Sustainability at DEGSON
As low-carbon practices and intelligent technologies become deeply integrated, the rapid growth of electric vehicles, industrial automation and renewable energy is raising the bar for electrical connections that are both efficient and environmentally sound. As a provider of comprehensive industrial connector solutions, DEGSON believes that a company's value lies not only in delivering high-performance, high-quality products, but also in advancing sustainability across the entire value chain. This document outlines what DEGSON has achieved, and what it is working on, across the Environmental (E), Social (S) and Governance (G) dimensions.
ESG at a Glance
| Area | Key Facts (FY2025) |
|---|---|
| Environmental management | ISO 14001 certified since 2006 |
| Solar power | Approx. 1,480,000 kWh generated per year, 10% of total electricity use, approx. 844 t CO₂ avoided per year |
| Energy efficiency | All production equipment rated Grade 1 for energy efficiency; 122,400 kWh saved per year, approx. 70 t CO₂ avoided |
| Product carbon footprint | DGBSC-SG series EPD certified (EPD-IES-0027231:002) |
| Low-carbon materials | Bio-based material: 20% lower carbon emissions; post-consumer recycled material: 45.8% lower (DGBSC-SG series) |
| Occupational health & safety | ISO 45001 |
| Quality management | ISO 9001, IATF 16949 |
| Responsible sourcing | Conflict-free minerals policy; CMRT / EMRT available on request |
| Anti-corruption training | All employees and 100+ suppliers trained; 100% coverage |
| Laboratory accreditation | VDE-TDAP (Stage 3), UL-CTDP, CNAS |
| Intellectual property | 400+ proprietary patents; R&D investment growing 30% per year |
ESG at DEGSON
E – Green Manufacturing and Environmental Sustainability
Core objective: to pursue a low-carbon transition and build green factories. DEGSON has been ISO 14001 certified since 2006.
1.1 Carbon Reduction and Energy Conservation
Green Power: DEGSON has installed rooftop photovoltaic (PV) systems at its facilities to increase the share of clean energy. Across our three major production bases, which cover a combined 200,000 m², PV generated approximately 1,480,000 kWh in 2025, or 10% of total electricity consumption, avoiding approximately 844 tonnes of CO₂ per year.
Energy-Efficiency Upgrades: All DEGSON production equipment is rated Grade 1 for energy efficiency, and waste heat from air compressors is recovered. In 2025 these measures saved 122,400 kWh of electricity, avoiding approximately 70 tonnes of CO₂.
(Reporting period: FY2025. CO₂ reductions are calculated using the national average grid emission factor of 0.5703 kgCO₂/kWh published by China's Ministry of Ecology and Environment.)
1.2 Circular Economy and Low-Carbon Materials
Carbon Footprint Management: The DGBSC-SG series has obtained an Environmental Product Declaration (EPD), registration number EPD-IES-0027231:002, published through the International EPD System. Scan the QR code in this document to view the official record. Based on a Life Cycle Assessment (LCA), the EPD quantifies the product's environmental impact with carbon footprint as the core indicator, providing standardized, comparable and traceable data that equipment manufacturers can use in their own carbon footprint calculations.
Material Innovation: The DGBSC-SG series uses a bio-based resin material that lowers carbon emissions by 20%, and post-consumer recycled material that lowers carbon emissions by 45.8%. It also uses high-purity copper and imported stainless steel, all of which are recyclable. DEGSON is gradually extending these materials to housings and conductors in more product series.
Link 1 https://www.degson.com/content/details_472_5322215.html?lang=en
Link 2 https://www.degson.com/content/details_472_5322258.html?lang=en
The DGBSC-SG low-carbon terminal block series is DEGSON's flagship low-carbon product. Designed to be recyclable and low-emission, its environmental data is publicly disclosed through its EPD, helping customers reduce carbon emissions in their supply chains and supporting the circular economy.
Packaging and Waste Recycling: DEGSON is optimizing its product packaging in line with the EU Packaging and Packaging Waste Regulation (PPWR), helping customers worldwide reduce compliance risk.
1.3 Lead-Free Solutions
Under delegated directives amending Annex III of the EU RoHS Directive (2011/65/EU), exemptions 6(a), 6(b) and 6(c), covering lead in steel, aluminium and copper alloys, will expire or be tightened from 2027. DEGSON has developed the corresponding connector solutions and carried out extensive validation testing of new materials and processes, ensuring that its lead-free products reach the market safely and reliably.
S – People and Social Responsibility
Core objective: inclusive development and a better society.
2.1 Employee Rights and Occupational Health
Anti-Discrimination and Diversity: DEGSON follows international labor standards, prohibits child labor and forced labor, protects the rights of female employees and supports women's advancement into management.
EHS Management: DEGSON has implemented an ISO 45001 occupational health and safety management system and conducts regular company-wide safety drills, with a target of zero major safety incidents.
Employee Development: DEGSON trains employees through internal programs such as the DEGSON Corporate University and offers dual career paths in technical and management roles.
2.2 Responsible Supply Chain Management
Supplier Onboarding: DEGSON is integrating ESG criteria, including environmental compliance and human rights, into supplier onboarding and annual performance evaluations.
Conflict-Free Minerals: DEGSON applies a conflict-free minerals sourcing policy, traces the origin of metals such as gold, tantalum, tungsten and tin, and provides Conflict Minerals Reporting Templates (CMRT) and Extended Minerals Reporting Templates (EMRT) on request.
2.3 Industry-Academia Collaboration and Talent Development
DEGSON cordially invites universities to visit our company for an on-site inspection.
DEGSON Visits Two Universities in Wuhan to Deepen Industry-Academia Cooperation
Link 1 https://www.degson.com/content/details_472_5325744.html?lang=en
2.4 Customer First and Product Quality
DEGSON operates quality management systems certified to ISO 9001 and IATF 16949 (automotive quality management), and uses lean production to continuously reduce delivery defects, with zero-defect delivery as the target.
DEGSON conducts customer satisfaction surveys and operates a rapid-response mechanism for customer complaints, which it continues to improve.
G – Corporate Governance and Compliance
Core objective: to build on integrity and ensure steady, sustainable development.
3.1 ESG Governance Structure
DEGSON has established an ESG framework led by senior management, coordinated by an ESG Committee and implemented by cross-functional working groups.
3.2 Business Ethics and Anti-Corruption
DEGSON complies with the laws and regulations of every jurisdiction in which it operates and follows its Code of Business Ethics and Integrity Compliance.
All employees and more than 100 suppliers have completed anti-corruption training, achieving 100% coverage.
3.3 Global Compliance and Intellectual Property
DEGSON operates its own in-house laboratories, accredited under VDE-TDAP (Stage 3), UL-CTDP and China's CNAS. Its products comply with UL, VDE, TÜV, CE and CQC standards, as well as environmental requirements including RoHS 2.0, REACH and halogen-free specifications.
DEGSON's R&D investment is growing by 30% per year. The company continues to strengthen its patent portfolio while respecting the intellectual property of others, and currently holds more than 400 proprietary patents.
Ongoing Initiatives
The following initiatives are in progress. DEGSON will report on their progress regularly.
| Area | Current Status | Next Steps |
|---|---|---|
| Carbon accounting | Emission reductions from solar power and energy-efficiency measures are tracked | Complete Scope 1 and Scope 2 emissions accounting and set reduction targets |
| Low-carbon materials | Bio-based and recycled materials used in the DGBSC-SG series | Extend to more product series |
| Sustainable packaging | Packaging optimized in line with PPWR | Continue improving the environmental performance and compliance of packaging |
| Supplier ESG management | ESG criteria being integrated into onboarding and annual evaluations | Expand the coverage of supplier ESG assessments |
Certifications and Accreditations
| Certification | Description |
|---|---|
| ISO 14001 | Environmental management system, certified since 2006 |
| ISO 45001 | Occupational health and safety management system |
| ISO 9001 | Quality management system |
| IATF 16949 | Automotive quality management system |
| EPD | DGBSC-SG series, EPD-IES-0027231:002, registered with the International EPD System |
| VDE-TDAP (Stage 3) | Laboratory accreditation |
| UL-CTDP | Laboratory accreditation |
| CNAS | China National Accreditation Service for Conformity Assessment, laboratory accreditation |
Facing the challenges of climate change and industrial transformation, DEGSON will continue to invest in green processes, low-carbon materials and digital, intelligent manufacturing to build a more resilient and sustainable supply chain. Together with our customers, employees, suppliers and partners, we will drive industrial connectivity toward a more efficient and sustainable future.
About This Document
Reporting period: FY2025 (unless otherwise stated)
Scope: DEGSON's three major global production bases
