 periodic reports, and 12 investor relations activity records in 2024, while responding to 17 investor inquiries via the SSE E-Interaction platform.

On the social dimension, the report covers R&D innovation, intellectual property, data security, technological ethics, employee training, and supply chain management. In 2024, the total number of employees was 483, with employee training coverage reaching 100% and an average training duration of 10.37 hours per person. The R&D team comprised 406 individuals, accounting for 84.06% of the workforce. R&D investment (funds related to technological innovation) amounted to RMB 67.3281 million, representing 15.77% of operating revenue. As of the end of the reporting period, the company had obtained authorization for 138 invention patents, with over 300 domestic and international invention patent applications still pending. No intellectual property disputes occurred during the year. In 2024, HitGen secured 32 authorized invention patents and submitted 27 new invention patent applications.

On the environmental front, the company had no relevant penalties or major negative news over the past three years. The report disclosed Scope 1 and Scope 2 greenhouse gas emission data, as well as basic indicators such as waste, water resources, and energy consumption. However, it lacks medium- to long-term quantitative targets at the climate strategy level. Against this backdrop, the SBTi commitment supplements the key “goals and pathways” component in its environmental governance, aiding in the systematic management of climate transition risks and signaling to investors and clients its intention to transition toward a low-carbon operational model.

The rating leap and SBTi commitment are important milestones, but the long-term creation of ESG value depends more on continuous execution and performance. Subsequent attention should focus on: (1) The substantive implementation of science-based carbon targets: whether SBTi target setting can be completed within the committed timeframe and verifiable emission reduction pathways established; (2) Enhanced data disclosure: adopting more comparable indicator units, adding historical data comparisons, and setting more forward-looking quantitative targets in subsequent reports.

Author：Qinger