Recently, JALA Group has officially released the 2022 JALA Group Sustainability Report (hereinafter referred to as the "Sustainability Report"), which comprehensively details the Group's continuous efforts in key areas such as environmental protection, social responsibility, and corporate governance (ESG). As a leading enterprise in the cosmetics industry, JALA has outlined in the report its perspectives on the social responsibilities it should undertake and the corporate values it aims to create, offering its own answers to these critical questions.
From Economic Value to Social Value
In 2004, the United Nations Global Compact introduced the concept of ESG (Environmental, Social, and Corporate Governance) in its report Who Cares Wins: Connecting Financial Markets to a Changing World, emphasizing that a company’s management of ESG issues is a critical component of its overall governance capabilities. Today, ESG and sustainability concepts have become an indispensable part of international corporate annual reports. In the fiercely competitive globalized landscape, robust ESG performance enables companies to demonstrate stronger management and risk resilience while gaining greater favor from consumers and investors.
As a leading cosmetics enterprise in China, JALA Group’s newly released Sustainability Report sets an industry benchmark for domestic companies. Advancing ESG initiatives is not only a response to global trends for JALA but also a means to realize its social value. In fact, JALA’s sustainability journey did not begin recently; the Group had already embarked on corporate philanthropy initiatives years ago.
In 2011, JALA established a strategic partnership with the United Nations Development Programme (UNDP) through an initial four-year collaboration, becoming UNDP’s first private enterprise partner in China. This innovative public welfare model aimed to preserve China’s ethnic minority cultures and boost regional economic development.
In 2015, JALA Group launched a conservation initiative for Yunnan’s native miniature roses, a precious botanical resource. Through space breeding, lab-cultivated seedlings, and batch transplantation, the Group spent years establishing the MAYSU Wild Rose Plantation in Yunnan Province.
In 2016, guided by sustainable development principles, JALA Group's CHANDO launched the Greening the Himalayas Public-Welfare Initiative. To date, the program has completed six phases of activities, planting a total of 4.66 million square meters of green barley grass in the Shigatse region of the Himalayas. The same year also marked the establishment of the CHANDO HIMALAYA Environmental Protection Fund, which had contributed CNY 22 million to Himalayan environmental initiatives by 2022.
"The responsibility of an enterprise is to create value for customers, employees, local economic prosperity, and social development, thereby fostering a harmoniously beautiful world where humanity, society, and the environment coexist. This is the true purpose of business." stated Zheng Chunying, Chairman and President of JALA Group.
Rooted in Products, Committed to Long-Termism
As a leading Chinese cosmetics enterprise with over two decades of history, JALA Group has anchored its sustainability journey in product innovation. By adopting advanced production technologies and energy-saving, eco-friendly solutions, the Group has taken pioneering steps in sustainable practices across product design optimization, green packaging, and sustainable raw material sourcing.
Take CHANDO, one of JALA’s flagship brands, as an example. The packaging for its SNOWY REGION LOTION line features the world’s first one-step injection-molded eco-friendly container. Developed by scientists from seven countries over a year, this design enhances production efficiency, reduces energy consumption, and cuts CO2 emissions by 90%. The CHANDO HIMALAYA GREEN TEA CLAY PURIFYING MASK utilizes tea extracts, freeze-dried tea powder, and tea residue, ensuring all materials are fully utilized in production with zero waste.
In ingredient innovation, JALA adheres to natural origins. After a decade of microbial research in the heart of the Himalayas, the Group developed the super yeast HiMurchaSin. This breakthrough ensures that all raw materials are converted into final products with near-zero emissions, achieving biodegradation through biological cycles.
Within its supply chain channels, JALA’s Supply Chain Center has implemented precision-driven solutions in planning, design, and execution. These efforts elevated the first-pass yield rate of products to 99.82%, while achieving 100% compliance in noise control standards and wastewater treatment efficiency.
According to the Sustainability Report, JALA’s advanced production technologies and management systems have enabled annual reductions of 23,000 metric tons in water usage and 2,300 metric tons in wastewater discharge. The annual electricity saved could power a household for 150 years, while replacing traditional cartons with JALA PPR boxes (polypropylene plastic reusable containers) has prevented the logging of 12,000 trees annually.
Employee development is also integral to JALA’s long-term vision. Since its establishment in 2001, the Group has consistently fulfilled its commitments to employees and consumers. By 2022, JALA has resolved housing issues for 111 employees, assisted 147 employees in obtaining local residency permits, distributed free products worth nearly RMB 300 million, spent over RMB 20 million on commercial insurance and health checkups, and provided travel allowances and holiday benefits totaling RMB 56 million.
From R&D and packaging innovation to production, supply chain management, and talent development, JALA has built a closed-loop corporate sustainability ecosystem. While the Group’s practices embody its own sustainability philosophy, its influence extends across the cosmetics supply chain as a whole. By leveraging its multi-brand portfolio, manufacturing facilities, and R&D centers, JALA is catalyzing industry-wide renewal through sustainable transformation.
Driving Digital Strategic Transformation
For cosmetics enterprises, sustainability is both a long-term vision and an evolving mandate. JALA’s response lies in digital transformation—a strategic pivot aligned with technological trends
The Sustainability Report underscores that corporate governance serves as the strategic foundation of ESG, with digital transformation being JALA’s primary vehicle for governance modernization.
In July 2020, JALA launched its digital transformation, pioneering the "One Inventory" model in the industry. Through three phases—business digitization, data-driven operations, and AI-powered marketing—the Group achieved its sales growth targets by 2022, with both online and offline channels reporting positive growth. This marked a milestone in JALA’s evolution into a digitally-driven biotech beauty enterprise.
By elevating digital transformation to a governance priority, JALA established a multi-tiered decision-making framework (covering strategic, supervisory, and operational layers) with clear accountability, significantly enhancing comprehensive governance capabilities. During this process, JALA was awarded the "2021 Shanghai Digital Transformation Excellence Award" by the Shanghai Municipal Administration for Market Regulation, setting an industry benchmark.
Today, JALA’s digital integration spans the entire business chain:
Over 80% terminal network online rate;
95% channel inventory visibility;
70% beauty advisor (BA) online engagement;
29.81 million registered members on digital platforms.
Ultimately, corporate sustainability hinges on viable business models and governance capabilities. JALA’s journey not only sets a precedent for domestic beauty enterprises but also raises the bar for its own growth. As Zheng Chunying, Chairman and President of JALA Group, reaffirms:
"Our vision remains unwavering—to become a sustainable, steadily growing, profitable, and socially responsible world-class consumer goods enterprise."