HyperStrong 2025 Sustainability Report: 8,607 tCO2e, No Scope 3, and a 2030 EU Carbon Deadline

Key highlights

• This is HyperStrong’s inaugural sustainability report and its first since listing on the SSE STAR Market in 2025. Under GRI 2-4 the company states there is no prior data to restate, so every table in the report is single-year — there are no comparatives anywhere.
• Total GHG emissions were 8,606.95 tCO2e (Scope 1: 755.32; Scope 2 location-based: 7,851.63), giving an intensity of 5.29 tCO2e per USD million of revenue. Scope 3 is not reported at all.
• The company set no carbon-neutrality year and no quantified emissions reduction target. Its 2025–2027 climate goals are qualitative: complete scenario analysis, complete annual carbon audits at all production bases, pursue carbon management certification, and advance product carbon footprint verification.
• Europe is named as the transition risk. The report’s own BNEF-based scenario finding is that failure to cut product lifecycle carbon by 2030 may trigger policy restrictions in overseas markets, “especially Europe.” A dedicated EU Battery Regulation task force was established in April 2025.
• Headcount was 1,418, of which 409 (28.84%) are R&D and technical staff and 308 (21.7%) are women. Employee turnover is not disclosed. HyperStrong obtained SA8000 certification in 2025 and joined the UN Global Compact.
• Assurance is moderate level and group-level only. SGS states the engagement did not trace all original data from subordinate institutions, and that the GHG data was adopted directly from a separate third-party verification and was not re-verified by SGS.

1. Environmental

1.1 Climate and emissions

HyperStrong reported total 2025 GHG emissions of 8,606.95 tCO2e, made up of 755.32 tCO2e of Scope 1 (gasoline and diesel combustion plus fugitive emissions) and 7,851.63 tCO2e of Scope 2 on a location basis (purchased electricity). Market-based Scope 2 was 7,475.20 tCO2e. GHG intensity was 5.29 tCO2e per USD million of revenue, consistent with the reported operating revenue of USD 1,625,668.21 thousand.

The inventory was prepared to ISO 14064-1:2018 and verified by an independent third party, with a verification statement obtained. It covers ten named entities: Beijing HyperStrong plus the Wuhan R&D centre, Nanjing new-energy subsidiary, Shanghai Fengguyuanchuang, Jiuquan engineering subsidiary, Shanxi Haiboxiachu, Inner Mongolia HyperStrong, Zhuhai engineering subsidiary, Beijing Hyperstrong Engineering Technology, and Beijing Zero-Carbon Detection Technology. The chairman’s statement says a group-wide carbon inventory has now been completed for three consecutive years, all third-party verified — but only the 2025 figures are published.

Two offsetting mechanisms are disclosed. HyperStrong bought 2,533 MWh of green certificates, which the report says offset 1,544.12 tCO2e, and purchased 1,000 tCO2e of Verified Carbon Units. Neither is deducted from the headline number: total emissions and intensity are both computed on the location-based Scope 2 figure.

On targets, the report is explicit about what it does not contain. There is no net-zero or carbon-peak year, no absolute or intensity reduction target, and no SBTi commitment. The 2025–2027 environmental objectives are process-based rather than numeric.

The company completed an ISO 14067 cradle-to-grave product carbon footprint study for its 5 MWh energy storage system, third-party verified with a verification statement. The resulting footprint value is not published. Nor is a zero-carbon factory certification; instead HyperStrong holds National Green Factory recognition for the Beijing base and Guangdong Provincial Green Factory recognition for the Zhuhai base, with production lines upgraded against the T/CSPSTC 51-2020 smart zero-carbon industrial park guidelines.

Climate governance runs Board → ESG Committee → ESG Working Group, with a stated 100% personnel coverage target for the climate governance framework in 2025, nine issues of an ESG Monthly Special Report, four on-site training sessions and more than ten online sessions. Eleven climate-related risks and opportunities were identified (seven risks, four opportunities) across short (under one year), medium (two to five years) and long (over five years) horizons. No significant climate risk events occurred in 2025. Reduction measures listed are EV replacement of gasoline vehicles, electric forklifts replacing diesel, green product design, supplier low-carbon training and environmental audits, logistics decarbonisation, and the certificate and VCU purchases above. HyperStrong also states a zero-deforestation commitment covering its own operations and its supply chain.

1.2 Energy

Total energy consumption was 2,521.28 tce in 2025, split between 502.81 tce of direct energy and 2,018.47 tce of indirect energy. Renewable energy accounted for 202.34 tce against 2,318.94 tce of non-renewable energy. Energy intensity was 1.55 tce per USD million of revenue.

By source, grid electricity was 1,816.13 tce, gasoline 222.66 tce (11,637.03 litres), natural gas 147.19 tce (121,212.12 m3) and diesel 132.96 tce (7,725.37 litres). In electricity terms, conventional electricity was 14,777.28 MWh and solar PV electricity 1,646.42 MWh — the report states that solar PV green electricity accounted for 10% of total electricity consumption in 2025. All of HyperStrong’s renewable energy is solar PV. Installed PV capacity and total PV generation are not disclosed, only the electricity consumed.

Energy management is certified to ISO 50001 and organised in four tiers led by top management. Eight energy-related risks and opportunities were identified during the year, and a digital energy management platform went live in 2025. Efficiency measures include electric forklifts, LED retrofits, a CTP-process line upgrade with magnetic drive lines, femtosecond welding and collaborative robot clusters, plus office air-conditioning limits of at least 26°C for cooling and no more than 20°C for heating.

1.3 Water and waste

Total water withdrawal was 42,109.19 tonnes, drawn entirely from the municipal network. The report describes water use as limited to domestic consumption plus a small volume of experimental testing water, with no material water impacts in 2025. Water discharge, water consumption and any recycling or reuse rate are not disclosed, despite the GRI index mapping disclosures 303-3, 303-4 and 303-5 to the performance table.

General solid waste totalled 1,988.08 tonnes with a stated 100% recycling rate. Hazardous waste was 43.54 tonnes, all handed to licensed handlers for disposal or utilisation; a hazardous waste recycling rate is not given. The 2025–2027 target is a waste resource utilisation rate of at least 90% at production bases.

The report states there are no organised exhaust gas emissions from production, with unorganised emissions limited to small amounts of non-methane hydrocarbons and particulates, and noise managed to GB 3096-2008 Class 3. Annual third-party pollutant testing was carried out at every base and all bases met national and local standards. There were no significant environmental emergencies in 2025. The company ran three corporate-level and twelve department-level environmental compliance training sessions and conducts quarterly internal environmental audits.

On hazardous substances, perfluorohexanone has replaced heptafluoropropane as the fire-extinguishing medium on lower global warming potential grounds, and all raw materials must comply with EU RoHS and REACH with supporting test reports or declarations of conformity. Circular economy measures follow 3R and Design for Recycling principles, including cascade reuse of packaging boxes and wooden pallets with a recycling ledger, a composite-material battery pack cover replacing sheet metal, and end-of-life product management through external partners. Biodiversity work is benchmarked to the UN SDGs and the UN Convention on Biological Diversity, with the Jiuquan standalone storage station given as a case study covering land levelling, revegetation and low-noise equipment.

2. Social

2.1 Workforce

HyperStrong employed 1,418 people at the end of 2025: 1,110 men and 308 women (21.7% female). By level, six were senior management — one of them a woman, 16.7% — with 159 in middle management and 1,253 frontline. By age, 462 were under 30, 921 between 30 and 50, and 15 over 50; the age split excludes the 20 foreign nationals for privacy reasons. Educational attainment was 21 doctorates, 392 master’s degrees and 1,005 bachelor’s degrees or below.

R&D and technical personnel numbered 409, or 28.84% of the workforce, of whom 208 (50.85%) hold a master’s degree or higher. New hires during the year were 523 men and 107 women. Five employees took parental leave. No turnover or retention rate is disclosed, even though the GRI index maps disclosure 401-1 — which covers both hires and turnover — to the performance table.

Training coverage was 100% across all genders and job levels, at an average of 23.47 hours per employee. Women averaged 25.40 hours against 22.93 for men; by level, frontline staff averaged 21.40 hours, middle management 38.50 and senior management 57.46. All employees (100%) received regular performance and career development reviews, and business ethics, ESG and privacy training all reached 100% coverage. The employee satisfaction index was 96.72%.

HyperStrong obtained SA8000 social responsibility certification in 2025 and maintains a Human Rights Policy referencing the Universal Declaration of Human Rights and SA8000, with prohibitions on discrimination, forced labour and child labour. It also joined the UN Global Compact as a participant. A digital learning platform hosts more than 300 courses across 17 sections including AI applications and ESG. An employee suggestion scheme delivered ten proposals worth roughly CNY 2.44 million in cumulative cost savings, with one proposal raising capacity efficiency by 12.5% and four replicated across bases. A graduate orientation held 9–11 July 2025 brought in close to 100 graduates, supported by a one-year Graduate Development Program.

2.2 Health and safety

HyperStrong reported zero significant safety or environmental pollution incidents, zero occupational disease cases to date, and zero administrative penalties in 2025. Four employee work-related injuries were recorded. The lost-time injury frequency rate was 1.57 per million hours worked against a 2025 target of 2, and the 2026 target has been tightened to 0.8. An explicit work-related fatalities count, lost days and a total recordable incident rate are not disclosed.

Safety management is certified to ISO 45001 and documented through an EHS Manual with nine secondary systems and eighteen tertiary rules. During the year the company ran 768 safety training sessions and 221 emergency drills, both at 100% coverage, plus 22 corporate-level EHS training sessions. Occupational health and safety training coverage was 100%. Thirty-nine employees work in occupational-hazard-exposed positions; all received check-ups and all results were normal. Free annual health check-ups cover all employees, supported by an employee assistance programme offering psychological counselling and a PSS stress scale assessment conducted in November 2025.

Total safety or EHS investment in currency terms is not disclosed. The only monetary safety figure given is more than CNY 70,000 paid out in hazard-reporting bonuses during 2025. The company’s stated goals are “zero accidents, zero injuries, zero risks” and “zero accidents, zero pollution, zero occupational diseases.”

2.3 Supply chain

HyperStrong worked with 165 key suppliers in 2025 — 154 in mainland China; 11 in Hong Kong, Macao, Taiwan and overseas combined. By region the split was East China 75 (45%), North China 43 (26%), South China 23 (14%), Central China 9 (6%), overseas 10 (6%), Southwest 2 (1%), Northwest 2 (1%) and Hong Kong/Macao/Taiwan 1 (1%). Supplier admission is audited across seven dimensions: business qualification, quality, delivery, cost, technology, service and ESG.

Sustainability indicators were used to assess 62% of new suppliers. In-depth ESG due diligence was completed on 103 high-risk suppliers with no serious issues identified. Due diligence frequency is annual for high-risk suppliers, every two years for medium-risk and every three years for low-risk, with at least one on-site audit a year for key suppliers alongside monthly and quarterly scoring and an elimination mechanism.

On responsible minerals, HyperStrong sent 103 surveys and received 76 responses. Forty-eight suppliers were identified as involved in critical minerals and 37 in conflict minerals, all stated to source from non-conflict areas. The company commits not to use cobalt, lithium or nickel from conflict zones and describes supply chain mapping and traceability work.

A Supplier Code of Conduct and a Sunshine Cooperation Agreement cover all suppliers, with confidentiality agreements signed with all suppliers and third-party providers. Procurement fairness questionnaires were distributed to 123 recipients, returning 100 valid responses (81%) with no non-compliance identified. There were no overdue payments to SMEs in 2025. The 2025–2027 targets are 100% ESG assessment coverage for core suppliers and a 100% integrity agreement signing rate.

3. Governance

3.1 Board and oversight

The board has nine directors, three of them independent (33.33%): Xiaochang Ren, Jianfei Shen and Yong Zhang. Directors serve three-year terms, and the Working Rules for Independent Directors state that, in principle, independent directors may serve concurrently on the boards of no more than three domestic listed companies, including HyperStrong itself. Board gender composition is not disclosed — the report names all nine directors with their areas of expertise but does not state how many are women, while separately setting a 2025–2027 target to increase board diversity.

Five board committees operate: Strategy and Development, Nomination, Audit, Remuneration and Appraisal, and ESG. The ESG Committee has three members — Jianhui Zhang (Chairman and General Manager), Peng Shu (Director and Deputy General Manager) and independent director Jianfei Shen. Jianhui Zhang also sits on the Strategy and Development Committee, alongside Hao Qian (Director and Deputy General Manager) and independent director Yong Zhang; the report lists committee members with their company titles but does not designate a chair for any committee. Sustainability governance runs Board (decision) → ESG Committee (supervision) → ESG Working Group (execution), the last drawing on HR, IT, Administration, Production Line, Supply Chain, R&D and Quality functions.

During 2025 the company held three shareholders’ meetings, seven board meetings and one special meeting of independent directors, all at 100% attendance. (The report’s own wording is “3 Shareholders’ Meetings, 7 Board of Directors meetings, 7 Board meetings, and 1 special meeting of Independent Directors”, listing seven board meetings twice under two labels.) Director and senior management training coverage was 100%, across nine specialised sessions and more than 23 person-times. Investor relations activity comprised 56 disclosure documents (4 periodic, 52 temporary), more than 45 responses on the SSE interactive platform, over 100 hotline calls totalling more than 450 minutes, and three investor earnings briefings.

Materiality was assessed on a double materiality basis across 19 topics, of which three were judged double material and 13 impact-material only.

3.2 Ethics and compliance

HyperStrong reported zero commercial bribery and corruption incidents, zero conflict-of-interest violations, zero data privacy incidents and zero marketing communication violation complaints in 2025. There were no external confirmed customer privacy complaints, no regulatory complaints and no confirmed data leakage, theft or loss.

Anti-corruption and business ethics training reached 100% of employees and management, and 100% of employees signed the Integrity and Self-Commitment Letter. The company joined the Enterprise Anti-Fraud Alliance. More than 20 internal audits were conducted across the group, and no material or significant internal control deficiencies were identified. Whistleblowing channels are jubao@hyperstrong.com for China, feedback@hyperstrong.com for overseas, plus a postal address for the Internal Audit Office — the number of cases received is not disclosed.

Information security is certified to ISO 27001, with compliance referenced against China’s Cybersecurity Law, Data Security Law and PIPL as well as the EU GDPR. More than 30 information security training sessions were held with 100% induction coverage for new hires, alongside two internal audits a year and an annual third-party ISO 27001 surveillance audit. The 2025–2027 governance targets are no major compliance penalties, no major information security incidents, 100% coverage of ESG risk identification with 100% annual rectification completion, and a stakeholder satisfaction survey score of at least 90.

4. Innovation

R&D investment was USD 42,545.84 thousand in 2025, carried out by 409 R&D and technical personnel representing 28.84% of the workforce, of whom 208 hold a master’s degree or higher. Cumulative authorised intellectual property rights reached 604, comprising 241 patents (112 invention, 99 utility model, 30 design) and 255 registered software copyrights. During 2025 the company was granted 166 new IP rights including 73 new patents (37 invention, 25 utility model, 11 design), and it has led or participated in more than 60 national, industry and group standards.

R&D is organised into four segments: Battery Energy Storage System Design, Medium Voltage Power Station Design, Full-station Design and HyperAICloud. HyperStrong operates three R&D centres (Beijing, Wuhan, Xi’an), two testing laboratories (Beijing, Zhuhai), an O&M centre in Nanjing and five smart manufacturing bases in Beijing, Jiuquan, Datong, Baotou and Zhuhai.

Academic collaboration runs through a Postdoctoral Research Station approved in November 2022 and partnerships with Tsinghua University, Beijing Institute of Technology and Zhengzhou University. Projects in 2025 included a Beijing Municipal Science and Technology Plan project and a China Postdoctoral Science Foundation General Grant, both as lead, and participation in a National Key R&D Program project on energy storage and smart grid technology. The Beijing Future Electrochemical ESS Integration Technology Innovation Center — established in August 2022 with ten research institutions and companies including Tsinghua, BIT, the China Electric Power Research Institute, Huaneng Clean Energy Research Institute and Three Gorges Research Institute — passed its final assessment in August 2025. Joint R&D centres with Zhejiang University cover SiC/GaN devices and power electronics topologies, and with Tsinghua cover grid-forming control, wide-frequency oscillation suppression and high-voltage large-capacity PCS. HyperStrong also formed a Solid-State Battery Energy Storage Technology and Industrial Innovation Alliance with Huaneng CERI.

On the product side, the report cites the HyperBlock M with an operating range of -45°C to 55°C. The Experimental Testing Center, operated by Beijing Zero-Carbon Detection Technology, holds dual CMA and CNAS accreditation and acts as a witnessing laboratory for several international certifications, including TÜV Rheinland witness certification obtained in 2021 and CSA certification in 2023. Test protocols are built on GB 44240-2024, GB/T 44026-2024 and GB/T 36276-2023.

Quality management is certified to ISO 9001, supported by more than 500 institutional documents, 700 form templates and 73 production process quality control documents, with 11 internal quality audits carried out across bases in 2025. The after-sales network covers 23 provinces, five autonomous regions and four municipalities through more than ten service centres and eight spare parts centres, on a 7x24 basis with a two-hour response, 24-hour solution and 72-hour resolution commitment. Large deliveries cited include 2,400 MWh in Inner Mongolia, 1,000 MWh in Gansu and 480 MWh in Chongqing.

5. What to watch

Europe named as the transition risk; footprint value and Scope 3 not published. HyperStrong’s own transition scenario analysis, run on BNEF New Energy Outlook pathways to 2030 and 2050, concludes that failure to reduce product lifecycle carbon emissions by 2030 may result in policy restrictions in overseas markets, “especially Europe,” increasing export costs. The company established an EU Battery Regulation task force in April 2025 for regulatory interpretation, compliance assessment and solution optimisation, and it operates offices in Frankfurt and Bologna — part of a wider overseas footprint that also covers Houston and San Francisco in the United States, Dubai, Manila, Sydney and Singapore. It has completed an ISO 14067 cradle-to-grave footprint for the 5 MWh system with a verification statement. The footprint value itself is not published, and Scope 3 is marked in the GRI index as “omitted due to confidentiality requirements” rather than not applicable.

Green certificate offsets and the location-versus-market Scope 2 difference are not reconciled. Market-based Scope 2 (7,475.20 tCO2e) is 376.43 tCO2e below location-based (7,851.63 tCO2e). Separately, the report states that 2,533 MWh of green certificates offset 1,544.12 tCO2e. A footnote does give the basis for the larger figure: it is calculated using the 2023 national average grid emission factor published by the Ministry of Ecology and Environment, excluding market-traded non-fossil electricity (2,533 MWh x 0.6096 = 1,544.1 tCO2e). The report does not explain why that 1,544.12 tCO2e sits four times above the 376.43 tCO2e difference between its own location-based and market-based Scope 2 figures (derived: 7,851.63 − 7,475.20), or which of the two represents the reduction achieved. Because headline emissions and intensity are both computed on the location-based figure, neither the certificates nor the 1,000 tCO2e of VCUs reduce the reported total.

No quantified carbon target is disclosed. The 2025–2027 climate objectives are all process commitments: complete an independent climate scenario analysis, complete annual carbon audits covering all production bases, promote carbon management certification for production bases, and advance product carbon footprint verification. No net-zero year, no carbon peak year, no absolute or intensity reduction percentage, and no SBTi validation. The chairman states a carbon inventory has been completed for three consecutive years, all third-party verified — so at least two earlier years of data exist internally, but they are not published.

Assurance scope and stated limitations. SGS-CSTC issued an AA1000AS v3 Type 2 opinion at moderate level, based on on-site interviews at the Beijing headquarters, concluding that the specified performance information is accurate, reliable and fairly stated. The statement records that SGS-CSTC was engaged to assure the Chinese version of the report; the engagement was restricted to group level and did not include traceability of all original data from subordinate institutions; financial and intensity data were not checked back to source; and the GHG data was adopted directly from a separate independent verification and was not double-verified by SGS. The statement was signed on 24 March 2026 and the report approved by the board on 27 April 2026.

Financial figures are USD-denominated with no exchange rate disclosed. Revenue of USD 1,625,668.21 thousand, net profit attributable of USD 133,167.15 thousand, R&D investment of USD 42,545.84 thousand and both intensity metrics are all presented in USD by a Beijing-headquartered issuer reporting in RMB to the SSE. No conversion rate or basis is given. The report is published in Chinese and English, with the Chinese version prevailing in the event of discrepancy.

Disclosure gaps against GRI indices mapped in the report. Water discharge and consumption are absent although GRI 303-3, 303-4 and 303-5 are mapped to the performance table; turnover is absent although GRI 401-1 is mapped. Board gender composition is not given despite a stated board diversity target. Hazardous waste recycling rate, lost days, an explicit fatalities count, total safety investment, whistleblowing case volume and on-site PV generation are all missing. The annual total compensation ratio (GRI 2-21), the basic salary and remuneration ratio of women to men (405-2), the share of senior management hired locally (202-2) and government financial assistance received (201-4) are all marked “omitted due to confidentiality requirements”. Entry-level wage ratios (202-1) are not omitted — the index maps them to the Employee Employment and Rights chapter — but no figure appears there either.

2026 LTIFR target compared with 2025 performance. LTIFR was 1.57 per million hours against a 2025 target of 2, with four employee injuries recorded. The 2026 target is 0.8, which is 0.77 below the 2025 outturn (derived: 1.57 − 0.8). The report does not state the measures by which the 2026 target is to be met. Related headline figures were zero significant safety incidents, zero occupational disease cases and zero administrative penalties.

Ratings and certifications disclosed. HyperStrong discloses a CDP Climate Questionnaire rating of B, a China Supplier ESG Rating of Five-Star Outstanding Enterprise, and BloombergNEF Tier 1 status held since 2024. MSCI, Sustainalytics and EcoVadis ratings are not reported, and PAS 2060 or carbon-neutral certification is not mentioned — HyperStrong’s FY2024 annual report states the company passed PAS 2060 carbon neutrality certification, but the sustainability report does not repeat it. Management system certifications are ISO 9001, 14001, 45001, 50001, 27001, 17025 and SA8000, the last obtained in 2025.

6. Sources